The Life Insurance Corporation of India offers three savings plans, LIC Amritbaal, Jeevan Tarun, and New Children’s Money Back Plan, to help parents b…
1/6Planning for your child’s future often means preparing for major expenses such as higher education and marriage. If you are looking to build a ₹30 lakh fund over time, the Life Insurance Corporation of India (LIC) offers savings plans designed to meet children’s financial needs at different stages of life. These include LIC Amritbaal, Jeevan Tarun and New Children’s Money Back Plan. Here’s a look at how these three plans work, their benefits and the payout options available. However, a ₹30 lakh fund is a financial target, not a guaranteed payout under these plans. Actual benefits depend on the policy selected, Basic Sum Assured, premium, policy term and applicable bonuses.
2/61. LIC Amritbaal: Guaranteed additions every year – LIC Amritbaal is a savings and life insurance plan designed to help parents build a financial corpus for their children. Under this policy, LIC offers guaranteed additions of ₹80 for every ₹1,000 of Basic Sum Assured for each completed policy year. The plan is available for children aged 30 days to 13 years, and parents can choose a maturity age between 18 and 25 years. The final maturity benefit depends on the Basic Sum Assured, policy term and accumulated guaranteed additions.
3/62. LIC Amritbaal: How much can you accumulate? – The guaranteed additions under Amritbaal accumulate throughout the policy term. For instance, with a Basic Sum Assured of ₹10 lakh, the policy can accumulate guaranteed additions of ₹80,000 for every completed policy year. The longer the policy remains in force, the greater the accumulated additions. However, the final maturity amount depends on the policy terms, premium payment option and selected maturity age. Parents should check LIC’s official benefit illustration before estimating potential returns.
4/63. LIC Jeevan Tarun: Four payout options for parents – LIC Jeevan Tarun is a participating, non-linked savings and life insurance plan designed to meet children’s future financial requirements. It offers four survival benefit options, allowing parents to decide how much money their child should receive between the ages of 20 and 24. Depending on the option selected, parents can choose annual payouts of 0%, 5%, 10% or 15% of the Basic Sum Assured, with the remaining 100%, 75%, 50% or 25%, respectively, payable at maturity when the child reaches 25 years. Applicable bonuses may also be payable, subject to LIC’s declarations and policy conditions.
5/64. LIC New Children’s Money Back Plan: Money at 18, 20 and 22 years – LIC’s New Children’s Money Back Plan is designed for parents who want their children to receive financial support at different stages of life rather than waiting until maturity. Under this policy, 20% of the Basic Sum Assured is paid when the child reaches 18 years of age, another 20% at 20 years and a further 20% at 22 years. The remaining 40% is paid when the child reaches 25 years, along with applicable bonuses. This payout structure can help parents plan for education expenses and other important financial requirements.
6/65. Which LIC child plan should you choose? – All three LIC plans are designed to help parents prepare for their children’s future, but their payout structures differ. Amritbaal offers guaranteed additions throughout the policy term, Jeevan Tarun provides four options for receiving survival benefits between 20 and 24 years, while the New Children’s Money Back Plan offers payments at 18, 20 and 22 years, followed by the remaining maturity benefit at 25 years. Parents should consider the child’s age, investment budget, policy duration and expected financial requirements before choosing a plan. They should also check LIC’s official brochure and benefit illustration to understand the actual maturity benefits.