Child future planning guide
Child Plans – Plan for Your Child's Education and Future
Plan Today for Your Child's Brighter Tomorrow
Every parent wants to give their child the freedom to pursue their dreams. Thoughtful financial planning can help families prepare for future education expenses, important milestones, and long-term financial needs. Explore child-focused insurance and savings options to understand what may suit your family's goals.
- LIC child plans explained
- How to choose a plan
- Planning for education milestones
Why Start Planning for Your Child's Future Early?
Starting early gives a family more time to prepare for long-term goals, and more choice about how much to set aside each year.
Higher education expenses
College and university fees are usually among the largest costs a family plans for.
Professional and career courses
Medicine, engineering, management and other specialised courses can need substantial funds.
Long-term savings goals
Goals that are 10 or 15 years away benefit from a plan that sets money aside regularly.
Important milestones
School transitions, studying away from home and starting a career all come with costs.
Protection if the unexpected happens
Life cover on a parent can help keep a child's plans on track if that parent is no longer there.
A disciplined saving habit
Regular premiums or contributions make saving for a child a routine rather than an afterthought.
What you finally receive depends on the savings approach, the amount and regularity of contributions, the policy terms and other factors. No plan on this page should be read as a promise of a particular maturity amount or return.
Explore Child Plans and Financial Planning Options
LIC child plans differ in whose life is insured, when money is paid out and what happens if a parent dies during the term. Read the guides, then compare them against your own goal and budget.
LIC Jeevan Lakshya
Taken on a parent's life to build a lump sum for a future goal such as a child's education.
If the parent dies during the term, the plan is designed so that future premiums are not payable, the family receives a yearly income for the remaining term, and a lump sum is paid at maturity, as set out in the policy terms.
Ask About Jeevan LakshyaLIC Jeevan Tarun
A plan taken on the child's life, with the proposer usually a parent or grandparent.
It offers a choice of survival benefit options in the later years of the policy, before the maturity benefit, so payouts can be timed around the child's higher education. Bonuses on this type of plan are not guaranteed.
Ask About Jeevan TarunLIC New Children's Money Back Plan
A money-back plan on the child's life that pays instalments at set ages during the term, with the balance paid at maturity, according to the plan.
The payout schedule is fixed by the plan, so check whether it matches when your family expects to need money.
Ask About This PlanLIC Amritbaal
A newer LIC plan designed for children. We do not yet have a detailed guide to it on this site.
Ask us for its current features, eligibility and conditions, and how it compares with the plans above.
Ask About AmritbaalLong-Term Family Savings
Some families combine a child plan with general long-term savings plans that can be used for education or other goals, alongside other savings and investments.
Explore Savings PlansProtecting the Parent's Income
A child's plans usually depend on a parent's earnings. Term insurance on the parent provides a large amount of cover for a lower premium, and can sit alongside a child plan.
Explore Term InsurancePlan descriptions are short summaries for general information. Entry ages, terms, premiums, benefits and bonuses vary by plan and are set out in each plan's sales brochure and policy document. Plans and terms can change, so check the current details before applying.
How to Choose a Child Plan for Your Family
The right option depends on your family's circumstances. Before comparing plans, consider:
- Your child's current age
- The year your child is likely to start higher education
- How much you expect that education to cost
- Savings and investments you already have
- The amount you can comfortably set aside each year
- The policy term you need
- How long, and how often, premiums are payable
- The plan's benefits and conditions
- The life cover provided, and whether premiums are waived if the parent dies
- How easily you could access money early, if needed
- What happens if you miss premiums or surrender the policy early
Some families need mainly protection, others mainly savings, and many need both. No single policy suits every child or every family, so compare the actual policy terms rather than headline features.
Want help understanding the options?
Tell us your child's age and your goal. We will explain the relevant plans, their benefits and conditions, so you can decide in your own time.
Request Personalised GuidancePrepare for Important Milestones in Your Child's Life
Different milestones arrive at different times. Matching each goal to the right kind of saving makes the plan easier to follow.
School years
Fees, books, coaching and activities are regular costs that are usually met from household income and short-term savings.
Higher education
The largest planned expense for many families. Working out the likely year and an approximate amount helps you choose a suitable term.
Professional degrees and specialised courses
Courses such as medicine, engineering or study abroad can cost more and last longer, so they may need a larger fund.
Career development
Certifications, further study or the first months of a new job can all benefit from some financial support.
Other major milestones
Families also plan for events such as a child's marriage or setting up a first home.
Education costs and inflation cannot be predicted with certainty. A simple approach is to estimate today's cost of the course you have in mind, then review the estimate every few years as your child grows.
Get Guidance on Child Plans
Every family's goals and budget are different. Share a few basic details to receive guidance on child-focused insurance and savings options, their features, and the factors to consider before choosing a policy.
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Frequently Asked Questions
What is a child insurance plan?
A child insurance plan is a life insurance policy designed to help parents build money for a child's future needs, such as education. Depending on the plan, the life insured may be the child or a parent, and benefits may be paid at set ages, at maturity or on death, as set out in the policy.
How can parents plan for future education expenses?
Estimate when the money will be needed and roughly how much, then decide how much you can set aside each year. Many families use a mix of insurance, savings and investments, and review the plan as the child grows.
What is the difference between a child insurance plan and a dedicated savings or investment approach?
A child insurance plan combines savings with life cover and fixed terms, and some plans waive future premiums if the parent dies. A savings or investment approach usually offers more flexibility but no built-in life cover. Many families use both, sometimes with separate term insurance on the parent.
At what stage should parents begin financial planning for a child?
The earlier the better, because a longer time frame means smaller yearly contributions for the same goal. Many parents start soon after the child is born, but it is still worth planning at any age.
What factors should be considered before choosing a child plan?
Your child's age, when the money is needed, the likely amount, your budget, the premium payment term, the life cover and premium-waiver features, liquidity, and what happens if you stop paying or surrender early.
How do premium payment terms work?
The premium payment term is the number of years you pay premiums. It can be shorter than or equal to the policy term, depending on the plan. Premiums can usually be paid yearly, half-yearly, quarterly or monthly, as the plan allows.
What happens if a policyholder cannot continue paying premiums?
If premiums stop, the policy may lapse. Depending on the plan and how long premiums have been paid, it may continue with reduced benefits or have a surrender value. Lapsed policies can often be revived within a set period, subject to conditions. Check the policy terms.
Are benefits and maturity amounts guaranteed under every child plan?
No. Some benefits are guaranteed under the policy terms, while bonuses on participating plans depend on the insurer's experience and are not guaranteed. Always check which parts of a benefit illustration are guaranteed and which are not.
What information may be required when applying for a child plan?
Usually a proposal form, proof of age for the child and the proposer, identity and address proof for the proposer, and details of the proposer's health, income and existing insurance. Requirements vary by plan and sum assured.
How can parents request guidance on suitable options?
Fill in the enquiry form on this page or visit our Contact Us page.
Benefits, maturity values, bonuses, surrender conditions and eligibility vary by plan. Tax treatment depends on the law in force and your circumstances.
Child Plan Guides and Articles
Start Planning for Your Child's Future
A short conversation can help you understand the child plans available, how they work and what to compare before you decide. There is no obligation to buy.
LicAgent.co.in is the website of an insurance advisor and is not the official website of any insurer. Information on this page is general and educational, not financial or tax advice. Plan details are summaries; refer to the official sales brochure and policy document for full terms and conditions. All proposals are subject to underwriting. Insurance is the subject matter of solicitation.
