Eligibility & limits
- Category
- Money-back
- UIN / plan number
- 932
- Plan status
- Active for sale
- Snapshot date
- 01 May 2026
Entry age, term and sum-assured bands are on the official plan page; we'll mirror them here once the per-plan facts are extracted.
Calculators LIC plans Money-back
LIC New Children's Money Back · Plan 932
Money-back tied to a child's age milestones (18, 20, 22) + maturity at 25.
Asymmetrica · LIC plan report
LIC New Children's Money Back · Plan 932
Generated 28 May 2026
In short
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.
Run the numbers
Total value received across all survival benefits and maturity payout. The cashflow timeline shows the distinctive sawtooth pattern — interim payouts at years , with a smaller residual at maturity.
Assumptions
- Age
- 30 yrs
- Sum assured
- ₹5,00,000
- Child entry age
- 5 yrs
- Policy term
- 20 yrs
- Premium paying term
- 20 yrs
- Premium frequency
- yearly
- Bonus scenario
- base (40/1000 BSA)
yrs
₹
Maturity age 25 years (fixed)
Policy term 20 years
Premium paying term 20 years
Premium frequency
Optional riders
Accident cover (choose one)
Total value received over 20 years
₹9,27,500
At base bonus rate (SRB ₹40/1000 BSA/yr on full original BSA)
Annual premium
₹29,000
GST-free since 22 Sep 2025
Total paid (over 20 yrs)
₹5,80,000
Total survival benefits
₹3,00,000
20% BSA × 3 payouts
Final payout at maturity (yr 20)
₹6,27,500
40% BSA + SRB + FAB
Implicit XIRR
5.05%
Includes all SB + maturity cashflows.
Net gain (total received − total paid)
₹3,47,500
Death benefit (while policy is in force)
₹6,25,000 + vested bonus
Unaffected by survival benefits already paid — full protection throughout.
Bonus rates use LIC's last declared values (March 2025 valuation). Reviewed annually — actual payouts can be higher or lower. Note: SRB accrues on the full original BSA every year, not on the reducing balance after SBs are paid.
Bonus assumption:
Cashflow Timeline
Gray bars: annual premiums (years 1–20). Teal bars: survival benefit payouts and final maturity.
Survival benefit schedule
Each payout is 20% of BSA at ages 18, 20, and 22 (policy years depend on child's entry age).
Year 13
₹1,00,000
20% of BSA
Year 15
₹1,00,000
20% of BSA
Year 17
₹1,00,000
20% of BSA
Year 20 (maturity)
₹6,27,500
40% BSA + SRB + FAB
Year-by-year projection — show table
| Year | Cum. premiums | SB paid this year | Cum. SBs received | Vested bonus | Death benefit |
|---|---|---|---|---|---|
| 1 | ₹29,000 | — | — | ₹20,000 | ₹6,45,000 |
| 2 | ₹58,000 | — | — | ₹40,000 | ₹6,65,000 |
| 3 | ₹87,000 | — | — | ₹60,000 | ₹6,85,000 |
| 4 | ₹1,16,000 | — | — | ₹80,000 | ₹7,05,000 |
| 5 | ₹1,45,000 | — | — | ₹1,00,000 | ₹7,25,000 |
| 6 | ₹1,74,000 | — | — | ₹1,20,000 | ₹7,45,000 |
| 7 | ₹2,03,000 | — | — | ₹1,40,000 | ₹7,65,000 |
| 8 | ₹2,32,000 | — | — | ₹1,60,000 | ₹7,85,000 |
| 9 | ₹2,61,000 | — | — | ₹1,80,000 | ₹8,05,000 |
| 10 | ₹2,90,000 | — | — | ₹2,00,000 | ₹8,25,000 |
| 11 | ₹3,19,000 | — | — | ₹2,20,000 | ₹8,45,000 |
| 12 | ₹3,48,000 | — | — | ₹2,40,000 | ₹8,65,000 |
| 13 | ₹3,77,000 | ₹1,00,000 | ₹1,00,000 | ₹2,60,000 | ₹8,85,000 |
| 14 | ₹4,06,000 | — | ₹1,00,000 | ₹2,80,000 | ₹9,05,000 |
| 15 | ₹4,35,000 | ₹1,00,000 | ₹2,00,000 | ₹3,00,000 | ₹9,25,000 |
| 16 | ₹4,64,000 | — | ₹2,00,000 | ₹3,20,000 | ₹9,45,000 |
| 17 | ₹4,93,000 | ₹1,00,000 | ₹3,00,000 | ₹3,40,000 | ₹9,65,000 |
| 18 | ₹5,22,000 | — | ₹3,00,000 | ₹3,60,000 | ₹9,85,000 |
| 19 | ₹5,51,000 | — | ₹3,00,000 | ₹3,80,000 | ₹10,05,000 |
| 20 | ₹5,80,000 | — | ₹3,00,000 | ₹4,00,000 | ₹10,25,000 |
| Total received | ₹5,80,000 | ₹3,00,000 |
Our take
Should you buy New Children's Money Back?
Plan 932 is purpose-built for a specific parenting use case: lock in an insurance-cum-savings product for a young child and receive three liquidity tranches precisely when education expenses peak. The structure is elegant — the three SBs at ages 18, 20, and 22 align with undergraduate admission, post-graduation, and first-job milestone money — but the fundamental economics are the same as any other participating endowment: modest XIRR (5–6%), bonus uncertainty, and illiquidity for the first few years. The parent (proposer) is protected by the PWB rider option — if the proposer dies during the PPT, future premiums are waived and the policy runs to full maturity. This is the plan's most distinctive risk-mitigation feature. Treat it as a disciplined, low-volatility children's fund with defined liquidity windows — not as a high-return investment.
- The three SBs (at child ages 18, 20, 22) are timed to higher-education milestones — a structural advantage over a generic endowment with a lump-sum maturity.
- Entry age 0–12 means the term is 13–25 years. Buying at birth gives the longest compounding window and the highest SRB accumulation per rupee of BSA.
- PWB rider (Premium Waiver Benefit) on the proposer's life is the most valuable add-on: if the parent dies during PPT, LIC waives all remaining premiums and the child still receives all benefits. Worth adding in almost every case.
- SRB accrues on the full original BSA for the entire policy term — it is not reduced after each SB payout. A 20-year term accumulates 20 years of simple bonus, which matters significantly to total value.
- XIRR is approximately 5–6% at base bonus rates — low by equity standards, reasonable versus bank FDs for a forced-savings vehicle that also includes life cover on the child.
- Surrender value in the first 3 years is nil; from year 3 onwards, GSV applies. Do not buy if there is a realistic risk of needing to surrender in the first 5 years.
Asymmetrica isn't an insurance advisor. The opinions above are editorial; the numbers in the calculator are computed from the plan's own brochure. Read both, then decide.
Deep dives
More on New Children's Money Back
-
Full review
Who it works for, who it doesn't, what tends to go wrong over the term, and how our take compares with other reviewers.
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Surrender value
Year-by-year GSV vs SSV table for the default scenario, with plan-specific notes on when exiting actually breaks even.
-
Tax treatment
§80C eligibility, §10(10D) maturity exemption, the 10× SA rule, and how each clause applies to a typical buyer of this plan.
Plan reference
Paid-up value
Stop premiums after at least 2 full years and the policy stays in force as a paid-up policy at a reduced sum assured. Already-vested bonuses are preserved; no new bonuses accrue.
Policy loan
Once the policy has a surrender value (typically year 3), you can borrow up to 90% of it from LIC at the prevailing policy-loan rate — short-term liquidity without giving up the policy's bonuses.
Sources
Last updated · site changelog