LIC’s new plan 2015-New Children’s Money Back Plan (No.832) Review

Finally, LIC come up with much-awaited children’s plan. This plan is called New Children’s Money Back Plan (No.832). Let us see its features.

LIC's New Children's Money Back Plan

It is typical non-linked money back plan. Features of this plan are explained below. LIC claims that this plan is designed to meet the educational, marriage and other needs of growing children. In this plan life risk will of the KID. Therefore, your kid is life assured in this plan.

Hardest and worst part of this plan is planning for kid’s death !!! Life Assured is a KID. Being a parent, do I imagine my kid’s death and buy this plan? NO…along with that I know loosing kid is a huge emotional effect on parents. However, there will not be any financial burden on parents. Because none of them will be depend on kid financially. Usually we buy insurance to protect our kid’s future in case of parent’s untoward death. However, in this plan it is different. So first, make up your mind whether to buy this plan thinking that death will occur to your KID during the policy period.

LIC's New Children's Money Back Plan (No.832)

To me it looks like the simple money back plan, which is launched as children plan. As I said above life risk must be on the parents. If something happens to the parents then whole life in the kid’s future will get affected financially. However, in this plan life risk is on the kid. Being parent do you feel it is good to plan for your kid’s death and encash on it?? 

Along with that, this is the typical endowment plan. Therefore, returns will be around 5% to 6%. LIC claim this plan is useful in a child’s future is totally a gimmick. When current education or marriage expenses are as high as around 10%, how parents can sustain by investing in such a plan? God can only protect them. 

I will not look into other features like by taking an example of a person and calculating how much you get from this plan. Because this plan fails to attract the basic need. Hence, this is a pathetic plan with the gimmick of CHILDREN PLAN. 

Please read my earlier post “Child Insurance-Is it required?” which makes my point more clear.

I may get a few harsh comments from few agents or supporters of LIC. However, one must understand the basic need of insurance or investing in the name of the kid. 

151 Responses

  1. Dear sir,

    Can you advise me for best SIP for long term for 3 and half year baby boy. 5000 for month.and time period 15 years.
    and great article keep it up.

  2. Hai sir ok my baby girl now 2years cmplt so iam monthly maximum 1000 or 1500 paid so best money back policie 21year’s details send

  3. Dear sir,

    Can you advise me for best mutual fund investments for long term for 1 and half year baby girl. 10 thousand to 15000 for month.

      1. Sir I don’t have any idea about LIC so what’s my question is my daughter age is 8+ and I like to deposit my money in LIC in long term basis so please suggest some policies,if I deposit 2,00,000 for long term basis and how much I will get back for couple of years.

        1. Sangeetha-Do you feel around 5% to 6% returns from such LIC policies a great return? If so then you can opt the above reviewed policy itself. Otherwise think seriously. Because it is the future of your kid.

  4. Dear Sir,

    Just now i became father of baby girl. Pls suggest me which plan will be suitable for long term (till marriage).

  5. DEAR SIR,


  6. My baby boy is 1 month old. What plan should i prefer like Lic, Post office, Money back policy e.t.c.

    Please suggest good plan for long / short term saving with interest for him.

    1. Sujoy-Your planning is long then why for short term investment? Stay away from LIC policies. Treat Post Office schemes as debt products. Invest only if they match your goal timing. You must include equity mutual funds.

  7. My Girl child is 1 month old. What plan should i prefer like Suknya Samriddhi Yojna, Lic, Post office.

    Please suggest good plan for loang term saving with interest for her.

    1. Abhishek-The products you mentioned are all debt. You must include equity by the way of Mutual Fund to beat the cost of education and marriage. So restrict your investment to the products you mentioned of not more than 30%. Rest must be invested in equity mutual funds.

  8. Sir I have a 3 year baby.for her future,where I invest my money so that I can get best interest after 20 years

    1. Piyush-Stay away from such child plans of policies. Buy a term plan of at least 15-20 times of your yearly income. Start investing in PPF (around 30% of investable money) and rest 70% in equity mutual funds.

  9. This is very nice post for anyone looking for LIC children plan.

    Can you also explain the new plan 2016.

  10. Dear sir,

    i am new agent to lic.i heared about childrens money back policy but, i have no idea about this plan. can you please help me in this policy with example ? tel me how pwb works and, all lic plans are available in kannda language.




  11. Hi,

    If 832 plan is not a best plan for Children, Can you please tell me which plan will be the best one for children…. I am planning to do one LIC policy for my one year old girl baby…….

  12. I just bought LIC child money back 832… can you suggest if there is any better policy for children?

  13. Hello Sir,

    I went through aprox all of your discussions above and came to conclusion that you are of opinion that child plan is not at all suited for child’s education, marriage etc instead I should buy one term plan for myself. Presently I don’t have any term plan. And have Jeevan sathi plan of amount 6 lakh on mine and wife’s name.

    My daughter is 10 months old and my uncle being LIC agent asking me to draw a policy on her name. So what you suggest shall I go for any policy as a formality towards uncle or not? and if yes what wil be nearby better plan of LIC to go with?

    Please advise.


    1. Amol-Let your uncle pay the all premium and you just sing on documents. If he is ready for that then go ahead. It is your hard earned money and no UNCLE will come forward when the actual need of your daughter arises. Simply avoid such social bondages.

      1. sir i saw your post on new children money back plan, i just want assure my little baby
        with me or without me please suggest me any good policy but i dont want 2 go with any private company policy suggestt me in lic because who knows private company will survive or not but lic is goverment.


  14. Hi
    My son is 1.5years old.I want to returnback my investment within his study period(i.e.20 years).Which plan I shall choose.

  15. Manmohan Adhikari
    According to you, which is the best Child life secure plan in LIC or any other comp. ?

    Yashas Adhikari

  16. Hi Sir,

    I would like take Kotak e Preffered term plan for me for 1 crore 25 lacs. My age is 29 years and my annual income is 7 lacs.The premium for this plan coming around 9200.Could you please suggest me whether it is better option or any other plan than this are better.

    I would like to invest around 50k per year in well know shares and hold them for long term(around 15 years) to secure my son’s(age 1 year) education and needs.

    Could you please suggest me the best financial plan to invest 1 lac per year, How can i divide 1 lac and put that in various investment options like shares,mutual funds,FDs etc.

    1. LakshmiNarayana-You can go ahead with Kotak. Whether you know which are WELL KNOWN STOCKS? I don’t know them personally. Suggesting a financial plan mere two lines of sharing is disaster to me and to you. I can’t do such wide guidance.

  17. Hi Basavaraj ,

    According to you, which is the best Child life secure plan in LIC or any other comp. ?


      1. How much I should save for Kid’s education? Like, for ex. after 15 yrs from, I will need money for his college admissions and other expenses, so, for this, where should I invest?

        1. Nikesh-How much you should have depends on the current cost of education and inflation of such education. Also, what you dreamt of your kids education. You need to consider the current values of cost and need to inflate it to arrive at 15 Yrs. Ideal investment should always beat the inflation.

  18. Hi,

    I was looking for Child Plan , met LIC person and he suggested for Children Money Back policy. where we need to invest 50k per year upto 18 years and return would be 2,4Lakh on 18 , 20 & 22 years and 25 lakh on 25th year.

    Is this really Have such good returns of 32 lakh where we invest 12 Lakh …Pls suggest.

  19. Hi Basu Ji,

    “Similarly, on payment of a one-time premium of upto Rs. 6,66,665, LIC’s Varishtha Pension Bima Yojana currently offers around 9-9.38 per cent return on monthy/quarterly/ half-yearly/annual pension payouts for senior citizens. With the removal of the service tax component of around 3-3.5 per cent on the premium, the returns may inch up a bit higher. This helps it surpass many of the fixed deposit options for seniors, more so, as interest rates head downwards. Return on some of the payout options may even better the post-office Senior Citizens’ Scheme, which is currently offering 9.2 per cent. ”

    I found this comment on one of the online Blog about the LIC Varishta Pension Plus. Please provide your analysis and inputs on this plan is this a good retirement plan to invest in ?

  20. sir i want to know what is the premium for 4 year baby….in this policy
    please provide child money back policy table….please

  21. Sir,

    I read all the comments written by your goodself and other learned friends. I look after my wife’s LIC agency work. I visited almost every branch of LIC in Delhi. I would like to add one thing to discussion that LIC Agents who are active and honest are more labourious and hard working and they help their clients in other fileds of investment also. You may ask the successful LIC agents and they will tell you the story behind their success. Mutual Fund maturity, UTI maturity, PPF maturity, death claims of LIC and other Pvt. players are some works which are being performedby an LIC Agent. Returns are important, but in some cases they become secondary issue, and people recognise your services by providing you business.

  22. Hi Basu Ji,

    I have taken a Exide New Fu;lfilling Life Money Back / Endowment plan for my child with monthly premium of INR 2100/-. Pls suggest if I need to continue with this policy or surrender this.

    Also pls suggest which policy is best for my child of age 2.5 years currently in the market ? Awaiting your reply.

  23. Dear Basavaraj Sir,

    I’m looking for a good Lic plan for my daughters education and marriage, could u please help me find the best policy

    My Age is 36
    My Daughters Age is 1.5
    Annual Premium i can pay Rs 30,000

    I have shortlisted two plans, which one is better

    LIC’s new plan 2015-New Children’s Money Back Plan (No.832)
    LIC’s New Endowment Plan (No.814)

    or any other suggestion? pls help me to decide

    Thanks & Regards


    1. “looking for a good Lic plan for my daughters education and marriage” 🙂

      Seems like you are too obsessed with LIC policies. When your target is to save for your child’s education and marriage, then why are you buying an insurance plan? And the new money back plan for children is not at all helpful for your kids. I have shared a detailed article in my website explaining the same.

      I will suggest you to read few of the articles of this blog carefully and try to understand what you have said and what you are planning. May be below one will be useful in this case.

  24. dear Basu sir,

    I think you are not understanding the mentality of Indian mind set. this is your basic problem. That’s why your point is criticized by others. As a Insurance agent you should know better about it. If you present a product certainly he will ask for return on investment. That’s why term insurance was not popular in India. Ok you propagate for it. You told that “Hardest and worst part of this plan is planning for kid’s death !!! Life Assured is a KID. Being a parent, do I imagine my kid’s death and buy this plan”. In other forms of insurance also the problem of death continues. Then no body should buy insurance as per your argument. If you tell a wife that you will receive 10 lakhs if your husband dies. then no wife will allow the husband to take insurance. Pl give your suggestions keeping Indian people mentality in your mind.

    1. Very core concept that’ missed in your reply. Nobody likes any one dead. But the husband is a Bread winner in most cases, upon his death, the entire family suffers financially. Is the same true for a Kid? Thats why its more emotional.

      1. Dear Basu Sir,
        Rightly pointed….. Insurance itself is an emotional matter. You insure yourself if you really love and care for your family…… I basically feel that PWB is the most important feature in Child plans. LIC’s new plan Table no. 832 does not have any in built PW benefit. On the contrary, it is a rider. That actually speaks volumes about the callousness of the Actuarial department. Moreover, the PPT is 25- age at entry….. That is a mathematical blunder.
        Anyways, let me share with all one live example- Years ago a man had taken a Children money back plan Table no 113 for his son. The PPT in T NO 113 was 18-age of child. After the PPT was over, son got a money back amount of just Rs 5000. The father died next year. Claim amounts from other insurance policies poured in and the family was able to get rid of any debts…. But to provide future educational funds for the son , this policy was not sufficient because the Sum Assured was mere Rs 25000. But since in T No 113, life risk on the child continues up to 26 years, he could earn a Bank Educational loan mortgaging the policy. He did it and got ‘ some money’ for his education. The loan was ‘partly’ cleared off from proceeds of this policy………
        One of my Branch Managers , Mr Mukut Malla Buzar Baruah was very correct when he advised me- How an insurance policy is going to help you or the family is hardly predictable…….
        Good day every body…….. Hope you all have enjoyed the Holi fun days…….

    2. Gopala-Certainly customers ask return, because none of them never make them importance of Insurance. But all sold it as investment product. If you are not able to convince clients about importance of life insurance then it is not problem with Indian population but the problem of agents or insurance companies. In other forms of insurance, life assured is bread earner. So it is very much important to have life insurance. But here in case of example of couple you stated, you are buying the insurance on your own. So even if wife reject it then to for the sake of safety you do. However, in this plan do you buy thinking in mind of kid?

  25. Thanks Basu Sir….. You are definitely a genius…..To be honest, I am an insurance salesman not by choice but by chance…And the first plan ( policy ) that I sold to any customer was Temporary Term insurance….which I used to call Life guard ( Bima kiran Table no 111). In those days Pure risk plans were not available with LIC or PLI…. Today after 15 years… I am of the view that the mood of the Indian customer is hard to understand… They want insurance…they want their money to multiply…they want full liquidity of any amount kept with LIC…. they want IT rebates…..They even cook up stories to get a claim based on fake death certificates…My God.. they want any LIC product to be tailor- made….customized….. It is only because Financial Literacy is low in India….. I attended a workshop recently at Ahmedabad ( Gujarat ) and learnt that statistically, the Indian customer hardly understands what he actually buys when he buys an insurance plan….. A professor of Bangla Literature teaching in a Commerce College once stunned me by saying that people buy Life Insurance only to reduce Tax liabilities……….. Well Sir, today I sell what is available and what the customer wants and not what I want them to buy actually (Term plans).. Yes Term plans are definitely the best plans ….. But Sir… I think if Term plans are made mandatory, then they could be hailed as the best insurance plans…….
    When you are prospecting a businessman for insurance, he will look for those features that will help grow his business.
    When he are prospecting a salaried employee, he will look for returns and ways to curb his Tax liabilities. No body will ask you what amount of insurance he is going for.There were days when an insurance salesman would be graded based on Total Sum assured he procures as business…. Today almost every insurance company has done away with The SUM ASSURED concept…..Zero (0) was invented in India…. and its hard to beat the mathematics talent of this country…..
    To be honest, I feel Health insurance is more important than Life insurance…….LIC has a health insurance plan in its kitty….. There is a maximum thrust to sell this plan… But this plans hardly sells in our locality or even in the country I would say… So whenever any plan is launched, I look for the Unique Selling Points of the product…. Say if we cry aloud…. Child plans are meaningless….. People would say…. Then why was LIC was under pressure to launch a Child plan… LIC was scoffed at for not being able to launch a Child plan after 2014……..People wanted it… Agents wanted it…. The industry wanted it…….Statistically speaking, Child plans account for only 2 per cent of total business procured by LIC……..
    To wind things up- A General Manager of New India Assurance Co . had once told me- LIC is here to stay because Life Insurance unlike Motor Insurance is not mandatory…. They day Life insurance becomes mandatory , corruption will creep in…..
    Last year my bike insurance cost Rs 600 ( with Service Tax charges ) for an insurance amount of Rs 30000. This year I paid Rs 796 for insurance amount of Rs 25000.
    LIC charges Rs 26000 roughly ( including ST ) for an insurance of 1 crore for a 30 year old non smoking male ( Standard life ) for a period of 30 years in Amulya Jeevan II…. Now Sir…. for Rs 25000 Amulya Jeevan II that would mean Rs 650…..Motor insurance costlier than Life insurance…Human value nothing compared to Ferrum, Cobalt or Nickel……
    My friend’s bike was stolen… He lodged an FIR…. The GIC surveyor had to be bribed with RS 3000 for submitting a good report….. The claim was settled… The Insurance company wants him to walk away with Rs 15000 although the claim amount was Rs 35000….The payment is yet to be transacted although it’s been over a year….
    LIC is still surviving… with near zero corruption record with excellent claim record just because Life insurance is not mandatory……Let it survive… Perhaps that would benefit the nation’s economy….. I feel we ( LICians) contribute to the nation’s economy…. Let it be the way it is….
    Years ago … the Assam Govt launched an ambitious project called Jeevan Jyoti…. where all who clear their yearly land revenues would be given health insurance to the tune of Rs 25000…. The deal was with ICICI Lombard….The ambitious project was a disaster with 7 out of every 9 claim being rejected…. A commission was constituted to inquire into what went wrong… It was discovered that in ICICI Lombard Claim Settlement Officers are promoted on the basis of how many claims they manage to reject……
    I met the Chairman of Bangladesh based Life insurance PSU years ago in Kolkata and he told me that the only PSU Life insurance in Bangladesh is in tatters and of course there is a initiative to revamp it… We Indians are fortunate that LIC is still working……and is contributing to the nation’s economy….
    The other day I walked into SBI to open a PPF account…. The dealing officer gave me the forms….advised me where to put my signatures and what documents to furnish… I asked him a few questions to clear some of my doubts and his response was- I don’t know much about this product…. Google things up ….. I could understand his helplessness and just smiled ……. Have a safe and prosperous Holi…… And last but not the least Stay Insured Basu Sir…

    1. Well said.however lic is going to face danger in years to come.the new government is heading towards selling the PSUs to their blue-eyed-boys,private companies.of course, in the name of disinvestment.

      1. No difference Basu Sir…..between you and me… I too have a Term Plan…… But I have a point to make Sir… Life Insurance is based on 2 aspects…
        1. LIVING TOO LONG
        Hence, some insurers have come up with Term plans with return of 110% premiums should the Policy holder survive the term opted…. based on TENET NO. 2 Sir…. Insurance means to compensate the LOSS…. Premium means- to add flavor to LIFE…. Good day Sir….

  26. better to open sukanya account for child, as under 8 years of child, risk cover only premium paid. sukayna account gives interest of 9.1%

  27. Dear Sir,

    I am Manjunath working in a private firm, I am willing to become an LIC agent but the thing if we become an LIC agent we have give a min. target of 12 policies per year is it mandatory. The LIC guy is not explaining clearly the terms in. Could you please elaborate

    1. Dear Manju Nath,

      The requirement is in First year at least 6 policies on 6 different lives and First Year Premium of Rs 50000. In three years you will have to however, complete Rs 300000 First year premium and 36 policies on different lives……. As a thumb rule, however, Basu Sir is right… 12 pols on 12 different lives and Rs 100000 First year premium and not First premium income or FPI…. There is a difference between First year Premium and First Premium Income…. FYP= FPI + Other first year premium … It is very easy to achieve this business….. Go ahead and join LIC….. LIC is the only insurance company that pays gratuity to its agents….. There are tons of forums on Face Book where you can discuss insurance products……. Make friends with me on FB… I will prove a beneficial tool…….

  28. i think ppf will give better returns for the child than this policy with same amount invested .

    As far as PWB is concerned, the parent can as well take a term plan for himself with the child as nominee.

    As pointed by you, obviously no parent would even think of that bad event for his child.

    1. Not exactly… I met some one called Bimal Basumatary years back who stunned me with this question- What if the child dies…? I was dumb struck… Usually we do not expect such questions from prospects. So I could not resist myself from asking him( after of course, closing the sales and taking the premium cheque)- what made you ask me this Sir..usually parents don’t ask this kind of questions- He promptly replied- My neighbor earns a meager Rs 40000 per month but had to part with Rs 8 lacs in 2 years after his daughter was diagnosed with a brain tumor He could not save his daughter but is now cash poor…. Well, requirements vary…. The good spell by the bowler would mean a disaster for the batsman and a good batting performance by the batsman would mean poor bowling by the bowlers. Insurance basically means to compensate the loss incurred……..Good day……………………………………………….

  29. Hello ,
    I am an agent of LIC of Orisaa Circle . We all agents and many valuable Policy Holders are wating for

    Children’s LIC policy for education or Marraiage purposes of the Child . But alas ! This type of LIC;s Child

    Policy is not usefull neither for education nor Marraiage Purposes . I think if it is possible for LIC to withdraw

    this policy and introduce a very useful Child Policy very soon .

    1. Tusar, yes Basu sir is right. But when Jeevan Ankur was launched a lot was written against in Finance blogs…. But more than a lakh Jeevan Ankur policies were sold right on the launching date… Sachin Tendulkar too, took this policy for his son and daughter…….The industry is till today of the view that Jeevan Ankur is the best insurance policy designed by LIC for children……. But yes, Romeo must die… I mean Jeevan Ankur is good if the proposer dead and is survived by a caring mother ……. And people love their children more than anything else. My friend was a drug addict . He got married …. the two brew a daughter …still my friend won’t give up on drugs…his daughter begin to grow and now he is no more a drug addict…..Today he is one of the most responsible fathers in the town……Good day….Tusar and happy HOLI

  30. More tomorrow… Basu Sir…. I will share my experiences with you….about Child plans…. I , like you don’t think that Child plans are good…. but the customer is always the king……he is the boss…… I will tell you how I was compelled to sell a child plan of 500000 in 2003 ( in those days it was a big big insurance ) to a Prof of Accountancy…although I did not want to give him the plan… Take a nap… Good night Basu Sir……

    1. Joydeep-Being an LIC agent, what I feel is you must disclose all facts properly. So if someone is ready for 5% to 6% return and knowing the under insurance of the products still going to buy products, then it is not your fault. Our duty is to understand them the pros and cons of products. As you said final decision will be on customers and if still they insist to go with that plan then we can’t do anything. I always used to say that there is nothing called either BEST or WORST product. If someone is ready for WORST eventhough after understanding what they are doing, then you or me can’t do anything.
      But being an agents or planners, if we hide the details from client then agents must take responsibility. Every time it is not mis-selling but many times mis-buying also happens.

      1. Yes Sir…… You are right ………… I got several calls from prospective buyers who have expressed their willingness to go for this plan…… That’s how things sum up….. Jokingly I can say-You are a good sales person if you can sell Refrigerator to an Eskimo…..

  31. I will provide you with one good point of selling a Child plan Basav Sir…. The person at the other end of the phone will tell you how Jeevan Ankur has helped her family and her child……

    1. Joydeep-Thanks for your sharing. But do you still feel the Jeevan Ankur plan really protected the family for at least to survive on their own or to fully plan education and marriage expenses of kids? I deleted the contact number which you shared on this public platform, purposely to protect identity of that person.

      1. Basu Sir…… the claim was high risk early claim…. The beneficiary got lump sum 500000 this year. Next year onward the child will get Rs 50000 every year till he turns 18. After seeing 18 summers, the child will again receive Rs 500000 + LA………
        Term plans are best… but yes, early claims on Term plans are hugely repudiated…. This is some thing no body can deny… LIC has settled nearly 98 per cent claims last fiscal according to IRDA. But the claim amount per policy is mere 1.17 lacs. Aegon Religare on the other hand has a better record I would say – Rs 8 lacs per policy settled….. Aegon Religare wanted to tap the Term insurance market. Aegon Religare sells 140 Term plans per day through the portal . But huge early claims has compelled Religare to call off its Indian sojourn. LIC’s All India bench mark for Early claims is 22 per cent … but the national average is 38 per cent and nearly 44 per cent in our Division………….

  32. Hello

    Kindly anyone update me if i sell 20Lac Sum Assured Policy for girl child who is 5 months old …
    1. can client pay prem in monthly or quarterly mode..??
    if yes thn with taking PWB if in first or second quarter only proposers death happens what amount if any will be payble to nominee or girl child.

  33. Dear Basu Sir,

    Cricket is the most watched game on Indian Television. India has produced some of the best Lawn Tennis players in the world. The game of Polo started in Manipur…….
    All these point that Indians have money. A lawn tennis racket costs not lass that Rs 7500…… Cricket gears costs Rs 15000. And Polo….a single Polo game costs not less than a Crore….
    Then Why is it Dowry system is still prevalent in India? Why Honor killing of the Girl Child still prevalent in Haryana ? Why female infanticide ? Any explanations ?
    According to a survey done on 100 Indians above age 65…
    54 are fully dependent on others
    27 cannot afford medical costs and succumb
    10 still work to find a livelihood
    9 live on House rents or MIS (interest ) or even pension
    1 is fully financially stable

    According to a study by Delhi University students on widows of Brindavan Bridhdhasram, 28 per cent of widows flock there because of no spouse insurance………….

    Most of the song sequences of Bollywood, Tamil, Kannad , Malayalam, Telegu movies are shot abroad . Reason- India lacks scenic spots.
    Indian kitchens are the most unkempt kitchens in the world… Indian foods are the most tasty………..According to Americans it was because of Indian taste buds that the world saw an economic disaster in 2009……. whereas, a million Indians spend nights without food…………………..

  34. Hi Basu,
    I read all your reviews, only today I came to know that you are a LIC agent. My respect to you has grown by knowing this, as you are not biased in any of your reviews.

    Coming to this plan, As shown in the above poster, the caption ‘My future is secured’ shows that it’s an Investment targeted plan rather Insurance (at least that’s what I got from the AD). But pathetically, it fails big time there.
    Sensex today touching 30,000, is a big confidence booster for MF related investments, even ELSS, Debt funds etc… (not to mention the importance of term plan as insurance), Still from the investment perspective, we have to enlighten the people more, just like what you are doing in these blogs.

    BTW, I don’t understand , whether all these LIC agents who replied/advertising in this article read your blog above? they didn’t even bother to know what you are conveying to the audiences. I guess, you have to Moderate the replies here – Please publish mine 🙂

    1. Chandra-Thanks for sharing your views 🙂 Yes it need my approval if you are commenting first time. But later on my approval is not required. These agents hardly read what I written. Only few knowledgeable read and respond it in better manner for healthy discussion (a person like Joydeep).

  35. Sir
    This plan should be given only with premium waiver benefit. When speaking about protection speak only about rider benefit, not coverage on kid. About return, a traditional plan can only give this much return. To beat inflation , one has only one option, go for high risk products like ULIP and MF.
    I am an insurance motivational trainer from Kerala.

    1. Sreenivasan-What a joke of a point you said? Shame on me by reading such a comment from you “Speak only about rider benefit, not coverage of kid”. Do you feel you are being loyal to customer? Hiding major part of this product is not breach of his belief on you? I don’t know what type of insurance motivator you are.

  36. You criticize most of the plans by LIC even though LIC is the insurance provider in INDIA.
    What do you expect from it?

    Where Private Insurance Provider’s run away with people’s money and then you dont criticize them?

    There is always a surety with LIC.
    You are a LIC agent, You should promote something good about it rather than making others fool

    1. Mayank-I expect LIFE INSURANCE from LIC but not such dummy products. There is someone whom you and I know called regulator (IRDA). So including LIC all must do business. I am neither for nor against LIC. I treat it as an insurance company. So for me all are equal. Please provide the company which took away and closed it’s business in Indian Insurance industry. This disclosure will actually help even IRDA to bring that policy holders money. LIC provides surety but at what cost?? I am LIC agent and if I myself not satisfied with kind of product then how can I promote or sell to others? Provide me one positive point which this plan provides that help buyers in providing help to kid’s education or marriage expenses.

  37. Hi,

    Leave aside the death part of child, that is very sentimental thing. Agents are also parents. Like any other parents, I will never want and think that my child dies during policy period.

    What I like in this plan is, if I take a 10 lakhs plan on my child’s 12 year, the returns at 18, 20, 22 that is immediately after 6 years 2 Lakhs each and on 25th year 4 Lakhs plus the bonus additions.

    But yes, there is a guarantee from LIC that the periodic amount will be paid. I will definitely invest in this plan for my child, not because of the risk cover but for returns and since I am investing for my child, the chances of missing installments will be less because I am aware that this amount is for my child.

    I think we should see the positive side also instead talking about life risk benefits to parents.



    1. Deepak-You are investing in this plan for the sake of returns?? Even if you plan for Rs.10 Lakh insurance then what will be the value of these survival benefits after 12 Yrs or so? Will they beat the normal inflation at least (forget about inflation cost of education or marriage)? If you are so secured then I feel keep that amount in savings account which give you complete peace of mind with around 4% return ( a 1% to 2% less than this plan). I think you totally forgot the concept of returns and inflation.

      1. Hi,

        Don’t be so hard with your comments. This plan offers Premium Waiver Benefit so the Parent risk is also covered.

        Being a Financial Planner I hope you clearly know Insurance is way different from other investments fetching more returns.

        Insurance is meant to cover the Financial Risk to the extent of SA incase of untimely death of the insured, returns is an added benefit which fetches a reasonable return for the insured on maturity.

        i.e. Even if a guy pays only one due for 1 cr policy and he dies because of accident he will get 1.5 cr as death benefit which is not possible with any other investment you talk about.

        So now you tell me any other investment which offers High returns for untimely death other than Insurance.

        I am sure you are about to talk on Term Insurance, Its not that we are not selling Term Insurance but till date customers are not willing to go big way on term plans since they don’t want their entire money to be lost if nothing happens to them.

        I make it a point every time to speak with client about Term plan and suggest the benefits available with low premium but finally they go for a traditional plan in some cases they go for a combination of Term and Traditional plan.

        So please understand an Insurance Co can never provide high returns but it can secure your financial loses to the extent you are insured.It is the customer who decides so stop talking ill about companies and plans and focus more on educating customers in a positive way.

        I appreciate your initiative to educate the customers but let that not go against any company and specifically LIC since it has played a major role in Building India.

        This is my view.



        1. Vijay-Regarding PWB, I already said my understanding. But if you are an agent then will have guts to sell this product saying to parent that if his/her kid dies then he receive equal to sum assured? No parent on this world will thought. Hey..I never underestimate the insurance. But I hate to mix insurance with investment. Such mixing restrict buyers from being under insurance. Insurance company must be in the business of selling insurance but not investment right?

      2. Hi Basu, can you please explain, if my child is 12 years old and I want to invest in any other financial product where I put yearly contribution and at the age of 18, 20, 22 & 25 my child gets 2,2,2 & 4 lakhs guaranteed plus the addition if any. I am using the word “GUARANTEE”.

        Its a span of 13 years, the inflation, Govt. can go worst or best, if an institute like LIC gives me guarantee, do I really need to miss the bus. Have ever thought about the small investors who have lost in capital market and for that reason MFs ULIP & other schemes. Are MFs & Capital market allowed by SEBI for giving any guarantee of returns. In MFs & Capital market there is a risk and tax.

        I think the child money back plan is very simple money back plan. I had in past some plans where I used to pay premiums by ECS, and when every 5 years when I get returns, I was really useful at that time.

        Having said that, the fact is I invest in capital market & MFs as well, I see my risk level and exit at certain point. But the risk is always there. Also the tax implications. But I will definitely put some amount every year for my child in money back plan because of the guarantee factor.

        You agree or not but I feel, for a disciplined investor this is the best plan.



        1. Deepak-May I know whether this plan provides any GUARANTEE returns? Please remember, I am using the word “GUARANTEE”. If so then how much is GUARANTEED? If so then at what cost you are getting that GUARANTEED? Even Savings banks these offers you interest of 4% to 5% with GUARANTEE principal. So why can’t one try? Many lost in capital market who have neither understood how it works nor eager of easy money. Long term investors never lost money. Wow…tax implications of equity mutual funds? Do you know the LTCG of equity instrument after one year is totally tax free? What do you mean by disciplined investor? You are claiming informed and disciplined investor. So best of luck 🙂

  38. Im a development officer of LIC aizawl branch if anyone wanted to secured their lovely childrens future plz contact me 8413956523

  39. hi,

    I am Sivasankar working in Lic of india as Development officer.. I am in chennai.. if anybody wants to take this policy to your lovable child, pls call me..

    mail: [email protected]

  40. Hi Basu,

    Can you please clarify what is the maturity term of this plan? Is it till 18 years of girl child? In that case how it is possible after maturity the money back in the interval of 18, 20 22 years by 20% of sum assured. I found somewhere that the maturity period is 25 years. And 40% of sum assured will be provided after maturity and before that at the money back installments of 20% will be distributed at age of 18, 20, 22 years. Kindly correct me if I am wrong.

    I have checked the LIC website, but there a wrong link is attached with this plan. I hope you have better information regarding this plan.

    1. HI Santanu,

      Maturity Term of this plan is 25th year of your child.

      Here is example of 10lac Sum Assured policy of a child

      MAturity Installments will be:

      At her Age 18: 200000

      At her age 20: 200000

      At her age 20 :200000

      At her age 25: 400000+Bonus+Final Addition Bonus

      Thanks & Regards,
      Priynka Sujera.
      [email protected]

      1. Hi, Iam an agent from Jamnagar 81P branch. My contact no. 9714106970.

        One more good feature is also given. i.e. Premium waiver benefit. By this, risk of proposer can be taken by paying some extra premium.(P.W.B.)

          1. Hi Mr.Basavaraj T.
            As we know that LIC is an insurance company and the products of LIC is an insurance product. we can not compare the insurance with other non-insurance products.Also in children policies the policy is issued on the name of beloved child, but the premium is paid by parents or guardian.In case of any uncertain demise of the premium paying person, the premium will be waived off in case of PWB. So PWB plays a very important role in such policies. Also the benefits of the child in the policy doesn’t get disturbed.

          2. yes Child plan without the PWB means nothing…………………….this feature is the main stay of any Child plan…. Yes definitely…… An agent in our branch was ‘lashed’ for not adding this feature ….. Yes….

    2. Respected Sir/Madam,

      I Want to know that LIC will Stay for ever or not because at present many Pvt Insurance Comanies & Chitfunds scam is common thing but I want to invest money at LIC Pension plan so that I want to know whether It is guranteed company or Pvt company ,Plz reply me,

      Pratap Chandra Patnaik

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