Understanding the LIC Child Plan Calculator
Every parent shares a foundational dream: providing their child with the highest level of education and establishing a strong financial pad for their key life milestones. However, in today’s economic climate, rising costs for higher professional courses and inflation make early investment mandatory. The LIC Child Plan Calculator is an expert-engineered planning tool designed to help you project premiums, money-back payouts, annual bonuses, and maturity values for LIC of India’s top-tier wealth accumulation products for minors.
Specifically modeling two standard savings engines—LIC Jeevan Tarun (Plan No. 934) and LIC New Children’s Money Back Plan (Plan No. 932)—our dashboard uses accurate 2026 actuarial curves to help parents bypass complex physical premium grids. By inputting basic features like your child's age, sum assured, and payout choices, you can instantly design a structured plan that matches college admission schedules, wedding milestones, or initial business seed funding.
Jeevan Tarun vs. Children’s Money Back Plan: Key Differences
While both policies are participating, non-linked insurance vehicles designed to secure a child's future, they differ significantly in their payment structures and maturity mechanisms. Utilizing our specialized LIC Jeevan Tarun calculator and LIC children money back calculator tools helps you choose the perfect option for your savings pattern.
1. LIC Jeevan Tarun (Plan No. 934) - Flexible Payouts
Jeevan Tarun is a premium-designed, highly customizable plan developed specifically for children between 0 and 12 years old. It features:
- Flexible Survival Benefits: Parents can choose from four distinct options, opting to receive annual payouts equal to 5%, 10%, or 15% of the Sum Assured from the child's ages 20 to 24, or let 100% of the corpus accumulate until maturity.
- Shorter Premium Term: The Premium Paying Term (PPT) is limited to `20 - Child's Current Age`. Since the policy matures at child age 25, no premiums are payable for the final 5 years of the term (ages 20 to 24), providing substantial cash-flow relief during active college-going years.
Use our LIC child premium calculator to easily model the four different survival benefit choices and determine which yield matches your target educational expenses.
2. New Children’s Money Back (Plan No. 932) - Structured Payouts
This plan is a classic child money-back model designed to provide regular cash flow at vital milestone ages. Under this scheme:
- Fixed Money-Back Milestones: Payouts are completely fixed. The child receives 20% of the Sum Assured at age 18 (higher secondary/college entry), another 20% at age 20 (mid-graduation), and a third 20% at age 22 (graduation completion/post-grad entry).
- Maturity at 25: The remaining 40% of the basic Sum Assured, alongside the cumulative reversionary bonuses accrued over the entire 25-year term and any Final Additional Bonuses (FAB), is paid at age 25.
- Regular PPT: Premiums are payable for the entire duration of the term, i.e., `25 - Child's Current Age`.
Eligibility Criteria and Core Rules
To utilize the calculator accurately, ensure your child's parameters align with the official policy guidelines of the Life Insurance Corporation of India:
| Feature Parameter | LIC Jeevan Tarun (Plan 934) | LIC New Children's Money Back (Plan 932) |
|---|---|---|
| Minimum Age at Entry | 90 Days Completed (Age 0) | 90 Days Completed (Age 0) |
| Maximum Age at Entry | 12 Years (Nearer Birthday) | 12 Years (Nearer Birthday) |
| Age at Maturity | 25 Years (Completed) | 25 Years (Completed) |
| Policy Term | 25 minus Child's Current Age | |
| Premium Paying Term (PPT) | 20 minus Child's Current Age | 25 minus Child's Current Age |
| Minimum Sum Assured | ₹75,000 | ₹1,00,000 |
| Maximum Sum Assured | No Upper Limit | No Upper Limit |
How Do Survival Option Choices in Jeevan Tarun Work?
Jeevan Tarun (Plan 934) stands out because of its unique survival options. Our LIC Child Plan Calculator implements the four official IRDAI-approved payment combinations with precise actuarial math:
- Option 1 (0% Annual, 100% Maturity): No survival payouts are taken between the child's ages of 20 and 24. 100% of the basic Sum Assured plus all accumulated bonuses is paid in a single lump sum at age 25. This is perfect for parents wanting to build the absolute largest corpus for marriage or business setup.
- Option 2 (5% Annual, 75% Maturity): 5% of the Sum Assured is paid annually as a survival benefit from ages 20 to 24 (totaling 25% SA in regular payouts). The remaining 75% of the basic Sum Assured plus accrued bonuses is paid at age 25.
- Option 3 (10% Annual, 50% Maturity): 10% of the Sum Assured is paid annually from ages 20 to 24 (totaling 50% SA in regular payouts). The remaining 50% of the basic Sum Assured plus accrued bonuses is paid at age 25.
- Option 4 (15% Annual, 25% Maturity): The highest cash flow during college. 15% of the Sum Assured is paid annually from ages 20 to 24 (totaling 75% SA in regular payouts). The remaining 25% of the basic Sum Assured plus accrued bonuses is paid at age 25.
Critical Feature: Premium Waiver Benefit (PWB) Rider
When planning for your child's financial security, you must always prepare for unexpected contingencies. The LIC Premium Waiver Benefit (PWB) Rider is the most crucial add-on to any child insurance portfolio:
- What it accomplishes: If the parent (the proposer who pays the premiums) passes away during the premium payment term, all future premiums are completely waived by LIC.
- Policy Continuity: The child is not required to contribute any premiums. The policy continues to run exactly as planned. All money-back payouts, annual reversionary bonuses, and final maturity benefits are paid to the child at designated ages without any disruption.
- Actuarial Modeling: In our calculator, enabling the PWB Rider applies a minor 3% loading to the basic premium, simulating the standard insurance risk cost. We highly recommend keeping this rider enabled for peace of mind.
Tax Benefits and Exemptions
Investing in LIC child plans offers strong tax efficiency under existing Indian tax laws:
- Section 80C Deduction: Premiums paid for the policy are eligible for deduction up to ₹1,50,000 per financial year under Section 80C (under the Old Tax Regime).
- Section 10(10D) Exemption: All money-back payouts, survival benefits, and the final maturity amount paid at age 25 are 100% tax-free under Section 10(10D), provided the annual premium does not exceed 10% of the Sum Assured.
⚖️ Professional Actuarial Disclaimer
The LIC Child Plan Calculator hosted on BimaCalculator.com is an independent financial simulation tool designed for educational and illustrative purposes only. The premium calculations, annual reversionary bonuses (modeled at ₹42 to ₹45 per thousand Sum Assured), and Final Additional Bonuses (FAB) represent accurate mathematical models based on current 2026 LIC rate guidelines. However, bonuses are declared annually by LIC of India based on corporate profitability and actuarial valuations, and are not legally guaranteed. Tax regulations are subject to amendment by the Ministry of Finance. For legally binding quotes, please visit an official LIC branch or speak to a licensed agent.
Frequently Asked Questions (FAQ)
A: The ideal age is 0 years (90 days completed). Because child plans mature fixed at age 25, starting early maximizes the compounding policy term (25 years), ensuring the lowest possible annual premium and the highest accrued reversionary bonuses.
A: If death occurs before the commencement of risk (generally before child age 8 or 2 years from policy inception, whichever is earlier), LIC refunds all basic premiums paid. If death occurs after the commencement of risk, the full basic Sum Assured alongside all accumulated reversionary bonuses is paid immediately to the nominee/parent, and the policy terminates.
A: Yes. Loans are available against both Jeevan Tarun (Plan 934) and Children's Money Back (Plan 932) once the policy has acquired a surrender value (generally after 2 full years of active premiums have been paid).
A: The Proposer Premium Waiver Benefit (PWB) Rider ensures that in the event of the parent's sudden death, all future premium payments are waived. The policy remains active, and LIC funds the plan, paying all survival payouts and maturity benefits to the child as originally scheduled.
A: No. All money-back payouts received at ages 18, 20, and 22, as well as the final maturity payout at age 25, are 100% tax-free under Section 10(10D) of the Income Tax Act.
A: No. The option to receive survival benefits (Option 1, 2, 3, or 4) must be selected by the parent at the time of policy inception. Once selected, it cannot be altered during the policy term.