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.
🎯 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 |
✅ Full payout is tax-free under Section 10(10D)
📝 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+ |
