LIC New Children's Money Back Plan (Plan No. 732)

A non-linked, participating, regular premium payment money-back plan launched by LIC on December 31, 2024, designed to secure a child's financial future with periodic payouts and life cover.

Key Features

• Plan Type: Non-linked, participating, money-back plan.
• Policy Term: 25 years minus the child's age at entry.
• Premium Paying Term (PPT): Same as policy term (25 – age at entry).
• Sum Assured:
  • Minimum: ₹1,00,000
  • Maximum: No limit (in multiples of ₹5,000)
• Premium Payment Modes: Monthly, quarterly, half-yearly, or yearly.
• Survival Benefits: 20% of Basic Sum Assured at ages 18, 20, and 22.
• Maturity Benefit: 40% of Basic Sum Assured + bonuses at age 25.
• Premium Waiver Benefit Rider: Waives future premiums if the proposer dies.
• Loan Facility: Available after 3 years of premium payments.
• Surrender Value: Available after 3 full years of premium payments.
• Free-Look Period: 30 days.
• Grace Period: 15 days (monthly), 30 days (other modes).
• Tax Benefits: Premiums under Section 80C, benefits under Section 10(10D).

Benefits

Survival Benefits

20% of Basic Sum Assured paid at ages 18, 20, and 22. Option to defer payments with interest.

Maturity Benefit

At age 25:

• 40% of Basic Sum Assured.
• Vested Simple Reversionary Bonuses.
• Final Additional Bonus (FAB, if any).

Death Benefit

• Before Risk Commencement: Return of premiums paid (excluding taxes/riders).
• After Risk Commencement:
  • Sum Assured on Death (higher of 10x annualized premium or Basic Sum Assured).
  • Vested Simple Reversionary Bonuses.
  • Final Additional Bonus (FAB, if any).
  • Minimum 105% of total premiums paid.
• Premium Waiver Benefit: If opted, future premiums waived on proposer’s death.

Eligibility Criteria

Criteria	Details
Child’s Age at Entry	0–12 years
Policy Term	25 years – age at entry
Maturity Age	25 years
Proposer’s Age	18–55 years (max 70 years including term for rider)
Sum Assured	Min: ₹1,00,000; Max: No limit

Example Illustration

Scenario: Mr. Sharma buys the plan for his 5-year-old daughter, Nisha.

• Basic Sum Assured: ₹5,00,000
• Policy Term: 20 years (25 – 5)
• Premium Paying Term: 20 years
• Annual Premium: ₹29,500 (approx., excluding taxes)
• Assumed Bonus Rate: ₹42 per ₹1,000 of Basic Sum Assured (illustrative)

Calculations

Total Premium Paid: ₹29,500 × 20 = ₹5,90,000

Survival Benefits

• Age 18 (Year 13): 20% of ₹5,00,000 = ₹1,00,000
• Age 20 (Year 15): 20% of ₹5,00,000 = ₹1,00,000
• Age 22 (Year 17): 20% of ₹5,00,000 = ₹1,00,000
• Total Survival Benefits: ₹3,00,000

Maturity Benefit (Age 25, Year 20)

• 40% of Basic Sum Assured: ₹2,00,000
• Simple Reversionary Bonus: ₹42 × 500 × 20 = ₹4,20,000
• Final Additional Bonus (FAB, assumed): ₹1,00,000
• Total Maturity Benefit: ₹7,20,000 (approx.)
• Total Benefits (Survival + Maturity): ₹10,20,000 (approx.)

Death Benefit (Year 10, Age 15)

• Sum Assured on Death: ₹5,00,000 (higher of 10x ₹29,500 or ₹5,00,000)
• Simple Reversionary Bonus: ₹42 × 500 × 10 = ₹2,10,000
• Final Additional Bonus (FAB, assumed): ₹50,000
• Total Death Benefit: ₹7,60,000 (approx.)

Note: Bonus rates and FAB are illustrative and depend on LIC’s performance. Verify with LIC for accurate calculations.

Additional Notes

• Premium Waiver Benefit Rider: Waives premiums if proposer dies, ensuring all benefits continue.
• Surrender Value: Available after 3 years (higher of GSV or SSV).
• Loan: Available after 3 years based on surrender value.
• Suicide Clause: 80% of premiums paid or surrender value returned if proposer commits suicide within 12 months.
• Vesting: Policy vests in the child’s name at age 18.

How to Purchase

Suitability

Ideal for parents planning for their child’s education, marriage, or financial security with life cover and tax benefits.

Disclaimer: Information is based on available data as of June 28, 2025. Verify details with LIC or an authorized agent before purchasing.