Calculators LIC plans New Children's Money Back Review
LIC New Children's Money Back Plan (Plan 932) is a participating money-back plan taken out by a parent for a child aged 0–12. The policy matures when the child turns 25. Survival benefits of 20% BSA each are paid at child ages 18, 20, and 22 — timed to coincide with higher-education and early-career milestones. The residual 40% BSA plus full SRB (accrued over the entire 25-year-minus-entry-age term) and a FAB are paid at maturity. At the base bonus scenario the XIRR is approximately 5–6% across all cashflows — competitive with a fixed deposit ladder but well below a diversified equity SIP over the same horizon.
A parent aged 25–40 who wants a dedicated, illiquid children's fund with milestone liquidity at ages 18, 20, and 22. The ideal buyer can commit to premiums for 13–25 years without interruption and values the PWB (so the child is protected even if the parent dies early). Buying at child age 0–3 maximises the bonus accumulation window.
A parent who can tolerate equity volatility and is 15+ years from the child's college admission — a children's SIP in a diversified equity fund will historically compound at 10–14%, vs 5–6% for Plan 932. Also unsuitable if the parent's income is variable or if there's a meaningful risk of premium interruption in the first 5 years.
Bonus rates are not guaranteed. A sustained low-interest-rate environment can compress SRB, reducing the effective XIRR below the base scenario. The plan is also inflexible: once the term is set (based on the child's age at entry), it cannot be changed. If the child's education plans shift (e.g., going abroad rather than staying in India), the fixed payout schedule at ages 18/20/22 may not align with actual cost timing.
Our headline XIRR uses the middle premium-paying term (15 years against a 21-year policy term), excludes optional rider premiums from the cash-flow base, and assumes the latest declared simple reversionary bonus rate holds for the full term. Try other PPTs and bonus assumptions on the New Children's Money Back calculator.
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