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.
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.
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.
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View Comments
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.
Vikas-Refer my post "Top 10 Best SIP Mutual Funds to invest in India in 2018".
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
Rajashekar-Stay away from policies or product which combines insurance with investment. Instead try to start investing in equity mutual funds (if your goal is long term).
My boby 2 years best money back and father any accident or normal Incerenss details tel me sir
1000 or 1500 i pay monthly so pls best police details .
My email..shekarraja591@gmail.com
Rajashekar-I am not sure about your doubts.
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.
Melwin-Refer my earlier post "Top 10 Best SIP Mutual Funds to invest in India in 2016".
SIR MY BABY 15 DAY OLD HAI TO KONSA PLAN HAI POKICY KA REPLY PLZ
Naprat-Your concern is INVESTMENT or INSURANCE?
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.
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.
hi
Really appreciate to choose LIC india
feel free to contact for more details
Puru-Achaa? May I know why I or readers can contact you?
Dear Sir,
Just now i became father of baby girl. Pls suggest me which plan will be suitable for long term (till marriage).
Harekrishna-Stay away from any LIC plans. Buy term insurance (either from LIC or private companies), start investing in equity mutual funds.
DEAR SIR,
MY GIRL CHILD THE AGE ABOUT IS 13 YEARS OLD,MY AGE IS 39 YEARS, PLEASE ADVICE ME WHICH POLICY I SHOULD TAKE FOR MY CHILD EDUCATION/MARRIAGE.
Dilip-Stay away from product which claim to be designed for child education and future expenses.
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.
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.
My baby son is 11 month old plz tell me a best Lic plan in which they are insured + money back
Praveen-Please refer my above view on child insurance.
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.
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.