The Life Insurance Corporation of India (LIC) is witnessing growing interest in Odisha for its New Children’s Money Back Plan (Plan No. 932). This tailored scheme, launched in 2020, offers parents a flexible and tax-efficient option to secure their child’s financial future — including education, marriage, or international study.
Affordable Daily Contributions, Strong Long-Term Gains
According to local LIC agents, parents can begin contributions with just ₹150 per day, which could accumulate to around ₹19 lakh by the time the child turns 25. The plan is especially appealing in urban and semi-urban regions where parents are actively looking for long-term savings tools.
The base sum assured starts at ₹1 lakh, and there is no upper limit, allowing families to scale the plan based on income and goals. Premiums can be paid annually, semi-annually, quarterly, or monthly — giving policyholders the freedom to align with their cash flows.
Survival Benefits Ease Educational Expenses
The plan is structured over a 25-year term. Starting from the child’s policy start date (typically within the first year of life), the plan begins to pay survival benefits from age 18. Beneficiaries receive:
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20% of the sum assured at age 18, 20, and 22
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40% plus bonuses at age 25 as the final payout
For instance, with a sum assured of ₹15 lakh, the plan disburses ₹3 lakh each at 18, 20, and 22, and nearly ₹7 lakh at 25 — bonuses may push the total maturity to around ₹19 lakh.
Life Cover, Riders, and Tax Benefits Add to Plan’s Appeal
Importantly, life insurance cover is granted to the child, becoming active two years post-policy commencement or from the child’s eighth birthday — whichever is later. If the child passes away after this point, the full sum assured and bonuses are paid, with a minimum guarantee of 105% of premiums paid.
Additionally, an optional Premium Waiver Benefit Rider ensures that in the event of the parent’s death, premiums are waived while the policy remains in force — offering continued security.
Policy Loans and Surrender Options Offer Flexibility
After three years, policyholders can avail loans against the plan for emergencies, and surrender values ensure there’s a fallback for those needing to exit early. This dual functionality makes the product both a savings instrument and an emergency reserve.
Tax-Free Returns Under Sections 80C and 10(10D)
Both premium payments and the final maturity amount qualify for tax exemptions under Sections 80C and 10(10D) of the Income Tax Act. This makes the plan a tax-friendly investment that ensures more value stays in the hands of the family.
A Practical Choice for Modern Families
Sunil Kumar, a leading LIC adviser in Bhubaneswar, explained that “saving ₹150 a day is feasible for many Odia households, especially when it builds a ₹19 lakh nest egg.” The scheme’s flexibility and long-term vision resonate with families preparing for big-ticket future costs like college fees and weddings.
For many, LIC’s New Children’s Money Back Plan is more than insurance — it’s a financial safety net stitched with foresight, discipline, and care.
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