Product Brief: LIC’s New Children’s Money Back Plan (Plan 732)
LIC’s New Children’s Money Back Plan (Plan 732) is a participating (with-profits), non-linked, individual life insurance savings plan. It’s tailored to support children’s future financial milestones—like education or marriage—through a combination of protection and periodic returns.
The LIC New Children’s Money Back Plan (Table No. 732) is a specially designed life insurance plan from the Life Insurance Corporation of India, created to secure the financial future of children while providing a unique blend of savings and protection. This is a participating, non-linked, money-back plan that allows parents and grandparents to ensure that their children’s major life milestones, such as higher education, professional training, or marriage, are financially supported without creating a burden. The plan is available for children aged between 0 and 12 years, and the policy term, as well as the premium payment term, is fixed as (25 minus the age at entry), ensuring that the policy matures when the child turns 25 years of age. The plan offers structured benefits in the form of survival payouts at crucial stages of the child’s life, providing 20% of the Basic Sum Assured each when the child attains the ages of 18, 20, and 22. On maturity at age 25, the remaining 40% of the Basic Sum Assured, along with vested Simple Reversionary Bonuses and a possible Final Additional Bonus, are paid, creating a substantial financial resource to support long-term goals. Alongside survival and maturity benefits, the plan also ensures robust death benefits. If the child unfortunately passes away before the commencement of risk (which typically applies to children below the age of 8), the premiums paid are returned to the proposer. However, once the risk has commenced, the nominee is entitled to the higher of the Basic Sum Assured or 10 times the annualized premium, along with bonuses, subject to a minimum of 105% of the total premiums paid. This ensures that the child’s future is protected regardless of uncertainties. The plan also includes flexibility features like the Premium Waiver Benefit Rider, which ensures that in case of the proposer’s untimely death, all future premiums are waived, but the child continues to enjoy full policy benefits. Other value-added features include the loan facility, available after the payment of at least three years of premiums, the option to defer survival benefits for enhanced payouts, and the provision of surrender value after a minimum payment period. Premiums can be paid in yearly, half-yearly, quarterly, or monthly modes, giving policyholders convenient options to match their financial capacity. The plan also provides tax benefits, with premiums eligible under Section 80C of the Income Tax Act, while the survival, maturity, and death benefits qualify for exemption under Section 10(10D), making it financially efficient. In addition to protection and savings, the plan participates in LIC’s profits, ensuring that policyholders benefit from Simple Reversionary Bonuses declared over time, further enhancing returns. With its goal-based structure, tax advantages, guaranteed survival payouts, and optional riders, the LIC New Children’s Money Back Plan is an ideal combination of risk cover and savings, offering peace of mind to parents and guardians who wish to create a secure, planned financial path for their child’s future milestones.
Premium Payment Mode
Yearly, Half yearly, Quarterly, Monthly (ECS)
Term
25 Years
Minimum Entry Age
90 Days Completed
Maximum Entry Age
12 Years Nearest Birthday
Maximum Maturity Age
25 Years Nearest Birthday
Minimum Sum Assured
2,00,000
Maximum Sum Assured
No Limit (Depend on Income of Policy Holder)
NO Accidental Death Disability Benefit Rider
Loan / Surrender
The Policy can be surrendered at least 2 full year premium have been paid. The Guaranteed Surrender Value shall be the percentage of total premium Paid. Loan also can be paid after 2 years premium paid
Income Tax benefit
Premium Paid under this Plan is eligible for TAX rebate under Sec 80C and Maturity is also free from Tax under Sec 10(10D
Death Benefits
Benefits payable on death Basic Sum Assured + Bonus and final addition Bonus