New Children Money Back Plan 732

LIC of India launched its specialized child-focused savings-cum-protection plan — the LIC New Children Money Back Plan 732 — on 31st December 2024. It is a traditional, non-linked, regular premium policy designed to meet a child’s growing needs like education, marriage, and career milestones.

This plan ensures that your child receives timely payouts at ages 18, 20, 22, and a lump sum maturity benefit at 25, along with full life insurance coverage throughout the term.

Table of Contents

🎯 Key Highlights of LIC Child Plan 732

Feature	Description
Plan Type	Traditional, Non-Linked, Participating
Policy Term	25 – Child’s Age at Entry
Premium Paying Term	Same as Policy Term
Minimum Entry Age	0 days
Maximum Entry Age	12 years
Maturity Age	25 years
Minimum Sum Assured	₹1,00,000 (in multiples of ₹10,000)
Risk Cover Starts	Age 8 or 2 years after policy start (whichever is earlier)
Premium Waiver Rider	Available
Premium Modes	Yearly, Half-Yearly, Quarterly, Monthly (ECS only)
Loan Facility	After 1 year
Tax Benefits	80C (premium), 10(10D) (returns)

🎁 Benefits of LIC Children’s Money Back Plan 732

1. ✅ Survival Benefit

Paid at key milestones of the child’s life:

Age	Benefit
18 Years	20% of Sum Assured
20 Years	20% of Sum Assured
22 Years	20% of Sum Assured

2. ✅ Maturity Benefit (At Age 25)

✔ 40% of Basic Sum Assured
✔ + Vested Simple Reversionary Bonus
✔ + Final Additional Bonus (FAB), if any

3. ✅ Death Benefit

Condition	Benefit
Before Risk Commencement	Total premium paid (excluding taxes and rider premiums)
After Risk Commencement	Basic Sum Assured + Bonus + FAB
Minimum Death Benefit	Not less than 105% of total premiums paid

🛡 Premium Waiver Benefit (PWB) – Rider for Child’s Safety

If the proposer (parent/guardian) dies during the policy term:

All future premiums are waived
Policy continues without interruption
Child receives all scheduled money back and maturity benefits

✅ Eligibility: Proposer age 18–55 years and (age + policy term) ≤ 70 years

💸 Rebates in LIC Child Plan 732

A. Mode Rebate

Premium Mode	Rebate (%)
Yearly	2%
Half-Yearly	1%
Quarterly / Monthly	NIL

B. High Sum Assured Rebate

Basic Sum Assured	Rebate
₹2,00,000 – ₹4,75,000	NIL
₹5,00,000 – ₹9,90,000	₹2.5 per ₹1000
₹10,00,000 & above	₹4 per ₹1000

🧮 Example Illustration – Shyam’s Child Plan

👤 Shyam (Father) takes LIC Child Plan for 1-year-old son

Details	Value
Father’s Age	30 Years
Child’s Age	1 Year
Sum Assured	₹5,00,000
Policy Term	24 Years (25 – 1)
Premium Payment Term	24 Years
Premium Waiver Rider	Yes
Premium (Yearly)	₹45,598 (1st year), ₹44,616 thereafter

💰 Premium Payment Summary

Mode	1st Year (Incl. GST)	2nd Year Onward
Yearly	₹45,598	₹44,616
Half-Yearly	₹23,056	₹22,559
Quarterly	₹11,656	₹11,405
Monthly	₹3,885	₹3,802

Note: GST is 4.5% in the first year and 2.25% from 2nd year onward (subject to change).

💵 Money Back & Maturity Benefits

Age	Year	Benefit Type	Amount
18	2040	1st Money Back (20%)	₹1,00,000
20	2042	2nd Money Back (20%)	₹1,00,000
22	2044	3rd Money Back (20%)	₹1,00,000
25	2047	Maturity (40% + Bonus + FAB)	₹18,30,000
Total Benefits	—	—	₹24,30,000

📊 Year-wise Table of Premium & Life Cover

Year	Age	Paid Premium (₹)	Normal Life Cover (₹)	Money Back (₹)
2023	1	45,598	0	0
2024	2	44,616	0	0
2025	3	44,616	11,35,000	0
2030	8	44,616	13,60,000	0
2039	17	44,616	17,95,000	0
2040	18	44,616	18,45,000	₹1,00,000
2042	20	44,616	19,70,000	₹1,00,000
2044	22	44,616	21,40,000	₹1,00,000
2047	25	0	—	₹18,30,000
—	—	Total Premium: ₹10,71,766	—	Total Benefits: ₹24,30,000

⚰ Death Claim Scenario

Suppose death occurs in 2041 at child’s age 19

| Total Premium Paid till then | ₹8,48,682 |
| Death Sum Assured | ₹10,00,000 |
| Bonus (Approx.) | ₹8,55,000 |
| FAB (Approx.) | ₹50,000 |
| Total Death Benefit | ₹19,05,000 |
| + Money Backs Already Paid | ₹2,00,000 |
| Total Benefits to Nominee | ₹21,05,000 |

📝 Additional Plan Info

Feature	Details
Risk Coverage	Till 25 years (end of policy term)
Commencement of Risk	Age 8 or 2 years after policy start
Loan Facility	Available after 1 year
Income Tax Benefits	80C (Premiums) & 10(10D) (Returns)
Proposal Forms	No. 300 and 360
Cooling-Off Period	30 Days
Backdating	Allowed in same financial year
Assignments/Nominations	Permitted
Lock-in Period	1 Year

✅ Why Choose LIC Child Money Back Plan 732?

This plan is perfect if you’re looking to:

👶 Secure your child’s higher education and marriage expenses
📆 Get timely payouts at age 18, 20, and 22
👨‍👩‍👧‍👦 Protect your child’s future even in your absence (via PWB rider)
🔐 Avail guaranteed, tax-free returns from a trusted institution like LIC

🧾 Summary of Returns

Category	Amount
3 Money Back Installments (20% each)	₹6,00,000
Maturity (40% + Bonus + FAB)	₹18,30,000
Total Benefits	₹24,30,000
Total Premium Paid	₹10,71,766
Net Gain	₹13,58,234+