Do you have a child and are you looking to secure their educational future? There are several prominent LIC child plans to help parents combat rising educational costs, inflation, and other associated risks, with life cover, savings, and Section 80C tax benefits.
Keeping this in mind, let us discuss the top LIC plans based on the Internal Rate of Return (IRR). The plans’ features include survival benefits from age 20 and maturity benefits when the child turns 25, enabling funding for college and foreign education.
Plans discussed are:
- Jeevan Lakshya (933)
- New Children’s Money Back (932), and
- Jeevan Tarun (934)
Before we proceed, let us take a look at the concept of Internal Rate of Return, so that the categorisation becomes even more comprehensive and easier to understand.
What is IRR?
The Internal Rate of Return is the annualised return that equates premiums paid to total benefits received. This includes survival payouts, maturity sum assured, and vested bonuses.
Furthermore, a higher IRR simply means superior long-term profitability for child plans, taking into consideration policy terms, basic eligibility criteria, and total benefits received. Having a holistic look at all these factors is critical to making smart comparisons and ensuring a prudent selection.
Plan Highlights
A. Entry age: You can apply if your child is a newborn to 12 years old for the above policies, depending on the choice. Furthermore, premium-paying terms range from 16 to 25 years, depending on the child’s age at entry.
B. Common features: Death benefit (sum assured + vested bonuses), loan/surrender value, and premium waiver rider if the parent dies. This means that if the parent passes away during the years up to the payment of the premium, then funds are still going to be provided to the child when they reach the age of eligibility, without additional premium payments. This is known as the ‘premium waiver rider’ in case the parent dies.
C. Example: A ₹42,000 annual premium, approximately, for a ₹10 lakh sum assured (for a newborn with a 25-year term of payment). This means that for a ₹10 lakh sum insured for a newborn child, the annual premium of approximately ₹42,000 will be paid until the child turns 25. This is similar across all plans, thus fostering a fair comparison based on IRR.
2026 IRR & payouts comparison ( ₹10 lakh sum assured, newborn)
| Plan | IRR (%) | Annual Premium ( ₹) | Survival Benefits | Maturity Benefit (Age 25) |
|---|---|---|---|---|
| Jeevan Lakshya (933) | 7.02 | 42,438 | 10% SA yearly (yr 2-end) + waiver | Full Sum Assured (SA) + Vested Bonuses (higher ed corpus) |
| New Children’s Money Back (932) | 6.87 | ~42,000 | 20% SA at 18/20/22; 40% maturity | Sum Assured on 60% + Vested Bonuses (cashflow) |
| Jeevan Tarun (934) | 6.86 | 42,438 | 20-40% customizable (ages 20-24) | Full Sum Assured + Vested Bonuses (flexible) |
Note: IRR based on 2026 premiums vs. standard bonuses. For eligibility, exclusions, and the latest rates, visit LIC’s official website.
Therefore, sum assured + bonuses = Base ₹10 lakh sum assured + LIC’s yearly simple reversionary bonuses, forming the core payout. In case of doubts, you should have a clear discussion with a certified financial planner and an LIC agent separately to better understand the terms and conditions.
How to select the best LIC child plan?
The selection of the best possible plan entirely depends on your individual requirements and aspirations. For example, the Jeevan Lakshya plan can be invested in to provide a steady stream of income, whereas the Money Back plan can be invested in a lump-sum fund disbursement when the child turns 18-22. Finally, Jeevan Tarun can be opted for its flexibility.
Before you lock in on any plans, you should carefully read the terms and conditions of the plan you wish to invest in. Secondly, factor in your child’s current age, budget, your risk-taking capacity, utilise IRR calculators, and consider distinct riders to optimise your plan as per your requirements.
Finally, it is very important for you to consult LIC agents and certified financial planners, and to perform thorough due diligence to make regret-free choices. Make sure you are clear about what you are signing up for, and that the decision is based on rational thinking and professional guidance, not emotions.
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