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 – ₹ 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 ₹. 1000/- Basic Sum Assured

Age (in years) Premium (₹.)

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

Suresh KP

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28 comments

  1. Hi, I have bought this plan of LIC for both of my kids. Although the writer is of the view that no parent will wait for the child’s death which is totally illogical to conclude. I would recommend this plan to all the new parents. As you all are aware that during the first 5 years of child which have very high risk, India is having very high mortality rates and new diseases outbreak keep happening in oversaturated urban indian cities with poor healthcare facilities. Hence, one should always cover the risk, as every life in important.

  2. Hai, can you tell me about this plan table no.832, if my daughter age is 8 years which policy is best tell me the details in terms of years

    Reply,

    Shailaja

  3. Hi. can you plz tell me about this plan table no 832. son’s age is two nd half yrs and father’s age is 35.S.A 100000.what would the premium of this policy… kindly tell me the procedure.

  4. sir,

    can you tell me details about plan 832

    for your reference

    farher age 45
    child age 11
    SA 100,000

    vikram.h.

  5. 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

    1. 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

  6. 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.

  7. For Advisory in Delhi & NCR
    Please Contact us at
    BRIJ INSURANCE CONSULTANCY
    LIC OF INDIA & INCOME TAX
    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.

  8. 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.
    Regards.

  9. 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

  10. Hi Suresh,

    My ctc is 5Lacs, and I am the only person working in my 5 member family, I have 3 year kid.
    I want to take a good LIC plan on me which is highly secure to my child. My knowledge is zero in investiments.

    Please suggest a good LIC and saving ways for my kid.

    Thanks,
    Ramesh

    1. Hi Ramesh, If you believe in LIC only, just opt for LIC Term plan. Alternatively you can consider HDFC Click 2 protect plus or ICICi term insurance plans

  11. Dear Sir, I am married and we will be having a baby in November this year. My CTC is 7 lakh and my husbands CTC is 6 lakh. We are 29 and do not have any investments or insurance plans apart from that provided by our companies. I would request you to guide me here. This is really important

    1. Megha, First of all congrats. Here are my suggestions 1) Consider term insurance plan for risk coverage as it comes with low cost. You can refer my top and best term insurance plans article posted last week 2) Start saving money and invest in mutual funds through SIP. If you have not opened MF account, approach fundsindia or icicidirect.com and open MF account. You can invest as low as Rs 500 per mutual fund scheme. Invest in atleast 5-7 mutual fund schemes in large cap and mid-cap segment. You can check top-10 mutual fund schemes article, link available in home page under top pages 3) Start recurring deposit with any bank where you have account which can be used for emergency money. All the best to you and your family

  12. Hi Sanyam,

    You are right, There is no point in buying insurance policy for children. It’s the earning member who need insurance, not the child. One should plan pure return based investment to secure child future. Mutual funds are best suitable product to achieve any long term goal.

    What do you say Suresh.

  13. Suresh sir, don’t get discouraged with these negative comments. Your views are 100% right and I can challenge any other readers, whethere there is any postiive in this plan. I know that agents get good commission for such idiotic insurance plans. Keep writing honest reviews like u are doing now. I know that websites like you are providing continous reviews of new policies and so much awareness is being created.

  14. Good news for this blogger…Pvt insurers introduced a Term plan where you pay zero premium and your insurance coverage is Rs 100000000000000000000000000000000000000000000000…….mind blowing…hts of CFPs of India….I bow to them …their wisdom

    1. Yes. Keep discouraging bloggers who are pinpointing these stupid policies. As a agent you may get good commission, but policy holders would loose money. We bloggers community dont care abt your nasty comments. We keep giving negative points which an investor or policy holder should know. Thanks for your time to criticise. Have a wonderful day.

  15. Hi Suresh,

    Thanks a lot helping the people in investment ideas. And I really appreciate straight Yes or No on the investments. Example in this LIC child money back 🙂

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