Every parent wants a plan that guarantees money will be there when a child needs it for college. LIC markets several “child plans” for exactly this, but the best choice depends on how much certainty you want versus how much you want the money to grow.
LIC’s dedicated child plans
Jeevan Tarun (Plan 834/934) and New Children’s Money-Back (Plan 832/932) are built for education. They pay survival benefits during the child’s later school and college years and a lump sum at the end, with an important safety feature: if the parent (proposer) dies, future premiums are waived and the policy continues. That guarantee is the real value of a child plan.
The honest reality on returns
Like all LIC savings plans, these return roughly 5–6% a year. For a goal 15–18 years away — which is exactly how far off most children’s college is — that is on the low side. Over such a long horizon, an equity mutual-fund SIP has historically built substantially more.
A stronger way to plan for a child
Many advisers now suggest splitting the job:
- Take a term plan on the parent’s life so that if the worst happens, the full education corpus is covered instantly — far more cover per rupee than a child plan.
- Invest the monthly amount in an index or equity mutual-fund SIP for growth over the 15–18 year horizon.
- If you want a guaranteed cushion, keep part in a plan like Jeevan Tarun with the premium-waiver benefit.
The bottom line
A child plan’s best feature is the premium waiver on the parent’s death, not its return. For the growth part of an 18-year goal, equity usually does more. See both side by side, with real premiums, on Plan Banao.
Educational information, not individual advice.