A monthly investment of ₹5,000 in an LIC child plan can generate substantial savings over time. According to reports from NDTV Profit, if started when a child is 5 years old and continued for 13 years, the total investment would reach ₹7.8 lakh. The annual investment would amount to ₹60,000, with the final maturity benefit depending on the specific LIC policy type, sum assured, and tenure selected. This investment strategy demonstrates the power of compounding over time, with the ₹5,000 monthly contribution serving as a foundation for significant long-term wealth creation. Unlike conventional savings products, these policies are structured to provide periodic payments during key education years, along with life cover and a final maturity benefit. For families targeting a ₹30 lakh corpus, the investment period, premium amounts, and policy benefits will be crucial factors in achieving this goal.
LIC offers several child-centric insurance plans designed to meet future financial requirements. As reported by NDTV Profit, these include the New Children's Money Back Plan, Jeevan Tarun, and Amritbaal. The New Children's Money Back Plan provides survival benefits at ages 18, 20, and 22, with the maturity benefit available at age 25. LIC Jeevan Tarun takes a different approach by allowing policyholders to choose payout options that provide money during the child's growing years. For families seeking certainty over returns, LIC Amritbaal may be worth considering, as it provides guaranteed additions of ₹80 for every ₹1,000 of basic sum assured for each completed year, subject to policy remaining active. These plans combine insurance coverage with savings components to address various life stages, offering parents multiple options to suit their specific financial goals and risk profiles.
While the ₹5,000 monthly investment may serve as a good starting point for child financial planning, parents should carefully evaluate the benefits and returns before committing. According to NDTV Profit, investors should consider both the insurance coverage and premium returns when selecting an LIC child plan. The final maturity amount will depend on multiple factors including the policy type, sum assured, and specific benefits offered by the chosen plan. Tax benefits under Section 80C allow deductions up to ₹1.5 lakh from taxable income per year, while Section 10(10D) provides benefits for investments up to ₹2.5 lakh annually for policies bought after February 1, 2021. Parents may also consider the Premium Waiver Benefit Rider, available subject to eligibility and additional premium payment, which can handle future premium obligations if the parent dies during the rider period.
Starting early investment for children's future expenses can provide significant financial advantages, with families planning for a 5-year-old child having a longer period to build a corpus compared to those starting when the child is 12 years old. As reported by NDTV Profit, parents should request official benefit illustrations from LIC to understand the exact amount their child may receive and the specific age at which benefits become available. Building a ₹30 lakh fund requires careful consideration of inflation over a 15-20-year period, which could significantly impact the cost of higher education and other important milestones. The investment calculator approach, which uses compound interest formulas to project future returns, demonstrates how consistent monthly contributions can build substantial wealth over time. Parents must also account for expenses that arise at different stages, particularly college education, postgraduate courses and marriage, making a combination of long-term investments, insurance protection and readily available funds an important part of comprehensive financial planning.
