LIC's New Children's Money Back Plan (832)
UIN: 512N296V03 | Premium & Benefits Calculator
| Age of Child | Policy Year | Benefit Type | Benefit Amount |
|---|
• The above calculations are based on official LIC formulas and exclude bonuses (Simple Reversionary Bonuses & Final Additional Bonus).
• Actual benefits will be higher as bonuses will be added as per LIC's declaration.
• Premium excludes GST and any applicable taxes.
• Premium calculation uses sample rates from official brochure (ages 0, 5, 10, 12) with interpolation.
• For children below 8 years, risk commences 2 years from policy start or when child turns 8, whichever is earlier.
• Policy automatically vests in the child at age 18.
• This is an illustrative calculator. Please contact LIC for exact premium quotation.
Planning for a child’s future education and financial security is a top priority for many parents. To meet these long-term financial goals, LIC New Children Money Back Plan 832 is a popular insurance plan offered by Life Insurance Corporation (LIC) of India. This plan provides not only insurance coverage but also regular survival benefits (money-backs) at specified intervals to support educational and other expenses.
What is LIC New Children Money Back Plan 832?
LIC New Children Money Back Plan 832 is a traditional, participating money back insurance policy specially designed for children. It provides:
- Regular money-back survival benefits at the ages of 18, 20, and 22 years to help meet education costs.
- A maturity benefit at the child’s age of 25 years, which includes the balance sum assured with accrued bonuses.
- Life insurance coverage throughout the policy term for financial protection in case of the untimely death of the insured child.
- Option to add riders like Premium Waiver Benefit for additional protection.
The key uniqueness is that it combines insurance with periodic payouts that coincide with typical education milestones, making it easier for parents to cover school and college expenses.
Who Should Consider This Plan?
This plan is ideal for parents or guardians who want to build a financial corpus over time for their child’s education, marriage, or other life milestones. It suits children aged between 0 years (last birthday) and 12 years (last birthday).
If the child is:
- Born or up to 12 years old,
- Parents want fixed, periodic survival payouts,
- They seek a plan with long-term maturity benefits along with bonuses,
then LIC New Children Money Back Plan 832 can be a good option.
Key Features of LIC New Children Money Back Plan 832
Understanding the key features helps parents grasp the plan’s utility easily.
| Feature | Details |
|---|---|
| Entry Age of Child | 0 to 12 years (last birthday) |
| Policy Term | 25−Child’s age at entry25 – \text{Child’s age at entry}25−Child’s age at entry years |
| Premium Payment Term | Same as Policy Term |
| Minimum Sum Assured | ₹1,00,000 |
| Money Back Percentages | 20% of Sum Assured at ages 18, 20, 22 |
| Maturity Age | 25 years of the child |
| Maturity Amount | Balance 40% Sum Assured + vested bonus + final bonus |
| Premium Waiver Benefit | Optional Rider for premium waiver on death of parent |
| Tax Benefits | Premium paid is eligible for deduction under Section 80C; maturity & survival benefits are tax-free under Section 10(10D) |
How Does LIC New Children Money Back Plan 832 Work?
The policy term depends on the age of the child at the time of policy inception. The formula is: Policy Term (Years)=25−Age of Child at Entry
For example, if the child is 5 years old, the policy term will be 25−5=2025 – 5 = 2025−5=20 years.
Benefits Timeline:
| Child’s Age | Benefit Type | Amount |
|---|---|---|
| 18 years | Survival Benefit (Money Back) | 20% of Basic Sum Assured |
| 20 years | Survival Benefit (Money Back) | 20% of Basic Sum Assured |
| 22 years | Survival Benefit (Money Back) | 20% of Basic Sum Assured |
| 25 years | Maturity Benefit | Remaining 40% Sum Assured + bonuses |
The amount received at the ages of 18, 20, and 22 can support higher secondary and graduation expenses. The maturity benefit, which comes at 25 years, generally supports higher education, wedding, or other financial needs.
Benefits of LIC New Children Money Back Plan 832
The plan offers a mixture of financial protection, survival benefits, and growth through bonuses.
Survival Benefits
Parents receive cashbacks of 20% of the sum assured at the child’s age of 18, 20, and 22 years. This can help meet educational fees or other expenses during those years.
Maturity Benefits
If the child survives till maturity (25 years), the balance 40% sum assured is paid along with accrued simple reversionary bonuses and a final additional bonus, providing a substantial corpus.
Death Benefit
If the child dies during the policy term and all premiums are paid, the nominee receives:
- The higher of sum assured on death (defined as the basic sum assured or 7 times the annualized premium), along with bonuses.
- Or 105% of total premiums paid till that date.
This ensures financial security in case of an unfortunate event.
Tax Benefits
- Premiums paid qualify for deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act.
- Survival benefits and maturity proceeds are exempt from tax under Section 10(10D).
LIC New Children Money Back Plan 832 Calculator: How It Helps?
Choosing the right sum assured and premium payment plan can be confusing. This is where the LIC New Children Money Back Plan 832 calculator comes in handy.
What the Calculator Does?
By feeding some key details into the calculator such as:
- Child’s current age,
- Desired sum assured,
- Premium payment mode (monthly, quarterly, half-yearly, yearly),
- Optionally adding riders (like Premium Waiver Benefit),
the calculator instantly provides:
- The premium amount payable per chosen mode,
- Survival benefit amounts at 18, 20, and 22,
- Expected maturity amount with bonuses.
This helps parents plan their finances in an informed way, aligning premiums with their budget and expected benefits.
How to Use the LIC New Children Money Back Plan 832 Calculator?
Here is a simple step-by-step guide to using the calculator:
- Enter the Child’s Age:
Since the policy term depends on the child’s age, input the exact age (in years). - Choose Sum Assured:
Select the amount of insurance coverage needed based on your financial goals. - Select Premium Payment Mode:
Choose from yearly, half-yearly, quarterly, or monthly premium payment options. - Add Optional Riders:
You may select additional riders like Premium Waiver Benefit which waives future premiums on the death of the premium payer. - Click ‘Calculate’:
The tool will display the premium amount to pay, the survival benefits payable at 18, 20, and 22 years, and the maturity benefit expected at 25 years.
Using the calculator simplifies decision-making by giving a clear picture of premiums and benefits before purchasing the plan.
Example Calculation Using LIC New Children Money Back Plan 832 Calculator
Suppose a parent chooses the following inputs:
- Child’s age: 5 years,
- Sum Assured: ₹5,00,000,
- Premium mode: Yearly,
- No additional rider.
Outcomes:
- Policy term and premium payment term = 25 – 5 = 20 years,
- Yearly premium (approx.) = ₹27,000 (including GST),
- Survival benefits of ₹1,00,000 at ages 18, 20, and 22,
- Maturity amount (balance 40% + bonuses) at 25 years around ₹4,50,000 after bonuses.
This example shows how premiums are spread over 20 years while periodic money backs and maturity amount create a financial cushion.
Why Choose LIC New Children Money Back Plan 832?
Reliable and Trustworthy
LIC is the largest and most trusted life insurer in India with a heritage of over six decades. Choosing LIC means dealing with a reliable entity that has a strong claim settlement record.
Benefits Aligned with Education Milestones
Money back benefits at 18, 20, and 22 years correspond to major education milestones – higher secondary, graduation, and further studies – making it easier for parents to plan education expenses.
Participation in Bonuses
The plan participates in LIC’s profit through simple reversionary bonuses, which enhances the maturity amount over time. Bonuses are declared based on LIC’s financial experience, potentially increasing the final corpus.
Tax Savings
The dual advantage of tax deductions under section 80C and tax-free maturity and survival benefits make this plan tax efficient.
Important Tips for Parents Considering This Plan
- Start Early: The earlier you start, the lower the premium, as policy term is longer.
- Choose Sum Assured Carefully: Align sum assured with future education and marriage expenses expectations.
- Consider Riders: Adding riders like Premium Waiver Benefit can make the plan more secure.
- Use Calculator Before Buying: The LIC New Children Money Back Plan 832 calculator is handy to estimate the financial commitment and returns.
- Review Policy Documents: Understand terms and conditions before signing.
FAQ: Common Questions About LIC New Children Money Back Plan 832
What is the entry age for LIC New Children Money Back Plan 832?
The child must be between 0 years (30 days) and 12 years (last birthday) at the time of policy entry.
When are the survival benefits paid?
Survival benefits of 20% of the sum assured are paid at the child’s age of 18, 20, and 22 years.
What is the maturity benefit under this plan?
At age 25 of the child, the balance 40% of the sum assured along with accrued bonuses and final additional bonus is payable.
Is there a life cover in this plan?
Yes, the plan provides life cover on the child throughout the policy term. In case of the child’s death, nominees receive the death benefit.
What happens if the child dies during the policy term?
The nominee is paid the higher of sum assured on death (7 times annualized premium or basic sum assured) plus bonuses, or 105% of total premiums paid.
Conclusion
LIC New Children Money Back Plan 832 is an excellent choice for parents who want to secure their child’s educational and financial future with guaranteed survival benefits at crucial ages and a lump sum on maturity. Using the LIC calculator simplifies financial planning, providing clarity on premiums and expected returns. With LIC’s legacy and government backing, this plan combines trust, flexibility, and benefits in a way tailored for a child’s milestones.