LIC's New Children's Money Back Plan 832 is a participating money-back plan that does something elegant: it pays money exactly when your child needs it most - at ages 18, 20, 22, and 24.
How the Payout Timeline Works
The policy pays 20% of Sum Assured at each of these ages:
- ▸Age 18: 20% of SA - timed for college admission fees
- ▸Age 20: 20% of SA - timed for second/third year college expenses
- ▸Age 22: 20% of SA - timed for postgraduate admission
- ▸Age 24: 20% of SA - timed for professional/wedding preparation
At maturity (age 25): Remaining 20% of SA + accumulated Simple Reversionary Bonus + Final Additional Bonus.
This staggered payout structure is what makes this plan superior to a lump-sum child plan for most families.
Sample Calculation
Parents enroll their 3-year-old child with Rs 5 lakh sum assured (22-year policy term):
- ▸Approximate annual premium: Rs 22,000-25,000 per year for 22 years
- ▸Payouts at 18, 20, 22, 24: Rs 1 lakh each = Rs 4 lakh total
- ▸Maturity at 25: Rs 1 lakh + bonus (approximately Rs 5-7 lakh total including bonus)
- ▸Grand total received: Rs 9-11 lakh over the child's young adult years
The Proposer Protects the Plan
The parent is the proposer (policyholder) and the child is the life assured. If the proposer (parent) passes away before maturity, the future premiums are waived and the policy continues - all payouts happen on schedule. This is critical protection.
Key Details
- ▸Child's Entry Age: 0 to 12 years
- ▸Maturity Age: 25 years (fixed)
- ▸Sum Assured: Rs 1 lakh minimum
- ▸Premium: Regular pay for the policy term
Plan 832 vs Jeevan Tarun - Which is Better?
Both plans are excellent. The difference: Jeevan Tarun gives you flexibility to choose how much survival benefit to take each year (5%, 10%, 15%, or 20%). Plan 832 is fixed at 20% per payout. If you want flexibility, Jeevan Tarun wins. If you want simplicity, Plan 832 is easier to understand.
Start your child's financial journey today with our maturity calculator or call Ajay Kumar Poddar at 9415313434.
