Every parent wants to provide their child with a bright, secure and successful future. Whether it is quality education, higher studies, professional courses, marriage planning or financial independence, parents want to be financially prepared for important milestones in their children’s lives.

However, the cost of education and other major life expenses continues to increase. Planning early can help parents build a financial foundation and reduce the pressure of arranging a large amount of money at the last moment.

One financial planning option that parents consider is the Life Insurance Corporation of India (LIC). LIC offers different insurance and savings products designed to help families plan for future financial requirements.

Choosing the Best LIC Policy for Child requires understanding your financial goals, the child’s age, the expected education expenses, your budget and the benefits available under different plans.

LIC currently lists three dedicated child-oriented plans on its official website:

LIC’s New Children’s Money Back Plan
LIC’s Jeevan Tarun
LIC’s Amritbaal

Each plan has different features, benefit structures and eligibility conditions. Therefore, parents should compare the available options instead of selecting a policy only because it is popular.

This detailed guide explains LIC child insurance plans, their benefits, important considerations, premium planning, eligibility and frequently asked questions.

1. What Is the Best LIC Policy for Child?

There is no single LIC child policy that is perfect for every family. The right choice depends on when you need the money and how you want to receive the benefits.

Here are the three major options to understand.

A. LIC’s New Children’s Money Back Plan

LIC’s New Children’s Money Back Plan is designed to support children’s educational, marriage and other financial needs. It combines savings and insurance benefits.

Important features include:

Designed for children aged 0 to 12 years at entry.
Parents or grandparents can purchase the policy.
Survival benefits are available at specified ages.
Flexible premium payment frequency.
Option to defer survival benefits.
Option to receive death or maturity benefits in instalments.
Premium Waiver Benefit Rider can be selected subject to eligibility and additional premium.
Loan facility is available subject to policy conditions.

Under the current brochure, survival benefits of 20% of the Basic Sum Assured are payable at ages 18, 20 and 22, provided the policy remains in force. At maturity, the Sum Assured on Maturity is 40% of the Basic Sum Assured, together with applicable bonuses, if any.

This plan may be worth considering for parents who want money at different stages of their child’s growing years.

B. LIC’s Jeevan Tarun

LIC’s Jeevan Tarun is a participating, non-linked individual savings plan designed for children’s education and other future needs.

It provides an opportunity to receive survival benefits during the years when children may require financial support for higher education and other important expenses.

Key features include:

Entry age from 30 days to 12 years.
Parents or grandparents can purchase the policy.
Survival benefits are payable between ages 20 and 24.
Maturity benefit is payable at age 25.
Four survival benefit options are available.
Flexible premium payment frequency.
Premium Waiver Benefit Rider option.
Loan facility subject to policy conditions.
Death and maturity benefits as defined in the policy.

One important advantage is that parents can choose the proportion of survival benefits according to the available options.

Jeevan Tarun may be suitable for parents who want a structured savings arrangement with benefits around their child’s higher education years.

C. LIC’s Amritbaal

LIC’s Amritbaal is another child-focused savings and insurance option available through LIC.

The plan is designed to help parents accumulate funds for their children’s future financial requirements.

Its advertised features include:

Guaranteed additions throughout the policy term, as specified in the policy.
Maturity age options between 18 and 25 years.
Single-premium and limited-premium payment options.
Online purchase rebate, subject to applicable conditions.

Parents considering Amritbaal should carefully review the current sales brochure, benefit illustration, eligibility requirements and applicable policy conditions before purchasing.

It may be an option for families who prefer a savings-oriented policy with guaranteed additions rather than a traditional participating bonus structure.

Official LIC product information: LIC Plans for Children’s Future and LIC Buy Online – Child Plans.

2. Comparison of LIC Child Plans

Understanding the differences between the available plans can make the selection process easier.

Feature	New Children’s Money Back	Jeevan Tarun	Amritbaal
Main purpose	Child savings and periodic benefits	Education and future needs	Long-term savings
Entry age	0–12 years	30 days–12 years	Check current brochure
Benefit structure	Survival and maturity benefits	Survival and maturity benefits	Guaranteed additions and maturity benefit
Benefit timing	Ages 18, 20 and 22	Ages 20–24	Selected maturity age
Premium options	Regular premiums	Regular premiums	Single or limited premiums
Premium waiver option	Available subject to conditions	Available subject to conditions	Check applicable brochure

Important: The comparison is a general overview, not a substitute for the latest official policy documents. Plan terms, premium options and eligibility conditions should be verified before purchasing.

3. Why Should Parents Consider an LIC Child Insurance Plan?

Parents often start thinking about their children’s financial future when they enter school. However, starting financial planning earlier can provide more time to build savings.

Some important reasons to consider a child-oriented financial plan include:

Financial Preparation for Higher Education

Higher education can involve substantial expenses. Engineering, medical studies, management courses and overseas education may require significant financial resources.

An LIC child plan may help parents create a dedicated savings arrangement for future education expenses.

Support for Career Development

Children may have different career interests. Some may want to become doctors, engineers, designers, business owners or professionals in other fields.

Having a financial plan can help parents prepare for these possibilities.

Marriage Planning

Parents who want to create a separate fund for future marriage expenses can include this goal in their long-term financial planning.

Financial Discipline

Regular premium payments can encourage parents to maintain a disciplined approach to saving.

Insurance Protection

Depending on the selected policy and applicable conditions, child plans provide life insurance benefits. Some plans also offer a Premium Waiver Benefit Rider.

Parents should understand whose life is insured under the policy and what circumstances trigger each benefit.

4. How to Choose the Best LIC Policy for Child Education?

Education planning should begin by estimating the amount of money that may be required in the future.

Consider the following steps.

Step 1: Identify the child’s current age

A child’s age helps determine the available policy options and the number of years remaining before the expected financial goal.

Step 2: Estimate future education expenses

Calculate the approximate cost of higher education. Include tuition fees, accommodation, books, transportation and other expenses.

Step 3: Consider inflation

Education costs may increase over time. A financial goal should account for possible increases in expenses.

Step 4: Select an appropriate savings target

Decide how much money you want to accumulate by the time your child reaches adulthood or begins higher education.

Step 5: Compare available LIC policies

Review New Children’s Money Back Plan, Jeevan Tarun and Amritbaal. Compare their benefit schedules, premium requirements and policy terms.

Step 6: Check the premium affordability

Choose a premium amount that fits comfortably within your household budget.

Step 7: Review the policy illustration

Ask for an official benefit illustration showing guaranteed and non-guaranteed benefits separately.

5. Benefits of Starting an LIC Child Policy Early

Starting early can offer several advantages.

More Time for Financial Planning

When parents begin planning while their child is young, they have more time to prepare for future expenses.

Better Goal Management

Parents can connect different financial goals with important milestones, such as school completion, college admission and professional education.

Regular Savings Habit

A regular premium payment schedule can help maintain financial discipline.

More Time to Review Financial Needs

Starting early gives families an opportunity to review their financial goals as income, expenses and children’s interests change.

Opportunity to Select Suitable Policy Terms

A child’s age at entry can affect the available policy term and benefit timing. Early planning may provide more flexibility within the applicable eligibility rules.

6. What Is the Premium Waiver Benefit Rider?

The Premium Waiver Benefit Rider is an important feature that parents should understand when evaluating a child insurance policy.

This rider is designed to provide additional protection in the event of the insured proposer’s death, subject to the rider’s conditions.

For example, a parent purchases an eligible child plan and selects the Premium Waiver Benefit Rider.

If the insured proposer dies during the applicable rider term, future premiums covered by the rider may be waived according to the policy conditions.

This can help prevent the child policy from becoming financially difficult to maintain after the parent’s death.

However, the rider is not automatically available in every situation. Parents should check:

Whether the rider is available under the selected plan.
Who is covered under the rider.
The rider’s eligibility conditions.
The additional premium.
The duration of rider coverage.
The exclusions and claim requirements.

7. LIC Policy for Daughter: Planning a Secure Future

Parents often search for the best LIC policy for a daughter because they want to prepare for her education, professional development and independent future.

A child savings policy can be considered as one part of a broader financial plan.

Before choosing a policy, parents should identify their daughter’s expected education expenses and the approximate time when the money will be required.

For example, if a daughter is currently five years old and parents expect to need funds for higher education at age 20, they should compare the available policy benefit schedules with that financial goal.

A policy that provides money at a suitable time may be more useful than one that offers a higher-looking maturity amount at a much later date.

8. LIC Policy for Son: Building Financial Security

Parents planning for their son’s future may also consider LIC child-oriented savings plans.

Financial requirements can include:

School and college education.
Professional courses.
Overseas education.
Business development.
Career training.
Future financial independence.

The selection of a policy should be based on financial requirements rather than gender.

The same financial planning principles apply to both sons and daughters.

9. How Much LIC Policy Coverage Should Parents Choose?

The appropriate Basic Sum Assured depends on the family’s financial objectives and affordability.

Parents should consider:

Their annual household income.
Existing insurance coverage.
Outstanding loans.
Expected education expenses.
Other long-term financial goals.
The amount they can comfortably save.

It is important to distinguish between the Basic Sum Assured and the actual maturity amount.

A participating policy may provide bonuses depending on the applicable terms and declared bonuses. A guaranteed addition plan follows its specified guaranteed benefit structure.

Do not assume that every amount shown in an illustration is guaranteed.

10. Understanding LIC Child Policy Bonuses and Guaranteed Benefits

Different LIC products may have different benefit structures.

Participating plans: These may receive Simple Reversionary Bonuses and Final Additional Bonus, if declared and applicable under the policy.

Guaranteed additions: These are defined in the policy terms and are payable subject to the specified conditions.

Parents should ask their advisor to clearly separate:

Guaranteed benefits.
Non-guaranteed bonuses.
Survival benefits.
Maturity benefits.
Death benefits.
Rider benefits.
Applicable taxes and charges.

This makes it easier to understand the actual financial value of a policy.

11. Is LIC a Good Option for Child Future Planning?

LIC is one of the insurance providers parents may consider for long-term child financial planning.

Its child-focused products offer different combinations of savings and life insurance benefits.

However, no insurance policy should be selected only on the basis of brand recognition.

Parents should compare the plan’s features with their financial requirements. They should also consider whether separate term insurance for the earning parent and other investment options are necessary.

A comprehensive child future plan may include:

Adequate life insurance for parents.
Emergency savings.
Education savings.
Health insurance.
Long-term investments.
A suitable child insurance policy, if appropriate.

A combination of financial products may be more suitable than depending on a single policy for every future requirement.

12. Important Things to Check Before Buying an LIC Child Policy

Before purchasing any LIC child plan, carefully review these points:

Policy terms: Understand the policy duration and maturity age.

Premium amount: Ensure that the premium is affordable throughout the payment period.

Survival benefits: Check when payments are scheduled and whether they match your financial goals.

Death benefit: Understand the conditions under which the benefit becomes payable.

Premium waiver: Check whether a rider is available and whether it suits your requirements.

Loan facility: Review when a loan can be taken and the applicable terms.

Surrender conditions: Understand the financial consequences of surrendering the policy early.

Tax treatment: Check the tax provisions applicable to your policy and circumstances.

Claim process: Understand the documents and procedures required to submit a claim.

Official documents: Always read the latest policy document and Customer Information Sheet.

13. Common Mistakes Parents Should Avoid

Parents should avoid making a rushed decision while purchasing an LIC policy for their children.

Common mistakes include:

Selecting a policy without identifying the financial goal.
Choosing an unaffordable premium.
Ignoring inflation.
Confusing guaranteed and non-guaranteed returns.
Not checking the maturity age.
Ignoring premium waiver options.
Not understanding surrender conditions.
Depending entirely on insurance for education planning.
Purchasing a policy without reviewing the official benefit illustration.

A careful comparison can help parents make a more informed decision.

14. How to Calculate Your Child’s Future Education Requirements

Financial planning becomes easier when parents estimate future expenses in advance.

Suppose parents expect their child to enter college after 15 years. They should consider the current cost of the preferred course and estimate how much it could increase.

For example:

Financial requirement	Estimated future goal
College education	₹15,00,000
Professional course	₹10,00,000
Other education expenses	₹5,00,000
Total estimated requirement	₹30,00,000

Illustrative example only. These amounts are not LIC policy quotations or projected returns.

Once the financial goal is identified, parents can decide how much should come from insurance savings, other investments and regular savings.

15. Why Consult an LIC Insurance Advisor?

Selecting an appropriate insurance policy can involve several important financial decisions. An experienced LIC insurance advisor can help explain the available products and their conditions.

An advisor can assist with:

Understanding different LIC child plans.
Comparing policy features.
Understanding premium payment options.
Explaining maturity and survival benefits.
Reviewing premium waiver rider conditions.
Preparing financial goal estimates.
Explaining the policy application process.
Understanding policy servicing and claim procedures.

Parents should always request official LIC illustrations and verify the information before making a purchase.

16. Best LIC Policy for Child: Which Plan Should You Consider?

The best option depends on the timing and nature of your financial goals.

Your financial preference	Plan to investigate
Periodic payments during growing years	New Children’s Money Back Plan
Education-related payments between ages 20 and 24	Jeevan Tarun
Guaranteed additions and selected maturity age	Amritbaal

These are starting points for comparison, not personalised recommendations.

Parents should consider their budget, expected cash-flow requirements and insurance needs before deciding.

17. Conclusion: Secure Your Child’s Financial Future with Proper Planning

Every parent wants to provide the best opportunities to their children. Whether it is quality education, a successful career, professional development or financial independence, proper financial planning can make a meaningful difference.

Choosing the Best LIC Policy for Child is an important step that requires research and careful consideration.

LIC’s New Children’s Money Back Plan, Jeevan Tarun and Amritbaal offer different features for parents interested in child-focused savings and insurance planning.

Before selecting a plan, compare the premium, policy duration, maturity benefits, survival benefits, guaranteed additions, bonuses and available riders.

Starting financial planning early, maintaining affordable premiums and reviewing your financial goals regularly can help you prepare for your child’s future.

Remember that the best policy is not necessarily the one with the highest advertised benefit. It is the one whose features and payment schedule suit your family’s actual financial requirements.

Frequently Asked Questions (FAQs) About the Best LIC Policy for Child

1. Which is the best LIC policy for child in India?

LIC’s New Children’s Money Back Plan, Jeevan Tarun and Amritbaal are three child-oriented plans listed by LIC. The best option depends on your financial goals, child’s age, premium budget and preferred benefit structure.

2. Which LIC policy is best for child education?

LIC’s Jeevan Tarun is designed to provide survival benefits between ages 20 and 24, followed by a maturity benefit at age 25. It may be worth comparing for parents planning higher education expenses.

3. What is the minimum age for purchasing an LIC child policy?

The minimum entry age varies by plan. For New Children’s Money Back Plan, the minimum entry age is zero years, while Jeevan Tarun allows entry from 30 completed days. Check the relevant brochure for other eligibility conditions.

4. Can parents purchase an LIC policy for their newborn baby?

Yes. New Children’s Money Back Plan allows entry from zero years of age, subject to the plan’s terms. Jeevan Tarun permits entry from 30 completed days.

5. Can grandparents purchase an LIC policy for a child?

Yes. LIC’s New Children’s Money Back Plan and Jeevan Tarun brochures specify that a parent or grandparent can purchase the policy for an eligible child.

6. Is LIC’s New Children’s Money Back Plan good for education planning?

It may be suitable for parents who want scheduled survival benefits at ages 18, 20 and 22 and a maturity benefit at age 25, subject to policy conditions.

7. What is LIC Jeevan Tarun?

LIC Jeevan Tarun is a participating, non-linked savings plan for children. It offers survival benefits between ages 20 and 24 and a maturity benefit at age 25.

8. What is LIC Amritbaal?

LIC Amritbaal is a child-focused savings plan offering guaranteed additions throughout the policy term, as specified in its policy conditions. It offers maturity age options between 18 and 25 years.

9. Can I purchase an LIC policy for my daughter?

Yes. Eligible LIC child plans can be purchased for daughters. The selection should depend on financial goals, eligibility and affordability rather than gender.

10. Can I purchase an LIC policy for my son?

Yes. Parents can explore eligible LIC child plans for their sons and prepare for future education and other financial needs.

11. What is the Premium Waiver Benefit Rider?

It is an optional rider available under eligible plans. Depending on its conditions, future premiums may be waived following the death of the insured proposer.

12. Does every LIC child policy provide guaranteed returns?

No. Benefits vary by product. Participating plans may provide bonuses that depend on LIC’s declarations, whereas guaranteed additions are defined under the applicable plan terms.

13. Can I pay the LIC child policy premium annually?

Premium payment frequency depends on the selected policy. Available options should be checked in the current brochure and official quotation.

14. What happens if the parent dies during the policy term?

The outcome depends on the policy’s death benefit provisions and whether a Premium Waiver Benefit Rider has been selected. Parents should review the insured person’s details and rider conditions.

15. Can an LIC child policy help with marriage expenses?

It may contribute towards future marriage expenses through its applicable survival or maturity benefits. However, parents should check the benefit payment dates and amounts.

16. Is there a loan facility under LIC child policies?

Certain eligible plans provide loan facilities, subject to policy conditions, availability and applicable limits. Check the current policy document before relying on this facility.

17. Can I surrender my LIC child policy?

Surrender may be permitted after satisfying the applicable conditions. The amount payable depends on the policy terms and the timing of surrender. Early surrender may result in a financial loss.

18. What documents are required to purchase an LIC child policy?

Commonly required documents may include:

Child’s age proof.
Parent or proposer identity proof.
Address proof.
PAN card, where applicable.
Photographs.
Other documents requested by LIC.

Additional documents may be required depending on the case.

19. Can I purchase more than one LIC policy for my child?

Multiple policies may be possible subject to LIC’s underwriting requirements, financial justification and applicable eligibility conditions.

20. Are LIC child policy premiums tax deductible?

Tax benefits may be available under applicable provisions of Indian tax law, subject to eligibility and prevailing rules. The tax treatment depends on the policy and the taxpayer’s circumstances. Consult a qualified tax professional.

21. Is an LIC child plan better than a bank fixed deposit?

These products serve different purposes. An LIC child plan combines insurance and savings features, while a bank fixed deposit is a deposit product. Compare liquidity, returns, risk, taxation and insurance protection before deciding.

22. When should I purchase an LIC policy for my child?

Parents can start exploring options early, provided the child meets the selected plan’s entry requirements. Early planning gives more time to prepare for long-term financial goals.

23. What is the maturity age of LIC child policies?

Maturity ages vary by plan. Jeevan Tarun and New Children’s Money Back Plan have a maturity age of 25 years. Amritbaal offers maturity age options between 18 and 25 years.

24. How can I check LIC child policy premium?

You can obtain a premium quotation through LIC’s official channels or an authorised LIC insurance agent. The premium depends on factors such as age, sum assured, policy term and payment option.

25. How do I select the right LIC policy for my child’s future?

First, calculate your expected education and other future expenses. Then compare available LIC plans, premium affordability, benefit timing and insurance protection. Select a policy only after reviewing the official benefit illustration.

Best LIC Policy for Child