- 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.
Also Read: 8th Pay Commission: Will HRA, Transport Allowance And Other Benefits Also Increase?
How Much Can You Save By Investing Rs 5,000 Monthly?
Assume that your child is 5 years old now and you start saving Rs 5,000 every month towards an appropriate LIC Child Plan.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
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.
Also Read: Two Life Insurance Policies: Will Your Family Get Both Payouts After Your Death?
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.