According to reports from Mint, three prominent LIC child plans are available for 2026 education savings: Jeevan Lakshya (933), New Children's Money Back (932), and Jeevan Tarun (934). These plans are designed for children aged newborn to 12 years, with premium-paying terms ranging from 16 to 25 years depending on the child's entry age. All plans offer death benefits, loan/surrender value, and premium waiver riders in case of parental death during the premium payment period.
As reported by Mint, the Jeevan Lakshya plan leads with an IRR of 7.02%, followed by New Children's Money Back at 6.87% and Jeevan Tarun at 6.86%. For a ₹10 lakh sum assured with 25-year premium payment, the annual premium ranges from approximately ₹42,000 to ₹42,438 across all plans. The IRR calculation includes survival payouts, maturity sum assured, and vested bonuses, with higher IRR indicating superior long-term profitability for child plans. The Internal Rate of Return represents the annualised return that equates premiums paid to total benefits received, taking into consideration policy terms, basic eligibility criteria, and total benefits received.
According to Mint reports, Jeevan Lakshya offers 10% sum assured annually from year 2 onwards plus waiver, while New Children's Money Back provides 20% sum assured at ages 18/20/22 and 40% maturity. Jeevan Tarun offers customizable 20-40% survival benefits across ages 20-24. At maturity age 25, all plans provide full sum assured plus vested bonuses, though the Money Back plan offers cashflow benefits while Tarun provides flexible disbursement options. The survival benefits are designed to help fund college and foreign education costs during the child's formative years.
As reported by Mint, the selection depends on individual requirements and risk tolerance. Jeevan Lakshya suits steady income streams, Money Back plan is suitable for lump-sum disbursement at ages 18-22, and Jeevan Tarun offers flexibility. Experts recommend consulting LIC agents and certified financial planners before making decisions, considering factors like child's current age, budget, risk capacity, and utilizing IRR calculators to optimize the plan based on specific requirements. The selection process involves carefully reading plan terms and conditions, factoring in the child's current age, budget, risk-taking capacity, and utilizing distinct riders to optimize the plan as per individual requirements.
