Insurance
Your child’s future,protected.
School, college and beyond — plans that pay out when your child needs it most.
In one minute
- 1
Money for every milestone
School, college and beyond — plans that pay out when your child needs it most.
- 2
Even if you are not there
Good child plans keep going if a parent passes away: premiums stop, and the payouts still arrive on time.
- 3
Start early, pay less
Starting when your child is young spreads the cost over more years and lets the money grow longer.
Chapter 01
What is a child plan?
A child plan is a savings or investment plan built around your child’s future needs — usually higher education and marriage. You pay premiums for a set number of years, and the plan pays money at the ages you choose, for example at 18, 21 and 25.
What makes it special is the protection: if the parent who pays the premiums passes away, the insurer stops collecting premiums but continues the plan, so the child still receives every planned payout.
Chapter 02
Why planning matters — the real cost
- Cost today (illustrative)
- ₹15 lakh
- Education costs rise each year by about
- 8–10%
- Your child is now
- 3 years old
- Cost when they turn 18 (at 8% a year)
- About ₹48 lakh
Starting now, a monthly saving of roughly ₹10,000–₹12,000 at a 10% return can build that amount in 15 years.
Chapter 03
Your options, compared
Traditional child plan
Market-linked child plan
Term insurance + mutual fund SIP
Chapter 04
Popular LIC child plans
- 01
Amritbaal
Guaranteed additions every year and a lump sum at maturity. Can start from 30 days of age.
- 02
Jeevan Tarun
Choose how much to receive each year from age 20 to 24, with the balance at 25.
- 03
New Children’s Money Back
Pays 20% of the cover at 18, 20 and 22, and the rest with bonuses at 25.
Chapter 05
How to choose
- 1
Estimate the amount and the year your child will need it
- 2
Make sure the plan includes the premium-waiver benefit
- 3
Match payouts to the ages your child will need money
- 4
Combine safety (plans, PPF, Sukanya Samriddhi) with growth (mutual funds)
- 5
Review every few years as costs and your income change
Before any child plan, make sure the earning parents have enough term insurance. It is the cheapest way to secure every goal.
Chapter 06
Tax benefits
- 01
Premiums
Reduce taxable income by up to ₹1.5 lakh a year under Section 80C, in the old tax regime.
- 02
Payouts
Usually tax-free, subject to the ₹5 lakh yearly premium limit for policies bought after April 2023.
Questions
Good toknow.
When should I start a child plan?
As early as possible — ideally in the child’s first few years. More years mean smaller premiums and more time for the money to grow.
Who should be insured — the parent or the child?
The parent who earns. The point of the plan is to protect the child’s future against the loss of that income.
Is a mutual fund SIP better than a child plan?
Over 15+ years, SIPs in equity funds have historically grown more, but carry market risk and no built-in protection. Many parents use both: term cover plus SIPs for growth, and a child plan for a guaranteed base.
What is Sukanya Samriddhi Yojana?
A government savings scheme for daughters under 10, with a fixed interest rate set every quarter and tax-free returns. It pairs well with other plans.
Insurance is the subject matter of solicitation. For more details on risk factors, terms and conditions, please read the sales brochure and policy wording carefully before concluding a sale. Tax benefits depend on the law in force and your personal situation. The information on this website is for general educational purposes only and does not constitute investment, tax or legal advice. Please consult a qualified professional before making financial decisions.
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