Table of Contents
LIC Child Money Back Plan Calculator – Premium, Returns & Maturity
Calculate the returns and benefits of LIC's Child Money Back Plan to secure your child's future with periodic payouts for education and other needs.
Plan Details
Plan Returns
Payout Breakdown
Plan Benefits
Education Funding
Regular money back payouts at critical education stages (18, 20, 22 years).
Risk Coverage
Life insurance coverage for the parent with sum assured in case of unfortunate event.
Bonus Additions
LIC declares bonuses annually which get added to the final maturity amount.
Flexible Premiums
Choose premium payment terms suitable for your financial planning.
Planning for your child’s future requires careful consideration of various savings and investment options. The LIC Child Money Back Plan stands out as one of the most trusted individual savings plans in India, offering periodic money back and comprehensive financial protection. Understanding how the LIC Child Money Back Plan Calculator works is essential for parents looking to secure their child’s educational and marriage expenses through systematic installment payments.
What Is LIC Child Money Back Plan?
The LIC kid Money Back Plan, also known as LIC’s New Children’s Money Back Plan (Table No. 932), is a comprehensive savings plan created exclusively for kid policyholders. This money-back plan pays out survival benefits on a monthly basis, ensuring that funds are available when they are most needed for education and other vital goals.
The plan has a simple reversionary bonus structure, in which the kid policyholder receives money back at predetermined intervals over the policy term. The maturity benefit, as well as vested bonuses, are paid when the child policyholder reaches the end of the policy term. The plan provides financial protection through contract terms that guarantee payments even in adverse conditions.
Key Highlight: The LIC Child Money Back Plan offers one of the best combinations of protection and savings in the market, with guaranteed money backs ensuring liquidity at crucial life stages of the child.
How LIC Child Money Back Plan Calculator Works
The LIC Child Money Back Plan Calculator is a complex tool that assists parents in calculating the instalment premium, future instalment payments, and predicted maturity calculator results. The calculator takes various inputs and produces realistic forecasts of the money back plan returns, including simple reversionary bonuses and final additions.
When using the calculator, you enter basic information about the child policyholder, the desired sum assured, the premium payment method, and the policy duration. The calculator then calculates the required instalment amount, the repayment schedule, and the maturity paid-up sum. This aids in comprehending the total financial commitment and returns on the savings strategy.
Inputs for the LIC Child Money Back Plan Calculator
To utilize the maturity calculator properly, you must give many crucial inputs. The kid policyholder’s age is the most important criteria in determining eligibility and premium rates. The sum assured option influences the instalment premium calculation, whereas the payment method (annual, semi-annual, quarterly, or monthly) influences the entire cost due to different rate structures.
Additional factors include policy term selection, which normally spans between 13 and 25 years. The calculators also consider whether you want additional riders for added protection. Understanding these variables allows you to make accurate estimates for your own savings plan.
Age of Child and Policy Impact
The kid policyholder’s age has a considerable impact on premium rates and policy benefits. Children aged 0 to 12 are eligible for this plan, and younger enrollment ages typically result in lower monthly premium amounts. The insurance term is chosen based on the child’s present age and the parents’ financial planning objectives.
For example, if you begin the plan when your child is two years old and set a 25-year term, it would mature when the child reaches the age of 27, delivering funds just when they may need them for higher education or marriage. The maturity calculators use these age-term combinations to forecast proper maturity benefit amounts.
Explanation of Premium Payment Modes
The plan has flexible installment payment choices to accommodate a variety of financial situations. Payment options include yearly, half-yearly, quarterly, and monthly. Each payment method has a varied rate structure, with annual payments often being the most cost-effective alternative.
The minimum installment amount varies according on the selected sum assured and payment frequency. Monthly installments are convenient for paid persons, although yearly payments may be preferred by business owners with seasonal income. The premium is automatically adjusted by the calculator according on the instalment payment mode you chose.
Benefits of Using LIC Child Money Back Plan Calculator
Utilizing the LIC Child Money Back Plan Calculator offers numerous advantages for informed financial planning. The calculator provides instant visibility into future installment payments, helping you assess affordability before committing to the contract. It eliminates guesswork by showing exact money backs amounts and timing.
Accurate Financial Planning
The calculators provide precise projections of instalment premium requirements and expected proceeds, enabling better budget management for your child’s future.
Compare Multiple Scenarios
You can experiment with different sum assured values, policy terms, and payment modes to find the optimal combination for your financial situation.
Understand Returns
The calculator shows expected returns including simple reversionary bonuses and vested bonuses, helping you understand the value proposition.
Time-Saving
Instead of manual calculations or waiting for agent quotes, the calculator provides instant results for various scenarios.
LIC Child Money Back Plan Key Features & Benefits
The New Children’s Money Back Plan stands out due to its comprehensive benefits structure. The plan provides periodic money backs during the policy term, ensuring liquidity when your child needs funds for education or other purposes. These money backs are typically paid at 20%, 40%, and 60% of the policy term.
- Guaranteed money backs at predetermined intervals, providing regular liquidity
- Death benefit coverage ensuring the child policyholder receives full sum assured plus bonuses
- Premium waiver in case of parent/proposer’s unfortunate demise
- Participation in LIC’s profits through simple reversionary bonuses
- Loan facility against the paid-up value after the policy acquires surrender value
- Tax benefits under Section 80C on premium paid and Section 10(10D) on maturity benefit
- Flexible premium payment options, including monthly, quarterly, half-yearly, or yearly installments
- Option to add riders for enhanced protection at minimal additional cost
LIC Child Money Back Plan Eligibility Criteria
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The eligibility criteria for the LIC Child Money Back Plan are designed to ensure the plan serves its intended purpose of child welfare. Understanding these criteria is essential before using the calculator or applying for the plan.
| Criteria | Details |
|---|---|
| Child's Age (Minimum) | 0 years (for policies with term 25 years) |
| Child's Age (Maximum) | 12 years |
| Maturity Age | Maximum 25 years from date of commencement |
| Minimum Sum Assured | ₹1,00,000 |
| Maximum Sum Assured | No limit |
| Policy Term Options | 13, 16, 19, 22, or 25 years |
| Premium Paying Term | Limited premium payment (varies with policy term) |
LIC Child Money Back Plan Premium Calculator
The premium calculator functionality helps determine the exact instalment premium required based on your chosen parameters. The calculation considers multiple factors including the child policyholder age, sum assured, policy term, premium payment term, and chosen instalment payment mode.
The minimum instalment amount is determined by the sum assured divided by the payment frequency and adjusted for the rate applicable to the child’s age. For example, a higher sum assured naturally requires a higher instalment premium. The calculator also factors in any applicable discounts for higher sum assured amounts or specific payment modes.
Premium Calculation Factors: The instalment premium is influenced by the child’s entry age, selected sum assured, policy term, premium payment term, frequency of payments, and any optional riders added to the base contract.
LIC Child Money Back Plan Money Back Schedule
Understanding the money backs schedule is crucial for planning your child’s financial milestones. The New Children’s Money Back Plan provides periodic survival benefits at specific intervals, ensuring funds are available when needed most for the child’s education and development.
Survival Benefits Payout Structure
The survival benefits under this money back plan are structured to provide liquidity at strategic points during the policy term. Typically, the money backs are paid at 20%, 40%, and 60% of the policy term. Each payment equals 20% of the sum assured, providing substantial financial support.
For instance, with a 25-year policy term and ₹5,00,000 sum assured, you would receive ₹1,00,000 at year 5, another ₹1,00,000 at year 10, and ₹1,00,000 at year 15. These money backs can be used for school admissions, higher education expenses, or invested further for the child’s future needs.
Education & Marriage Benefit Timeline
The timing of money backs aligns perfectly with typical educational milestones. The first money back often coincides with primary to secondary school transition, the second with higher secondary or undergraduate education, and the third with postgraduate studies or professional courses.
Upon maturity, the child policyholder receives the maturity benefit which includes the remaining 40% of the sum assured plus all accumulated simple reversionary bonuses and final addition. This maturity paidup sum can be utilized for marriage expenses, business setup, or further investments, providing complete financial flexibility.
LIC Child Money Back Plan Maturity Calculator
The maturity calculator is a valuable tool for determining the total proceeds at policy completion. It calculates the maturity benefit, which includes the base sum assured component, all vested bonuses accumulated during the policy term, and any final or loyalty addition declared by LIC.
The maturity calculators consider the plan’s complete history, including all instalment payments, loans against the policy, and annual bonuses. The net claim amount is calculated after deducting any outstanding loan balances and unpaid premiums, where applicable.
When the insurance matures, the child policyholder receives the cumulative value that has accrued over time through systematic savings and bonus additions. This mature paidup sum is the result of years of diligent financial preparation and provides a sizable sum for the child’s future aspirations.
LIC Child Money Back Plan Bonus & Loyalty Additions
The bonus structure is an important component that boosts profits on this savings plan. LIC declares simple reversionary bonuses each year, which are added to the policy’s value. These reversionary bonuses are calculated per thousand sum assured and vest in the policy immediately following declaration.
In addition to regular bonuses, LIC may declare a final or loyalty extra upon claim settlement. This final bonus is often a percentage of the cash promised plus vested bonuses, and it greatly increases the overall return on the plan. The pace at which bonuses are declared is determined on the performance of LIC and its investment returns.
| Bonus Type | Description | Payment Time |
|---|---|---|
| Simple Reversionary Bonuses | Annual bonus declared per ₹1,000 sum assured | Vests annually, paid on maturity or death |
| Final Addition | One-time bonus at maturity or claim | Paid with maturity benefit or claim proceeds |
| Loyalty Addition | Additional bonus for long-term policyholders | Paid at maturity after completion of policy term |
LIC Child Money Back Plan Death Benefit Details
The death benefit provisions ensure that the kid policyholder receives complete financial protection even if the parent/proposer dies. This is a significant characteristic that sets this plan apart from traditional savings products.
If the parent/proposer dies during the policy term, the plan pays out the full sum assured plus all vested bonuses accumulated to date as claim proceeds to the child. Furthermore, any future installment premium payments are excused, allowing the policy to continue without any additional payments while preserving all advantages, including future money backs.
Important: The death benefit ensures that the child’s financial security is not compromised. The child policyholder continues to receive all scheduled money backs and the full maturity benefit as originally planned, without any reduction, even though no further premium is paid after the parent’s death.
LIC Child Money Back Plan Tax Benefits (Section 80C & 10(10D))
The tax benefits associated with this plan make it even more attractive for long-term financial planning. The instalment premium paid qualifies for deduction under Section 80C of the Income Tax Act, providing immediate tax savings in the financial year of payment.
Premium Deduction Under Section 80C
The premium paid towards the LIC Child Money Back Plan qualifies for tax deduction under Section 80C, subject to the overall limit of ₹1.5 lakh per financial year. This deduction is available to the person who pays the instalment premium, typically the parent or guardian.
For example, if you pay an annual instalment premium of ₹50,000, this amount can be claimed as a deduction from your taxable income, potentially saving you ₹15,600 in taxes (assuming 31.2% tax bracket). This reduces the effective cost of the plan significantly, making it a tax-efficient savings vehicle.
Tax-Free Maturity Under Section 10(10D)
The maturity benefit received from the plan is exempt from income tax under Section 10(10D), provided certain conditions are met. The entire maturity paidup sum including the sum assured, money backs received, and all bonuses are tax-free in the hands of the child policyholder.
Similarly, the claim proceeds received in case of death are also completely tax-exempt under Section 10(10D). This dual tax benefit at both entry (premium payment) and exit (maturity/claim receipt) makes the plan highly tax-efficient compared to other savings options where interest or gains are taxable.
LIC Child Money Back Plan Calculator – Sample Calculation
Let’s understand how the calculator works through a detailed example that illustrates the complete financial journey of the plan from inception to maturity.
LIC Child Money Back Plan Calculation Example
Consider a parent purchasing the New Children’s Money Back Plan for their 5-year-old child with the following parameters:
- Child Policyholder Age: 5 years
- Policy Term: 25 years
- Sum Assured: ₹5,00,000
- Premium Payment Term: 17 years
- Payment Mode: Yearly
- Assumed Annual Bonus Rate: ₹50 per ₹1,000 sum assured
Based on these inputs, the approximate annual instalment premium would be around ₹31,500. The child would receive money backs at years 5, 10, and 15 of the policy term (when the child is 10, 15, and 20 years old respectively).
Year-Wise Premium & Money Back Table
| Policy Year | Child Age | Premium Paid | Money Back | Accumulated Bonus* | Total Value |
|---|---|---|---|---|---|
| 1-4 | 6-9 | ₹31,500/year | - | Accumulating | - |
| 5 | 10 | ₹31,500 | ₹1,00,000 | ₹1,25,000 | - |
| 6-9 | 11-14 | ₹31,500/year | - | Accumulating | - |
| 10 | 15 | ₹31,500 | ₹1,00,000 | ₹2,50,000 | - |
| 11-14 | 16-19 | ₹31,500/year | - | Accumulating | - |
| 15 | 20 | ₹31,500 | ₹1,00,000 | ₹3,75,000 | - |
| 16-17 | 21-22 | ₹31,500/year | - | Accumulating | - |
| 18-25 | 23-30 | No Premium | - | Accumulating | - |
| 25 (Maturity) | 30 | - | - | ₹6,25,000 | ₹8,50,000** |
*Bonus amounts are illustrative and based on assumed rates. Actual bonuses depend on LIC’s declaration.
**Total maturity value includes remaining sum assured (40% = ₹2,00,000), accumulated vested bonuses (₹6,25,000), and final addition (assumed ₹25,000).
Total Premium Paid: ₹31,500 × 17 years = ₹5,35,500
Total Money Backs Received: ₹3,00,000
Maturity Benefit: ₹8,50,000 (approximately)
Net Total Benefit: ₹11,50,000
Effective Return: Approximately 7-8% CAGR
LIC Child Money Back Plan vs Other Child Insurance Plans
When comparing the LIC Child Money Back Plan with other child insurance plans available in the market, several unique features stand out. The combination of guaranteed money-backs, death benefit with premium waiver, and bonus participation makes it distinct from pure term plans or regular savings plans.
| Feature | LIC Child Money Back | Term Insurance | ULIP Child Plans |
|---|---|---|---|
| Periodic Money Backs | Yes - Guaranteed | No | No (only on maturity) |
| Premium Waiver on Death | Yes | N/A | Yes (in most plans) |
| Maturity Benefit | Guaranteed + Bonuses | No maturity benefit | Market-linked |
| Risk Profile | Low - Guaranteed returns | N/A | High - Market-dependent |
| Loan Facility | Available | Not applicable | Limited |
| Transparency | Clear bonus structure | Simple structure | Complex charges |
Why Choose LIC Child Money Back Plan for Child Education
Choosing the right plan for your child’s education requires considering multiple factors, including safety, returns, liquidity, and tax efficiency. The LIC Child Money Back Plan scores well on all these parameters, making it an ideal choice for conservative investors who prioritize capital protection.
The plan’s structure aligns perfectly with educational milestones. The first money back can fund primary to secondary school transition expenses, the second can support undergraduate education, and the third can help with postgraduate or professional courses. The maturity benefit provides a corpus for higher studies abroad or an initial career setup.
Moreover, the premium waiver benefit ensures that even in the parents’ absence, the child’s education plans are not derailed. The policy continues to receive all benefits without requiring any payment from the family, providing genuine financial security during difficult times.
Factors Affecting LIC Child Money Back Plan Returns
Several factors influence the overall return you receive from this individual savings plan. Understanding these factors helps in setting realistic expectations and making informed decisions.
Bonus Declaration Rate
The simple reversionary bonus rate declared by LIC annually directly impacts your returns. Historical bonus rates provide a good indicator but future rates depend on LIC’s investment performance and profitability.
Policy Term Selection
Longer policy terms generally result in higher accumulated bonuses and better overall returns due to the power of compounding over extended periods.
Payment Mode Choice
Yearly payment mode typically offers better value compared to monthly or quarterly instalments due to lower administrative costs and better rate structures.
Sum Assured Amount
Higher sum assured amounts may qualify for better rates and higher loyalty additions, potentially improving overall returns on the paid-up value.
Loan Taken Against Policy
If you take a loan against the policy’s paid-up value, the outstanding loan amount with interest rate charges reduces the net claim amount at maturity or death.
Premium Payment Regularity
Regular and timely instalment payment ensures the policy remains in force and qualifies for all bonuses. Lapsed policies or paid-up status may receive reduced benefits.
Common Mistakes While Using LIC Child Plan Calculator
Many parents make avoidable errors when using calculators or purchasing child insurance plans. Being aware of these common mistakes can help you make better decisions and avoid disappointments later.
Mistake #1: Ignoring Bonus Assumptions
Calculators often use historical bonus rates which may not reflect future performance. Always understand that reversionary bonuses are not guaranteed and actual returns may vary based on LIC’s future declarations.
Mistake #2: Not Considering Inflation
When calculating future education costs, many parents forget to factor in inflation. The money backs and maturity paidup sum should be evaluated in real terms, considering inflation’s impact on purchasing power over 15-25 years.
Mistake #3: Overlooking Payment Mode Impact
Choosing monthly or quarterly instalment payment options for convenience without understanding the higher effective rate compared to yearly payments can significantly increase your overall premium outgo over the policy term.
Mistake #4: Inadequate Sum Assured
Selecting a low sum assured to keep the instalment premium affordable often results in inadequate proceeds at maturity. Use calculators to determine the sum assured needed to meet your actual financial goals for the child.
Mistake #5: Not Comparing with Other Options
Relying solely on one calculator or plan without comparing with other investment and insurance options can result in suboptimal choices. Consider the plan alongside other savings and investment instruments for a holistic approach.
Mistake #6: Ignoring Policy Terms & Conditions
Not reading the complete contract terms, especially regarding paid-up status, surrender value, loan facility, and claim settlement procedures can lead to surprises when you need to access benefits or proceeds.
Final Thoughts
The LIC Child Money Back Plan offers parents a comprehensive solution for securing their child’s financial future, including guaranteed money backs, life insurance protection, and systematic savings. While calculators can help you understand premium obligations and predicted returns, the main value of the plan comes from the financial security and peace of mind it provides.
Before making a decision, consult numerous maturity calculators, compare the plan to other investing possibilities, and consider your family’s financial ability to pay the instalment premium over the payment term. Consult with a skilled financial advisor to confirm that this savings strategy is consistent with your overall financial objectives and risk tolerance.
Remember that the plan’s strength is not solely in its return rate or proceeds, but in its ability to ensure your child’s financial independence through a combination of periodic liquidity, death benefit protection, tax efficiency, and disciplined asset growth. The advantage of having a guaranteed corpus for your child’s education and marriage, backed by the trust and trustworthiness of LIC, frequently overcomes pure return comparisons with market-linked instruments.
Disclaimer: This article is for informational purposes only. Premium rates, bonus declarations, policy terms, and tax laws are subject to change. Please verify all details with LIC directly or through authorized agents before making any purchase decision. Past performance and historical bonus rates do not guarantee future results.