Why Start Early?
📉
Lower Premium
younger age = cheaper
📈
More Bonus
longer term = more accumulation
🎓
Perfect Timing
matures at college age
🛡️
Life Cover
protects the child's future
Best LIC Plans for Children — Compared
| Feature | 📈 Jeevan Labh
(736) ⭐ | 💰 Money Back
(721) | 🛡️ Endowment
(714) | ♾️ Jeevan Umang
(745) |
|---|
| Min Entry Age | 8 yrs | 13 yrs | 8 yrs | 0 (90 days) ✅ |
| PPT | Limited ✅ | = Term | = Term | Limited ✅ |
| Periodic Payouts | No | Every 5 yrs ✅ | No | 8%/yr after PPT ✅ |
| Loyalty Addition | Yes ✅ | No | No | No |
| Maturity Value* | Highest ⭐ | Medium | Good | Good + annual income |
| Best For | Max maturity, college fund | School fees, milestones | Simple savings | Lifelong income from birth |
*Approximate comparison for same SA and similar investment period. Actual maturity depends on LIC's declared bonus rates.
Goal Mapping — Which Plan for Which Goal?
🎓College Fund (Age 18-20)
Best: Jeevan Labh (736) — 25-year term/16-year PPT. Start at age 0-8, stop paying by age 16-24, maturity at 25-33. Highest maturity value with Loyalty Addition.
📚School Fees + College (Regular Cash)
Best: Money Back 721 — payouts every 5 years. Start at age 13, get ₹ at 18 (college), 23 (PG), 28 (marriage), 38 (final maturity).
💍Marriage Fund (Age 25+)
Best: Endowment 714 — 25 or 30-year term. Start at age 0-8. Simple, guaranteed lump sum at maturity. Low premium, good returns.
♾️Lifelong Income (From Birth)
Best: Jeevan Umang (745) — entry from age 0. Pay for 15-20 years, then child receives 8% of SA annually till age 100 + SA at maturity.
Worked Example — Start at Birth, ₹10L SA
📈 Jeevan Labh (736) — Child Age 0 → Maturity at 25
| Plan | Jeevan Labh (736), Term 25 / PPT 16 |
| Child's Entry Age | 8 years |
| Sum Assured | ₹10,00,000 |
| Annual Premium (approx.) | ~₹60,000 + GST |
| You Pay For | 16 years (age 8 to 24) |
| Total Invested | ~₹9,60,000 |
| Policy Matures At | Child's age 33 (25 yr term) |
| Maturity (approx.) | SA + Bonus + FAB + Loyalty Addition |
| TOTAL MATURITY | ~₹22-24L (tax-free) |
You invest ₹9.6L → Child receives ~₹22-24L (2.3-2.5x return), tax-free. Plus life cover of ₹10L throughout the term. If parent dies during term, nominee gets ₹12.5L + bonus immediately.
*Approximate estimates based on bonus rate of ~₹45/1000/yr. Actual amounts depend on LIC's declared rates.
5 Tips for Buying a Child Policy
1
Start ASAP — earlier = lower premium, more bonus, matures when child needs money most
2
Add Premium Waiver Rider — if parent dies/disabled, premiums are waived and policy continues. Essential for child policies!
3
Choose SA based on goal — ₹5L for school, ₹10-15L for college, ₹20L+ for marriage. Account for inflation
4
Choose limited PPT — plans like Jeevan Labh let you stop paying before the child starts earning
5
Combine with SIP — LIC for guaranteed base (fees you can't miss) + mutual fund SIP for growth component
💡 Expert Tip (Haresh Hirapara): In 20+ years of advising parents, my top recommendation for children is Jeevan Labh (736) with the 25/16 option. You pay for 16 years, and the policy runs for 25 years — accumulating bonus and Loyalty Addition for 9 extra years without paying. The maturity value is the highest among all LIC endowment plans. Critical tip: Always add the Premium Waiver Rider — if something happens to you, the policy continues for your child without any premium payment. Also, insure yourself first with a term plan before buying a child policy — your income is the real asset. Consult a financial advisor for the right combination.
Frequently Asked Questions
Which is the best LIC plan for children?+
Jeevan Labh (736) for maximum maturity.
Money Back 721 for periodic payouts.
Jeevan Umang (745) for lifelong income from birth.
Endowment (714) for simple savings. See our
Jeevan Labh Guide. Consult a financial advisor.
Can I buy LIC for a newborn baby?+
Yes — Jeevan Umang (745) accepts from age 0 (90 days). Jeevan Labh and Endowment accept from age 8. Parent is the proposer, child is the life assured. Premium is paid by the parent.
How much should I invest for my child?+
Aim for 10-15% of monthly income. For education: SA ₹10-20L gives approximately ₹20-40L at maturity. Monthly cost: ~₹4,000-5,000 for ₹10L SA. Start early for lower premiums. These are approximate amounts. Consult a financial advisor.
Is LIC better than mutual funds for children?+
LIC:
guaranteed, safe, tax-free (~5-6% IRR) + life cover. MF:
higher potential (10-12%) but risky. Best combo: LIC for the guaranteed base (fees you can't miss) + SIP for growth. See our
investment comparison. Consult a financial advisor.
What if the parent dies during the policy?+
Death benefit (1.25× SA + bonus) is paid to nominee/guardian. With Premium Waiver Rider, future premiums are waived and policy continues to maturity. This is why Premium Waiver Rider is essential for child policies. Consult your LIC branch.
When should I start a child policy?+
As early as possible — ideally at birth or first year. Earlier = lower premium, more bonus, matures when child needs money (age 18-25). Policy started at birth with 20-year term matures at 20 — perfect for college. Consult a financial advisor.
⚠️ Disclaimer
This article is for educational and informational purposes only. LIC-Calculator.com is not affiliated with LIC of India. Plan details, premium rates, and maturity amounts are approximate based on publicly available information. Actual eligibility, premiums, and returns depend on LIC's terms and declared rates. For official information, visit licindia.in.
This is not financial advice. Please consult a certified financial advisor before purchasing any insurance policy for your child.