Children Money Back

Children Money Back plan is a non-linked, participating, money-back policy offered by Life Insurance Corporation of India (LIC) that provides financial support to the policyholder for meeting the expenses of their child’s education, marriage, etc. The policy offers a fixed percentage of the sum assured as money-back at specific intervals along with maturity benefits and bonuses.

Here’s an example to understand the policy. Suppose a 10-year-old child is insured under a Children Money Back policy for a sum assured of Rs. 5 lakhs. The policy term is 25 years, and the premium payment term is 15 years. The annual premium payable would be Rs. 33,982. The policyholder will receive a fixed percentage of the sum assured as money-back at specific intervals. For instance, the policyholder will receive Rs. 1,25,000 after the child turns 18 years old, Rs. 1,25,000 after the child turns 20 years old, and Rs. 1,50,000 after the child turns 22 years old. On maturity of the policy, i.e., on completion of the 25-year policy term, the policyholder will receive the sum assured of Rs. 5 lakhs plus any accrued bonuses.

Here are some of the key features of the Children Money Back policy:

1. Provides financial support for the child’s future needs.
2. Offers a fixed percentage of the sum assured as money-back at specific intervals.
3. Provides maturity benefits and bonuses on the completion of the policy term.
4. Offers flexible premium payment options.
5. Provides tax benefits as per prevailing tax laws.

Here is a table that shows the premium rates for Children Money Back policy for a sum assured of Rs. 1 lakh:

Please note that these are indicative rates, and the actual premium may vary based on age, sum assured, and other factors. It is always advisable to check with the LIC agent or visit the LIC website for the latest premium rates.