Make their life happy
Last updated on: July 10, 2024

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Among many in the market, state-run insurer, and the leading player in the industry, LIC offers a variety of life insurance plans as per requirement and affordability of professional parents.

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Here is a list of Best LIC plans 2021 that is well suited for fulfilling the needs of your growing children

LIC’s child plans offers a combination of protection and savings. With rising uncertainties in life, especially after COVID-19, having an insurance cover has become imperative. There are various types of term insurance plans – pure term, endowment, limited pay plans, staggered payout plans, among others. It’s important to know about different insurance plans, especially for working professionals. It’s key to wisely choose the contours of a plan right at the start for things to move on smoothly thereafter.

Here we discuss some of the the best LIC plans for planning your child’s future.

LIC’s Children’s Moneyback Plan

LIC’s New Children’s Money Back Plan is a participating non-linked money back plan. This plan is specially designed to meet the educational, marriage and other needs of growing children through Survival Benefits. In addition, it provides for the risk cover on the life of child during the policy term and for number of survival benefits on surviving to the end of the specified durations. The plan can be purchased by any of the parent or grand parent for a child aged 0 to 12years.

Survival Benefit
On the Life Assured surviving the policy anniversary coinciding with or immediately following the completion of ages 18 years, 20 years and 22 years,20% of the Basic Sum Assured on each occasion shall be payable, provided the policy is in full force.

Maturity Benefit
On the Life assured surviving the stipulated date of maturity, provided the policy is in full force, Sum Assured on Maturity (which is 40% of the Basic Sum Assured) along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

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LIC’s JEEVAN TARUN

This one is a participating non-linked limited premium payment plan which offers an attractive combination of protection and saving features for children. This plan is specially designed to meet the educational and other needs of growing children through annual Survival Benefit payments from ages 20 to 24 years and Maturity Benefit at the age of 25 years. It is a flexible plan wherein at proposal stage the proposer can choose the proportion of Survival Benefits to be availed during the term of the policy as per the following four options:

Option Survival Benefit Maturity Benefit
Option 1 No survival benefit 100% of Sum Assured
Option 2 5% of Sum Assured every year for 5 years 75% of Sum Assured
Option 3 10% of Sum Assured every year for 5 years 50% of Sum Assured
Option 4 15% of Sum Assured every year for 5 years 25% of Sum Assured

Where, Survival Benefit is the annual payment of a fixed percentage of Sum Assured (as defined in the table above) every year starting from policy anniversary coinciding with or following the completion of 20 years of age and thereafter on each of the next 4 policy anniversaries and Maturity Benefit is a fixed percentage of Sum Assured (as defined in the table above) along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, on maturity.

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Benefits of LIC Child Plans at a glance

  • Guaranteed Return.
  • Low Premium with high return.
  • Flexible payment options.
  • You can pay the premium as yearly, half-yearly, quarterly, or monthly mode.
  • Loan available.
  • Return is Tax Free under 10(10(D)).