- Monthly investment of Rs 5,000 totals Rs 7,80,000 over 13 years for a child plan
- Final maturity depends on LIC policy type, sum assured, tenure, and other benefits
- LIC offers child plans like New Childrens Money Back Plan and Jeevan Tarun
Parents looking to build a financial cushion for their children's education and other future expenses often turn to long-term savings plans. An LIC child insurance policy is one such option. But what would the maturity benefit look like if you invested Rs 5,000 every month until your child turns 18? Here's a look at the possible returns through an example.
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How Much Can You Save By Investing Rs 5,000 Monthly?
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Assume that your child is 5 years old now and you start saving Rs 5,000 every month towards an appropriate LIC Child Plan.
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Your annual investment would be Rs 60,000. And if you keep making investments for the next 13 years, then your total investment would be:
Monthly Investment: Rs 5,000
Annual Investment: Rs 60,000
Duration of Investment: 13 Years
Total Amount Invested: Rs 7,80,000
But the final amount at the age of 18 will depend on the LIC policy, sum assured, tenure of the policy, and other benefits.
What About LIC Child Plans?
Several child-centric plans include LIC's New Children's Money Back Plan and LIC's Jeevan Tarun.
These plans help to meet future financial requirements through insurance and savings plans. For example, under LIC's New Children's Money Back Plan, there are survival benefits which are payable at certain ages like 18, 20 and 22, with the maturity benefit at age 25.
Is Investing Rs 5,000 Monthly A Good Idea?
It may be a good starting point, but the parents have to consider both the benefits they get through the plan and the returns they would receive on their premiums before investing.
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Conclusion
Starting early can help parents prepare for their child's future expenses. Before choosing an LIC plan, ask for an official benefit illustration to understand exactly how much money your child may receive and when.
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