Best Child Investment Policies: Best Child Education Plans

The Life Insurance Corporation of India (LIC) is the oldest life insurance company in India having been formed in 1956. Till the year 1999, LIC enjoyed a monopoly position in the life insurance segment and so, it has the trust of millions of customers. LIC offers a range of life insurance plans ranging from term insurance to unit-linked and pension plans. Child plans are also offered by LIC which help you to create a secured corpus for your child’s future.

Importance of child plans

Every parent wants the best for their child, whether it is when the child is growing up or for their higher education. This can be ensured only when you have the necessary funds to back your child’s dreams. While you are alive, you can earn and save a corpus for your child’s future. But what happens in the case of your premature demise? Would you be able to create the desired corpus?

The premature death of the parent can put an end to the child’s dreams and this is where child insurance plans come to the rescue. They are also called child future plans as they help you secure a corpus for your child even when you are not around so that your child’s dreams can be easily fulfilled.

Key Features offered by LIC child plans

LIC child plans come with various benefits. It helps the parents to secure the future of their child. There are some key features every LIC child plan has:

1. The waiver premium benefit:
   This is the most important feature every LIC child plan has. While buying any child insurance plan, this is the key feature you should look out for. Waiver premium benefit is – if during the policy period, there is a demise of the policyholder (parent), the insurance company will pay the assured sum to the insurer (child) at the time of maturity. This feature guarantees a safe future for the child even after the parent’s unfortunate death.
2. High returns
   The return rate of LIC child plans is remarkable. Comparatively, it is much better than many other child insurance plans.
3. Partial withdrawal
   Parents often feel the need for surplus money from the assured funds to provide for their child’s current needs. LIC child insurance plans give this option to spend on a child’s needs and education at any phase of their life. 

Benefits of child plans

Here are some benefits that you can avail of if you invest in child insurance plans – 

1. Secured corpus for the child
   Child plans allow you to save your child’s future. Moreover, they have a death benefit which is a lump sum corpus on the death of the parent, if the parent is insured under the plan. This lump sum benefit gives financial assistance to the family and to the child. The benefit can be used to fund the child’s higher education or marriage as needed even in the absence of the breadwinner.
2. Premium waiver benefit
   Specialized child insurance plans either offer an inbuilt premium waiver benefit or an optional rider for the same. This benefit ensures that the plan is not disrupted even if the parent passes away during the policy tenure. If the parent is the policyholder and is responsible for paying the premiums, the premium waiver benefit waives off the future premiums if the parent dies. The plan continues unaffected and the child gets the promised maturity benefit. The premium waiver benefit, therefore, earmarks the plan for the child’s benefit whether the parent is around or not.
3. Different variants
   Child insurance plans come in different variants. You can buy an endowment policy or a money-back policy to guarantee benefits. On the other hand, if you don’t mind risks, you can also invest in market-linked ULIPs which give you attractive returns on your investments and allow you to create an inflation-adjusted corpus for your child.
4. Tax benefits
   Lastly, child insurance plans also allow you tax benefits while creating a corpus for your child’s future. The premiums that you pay, up to 10% of the sum assured, are allowed as a deduction under Section 80C of the Income Tax Act, 1961 up to a limit of INR 1.5 lakhs. Moreover, if you receive any maturity benefit or survival benefit (from money back plans), such benefits are also tax-free under Section 10(10D) if the premium paid did not exceed 10% of the sum assured. The death benefit is a tax-free benefit too thereby allowing you to create a tax-efficient corpus for your child.

Given these benefits, you should invest in a suitable child insurance plan for your child’s secured future.

Child plans offered by LIC

As mentioned earlier, LIC offers a range of insurance plans that you can choose for your child’s future. These plans can be taken either on your life or on the life of your child. Some plans require you to be a parent or a grandparent of a minor child while other plans can be taken even when you don’t have a child but you want to start saving for a child that you would have in the near future.

So, let’s have a look at the different types of LIC child plans –

Plans available for the parent or the child

1. LIC’s Bima Jyoti
LIC’s Bima Jyoti is a non-participating, non-linked, individual participating, life assurance savings plan which can be brought both online as well as offline.

Salient features of the plan

1. Guaranteed lump sum amount is paid if the life assured survives till the maturity of the plan
2. Loan facility is offered to allow you to avail of funds during the coverage tenure
3. Guaranteed additions are added @5% of the basic sum assured every policy year

Eligibility Conditions

Entry age	Minimum- 90 days Maximum- 60 years
Maturity age	Minimum- 18 years Maximum- 75 years
Sum assured	Minimum- INR 1,00,000 Maximum- No limit
Premium payment term	Policy term – 5 years
Policy term	Minimum- 15 years Maximum- 20 years

2. LIC’s Bachat Plus
LIC’s Bachat Plus is a non-linked, participating, individual life assurance savings plan which offers an enhanced corpus for your child’s future through bonus additions.

Salient features of the plan

1. Two optional riders are available for enhancing the coverage
2. You can avail of the maturity benefit in instalments through the settlement feature
3. Loyalty additions are added at the time of death or maturity

Eligibility Conditions

Entry age	Minimum- 90 days Maximum- 70 years
Maturity age	Minimum- 18 years Maximum- 80 years
Sum assured	Minimum- INR 1,00,000 Maximum- No limit
Premium payment term	Single or limited premium for a period of 5 years
Policy term	Minimum- 10 years Maximum- 25 years

3. LIC’s New Endowment plan
LIC’s New Endowment Plan is a participating, non-linked policy that allows you to save a corpus over a long term period.

Salient features of the plan

1. The plan provides an option to receive the death benefit either in instalment or in a lump sum
2. Attractive premium discounts are allowed for reducing the premium
3. Five optional riders are available with the plan on payment of additional premium for enhanced coverage

Eligibility Conditions

Entry age	Minimum- 8 years Maximum- 55 years
Maturity age	Maximum- 75 years
Sum assured	Minimum- INR 1,00,000 Maximum- No limit
Premium payment term	Policy term minus 5 years
Policy term	Minimum- 12 years Maximum- 35 years

4. LIC’s New Bima Bachat
LIC’s New Bima Bachat is a participating, non-linked, savings cum protection plan. This money back plan allows you to build a corpus with a one-time payment

Salient features of the plan

1. On maturity, the single premium is returned along with loyalty additions
2. There is a settlement option to receive the maturity benefit over a chosen period of 5 years, 10 years or 15 years instead of a lump sum 

Eligibility Conditions

Age at entry	Minimum- 15 days Maximum- 50 years
Age of maturity	Maximum- 75 years
Sum assured	Minimum- INR 35,000 Maximum- No limit

5. LIC’s Single Premium Endowment plan
LIC’s Single Premium Endowment Plan is a participating, non-linked, savings cum protection and with-profits plan which allows you to create a guaranteed corpus for your child.

Salient features of the plan:

1. Simple reversionary bonus and final bonus enhance the plan benefits
2. The plan takes care of the liquidity needs through its loan facility
3. It offers two optional riders to get comprehensive coverage on payment of additional premium. 

Eligibility Conditions

Age at entry	Minimum- 90 days Maximum- 60 years
Age of maturity	Minimum- 18 years Maximum- 75 years
Sum assured	Minimum- INR 50,000 Maximum- No limit
Policy term	Minimum- 10 years Maximum- 25 years
Premium payment mode	Single premium

6. LIC’s Jeevan Labh
LIC’s Jeevan Labh is a limited premium endowment plan that helps you create a corpus over a long term horizon.

Salient features of the plan

1. The plan provides an option to receive the death benefit or maturity benefit in equal instalments 
2. You can opt for up to five riders for enhanced coverage 

Eligibility conditions

Age at entry	Minimum- 8 years Maximum- 59 years
Age of maturity	Maximum- 75 years
Sum assured	Minimum- INR 2,00,000 Maximum- No limit
Policy term	16 years, 21 years and 25 years
Premium payment term	10 years, 15 years, or 16 years

7. LIC’s Aadhar Stambh
LIC’s Aadhaar Stambh is a non-linked,individual life insurance policy designed especially for males. Thus, fathers can opt for their child’s future planning.

Salient features of the plan

1. Loyalty additions are added to the sum assured after completion of the first 5 years of the policy
2. Premium discounts are allowed by the policy
3. You can receive the maturity benefit in instalments rather than in lump sum

Eligibility Conditions

Age at entry	Minimum- 8 years Maximum- 55 years
Age of maturity	Maximum- 70 years
Sum assured	Minimum- INR 75,000 Maximum- INR 3,00,000
Policy term	Minimum- 10 years Maximum- 20 years
Premium payment term	Same as the term of the policy

8. LIC’s Aadhaar Shila
LIC’s Aadhaar Shila is a participating life insurance plan exclusively designed for female lives. So, mothers can take the plan for their child’s future.

Salient features of the plan

1. You get loyalty additions that enhance the plan benefits
2. You can increase the coverage through an optional rider
3. Bonus additions help enhance the benefits in addition to loyalty additions 

Eligibility Conditions

Age at entry	Minimum- 8 years Maximum- 55 years
Age of maturity	Maximum- 70 years
Sum assured	Minimum- INR 75,000 Maximum- INR 3,00,000
Policy term	Minimum- 10 years Maximum- 20 years
Premium payment term	Same as the term of the policy

9. LIC’s Jeevan Umang
LIC’s Jeevan Umang is a non-linked, with-profit, whole life insurance policy which provides lifelong coverage.

Salient features of the plan

1. The plan pays annual survival benefits @8% of the sum assured after the expiry of the premium payment term till the maturity of the plan
2. You get premium discounts for paying annual or semi-annual premiums as well as for choosing a high sum assured level
3. You can customize the plan with an option of four rider benefits

Eligibility Conditions

Age at entry	Minimum- 90 days Maximum- 55 years
Age of maturity	Maximum- 100 years
Sum assured	Minimum- INR 2,00,000 Maximum- No limit
Policy term	100 years minus age at entry
Premium payment term	15 years, 20 years, 25 years and 30 years
Age at the end of premium paying term	Minimum- 30 years Maximum-70 years

10. LIC’s New Money Back plan- 20 years
LIC’s New Money Back plan is a participating, non-linked, limited premium insurance policy with a fixed term of 20 years. 

Salient features of the plans

1. The plan provides periodic survival benefits at specified durations during the term of the plan
2. Four optional riders are available with the plan at an additional premium 

Eligibility Conditions

Age at entry	Minimum- 13 years Maximum- 50 years
Age of maturity	Maximum- 70 years
Sum assured	Minimum- INR 1,00,000 Maximum- No limit
Policy term	20 years
Premium payment term	15 years

11. LIC’s New Money Back plan- 25 years
LIC’s New Money Back plan- 25 years is a protection cum money back life insurance policy with a fixed term of 25 years. 

Salient features of the plan

1. You get money back benefits at regular intervals which give you liquidity
2. You can get the benefit of settlement option to receive the maturity benefit in equal instalments

Eligibility Conditions

Age at entry	Minimum- 13 years Maximum- 45 years
Age of maturity	Maximum- 70 years
Sum assured	Minimum- INR 1,00,000 Maximum- No limit
Policy term	25 years
Premium payment term	20 years

12. LIC’s Bima Shree
LIC’s Bima Shree is a limited premium, participating, non-linked, and a money-back insurance policy which comes with a high sum assured.

Salient features of the plan

1. Guaranteed additions are added till the end of the premium paying term that enhance the corpus
2. You can defer the survival benefits to get enhanced benefits at a later date

Eligibility Conditions

Age at entry	Minimum- 8 years Maximum- 55 years
Age of maturity	Maximum- 69 years
Sum assured	Minimum- INR 10,00,000 Maximum- No limit
Policy term	14 years, 16 years, 18 years and 20 years
Premium payment term	Policy term minus 4 years

13. LIC’s Nivesh Plus
LIC’s Nivesh Plus is a unit-linked, single premium life Insurance policy with market-linked returns.

Salient features of the plan

1. The plan offers a choice of four investment options as per your risk appetite
2. Guaranteed additions as a fixed percentage of the premium shall be added to the unit fund after completion of specified durations
3. The plan provides two coverage options with the flexibility to choose the type of coverage that you need

Eligibility Conditions

Age at entry	Minimum- 90 days Maximum- 70 years
Age of maturity	Minimum- 18 years Maximum- 85 years
Sum assured	Minimum- 1.25 times the single premium Maximum – 10 times the single premium
Policy term	Minimum- 10 years Maximum- 25 years
Premium payment term	Single premium
Premium amount	Minimum- INR 1,00, 000 Maximum- No limit

14. LIC’s SIIP Plan
LIC’s SIIP is a unit-linked policy which allows you to create a market-linked corpus for your child’s future.

Salient features of the plan

1. The mortality charges are refunded along with the maturity benefit 
2. Guaranteed additions are added to the fund value at specified durations during the policy tenure
3. You can choose to receive the death benefit in instalments through the Settlement Benefit feature

Eligibility Conditions

Age at entry	Minimum- 90 days Maximum- 65 years
Age of maturity	Minimum- 18 years Maximum- 85 years
Sum assured	Up to 10 times the annual premium
Policy term	Minimum- 10 years Maximum- 25 years
Premium payment term	Same as the term of the policy
Premium amount	Minimum- INR 40,000 for yearly mode Maximum- No limit

15. LIC’s New Endowment Plus
LIC’s New Endowment Plus is a unit-linked, non-participating, endowment assurance plan which allows flexibility while creating a corpus for the child’s future

Salient features of the plan

1. The plan offers four types of investment funds to invest your premium 
2. You have the option to purchase LIC’s Linked Accidental Death Benefit Rider to enhance the coverage 

Eligibility Conditions

Age at entry	Minimum- 90 days Maximum- 50 years
Age of maturity	Minimum- 18 years Maximum- 60 years
Sum assured	Minimum- INR 20,000 for yearly mode Maximum- No limit
Policy term	Minimum- 10 years Maximum- 20 years
Premium payment term	Same as a term of the policy

Specialized plans for the child

LIC also offers two child-oriented life insurance plans that can be taken only by a parent or grandparent of a child and they insure the minor child. These plans are as follows –

16. LIC’s Jeevan Tarun
LIC’s Jeevan Tarun is a participating, non-linked, limited premium child insurance plan which offers money-back benefits.

Salient features of the plan: 

1. The plan offers four options to choose the proportion of the survival benefit that you want to receive
2. You can add the premium waiver rider at an additional premium
3. Mode and high sum assured discounts ensure affordable premiums

Eligibility Conditions

Age at entry	Minimum- 90 days Maximum- 12 years
Age of maturity	Maximum- 25 years
Sum assured	Minimum- INR 75,000 Maximum- No limit
Policy term	20 years minus age at entry
Premium payment term	25 years minus age at entry

17. LIC’s New children’s Money Back plan
LIC’s New Children’s Money Back plan gives money back benefits to meet important life stages of your child’s growth.

Salient features of the plan

1. Bonus additions enhance the maturity and death benefits
2. You can defer the money-back benefits to a later date to receive increased pay-outs
3. The death benefit can be availed in instalments

Eligibility conditions

Age at entry	Minimum- 0 years Maximum- 12 years
Age of maturity	Maximum- 25 years
Sum assured	Minimum- INR 1,00,000 Maximum- No limit
Policy term	25 years minus age at entry
Premium payment term	Same as policy term

How to buy LIC child plans?

You can buy any of the above-mentioned LIC child plans either online or offline. Let’s understand how –

1. Buying offline
   You can visit the nearest branch office of LIC and apply for any LIC child plan that you want to buy. Alternatively, you can get in touch with LIC’s agent or broker and invest in a suitable child insurance plan.
2. Buying online
   LIC offers a range of its child plans online. You can, therefore, visit the official website of LIC which is https://licindia.in/Products/Home.aspx, select the LIC policy for child that you want to buy, fill in an online application form, pay the premium online and invest in the plan.
   You can also compare the plans online and then choose. Then, provide your details so that you can be recommended suitable child insurance plans. You would, then, be able to check out child plans offered by leading insurance companies, including LIC. You can compare the available plans and choose LIC’s best child plan as per your coverage needs.

How to renew LIC child plans?

Renewal of LIC child education plans can be done online or offline just like buying the policy. For renewing offline, you can visit LIC’s branch office and submit the premium amount by cheque, cash or demand draft. You can also pay the insurance agent or broker for renewing the plan. Don’t forget to mention your name and policy number when renewing.

For online renewals you can simply visit https://licindia.in/Home/Pay-Premium-Online and either log into your online account or pay the renewal premium without logging in. enter your policy number and other details for verification and choose any digital premium payment option. Pay the premium online and your policy would be renewed instantly.

Why choose LIC child plans?

LIC has been a trust of millions of Indians for decades. For buying the best child plan, LIC offers some amazing choices. There are different types of plans and you can choose the best LIC policy for your child that you believe would fulfil your coverage requirements. LIC also offers attractive bonuses on its participating plans allowing you to create a considerable corpus over time. Its ULIP plans also offer attractive returns and different investment strategies to ensure that you get the best returns on your investment.

Lastly, LIC’s claim process is smooth and the company has a high Claim Settlement Ratio making it a trustworthy insurer for your coverage needs.

So, compare the different LIC child education plans available and choose the best policy for the security of your child’s future.