Every parent wants to give their child the best education and a secure future. But with education costs and other major expenses rising every year, starting early has become more important than ever. For families looking for a safe and long term investment option, Life Insurance Corporation of India (LIC) offers child focused plans that help build a financial corpus. These policies are designed to support higher education and other future needs. Some plans also protect the child’s financial future even if something happens to the parent.

LIC Amritbaal

LIC Amritbaal is one of the corporation’s latest child plans. It is designed to help parents build a guaranteed corpus for higher education. The policy can be purchased for children aged between 30 days and 13 years. One of its biggest highlights is the guaranteed addition of Rs 80 per Rs 1,000 of Basic Sum Assured for every policy year, subject to policy terms. Parents can choose a premium paying term between 10 and 25 years. Maturity benefit is paid when the child reaches the selected maturity age between 18 and 25 years. This lump sum amount can help meet higher education expenses and other important financial goals.

LIC children’s money Back Plan

This plan is suitable for parents who expect expenses at different stages of their child’s education. It is available for children from birth up to 12 years of age. The policy pays survival benefits at different milestones. When the child turns 18, 20 and 22 years old, 20 percent of the Basic Sum Assured is paid each time. At the age of 25, the policy matures and the remaining 40 percent of the Basic Sum Assured is paid along with the vested bonus and any final additional bonus, if declared. These payouts can help parents manage higher education and other important expenses.

LIC Jeevan Tarun

LIC Jeevan Tarun is available for children aged between 90 days and 12 years. The plan offers flexibility based on a family’s financial needs. Parents can choose how much money they want to receive as annual survival benefits when the child is between 20 and 24 years old. Available options are 0 percent, 5 percent, 10 percent or 15 percent of the Basic Sum Assured every year. The remaining maturity amount along with applicable bonuses is paid when the policy ends at the age of 25.

Premium Waiver Benefit adds extra protection

Parents should consider adding the Premium Waiver Benefit rider while buying any LIC child plan. If the policyholder dies during the policy term, future premiums are waived subject to rider conditions. The policy continues and the child receives the promised benefits at the scheduled time. These plans also offer tax benefits. Premiums paid may qualify for deduction under Section 80C of the Income Tax Act up to the applicable limit of Rs 1.5 lakh in a financial year. Maturity proceeds can also be tax exempt under Section 10(10D), provided the policy meets the prescribed conditions under the Income Tax Act.