LIC Childern’s Money Back Plan (Table 832) – Should I buy?

LIC Children’s Money Back plan (Table 832) is non-linked, with profit, regular premium payment money back plan. LIC Children’s money back plan is closed ended plan available for 90 days only. This plan is designed to meet various financial needs of children like education, marriage etc. Let’s take a look at LIC new Children’s Money Back Plan (Table 832).

LIC Chidren’s Money Back Plan Details:-

Eligibility Condition:-  

• Minimum Age at Entry: 0 Years
• Maximum Age at Entry: 12 Years

Age of Proposer:-

• Minimum – 18 years
• Maximum – 55 years

Sum Assured:-

• Min Sum Assured : 1 Lac
• Max Sum Assured : No limit
• Mode : Yearly, Half Yearly, Quarterly
• Policy Term : 25 minus age i.e. 25 – Age of child

Child’s age is 5 years then Policy term will be 25-4=20 Years

• Premium Term : 18 minus age

 Child’s age is 5 years then Premium term will be 18-5=13 Years

• Maturity Benefits
  • At the age of 18 Years = 20% of SA
  • At the age of 20 Years= 20% of SA
  • At the age of 22 Years = 20% of SA
  • At the age of 25 Years = 40% of SA + Bonus+ Final Additional Bonus

LIC Chidren’s Money Back Example

Age of Child – 0 years

Premium Paying term – 25 Years

Sum assured – 1 Lac

Yearly Premium – 4461 Rs/-

Survival Benefits:-

Age 18 years – 20,000 Rs/-

Age 20 years – 20,000 Rs/-

Age 22 years – 20,000 Rs/-

Age 25 years – 40,000 Rs/-

Bonus +FAB– 133,000 Rs/-

Total Maturity Benefit – 233,000 Rs/-

LIC Childern’s Money Back Plan (Table 832) – Should I buy?

LIC Childern’s money back plan is typical money back plan. Before purchasing this plan you should be clear about why you want to purchase this plan.

Do you want to purchase it for Insurance or risk cover?

No parents will ever think of purchasing insurance policy for children’s. Being human being we will never imagine about death of our child. Parents usually purchase insurance policy to cover themselves, so no question arise to purchase this plan for insurance.

Do you want to purchase this plan for Educational need?

Educational expenses are increasing year on year. As you know that saving for child education is not child’s play. Inflationary effect is making education expensive day by day. Do you think that peanut returns of LIC Children’s Money Back plan will be enough for your child education after 25 Years?

Effective return in case of LIC Children’s money back plan will be 6% only. Considering growing Inflation rate you need investment option which will provide returns in range of 12-15% at least.

It is recommended to forget LIC Children’s Money Back plan. One should explore investment option like equity, mutual funds for child’s education. If you don’t want to take risk you can simply adopt PPF or Sukanya Samriddhi Account for investment.

What is your opinion about LIC Children’s Money Back Plan? Do share your views.