If you’re concerned about your children’s future and are looking for a safe, reliable, and profitable investment, there’s no need to invest in post offices or fixed deposits (FDs). LIC’s (Life Insurance Corporation of India) “New Children Money Back Plan” is a better and more sensible option. By saving just ₹150 per day under this plan, you can build a substantial corpus of approximately ₹19 lakh for your child. This amount will prove extremely useful for your child’s education, marriage, or any other major expense.

What is the LIC New Children Money Back Plan

This plan is specifically designed with children’s future in mind. Parents can start investing in it in the name of their children between the ages of 0 and 12. It is a non-linked, participating insurance plan that offers risk coverage, returns, and bonuses. The most important feature of this plan is its money-back feature, which means you get your invested amount back at a certain age as your child grows up.

How will you build a massive corpus of ₹19 lakh

If you save ₹150 a day, your monthly savings will be ₹4,500. Thus, your annual savings will be approximately ₹54,000. If you continue this investment for 25 years, your total deposit will be approximately ₹14 lakh. LIC also offers bonuses and returns on this plan, which can increase the total corpus to approximately ₹19 lakh at policy maturity. This huge amount will provide excellent financial support for major expenses like your children’s higher education, foreign studies, or marriage.

When and how will you receive the money

The most important feature of this plan is its money-back system. When the child turns 18, 20, 22, and 25, they begin receiving a portion of the sum assured back.

  • At the ages of 18, 20, and 22, you receive a 20% return of the sum assured.
  • At the age of 25, the remaining 40% is returned along with accumulated bonuses.

This ensures that your child receives financial support whenever they need it.

Easy Premium Payment and Insurance Benefits

Another major advantage of this plan is the flexibility in premium payment. You can pay premiums monthly, quarterly, half-yearly, or annually, depending on your budget. The minimum sum assured in this plan is ₹1 lakh, but there is no maximum limit. If the policyholder dies during the policy term, the nominee receives up to 105% of the minimum sum assured, plus accumulated bonuses. This makes this plan not only a profitable investment option but also provides protection.