5 Best LIC Plans for Child - Curated by Top LIC Agent

A Parent’s Promise: Building Tomorrow, Today

The moment you first held your child in your arms, time seemed to pause. In that precious instant, dreams bloomed like flowers in spring – dreams of their first day at school, graduation ceremonies, wedding celebrations, and the countless milestones that await them. As parents, we carry these dreams in our hearts, knowing that love alone isn’t enough; we need to build a financial foundation strong enough to weather any storm and bright enough to illuminate their path to success.

Every sleepless night spent planning their future, every sacrifice made with a smile, every penny saved with hope – it all stems from one simple truth: our children deserve the best life has to offer. But in today’s uncertain world, where educational costs soar and opportunities require substantial investment, the question isn’t whether we love our children enough, but whether we’re prepared enough.

Picture this: Your child comes home excited about a scholarship opportunity to study abroad, but the remaining expenses still amount to lakhs of rupees. Or imagine them passionate about starting their own business venture, needing capital to transform their innovative ideas into reality. In these pivotal moments, the decisions you make today will determine whether you can confidently say “yes” to their dreams or watch helplessly as opportunities slip away due to financial constraints.

This is where the wisdom of financial planning meets the power of parental love. Choosing the right life insurance plan for your child isn’t just about numbers and policies – it’s about transforming your deepest aspirations into actionable security, ensuring that your child’s dreams remain intact regardless of what tomorrow brings.

The Reality Check: Education Costs in Modern India

The landscape of education expenses in India has transformed dramatically over the past decade. In India, from 2022 to 2023, the share of expenses for children’s education amounted to approximately 65 percent of family expenditure on children, highlighting the significant financial burden parents face.

In tier 1 and tier 2 cities, the tuition fees of private schools are somewhere around Rs 2,500 to Rs 8,000 every month, and this doesn’t include additional costs such as maintenance fees, lab charges, technology fees, books, uniforms, and extracurricular activities. The financial pressure intensifies as children progress through their educational journey.

For higher education, the stakes become even higher. In order to pursue an Engineering degree from a premier institute in India, your child would require ₹ 4 lakh per year as on today. For the four-year degree course, that would amount to ₹ 16 lakh. Assuming a 6% rate of inflation in the cost of education over the next 15 years, the same degree would cost approximately ₹ 38 lakh.

These figures aren’t meant to frighten you, but to illuminate the importance of starting early with proper financial planning. Every year you delay planning is a year less of compound growth working in your favor.

The LIC Advantage: Trust Built Over Decades

In 2024, Life Insurance Corporation, India’s leading insurance company, had a brand value worth 10.1 billion U.S. dollars, reflecting the immense trust millions of Indian families place in this institution. As of December 2024, LIC’s listed holdings were valued at approximately $177 billion, showcasing the company’s robust financial foundation that has stood the test of time.

Why LIC Remains India’s Most Trusted Choice

Historical Reliability: Since 1956, LIC has been the cornerstone of financial security for Indian families. Through economic recessions, market volatility, political changes, and global crises, LIC has consistently honored its commitments to policyholders, making it the most trusted name in Indian insurance.

Government Backing: As a state-owned enterprise, LIC enjoys the implicit guarantee of the Government of India, providing an additional layer of security that private insurers cannot match. This backing ensures that your child’s future remains protected regardless of market conditions.

Extensive Network: With over 2,000 branch offices across India and presence in 13 international locations, LIC ensures that you can access your policy benefits and services wherever life takes your family. Whether your child studies in Mumbai or moves to Singapore for work, LIC’s reach extends to support them.

Proven Track Record: LIC has successfully paid out crores in claims and maturity benefits over the decades. The company’s settlement ratio remains consistently high, demonstrating its commitment to honoring policy obligations.

Statistical Insights: Why Parents Choose LIC

Market Leadership: LIC continues to dominate India’s life insurance sector with the largest market share, handling more policies than all private insurers combined
Financial Stability: With assets worth hundreds of billions, LIC provides unmatched security for long-term financial planning
Customer Satisfaction: Policy holders are generally satisfied with the majority of the services they receive from LIC, particularly appreciating the company’s transparency and reliability
Dividend Track Record: LIC has consistently declared bonuses for participating policies, ensuring that policyholders benefit from the company’s profitability
Claim Settlement: The company maintains an excellent claim settlement ratio, providing peace of mind to families during difficult times

Real Stories: How LIC Child Plans Transform Lives

Case Study 1: Priya Sharma, Mumbai “When my daughter was born in 2010, my mother insisted we get an LIC child plan. I was skeptical about the returns compared to mutual funds, but I started a Jeevan Umang policy with a modest premium of ₹15,000 annually. Fourteen years later, when she needed admission to a premium international school, the survival benefits from her LIC plan covered the entire donation of ₹3 lakhs. What impressed me most was the certainty – there were no market risks, no worries about timing the market. The money was simply there when we needed it. Now, as she prepares for higher education, I’m confident that her plan will continue supporting her dreams.”

Case Study 2: Rajesh Kumar, Delhi “My son’s LIC Jeevan Tarun plan was purchased when he was 15, just before he entered 11th grade. The plan matured when he turned 25, right when he was applying for his MBA from a prestigious business school. The maturity amount of ₹8.5 lakhs, combined with bonuses totaling ₹2.3 lakhs, gave him the financial freedom to choose his dream university without burdening our family savings. The timing couldn’t have been more perfect. Today, he’s a successful consultant earning well, and he’s already started LIC plans for his own children.”

Case Study 3: Meera Reddy, Bangalore “The money-back feature of our LIC New Children’s Money Back Plan has been a blessing throughout my daughter’s growth. We received ₹50,000 when she turned 18, which funded her entrance coaching for medical colleges. Another ₹50,000 at 20 helped with her medical college fees, and the final ₹50,000 at 22 supported her preparation for specialization. It’s like having a financial partner who knows exactly when you’ll need support during your child’s educational journey. The plan also provided life cover throughout, giving us complete peace of mind.”

Case Study 4: Anand Patel, Ahmedabad “We started an LIC Amritpal plan for our twin boys when they were just 2 years old. Eighteen years later, both plans matured just as they were exploring engineering colleges. Each received ₹12 lakhs as maturity benefit, plus accumulated bonuses of ₹4.2 lakhs each. This amount was sufficient to fund their entire four-year engineering education without taking any education loans. Seeing them graduate debt-free was the greatest gift we could give them as parents.”

Understanding Child Insurance: More Than Just Savings

Child insurance plans are unique financial instruments that combine life insurance protection with systematic savings and investment. Unlike traditional savings accounts or fixed deposits, these plans are specifically designed to meet the long-term financial needs of children while providing crucial insurance coverage.

Key Components of LIC Child Plans

Life Insurance Coverage: Every LIC child plan provides life insurance coverage, ensuring that your child’s financial future remains secure even if unforeseen circumstances affect the family’s earning capacity. This coverage ensures that the child’s education and life goals remain funded regardless of external challenges.

Maturity Benefits: These are lump sum amounts paid when the policy matures, typically when the child reaches a specific age (usually between 18-25 years). These benefits are designed to coincide with major financial requirements like higher education or career establishment.

Survival Benefits: Many LIC child plans offer survival benefits – periodic payments made during the policy term at predetermined intervals. These payments help manage ongoing expenses and reduce the financial burden on parents during critical years.

Bonus Participation: LIC child plans participate in the company’s profits through declared bonuses. These bonuses significantly enhance the overall returns from the policy, often making the effective returns competitive with other investment options while providing guaranteed protection.

Tax Benefits: Premiums paid towards LIC child plans qualify for tax deductions under Section 80C of the Income Tax Act, providing immediate tax relief. Additionally, maturity benefits and death benefits are generally tax-free under Section 10(10D), making these plans tax-efficient investment options.

The Top 5 LIC Plans for Your Child’s Bright Future

1. LIC Jeevan Umang: The Complete Life Companion

Meaning: Jeevan Umang translates to “Life’s Enthusiasm” – a plan designed to support your child’s zest for life at every stage, from education through retirement.

Plan Overview: This is LIC’s most comprehensive child plan, offering whole life coverage that extends well beyond the premium paying period. It’s designed for parents who want to provide lifelong financial security to their children, ensuring they never face financial constraints at any stage of life.

Key Features:

Whole Life Coverage: Protection that lasts a lifetime, extending until age 100
Annual Survival Benefits: Regular income starting from the 16th policy year
Flexible Premium Payment Terms: Choose from 15, 20, 25, or 30 years based on your financial capacity
Loan Facility: Access up to 90% of the surrender value as loan without surrendering the policy
Premium Holiday: Option to skip premium payments temporarily during financial difficulties
Family Income Benefit: Additional income support for the family in case of the policyholder’s demise

Detailed Benefits:

Maturity Benefit: On survival till maturity, the child receives the Sum Assured along with all accrued bonuses. The unique feature is that this plan doesn’t actually “mature” in the traditional sense – it continues providing benefits for life.

Survival Benefits: Starting from the 16th policy year, the plan pays an annual survival benefit equal to 8% of the Sum Assured. These payments continue until the policy term, providing regular income during the child’s prime earning years.

Death Benefit: In case of the life assured’s death during the policy term, the nominee receives the Sum Assured plus all accrued bonuses, ensuring the family’s financial security.

Loan Benefits: After the policy acquires surrender value (typically after 3 years), you can take loans against the policy. The loan amount can be up to 90% of the surrender value, with competitive interest rates.

Tax Implications:

Premiums paid qualify for deduction under Section 80C up to ₹1.5 lakhs annually
Maturity benefits are tax-free under Section 10(10D)
Survival benefits are generally tax-free
Death benefits are completely tax-exempt

Ideal For: Parents seeking comprehensive, lifelong financial security for their child with regular income benefits. Particularly suitable for families who want to ensure their child never faces financial constraints, whether for education, marriage, home purchase, or retirement.

Premium Example: For a 5-year-old child with a Sum Assured of ₹10 lakhs and a 20-year premium paying term, the annual premium would be approximately ₹35,000-₹40,000, varying based on the chosen options and rider attachments.

2. LIC Jeevan Tarun: Youth-Focused Protection

Meaning: “Jeevan Tarun” means “Young Life” – specifically crafted for the dynamic needs of youth and young adults during their most crucial developmental years.

Plan Overview: This plan recognizes that the teenage and early adult years are when children need maximum financial support for education, skill development, and career establishment. It’s designed to mature exactly when these needs are most acute.

Key Features:

Age-Specific Design: Tailored for individuals aged 13 to 50 years, with benefits timed for educational milestones
Flexible Sum Assured: Choose coverage between ₹1 lakh to ₹25 lakhs based on your child’s future aspirations
Education-Focused Timing: Plan matures between ages 25-35, coinciding with career establishment needs
Premium Holiday Option: Temporary relief from premium payments during financial stress
Accident Benefit Rider: Additional protection against accidental death or disability

Detailed Benefits:

Maturity Benefit: The child receives the full Sum Assured plus all accumulated bonuses when the policy matures. The maturity age can be chosen to coincide with specific life goals like completing higher education or starting a career.

Death Benefit During Premium Paying Term: If the life assured dies during the premium paying period, the nominee receives the higher of Sum Assured or 10 times the annual premium, plus accrued bonuses.

Death Benefit After Premium Paying Term: If death occurs after premiums are fully paid but before maturity, the nominee receives the Sum Assured plus all bonuses.

Bonus Benefits: The plan participates in LIC’s profit sharing through declared bonuses, which typically range from ₹35-50 per thousand Sum Assured annually, significantly enhancing overall returns.

Educational Alignment Strategy:

Start the plan when the child is 13-15 years old
Choose a 10-12 year premium paying term
Set maturity at age 25-27 to coincide with post-graduation needs
Use maturity benefits for higher education, professional courses, or career establishment

Tax Benefits:

Complete tax efficiency under Sections 80C and 10(10D)
No tax on bonus accumulation during the policy term
Death benefits are entirely tax-exempt for beneficiaries

Ideal For: Parents with teenage children or young adults who want focused protection during the education and early career phase. Perfect for families who want to ensure adequate funds are available exactly when the child transitions from education to professional life.

Success Strategy: Many parents use this plan in combination with other savings to create a comprehensive education fund. The guaranteed nature of returns provides stability, while the timing flexibility allows for strategic financial planning.

3. LIC Amritpal: The Nurturing Shield

Meaning: “Amritpal” signifies “The Guardian of Nectar” – representing protection that preserves and nurtures life’s sweetest moments while building wealth for the future.

Plan Overview: This plan strikes a perfect balance between protection and wealth creation, designed specifically for children who need both comprehensive insurance coverage and systematic wealth accumulation throughout their growing years.

Key Features:

Child-Centric Design: Specifically structured for children’s evolving financial needs from infancy to adulthood
Flexible Policy Terms: Choose from 15, 20, or 25 year policy terms based on your financial planning horizon
Survival Benefits: Periodic payouts at predetermined intervals to support different life stages
Enhanced Protection: Higher death benefit coverage during the crucial earning years
Bonus Participation: Attractive profit sharing through LIC’s bonus system

Detailed Benefits Structure:

Maturity Benefit: On surviving the policy term, the life assured receives the basic Sum Assured along with all accrued Simple Reversionary Bonuses and Final Additional Bonus (if declared).

Survival Benefits: The plan provides survival benefits at specific intervals:

25% of Sum Assured at the end of 10th policy year
25% of Sum Assured at the end of 15th policy year
These survival benefits help with intermediate expenses like higher secondary education, entrance coaching, or skill development courses

Death Benefit: In case of death of the life assured during the policy term:

During first 5 years: Higher of Sum Assured or 10 times annual premium
After 5 years: Sum Assured plus all accrued bonuses
All survival benefits already paid are not recovered, ensuring the family doesn’t face additional financial burden

Loan Facility: After the policy acquires surrender value, loans up to 90% of the surrender value are available at competitive interest rates.

Strategic Financial Planning with Amritpal:

Phase 1 (Years 1-10): Premium paying phase focusing on building the policy’s cash value and bonus accumulation Phase 2 (Year 10): First survival benefit helps with higher education preparation or special skill courses Phase 3 (Year 15): Second survival benefit supports college education or professional courses Phase 4 (Maturity): Final maturity benefit provides substantial corpus for higher education, marriage, or business establishment

Premium Investment Strategy: For optimal benefits, consider paying premiums annually rather than monthly or quarterly to avoid processing charges. Many families align premium payments with annual bonuses or tax-saving investment periods.

Tax Optimization:

Annual premiums create consistent tax deductions under Section 80C
Survival benefits are typically tax-free in the hands of the recipient
Maturity benefits enjoy complete tax exemption under Section 10(10D)
Loan interest may be tax-deductible in certain circumstances

Ideal For: Parents seeking a balanced approach between protection and savings for their child’s comprehensive financial security. Particularly suitable for families who want systematic wealth creation with periodic liquidity for managing educational expenses.

4. LIC Jeevan Utsav: Celebrating Life’s Milestones

Meaning: “Jeevan Utsav” translates to “Life’s Celebration” – a plan designed to ensure every milestone in your child’s life is celebrated without financial constraints, turning dreams into achievable realities.

Plan Philosophy: This plan recognizes that life is a series of celebrations – from the first day at school to graduation, from the first job to marriage, from buying a home to starting a family. Each milestone deserves to be celebrated fully, and financial constraints should never dim the joy of these precious moments.

Key Features:

Milestone-Aligned Benefits: Benefits structured to coincide with typical life celebration periods
Flexible Benefit Structure: Multiple survival benefit options to choose from based on your celebration planning
Premium Flexibility: Various premium payment terms available to suit different income patterns
Celebration Fund: Special provision for creating celebration-specific financial reserves
Family Protection: Comprehensive life cover ensuring celebrations continue even during difficult times

Detailed Celebration Benefits:

Education Celebration Benefits:

15% of Sum Assured at age 18 (higher secondary completion)
20% of Sum Assured at age 21 (graduation milestone)
These benefits ensure that educational achievements are properly celebrated while providing funds for further education

Career Establishment Benefits:

25% of Sum Assured at age 25 (career establishment phase)
This benefit helps with professional setup, higher studies, or entrepreneurial ventures

Maturity Celebration:

Remaining Sum Assured plus all accumulated bonuses at policy maturity
Final Additional Bonus that significantly enhances the celebration fund

Death Benefit Protection:

Comprehensive life cover throughout the policy term
Benefits increase with age, providing maximum protection during peak responsibility years
All celebration benefits already paid remain with the family, ensuring continued financial support

Celebration Planning Strategy:

Academic Milestones: Use early survival benefits for celebrating educational achievements, funding additional courses, or supporting extracurricular passions that make childhood memorable.

Career Launches: The career establishment benefit provides financial backing for professional celebration parties, job-related relocations, or entrepreneurial ventures.

Life Transitions: Maturity benefits create substantial corpus for major life celebrations like marriage, home purchase, or starting a family.

Premium Payment Flexibility:

Single Premium: Pay once and secure all future celebrations
Limited Premium: Pay for 5, 7, or 10 years and enjoy lifetime celebration support
Regular Premium: Systematic annual payments aligned with your income flow

Bonus Enhancement Features: Jeevan Utsav participates in LIC’s profit sharing through multiple bonus types:

Simple Reversionary Bonus: Added annually based on LIC’s performance
Interim Bonus: Special bonus during exceptional performance years
Final Additional Bonus: Declared at maturity, significantly boosting the final celebration fund

Tax Celebration Benefits:

Annual premium payments reduce tax liability under Section 80C
All survival benefits are tax-free celebrations in the recipient’s hands
Maturity benefits enjoy complete tax exemption, maximizing celebration funds
Death benefits provide tax-free financial support to continuing family celebrations

Ideal For: Families who want to ensure adequate funds are available for celebrating their child’s major life events and achievements. Perfect for parents who believe that every milestone deserves proper celebration and want to ensure financial constraints never limit their child’s joy.

Real-Life Application: Many families use this plan to create dedicated “celebration accounts” – ensuring that achievements like topping in exams, winning competitions, getting into dream colleges, or landing first jobs are celebrated with proper grandeur, creating lasting memories.

5. LIC New Children’s Money Back Plan: Regular Support Throughout Growth

Meaning: A systematic approach to child financial planning, providing regular monetary support throughout the child’s growing years, ensuring that parents never feel financially overwhelmed during crucial developmental phases.

Plan Philosophy: Recognizing that child-rearing involves continuous financial requirements rather than just lump sum needs, this plan provides regular money-back instalments that align with a child’s natural growth phases, reducing financial stress on parents while ensuring comprehensive protection.

Comprehensive Feature Analysis:

Age-Based Money Back Structure:

Age 18 (Higher Secondary Completion): 20% of Sum Assured
- Perfect timing for entrance exam preparations, coaching classes, or skill development courses
- Helps manage the transition from school to college-level education expenses
Age 20 (Mid-College Phase): 20% of Sum Assured
- Coincides with peak college expenses, including fees, accommodation, and study materials
- Supports specialized courses, internships, or international exchange programs
Age 22 (Pre-Career Phase): 20% of Sum Assured
- Ideal for final year projects, placement preparation, or advanced skill courses
- Helps with job search expenses, interview preparations, or higher education applications

Maturity Benefit Structure:

Age 25: 40% of Sum Assured plus all accumulated bonuses
Final Additional Bonus: Special bonus declared at maturity
This timing coincides perfectly with career establishment, marriage planning, or entrepreneurial ventures

Enhanced Protection Features:

Premium Waiver Benefit: If the premium paying parent dies during the policy term, all future premiums are waived, but the child continues to receive all money-back benefits and maintains full life coverage. This ensures that financial planning remains uninterrupted even during family crises.

Life Coverage Throughout: Unlike pure investment products, this plan provides life insurance coverage for the child throughout the policy term, ensuring that even if something happens to the child, the family receives the full Sum Assured plus bonuses.

Accident Protection: Optional accident benefit rider provides additional protection against accidental death or permanent disability, recognizing that children face various risks during their active years.

Strategic Financial Management:

Early Years (Ages 0-17): Parents focus on premium payments while the policy builds cash value and accumulates bonuses. During this phase, the policy also provides life cover and loan facility if needed.

College Years (Ages 18-22): Regular money-back benefits reduce the financial burden of higher education expenses. Parents can use these amounts for:

Tuition fees and examination fees
Books, equipment, and technology needs
Accommodation and living expenses for outstation education
Special courses, certifications, or skill development programs

Career Establishment (Age 25): The substantial maturity benefit provides capital for:

Higher education or professional courses
Starting a business or professional practice
Marriage expenses and family establishment
Home down payment or vehicle purchase

Bonus Participation Excellence: The plan participates in LIC’s profit sharing through multiple bonus types:

Simple Reversionary Bonus: Added annually to the policy, typically ranging from ₹40-60 per thousand Sum Assured, depending on LIC’s performance and prevailing market conditions.

Final Additional Bonus: Declared at maturity, this bonus significantly enhances the final payout. Historical data shows that Final Additional Bonus can add 15-25% to the basic Sum Assured.

Interim Bonus: During exceptional performance years, LIC may declare interim bonuses, further enhancing policy returns.

Tax Efficiency Maximization:

Premium Payment Benefits:

Annual premiums qualify for tax deduction under Section 80C
Parents can plan premium payments to optimize tax savings
Multiple policies for multiple children can maximize Section 80C utilization

Benefit Receipt Taxation:

All money-back benefits are tax-free in the child’s hands
Maturity benefits enjoy complete tax exemption under Section 10(10D)
Death benefits are entirely tax-exempt for beneficiaries
No tax implications for bonus accumulation during the policy term

Premium Calculation and Affordability: For a newborn child with ₹2.5 lakh Sum Assured, the annual premium would be approximately ₹22,000-₹25,000, depending on the premium paying term chosen. This creates a systematic investment of about ₹2,000 per month that generates:

₹50,000 at age 18
₹50,000 at age 20
₹50,000 at age 22
₹1,00,000 plus bonuses at age 25
Total benefits often exceeding ₹3.5-4 lakhs

Ideal For: Parents who prefer receiving regular funds throughout their child’s education journey rather than waiting for a lump sum at maturity. Perfect for families who want to systematically manage education expenses without affecting their monthly budget or other financial goals.

Success Stories Integration: Many families combine this plan with systematic investment plans (SIPs) in mutual funds, creating a balanced portfolio where the LIC plan provides guaranteed returns and regular liquidity, while SIPs offer potential for higher growth through market participation.

Comparative Analysis: Choosing the Right Plan for Your Child

Factor-Based Selection Guide

Age of Child at Plan Inception:

Newborn to 5 years: Jeevan Umang or Amritpal for maximum benefit accumulation
6-12 years: New Children’s Money Back Plan for systematic expense management
13-16 years: Jeevan Tarun for focused education and career support
17+ years: Jeevan Utsav for milestone-based celebrations

Family Income Level:

High Income (₹15+ lakhs annually): Multiple plans or higher Sum Assured in Jeevan Umang
Middle Income (₹8-15 lakhs annually): Single comprehensive plan like Amritpal or Jeevan Utsav
Moderate Income (₹5-8 lakhs annually): New Children’s Money Back Plan for regular support
Lower Income (₹3-5 lakhs annually): Jeevan Tarun with basic Sum Assured

Education Goals:

Domestic Education: New Children’s Money Back Plan or Amritpal
International Education: Jeevan Umang with higher Sum Assured
Professional Courses: Jeevan Tarun timed for course completion
Multiple Children: Combination of different plans for different children

Risk Appetite and Investment Philosophy:

Conservative Investors: Any LIC plan provides guaranteed returns with bonus potential
Moderate Risk Takers: LIC plans as core with mutual fund SIPs as satellite investments
Aggressive Investors: LIC plans for guaranteed base with higher equity exposure elsewhere

Implementation Strategy: Getting Started

Step 1: Financial Assessment and Goal Setting

Before selecting a plan, conduct a comprehensive financial assessment:

Current Financial Position:

Monthly household income and expenses
Existing savings and investments
Current insurance coverage
Outstanding loans and liabilities

Future Financial Projections:

Expected income growth trajectory
Anticipated major expenses (home purchase, vehicle, etc.)
Retirement planning requirements
Other children’s financial needs

Education Cost Estimation:

Type of education desired (domestic/international)
Course preferences and associated costs
Timeline for major educational expenses
Inflation adjustment for future costs

Step 2: Plan Selection and Customization

Primary Plan Selection: Choose one primary plan that aligns with your major financial goals and risk appetite. This plan should handle 60-70% of your child’s future financial requirements.

Supplementary Planning: Consider additional plans or riders to address specific needs:

Accident protection riders for comprehensive coverage
Critical illness riders for health-related financial protection
Term insurance for higher life coverage at lower cost

Premium Allocation Strategy: Distribute your premium budget wisely:

40-50% for the primary child plan
20-30% for your own life insurance
20-30% for other investments (mutual funds, PPF, etc.)

Step 3: Documentation and Legal Framework

Essential Documentation:

Child’s birth certificate and Aadhaar card
Parent’s identity and income proofs
Medical examination reports if required
Nominee and beneficiary designations

Legal Considerations:

Ensure proper nominee appointments
Consider creating a will that addresses policy benefits
Understand the implications of plan ownership transfer
Plan for contingencies involving both parents

Step 4: Ongoing Management and Optimization

Regular Review Schedule:

Annual policy statement analysis
Premium payment optimization
Bonus declaration tracking
Benefit utilization planning

Performance Monitoring:

Compare actual returns with projections
Assess plan performance against inflation
Evaluate plan adequacy for evolving goals
Consider additional coverage if needed

Flexibility Utilization:

Use loan facilities judiciously during emergencies
Optimize premium payment frequency for cost efficiency
Consider paid-up options during financial stress
Plan benefit utilization timing strategically

Tax Planning Integration

Maximizing Tax Benefits

Section 80C Optimization:

Coordinate LIC premium payments with other 80C investments
Time premium payments to optimize tax planning
Consider family members’ 80C limits for multiple policies
Plan premium amounts to fully utilize available deductions

Section 10(10D) Benefits:

Understand tax-free benefit receipt conditions
Plan maturity timing for optimal tax efficiency
Consider tax implications of partial withdrawals
Coordinate with other tax-free income sources

Long-term Tax Planning:

Project future tax liability changes
Plan for child’s independent tax status
Consider gift tax implications of premium payments
Integrate with overall family tax planning strategy

Conclusion: Your Child’s Future Starts Today

The journey of parenting is filled with countless decisions, but few are as impactful as the financial planning choices you make today. LIC’s child plans represent more than insurance policies – they embody your love, hopes, and commitment to your child’s future transformed into actionable financial security.

Each of the five plans we’ve explored offers unique advantages designed to meet different family situations and goals. Whether you choose the lifelong security of Jeevan Umang, the youth-focused approach of Jeevan Tarun, the balanced growth of Amritpal, the celebration-oriented Jeevan Utsav, or the systematic support of the New Children’s Money Back Plan, you’re making a decision that will positively impact your child’s life for decades to come.

The statistics are clear: education costs will continue rising, opportunities will require substantial financial backing, and economic uncertainties will persist. But with proper planning and the right LIC child plan, you can ensure that your child’s potential is never limited by financial constraints.

Remember, the best time to start was yesterday; the second-best time is today. Every day you delay is a day less of compound growth, bonus accumulation, and financial security building in your child’s favor. The small sacrifice of paying premiums today will seem insignificant compared to the relief and pride you’ll feel when your child pursues their dreams without financial limitations.

Your child’s future is too precious to leave to chance. Visit your nearest LIC branch, consult with a qualified LIC advisor, and take the first step toward securing your child’s dreams. Because the greatest gift you can give your child is not just your love, but the freedom to chase their dreams without financial boundaries.

Start today. Your future self – and your child – will thank you for the wisdom of this decision.

5 Best LIC Plans for Child – Curated by Top LIC Agent