Insurance for Your Child's Future. Complete Planning Guide
Your child's education could cost ₹10-30 lakh by the time they're 18. Medical or engineering? ₹20-50 lakh. MBA? Another ₹20-30 lakh. Abroad? ₹1 crore+. These numbers are scary. but planning early makes them manageable.
Why Start Early?
The power of compounding. If you start when your child is born and invest ₹5,000/month in an LIC plan for 18 years, you'll build a corpus of ₹20-30 lakh (with bonuses). If you start when they're 10, the same monthly amount gives you only ₹8-12 lakh.
Also. and this is crucial. child plans include a premium waiver. If something happens to you (the parent), future premiums are waived but the plan continues. Your child's future is protected regardless.
Best LIC Plans for Children
- •Jeevan Tarun (934): Money at ages 20-24 for education milestones + lump sum at 25. Premium waiver on parent's death.
- •Amritbaal (974): Guaranteed additions, short premium term (7-12 years), non-linked. zero market risk. New plan, very attractive.
- •New Children's Money Back (932): Periodic payouts at key ages. Premium waiver on parent's death.
- •Dhan Sanchay (967): Available from age 3. Guaranteed additions, short premium payment. Good for targeted corpus building.
How Much to Invest?
Rule of thumb: Start with ₹50,000-1,00,000 per year per child from birth. This typically builds ₹15-30 lakh by age 18. Adjust based on your target education cost and current income.
Don't Forget Term Insurance for Yourself
The biggest risk to your child's future isn't education inflation. it's losing the parent who pays for it. Before buying a child plan, ensure you have adequate term insurance (₹1 crore+). A ₹10 lakh child plan is useless if the family loses ₹50 lakh in annual income.
This article is for educational purposes. Premium rates and benefits are indicative. For official details, visit licindia.in.