LIC’s new children money back plan (No.832)-Should you invest?

LIC New Children Money Back PlanLIC's new children money back plan (Table no.832) – Should you invest?

Few days back, LIC has introduced new children's money back plan Table no. 832. It is similar to the money back plan. I have received almost 25+ emails on this subject, whether this LIC new children money back plan is good or not. What are the features of this plan? Does death benefit and survival benefits secure your child's future with this new LIC money back insurance plan? Should you opt for LIC’s new children money back plan at all?

Features of LIC's new children money back plan

  • This is Non linked money back plan which is aimed Savings cum protection plan.
  • This plan is aimed to meet children education, marriage, etc.,
  • Life risk in this child plan is a child and not the parents.
  • Age of entry for child – Min 0 years and max 12 years.
  • Age of proposer / Parent / Guardian- Min 18 years and max 55 years
  • Term of insurance – 5 years to 20 years. However, children maximum age should be 25 by the time policy completes (e.g. If child age is 5, one can consider 20 year policy).
  • Minimum Sum Assured – Rs 1 Lakh
  • Max sum assured – No limit
  • Premium waiver benefit rider available
  • Loan facility available

Also Read: HDFC Click 2 Protect Plus Term Insurance Plan Review

Benefits of this new LIC children money back plan

a) Death Benefit

  • If death occurs before commencement of risk, i.e. within 8 years of age, of kid, all premiums paid  (excl taxes) would be payable.
  • If death occurs after the commencement of risk, i.e. after 8 years of age, of kid, Sum Assured and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.
  • This death benefit shall not be less than 105% of the total premiums paid as of the date of death.
  • If one opts for Premium waiver benefit rider and if a parent dies, kid will receive all survival benefits.

Sample illustration is shown below

LIC new money back plan death and surrender benefit Table no. 832

b) Survival benefits

  • Child completes 18 years – 20% of Basic Sum Assured is paid
  • Child completes 20 years – Another 20% of Basic Sum Assured is paid
  • Child completes 22 years – Another 20% of Basic Sum Assured is paid

c) Maturity Benefit

  • Maturity (25 years of age) – 40% of Basic Sum Assured along with accrued bonus and final additional bonus (if any) would be paid.

Sample Illustration continued below

LIC new money back plan survival benefit Table no. 832

What is LIC’s Premium Waiver Benefit Rider applicable in this plan?

LIC’s Premium Waiver Benefit Rider is available as an optional rider on the life of proposer aged between ages 18 to 55 years by payment of additional premium. In case of death of the proposer, the premiums under the basic plan falling due after the date of death shall be waived. The cost of medical and special reports shall be borne by the proposer. This rider shall not operate in the event of death of the proposer by his own hands, whether sane or insane within 12 months from the date of issuance of First Premium receipt or within 12 months from the date of revival.

Also Read: Should you opt for LIC e-Term Online Term Insurance plan?

How are the premiums for this LIC new money back plan?

Following are some of the sample tabular premium rates (exclusive of service tax) per Rs. 1000/- Basic Sum Assured

Age (in years) Premium (Rs.)

0                   44.15

5                  57.00

10                80.60

12                93.90

You can download brochure of this new LIC money back plan can be downloaded here

Should you invest in LIC’s new money back plan?

Money back plans generally provide 5% to 7% returns along with risk coverage. Here parents are proposers and child’s life is covered. No parent wants to take an insurance plan for their kid and wait for kid’s death to claim the insurance money. I can simply say this is Stupid plan introduced by LIC. I have indicated some of the top children's investment plans to invest in India earlier which you can consider them. Just ignore this LIC new child money back plan.

Readers, what is your view on this LIC’s new child money back plan?

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LIC's new children money back plan (Table no. 832)


  • santha subhash

    I want to invest 2 lakh to my child age is 6 1/2 year.  I like to open children's money back policy it is right or not

    • Hi Santha, Instead of money back policies, you can consider taking term plan and invest balance money in mutual funds. Since you are want to invest in lumpsum you can look for balanced fund like ICICI balanced fund or HDFC balanced funds

  • gppc

    2 year of my child i invest minimum 15000 pa up to 15 year and i want to rs. 3000000 pls .give me details in hindi if any plan .tell me now how it is possible.

  • Ravi Sejwal

    For Advisory in Delhi & NCR
    Please Contact us at
    Cell-9289423663, 01126666645

    You are like the “light”, if you are dead and gone,
    its going to be complete darkness for your “family”,
    I can provide the “light”, for your family.
    You can also ask for Mediclaim, Car, Bike, as well as fire, factory, cash, and house holds insurance etc.

  • K R R.Unni

    Accodng to my knowledge new children money back policy is good. Parents can encourage child to do higher studies . It will help the financial planning and guaranteed returns.

  • Prasad

    Every life, earning or not needs insurance. Is it cheap coz the child does not earn? Why do we ignore there waiver benefit here? Do u they they should just sell pwb without the original capital? Let’s be open minded not get bought by single point of view

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