LIC New Children's Money Back Calculator (Plan 732 / 832 / 932)
Official Table No. 732 / 832 / 932 (UIN: 512N296V02 / 512N296V03). Calculate premiums, 20% money back at ages 18, 20, 22, 40% maturity at age 25, bonus accruals, and PWB rider security.
New Children's Money Back Plan
Guaranteed 20% Payouts at Ages 18, 20, 22 + Maturity at Age 25
Year-by-Year Cashflow Simulation (Ages 2 to 25)
Scrollable table| Yr | Child Age | Premium (₹) | Money Back (₹) | Accrued Bonus | Death Cover | Surrender Value |
|---|
Plan Your Child's Future Milestones
Enter your child's age (0 to 12 years), choose a Sum Assured, and click Calculate to view the guaranteed 20% money back schedule and age-25 maturity returns.
- 20% Sum Assured at Age 18 (Higher Secondary / College)
- 20% Sum Assured at Age 20 (Professional Degree)
- 20% Sum Assured at Age 22 (Graduation / Career Launch)
- 40% Sum Assured + Bonuses + FAB at Age 25 (Maturity)
- Premium Waiver Benefit (PWB) on parent's life
Complete Guide to LIC's New Children's Money Back Plan (Plan 732 / 832 / 932)
LIC’s New Children’s Money Back Plan (Table No. 732 / 832 / 932, UIN: 512N296V02 / 512N296V03) is one of the most reliable and widely trusted financial instruments created by the Life Insurance Corporation of India. Tailored specifically to meet the escalating educational, vocational, and marriage expenses of growing children, this participating, non-linked, with-profits life assurance savings plan provides periodic liquidity infusions at critical developmental milestones—ages 18, 20, and 22—culminating in a substantial lump sum maturity at age 25.
Parenting requires long-term foresight. With the rising cost of higher education, competitive college admissions, professional coaching, and early-career postgraduate degrees, having guaranteed cashflows timed precisely to your child's age eliminates the need for expensive education loans or emergency asset liquidations. Furthermore, when combined with the Premium Waiver Benefit (PWB) Rider, the plan provides an unbreakable safety net: even in the tragic event of the parent's untimely demise, all future premiums are completely waived by LIC, ensuring the child’s educational dreams and financial milestones remain 100% funded and intact.
Core Eligibility Criteria & Plan Specifications
The parameters of LIC New Children's Money Back Plan are specifically calibrated to align with standard childhood schooling, college education, and maturity milestones:
| Parameter | Official Specification (Plan 732 / 832 / 932) | Strategic Explanation & Notes |
|---|---|---|
| Plan Nature | Participating, Non-Linked, Individual Life Assurance | Eligible for annual Simple Reversionary Bonuses and Final Additional Bonus |
| Entry Age of Child (Life Assured) | Min: 0 Years (30 Days Completed) | Max: 12 Years (LBD) | Can be purchased from infancy right up to middle school |
| Maturity Age | Fixed at 25 Years (Last Birthday) | The policy matures exactly when the child reaches 25 years of age |
| Policy Term (PT) | 25 - Entry Age of Child (13 to 25 Years) |
E.g., for a 2-year-old child, PT is 23 years; for a 5-year-old, PT is 20 years |
| Premium Paying Term (PPT) | Equal to Policy Term (25 - Entry Age) |
Premiums are paid throughout the term up to age 25 |
| Minimum Basic Sum Assured | ₹1,00,000 (1 Lakh) | Issued in multiples of ₹10,000; no upper limit |
| Maximum Basic Sum Assured | No Upper Limit | Subject to underwriting rules and parent's insurance matching capacity |
| Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (NACH/SSS) | Yearly mode offers a 2% rebate; Half-Yearly offers 1% rebate |
| Risk Commencement on Child | Age 8 or 2 years from inception (whichever earlier) | If entry age >= 8 yrs, risk cover starts immediately from day one |
| Policy Vesting | Automatic at Age 18 | Policy ownership officially transfers to the child upon turning 18 |
| Premium Waiver Benefit (PWB) | Optional Rider for Proposer (Ages 18 to 55) | Waives all future premiums if the parent/proposer passes away |
How the 4-Stage Money Back Milestone Structure Works
Unlike standard endowment plans where funds are locked until final maturity, LIC Plan 732 provides three structured survival payouts (totaling 60% of Sum Assured) followed by a final maturity payout (40% of Sum Assured + all accrued bonuses):
🎓 Milestone 1: Age 18 (20% SA)
Higher Secondary & College Admission: Paid on the policy anniversary coinciding with or following age 18. Perfect for entrance exam coaching, college registration fees, or relocation expenses.
🏛️ Milestone 2: Age 20 (20% SA)
Undergraduate / Professional Course: Paid at age 20. Ideal for mid-degree tuition fees, software/hardware tools, exchange semesters, or skill certifications.
🚀 Milestone 3: Age 22 (20% SA)
Post-Graduation / Career Launch: Paid at age 22. Supports MBA / Masters entrance, competitive exams (UPSC/CAT), overseas visa costs, or first business venture capital.
💍 Milestone 4: Age 25 (40% SA + Bonuses)
Maturity & Marriage / Financial Independence: Paid at age 25. Comprises the remaining 40% of Basic Sum Assured + Total Simple Reversionary Bonuses for all years + Final Additional Bonus.
Understanding Risk Commencement and Policy Vesting Rules
One of the most essential actuarial concepts parents must understand regarding child insurance plans is the Commencement of Risk:
- If the Child is Less than 8 Years Old at Entry: Life risk cover on the child commences either after 2 full years from the date of commencement of policy OR on the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For example, if a child is enrolled at age 2, risk commences at age 4 (2 years from start). If enrolled at age 7, risk commences at age 8 (1 year from start).
- If the Child is 8 Years Old or Older at Entry: Life risk commences immediately from the date of policy issuance.
- Death Prior to Risk Commencement: In the rare and unfortunate event of the child’s demise before risk commencement, LIC refunds 100% of all premiums paid (excluding taxes and rider premiums) without interest to the parent.
- Death After Risk Commencement: Nominees receive the full Sum Assured on Death (at least 105% of premiums paid, 10x annualized premium, or Basic SA) + all Simple Reversionary Bonuses accrued to date + Final Additional Bonus. Past money back payouts are never deducted.
- Policy Vesting at Age 18: When the child attains 18 years of age (majority), the policy automatically vests in the child's name. The child becomes the legal policyholder and title-holder, entitled to receive survival payouts directly into their bank account.
The Critical Importance of Premium Waiver Benefit (PWB) Rider
When taking an insurance policy for a child, the primary risk is not the child’s life, but the **earning capacity of the parent**. If the breadwinner passes away unexpectedly, how will future premiums be paid?
This is where the LIC Premium Waiver Benefit (PWB) Rider (UIN: 512B204V03) becomes indispensable:
- Automatic Waiver of All Future Premiums: If the parent/proposer dies during the policy term while the child is still a minor (or before age 25), all future premiums due under the policy are 100% waived by LIC.
- Policy Continues Fully Active: The policy does not lapse or get converted into paid-up status. LIC continues to credit full annual Simple Reversionary Bonuses every year as if premiums were being paid normally.
- Guaranteed Payouts on Schedule: The child receives 20% at age 18, 20% at age 20, 20% at age 22, and the full maturity corpus at age 25, guaranteeing their education and financial security regardless of family tragedy.
- Nominal Rider Cost: The PWB rider cost is exceptionally modest—typically a few hundred rupees per year—and should **always** be included in every child policy proposal.
High Sum Assured & Mode Rebates (Discount Matrix)
LIC rewards larger capital allocations and cost-effective premium payment frequencies with attractive tabular rebates:
| Basic Sum Assured Slab | High Sum Assured Rebate per ₹1,000 SA | Effective Discount Impact |
|---|---|---|
| ₹1,00,000 to ₹1,90,000 | Nil (₹0.00) | Base Tabular Rate |
| ₹2,00,000 to ₹4,90,000 | ₹2.00 per ₹1,000 SA | ₹400 to ₹980 annual savings |
| ₹5,00,000 and Above | ₹3.00 per ₹1,000 SA | ₹1,500 to ₹30,000+ annual recurring discount |
Payment Frequency Rebates:
- Yearly Mode: 2% discount on tabular premium.
- Half-Yearly Mode: 1% discount on tabular premium.
- Quarterly & Monthly (NACH/SSS): Tabular premium without rebate.
Comprehensive Comparison: Plan 732 vs Jeevan Tarun vs Amritbaal vs Sukanya Samriddhi Yojana (SSY)
To help parents choose the optimal child financial vehicle, examine this comprehensive comparative matrix:
| Feature / Parameter | Children's Money Back (Plan 732) | LIC Jeevan Tarun (Plan 934) | LIC Amritbaal (Plan 874) | Sukanya Samriddhi Yojana (SSY) |
|---|---|---|---|---|
| Eligible Child | Boys & Girls (Age 0 to 12) | Boys & Girls (Age 0 to 12) | Boys & Girls (Age 0 to 13) | Girl Child Only (Age 0 to 10) |
| Maturity Age | Fixed at 25 Years | Fixed at 25 Years | Ages 18 to 25 (Flexible) | 21 Years from Account Opening / Marriage |
| Survival Money Back | Fixed: 20% at 18, 20, 22 | 4 Customizable Options (0%, 5%, 10%, 15%) | Lump Sum or Guaranteed Additions | 50% withdrawal after age 18 for education |
| Returns Model | Reversionary Bonuses + FAB | Reversionary Bonuses + FAB | Guaranteed Additions (₹80/1k) | Govt declared quarterly interest (~8.2%) |
| Life Risk Cover | Yes (Full Sum Assured + Bonus) | Yes (Full Sum Assured + Bonus) | Yes (7x or 10x Sum Assured) | No Life Cover |
| Premium Waiver on Parent Demise | Yes (PWB Rider) | Yes (PWB Rider) | Yes (PWB Rider) | No Waiver (Account freezes or family must pay) |
| Tax Exemption | 100% Tax-Free u/s 10(10D) | 100% Tax-Free u/s 10(10D) | 100% Tax-Free u/s 10(10D) | 100% Tax-Free (EEE) |
In-Depth Case Study: 23-Year Financial Roadmap for a 2-Year-Old Child
Case Profile: Aarav (Child Age: 2 Years) | Father: Amit (Age: 32)
- Basic Sum Assured: ₹10,00,000 (10 Lakhs)
- Policy Term & PPT: 23 Years (Maturity at Age 25)
- High SA Rebate (₹3/1k) & Yearly Mode Rebate (2%): Applied
- PWB Rider: Included (on Father's life)
- Estimated Annual Premium: ~₹43,562/year (excluding 1st year GST)
- Total Premiums Paid across 23 Years: ~₹10,02,884
Milestone Cashflow Received by Aarav:
- At Age 18 (Year 16): ₹2,00,000 (20% of Basic SA) for B.Tech / College Admission.
- At Age 20 (Year 18): ₹2,00,000 (20% of Basic SA) for Specialization / Laptop & Lab Fees.
- At Age 22 (Year 20): ₹2,00,000 (20% of Basic SA) for Higher Education / MBA Entrance.
- At Age 25 (Year 23 - Maturity):
Remaining 40% Basic Sum Assured: ₹4,00,000
Accrued Simple Reversionary Bonuses (₹45/1k for 23 Yrs): ₹10,35,000
Final Additional Bonus (FAB ~₹450/1k): ₹4,50,000
Total Maturity Payout at Age 25: ₹18,85,000 - Grand Total Returns Received: ₹6,00,000 (Money Back) + ₹18,85,000 (Maturity) = ₹24,85,000 (100% Tax-Free) against a total premium outflow of ~₹10.02 Lakhs!
Tax Benefits Under Section 80C and Section 10(10D)
LIC Plan 732 offers complete, end-to-end tax exemption benefits under the Indian Income Tax Act:
- Section 80C Deduction: Premiums paid by the parent qualify for income tax deduction under Section 80C up to ₹1,50,000 per financial year (under the Old Tax Regime).
- Section 10(10D) Full Exemption: All three survival money back payouts at ages 18, 20, 22, the maturity payout at age 25, and any death claim settlements are 100% Tax-Free with zero deductions.
- Zero TDS: No Tax Deducted at Source (TDS) applies on survival money back or maturity payouts under Section 10(10D).
100% Digital Onboarding with Licensed LIC Advisor
Securing your child’s educational roadmap with LIC New Children’s Money Back (Plan 732 / 832 / 932) can be completed online within minutes:
- Calculate Tailored Quotes: Use the interactive calculator above to select your child's age, sum assured, and PWB rider options.
- Contact Authorized LIC Advisor: Connect directly with licensed LIC Agent Code `LIC10031212` (Lalkuan Branch, Uttarakhand) via WhatsApp at `+91 8419943250`.
- Digital Document Upload: Submit child’s birth certificate, parent’s Aadhaar and PAN card securely over WhatsApp or portal.
- Secure Online Payment: Pay your initial premium directly to LIC of India through UPI, Net Banking, or Debit Card.
- Digital Policy Issuance: Receive the official e-Policy Bond directly in your email and DigiLocker within 24 to 48 hours.