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LIC Children’s Money Back Policy

Aayush, like any other parent, wishes for the best for his only child. He was looking for a policy that not only pays for a child’s higher education, dream wedding, and other expenses but also provides risk coverage on the child’s life during the policy term.

He then chose to purchase the LIC Child Money Back Plan. The policy has a 25-year term and a basic sum assured of Rs. 100000. When he reaches the ages of 18 years, 20 years, and 22 years, he will receive 20% of his child’s basic sum assured as survival benefits, and 40% of his child’s basic sum assured and bonus when he reaches the age of 25. Let us take a closer look at the plan:

What is LIC Children’s Money Back Policy?

The Children’s Money Back Plan from the Life Insurance Corporation of India is a non-linked, participating life insurance policy. It can be bought by grandparents or parents of a child between 0 and 12 years old. The plan covers the child’s risks for the duration of the policy. Furthermore, the plan’s benefits will specifically address children’s needs and expenses. 

The policyholder can choose to claim the survival benefit on their actual due date or postpone it until a later date that meets their needs. The proposer may also purchase a Premium Waiver Benefit Rider, which is valid for the duration of the proposer’s life. The proposer or policyholder can claim tax benefits under current income tax laws.

The Essentials of LIC Children’s Money Back Policy

Maturity benefits of the plan

A maturity benefit is equal to the sum assured at maturity plus any accrued bonuses (if any).
Frequency of Premium payment 

Monthly, quarterly, half-yearly, or yearly

Cooling off period/Free look

The policy comes with a free look period of 15 days
Revival conditions

According to the terms and conditions, lapsed policies can be revived within two years of the last premium due date.


This plan includes a loan facility based on the surrender value accumulated.
Grace period

The monthly payment mode has a 15-day grace period. The grace period for the remaining payment modes – quarterly, half-yearly, and yearly – is 30 days.


On selecting a high sum assured, a rebate is provided.

Who is Eligible for Children’s Money Back Plan?

Policyholders who wish to purchase this policy must ensure that they meet the insurer’s eligibility requirements.

Minimum age for entry 

0 (last birthday)
Maximum age for entry 

12 (last birthday)

Minimum/maximum maturity age 

25 (last birthday)

What are the benefits of the LIC Children Money Back Plan?

1. Death Benefit 

If the life assured dies after the risk cover has commenced, a death benefit, which will include the Death Sum Assured, Final Additional Bonus, and Simple Reversionary Bonus, will be paid by the insurer.

2. Survival Benefit

If the policyholder survives the policy anniversaries shortly following the ages of 18 years, 20 years, and 22 years, a survival benefit of 20% of the sum assured will be paid.

3. Maturity Benefit

As the maturity benefit, if the life assured survives until the policy’s maturity date, he or she will receive 40% of the sum assured amount, the Final Additional Bonus, and the Simple Reversionary Bonus.

4. Participation in Profits

As part of a participating plan, it is entitled to a share of the corporation’s profits based on the corporation’s experience. When a death or maturity claim appears in the policy, the bonus is added to the policy.

5. Optional Benefit  

The policyholder may defer the survival benefit at any time before or after the due date, but only while the policy is in force. The benefit of deferment means that the corporation will pay more to the policyholder. Six months before the policy’s maturity/benefits due date, a policyholder must write a letter to the servicing branch of their policy.

LIC’s Children’s Money Back Plan Product Specification

Sum assured of the plan

Minimum – INR 1 lakh, Maximum – The plan does not have any upper limit
Coverage of the plan

Maturity benefit, Death benefit, and survival benefit

Policy type

Non-linked participating money back plan
Policy basis

Individual basis

Plan term

Plan term

Additional Details of LIC Children Money Back Policy 


Suicide clause If the life assured, whether sane or insane, commits suicide within 12 months of the policy’s inception or from the date of revival, no death benefit is payable. Only 80% of the premiums paid back to the nominee will be refunded by the insurance company. The clause is inapplicable if the life assured is under the age of eight years at the time of entry.

About riders

The LIC’s Premium Waiver Benefit Rider The LIC’s Children’s Money Back Plan includes a very useful premium waiver rider that is available for the proposer’s entire life, as long as he or she is between the ages of 18 and 55. For an additional premium, the rider can be added to the base plan. If the proposer dies during the active policy term, the basic plan’s future premiums will be waived. The rider benefit will not be paid if the proposer commits suicide within 12 months of the policy’s start date or the policy’s revival date.

Tax Advantages of LIC’s Children’s Money Back Plan

The LIC’s Children’s Money Back Plan provides you with dual tax advantages, which are as follows:

Section 80C provides a tax break

Section 80C allows you to deduct the premium you pay for the policy as a tax-free deduction. This deduction will help you reduce your taxable liability and save money on your taxes. This section allows you to claim a maximum deduction of INR 1.5 lakhs.

Section 10 tax deduction (10D)

The plan’s survival benefits, as well as the plan’s maturity or death benefits, are all tax-free income. You are not required to pay any taxes on the plan benefit. Section 10(10D) of the Income Tax Act of 1961 considers the entire benefit to be tax-free income.


The LIC Children’s Money Back Plan is a wise choice for parents who want to protect their children’s interests regardless of what happens in the future. While rising costs and inflation are a concern for everyone, the guaranteed benefits payable under this policy can cover any financial needs one’s children may have when they reach adulthood.


Is there a guarantee of bonuses under the plan?

The bonus is determined by the insurance company's performance during the fiscal year. They are only paid when the company makes a profit. As a result, bonuses aren't guaranteed.

Can a lapsed policy be reinstated?

Yes, you have two years from the date the policy expired to reinstate it.

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