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What are the Best LIC Child Plans? (Best Plans & Their Benefits)

Making provisions for securing the child’s future is the responsibility of parents. Taking up the right investment plans that can help the child to fulfill his long-term financial need is extremely important in today’s world when the expenses are increasing rapidly.

To serve this need, the leading and the most trusted name in the insurance industry of India, LIC offers various policies.

In this article, you’ll get to know about the Best LIC child plans that can help you plan better for your child’s future.

Given below are some of the Best LIC child plans:

1. LIC Jeevan Tarun

This plan is a participatory non-linked limited premium payment plan. It offers the combined benefit of savings and insurance for children. LIC Jeevan Tarun Plan is made to meet the educational and other financial needs of growing children. This plan can be taken by a parent or grandparent for a child between the age of 0-12 years of age. The age of maturity for this plan is 25 years. The premium payment term can be 10 years, 5 years or below 5 years.

The tenure of this plan is dependent on the age of maturity of the child. For example, if Sahil’s father takes the plan when he is 9 years old, the tenure of his policy will be 25-9=16 years

2. Survival Benefit

This plan offers an annual survival benefit from the ages of 20 to 24. A fixed percentage of the sum assured will be paid on each policy anniversary coinciding with or immediately following the completion of 20 years of age. Hence it will be paid for the next four policy anniversaries. The policyholder can choose the percentage of the sum assured they would like to receive as the survival benefit.
The options are given below:


Percentage of Sum Assured to be Paid as Survival Benefit

Option 1


Option 2

5% each year

Option 3

10% each year

Option 4

15% each year

Maturity Benefit

If the policyholder survives during and past the tenure of the policy, a fixed percentage of the Sum Assured will be paid on maturity. The age of maturity is 25 years old. The fixed percentages can be chosen from the options given below:


Percentage of Sum Assured to be Paid as Maturity Benefit at Maturity Age

Option 1


Option 2


Option 3


Option 4


Death Benefit

In case the life assured passes away, the death benefit is offered as:

  • If the Life Assured dies before the commencement of risk, the full amount of the premium paid till date excluding the taxes, extra premium (and rider premium, if any) will be paid to the beneficiary without interest.
  • If the Life Assured dies after the commencement of risk, the death benefit offered will be the total “sum assured on death”. It will also have the vested reversionary bonus and final additional bonus that will be paid to the beneficiary.

The Sum Assured on death is higher of:

  • 125% of the Total Sum Assured
  • 7 times the Annualized Premium

The death benefit that is offered to the beneficiary should be 105% of the total premium that is paid till date.

Sample Premium Rates

Given below are the rates according to the options in Rupees if the Sum Assured is Rs.50,000.

Age (in Years)

Option 1

Option 2

Option 3

Option 4





















3. LIC New Children’s Money Back Plan

This plan is one of the best LIC Child plans. It is a traditional money-back plan that is designed to fulfill the needs and requirements of the child when he/she grows up. These financial needs could be anything from educational needs to marriage. Along with survival benefits, this plan also offers risk cover for the life of the child throughout the policy period.
This plan can be bought by the parent or grandparent of the child aged between 0 to 12 years of age. The term of this plan is ‘age of maturity (25 years) – age of starting the policy’. The premium payment term can be 7 years, 10 years or a term below 5 years.
There is also an option of choosing the LIC Premium Waiver Benefit Rider. This means that if the proposer passes away, the rest of the premiums will be waived off. Know more about insurance riders.

Survival Benefit

The Life Assured will receive 20% of the Basic Sum Assured on policy anniversaries that are either coinciding or are followed by the completion of 18, 20, and 22 years of age.

Maturity Benefit

If the Life Assured survives the policy period, then he/she will receive 40% of the Sum Assured on maturity as maturity benefit. This maturity benefit will also include the Final Additional Bonus and Vested Simple Reversionary Bonuses.

Death Benefit

On the death of the Life Assured, the death benefit offered is:

  • If the child dies before the commencement of risk, all premiums paid will be returned to the nominee. Taxes and rider premiums will be excluded.
  • If the child dies after the commencement of risk, the nominee will be given the Sum Assured on Death along with the Simple Reversionary Bonus and Final Additional Bonus.

The Sum Assured on Death is equal to the higher of:

  • The basic Sum Assured that is mentioned in the policy
  • 10 times the Annualized Premium

Sample Premium Rates

Given below are the rates in Rupees if the Sum Assured is Rs.1 lakh, Rs. 2 lakhs and Rs. 5 lakhs.

Age (in Years)

1 Lakhs

2 Lakhs

5 Lakhs

















The plans mentioned above are some of the ongoing and best LIC Child plans. Child plans are effective in managing and preparing for the financial liability that comes with a child. As all the expenses associated with a child are increasing, it is necessary to consider buying a child insurance plan suitable for you while planning your finances.

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