Choosing the right insurance plan for your child’s future is very important. LIC’s New Children’s Money Back Plan 932 was designed especially to secure a child’s financial future by providing timely benefits for education, marriage, and other important life events.

Introduction to LIC New Children’s Money Back Plan 932

The LIC New Children’s Money Back Plan (Plan 932) is a money-back insurance plan launched with the goal of ensuring financial protection and savings for a child’s future needs. The plan combines insurance and savings, offering survival benefits at specific intervals and a lump sum maturity benefit at the end of the policy term.

It is designed for parents or grandparents to buy for children aged between 0 to 12 years. The plan period depends on the age of the child when the policy is bought, with the maturity age fixed at 25 years.

Important Dates:

• Launch Date: 1st February 2020
• Withdrawal Date: 1st January 2025

As of January 1, 2025, LIC has withdrawn this plan from sale, but existing policyholders can enjoy the benefits as per their policies.​

Key Features of LIC New Children’s Money Back Plan 932

Plan Type

• Individual, non-linked, participating, life assurance money-back plan.
• The plan offers a combination of savings and protection.

Entry Age and Policy Term

• Entry Age: 0 to 12 years (child’s age at entry).
• Policy Term: (25 – Age at Entry) years.
  For example, if the child’s age at entry is 5 years, the policy term will be 20 years.

Premium Payment

• Premiums can be paid yearly, half-yearly, quarterly, or monthly.
• Grace period of 30 days for yearly/half-yearly/quarterly premiums and 15 days for monthly premiums applies.

Survival Benefits (Money Back)

• 20% of the basic sum assured is paid as survival benefits when the child reaches 18, 20, and 22 years of age.

Maturity Benefit

• On completion of the policy term (at 25 years age of the child), 40% of the basic sum assured along with bonuses is paid.

Death Benefit

• In case of unfortunate death of the insured child during the policy term, the nominee receives the higher of:
  • Basic Sum Assured, or
  • 7 times the annual premium,
    plus accrued bonuses.
• Death benefit ensures financial support even in unforeseen circumstances.

Participation in Profits

• The policy participates in LIC’s profits via simple reversionary bonuses and final additional bonuses declared by LIC.

Loan Facility

• Loan is available after payment of at least 2 full years’ premiums, subject to terms and conditions by LIC.

Premium Waiver Benefit (PWB) Rider

• Optional rider to waive future premiums in case of the death of the policyholder (usually the parent/guardian), securing the child’s benefits without premium payment.
• Rider can be chosen if the guardian’s age is between 18 and 55 years and must not exceed 70 years after adding policy term.

Surrender Benefit

• Policy can be surrendered after payment of 2 full years’ premiums, subject to surrender value rules.​

Understanding the Benefits in Detail

Survival Benefits Explained

The LIC New Children’s Money Back Plan ensures you get back part of your investment during crucial ages of your child’s life.

• At 18 years (first survival benefit): 20% of Basic Sum Assured
• At 20 years (second survival benefit): 20% of Basic Sum Assured
• At 22 years (third survival benefit): 20% of Basic Sum Assured

This staged payout helps to cater to important needs like higher education or skill development.

Maturity Benefit

On maturity, when the child turns 25, LIC pays 40% of the Basic Sum Assured plus accrued bonuses. This lump sum can be utilized for higher education, marriage, or any other important milestone.

Death Benefit

In case of unfortunate demise of the insured child during the policy term, the nominee will receive the death claim amount which is either the Basic Sum Assured or 7 times the annual premium paid, along with bonuses. This ensures financial protection even in adverse scenarios.

Bonus Benefits

The plan is a participating plan; hence, it receives simple reversionary bonuses during the policy term, along with a possible final additional bonus (FAB), reflecting LIC’s performance.

How to Use LIC New Children Money Back Plan Calculator

The LIC New Children’s Money Back Plan Calculator is an online tool designed to help you estimate the premium amount, maturity benefits, and other payouts based on your inputs. This helps you plan your finances better and choose the right sum assured and premium payment mode.

Steps to Use the Calculator

1. Enter Basic Details:
   Provide details like your child’s age, sum assured desired, premium payment frequency (monthly, quarterly, half-yearly, yearly), and optionally whether you want to add the premium waiver rider.
2. Choose Policy Term:
   The calculator automatically calculates the policy term as (25 – child’s age).
3. Calculate Premium:
   Based on your inputs, the calculator will show the premium amount payable regularly.
4. View Benefits:
   The calculator also provides a summary, including survival benefit payouts at ages 18, 20, and 22, maturity benefit, and death benefit projections.

Using the calculator before purchasing a policy helps you understand costs and benefits clearly, making your decision more informed.​

Illustrative Example of the Plan Benefits

Suppose a child aged 6 years is insured under the plan with a basic sum assured of Rs. 1,00,000.

• Policy term will be (25 – 6) = 19 years.
• Survival benefits will be paid at child’s ages 18, 20, and 22 (which corresponds to policy years 12, 14, and 16).
• Each survival benefit will be 20% of Rs. 1,00,000 = Rs. 20,000.
• At maturity (age 25), 40% of Rs. 1,00,000 = Rs. 40,000 plus bonuses will be paid.
• In case of death during the policy, the nominee gets the higher of sum assured or 7 times annual premium plus bonuses.

This structured payout ensures regular funds for the child’s education or marriage while providing a safety net with life coverage.​

Advantages of LIC New Children’s Money Back Plan

• Financial Security: Provides life cover on the child’s life, protecting against risks.
• Regular Money Back: Survival benefits ensure you receive part of the sum assured during child’s key ages.
• Bonuses: Regular bonuses increase the policy’s value.
• Loan Facility: Policyholders can avail loans against the policy.
• Optional Premium Waiver Rider: Protects the plan if the guardian passes away.
• Flexible Premium Payment: Choose monthly, quarterly, half-yearly, or yearly payments.
• Ease of Planning: The maturity and survival payouts align with important milestones like education and marriage.

Things to Consider Before Buying

• Since this plan is withdrawn since January 2025, it is no longer available for new purchases. However, existing policyholders will continue to receive benefits as per their policy terms.
• It is crucial to select a sum assured amount suitable for your future financial needs.
• The plan requires timely payment of premiums; otherwise, benefits may be lost due to policy lapse.
• Make sure to understand the premium waiver rider thoroughly if opting for it.
• Use the LIC New Children’s Money Back Plan calculator to analyze premiums and payouts before finalizing.​

Alternatives and Related Plans

For those looking at child insurance plans post withdrawal of Plan 932, LIC offers alternative child plans such as LIC’s New Children Money Back Plan 732 and Jeevan Tarun Plan 934, which provide similar benefits and support for children’s education and future.​

Frequently Asked Questions

Conclusion

The LIC New Children’s Money Back Plan 932 was a thoughtful plan for securing a child’s financial future while providing risk coverage and staged payouts. The plan’s design supports critical milestones such as education and marriage by disbursing survival benefits and a maturity sum at the right time.

Though withdrawn in January 2025, the plan remains beneficial for existing policyholders. For new customers, it is advisable to explore LIC’s current child insurance products.