Formula
P = (T − R) × (1 − m) × S / 1000
I = P / f
T = A / (ä × (1 − λ))
M = G + (B × n + F) × S / 1000
P × Σt=0k−1 (1 + r)−t = Σt Ct (1 + r)−t + M (1 + r)−n
where
- P
- annual premium
- T
- tabular premium per ₹1,000 of sum assured, for your age, term and premium paying term
- R
- high sum assured rebate, ₹ per ₹1,000, from this plan's table (nil on smaller policies)
- m
- mode rebate: 2% yearly, 1% half-yearly, nil quarterly and monthly
- S
- Basic Sum Assured
- I
- each instalment
- f
- instalments a year: 1, 2, 4 or 12
- A
- present value, per ₹1,000 of sum assured, of everything the policy pays: death cover, survival benefits and maturity
- ä
- present value of ₹1 a year, paid at the start of each year of the premium paying term while you are alive
- λ
- expense loading, 12%
- M
- maturity amount
- G
- guaranteed maturity sum: the share of S your chosen option leaves for maturity
- B
- simple reversionary bonus, ₹ per ₹1,000 of sum assured a year, as last declared
- F
- Final Additional Bonus, ₹ per ₹1,000 of sum assured, by term
- Ct
- survival benefit in each payout year, the percentage of S set by your chosen option
- r
- annualised return: the rate that makes both sides equal
- n
- policy term, in years
- k
- premium paying term, in years
*Source LIC New Children's Money Back Plan brochure (PDF), LIC Reversionary Bonus Rates, valuation as at 31 March 2021 (PDF), for the plans of 2021; not the source of the rates used
In short (tl;dr)
The New Children's Money Back Plan is written on a child up to 12 years old and runs to age 25. It pays 20% of the sum assured at 18, 20 and 22, then 40% with bonuses at 25.
Worked example: at 5, ₹5,00,000 of cover over 20 years costs ₹27,980 a year for 20 years and is projected to pay ₹6,35,000 at maturity, a return of 5.49% a year.
Did you mean Jeevan Tarun? Jeevan Tarun (Plan 734) covers the same entry ages and also matures at 25, but stops premiums at 20 and lets you choose how the payouts are split. Open the Jeevan Tarun calculator (Plan 734).
What is LIC New Children's Money Back Plan?
The New Children's Money Back Plan (Plan 732) is a participating savings plan taken out by a parent or grandparent on a child aged 0 to 12. The policy always matures on the child's 25th birthday policy anniversary, so the term is 25 minus the entry age: 25 years for a newborn, 13 years for a 12-year-old. Premiums are payable for the whole term.
The payout schedule is fixed. On the policy anniversary on or after the child's 18th, 20th and 22nd birthdays the policy pays 20% of the Basic Sum Assured, which lines up with the start of college and the years after it. At 25 it pays the remaining 40% with the vested simple reversionary bonuses and any Final Additional Bonus. Bonuses accrue on the full Basic Sum Assured for the whole term, whatever has already been paid out.
A survival benefit does not have to be drawn when it falls due. The policyholder can leave it with LIC and take it later, up to maturity, and LIC then pays it increased by a factor of 1.0045 for each completed month of deferment, as set out in Annexure 1 of the brochure. A 20% payout left for two years comes back at 1.108 times its value. The request has to reach the servicing branch in writing six months before the due date.
If the child is under 8 at entry, LIC's risk cover starts two years after the policy begins or on the policy anniversary on or after the 8th birthday, whichever is earlier. A death before that refunds the premiums paid, without interest. The policy vests in the child on the policy anniversary on or after the 18th birthday.
Key features
- 20% of the sum assured paid at ages 18, 20 and 22, and 40% plus bonuses at 25
- Entry from age 0 to 12; the policy always matures at 25
- Premiums payable for the full policy term
- Survival benefits can be deferred, and grow by a factor LIC prints in the brochure
- Premium Waiver Benefit Rider available on the proposer's life
New Children's Money Back Plan at a glance
- Plan number
- 732
- Category
- Money Back
- Entry age
- 0 to 12 years
- Policy term
- 13 to 25 years
- Premium paying term
- Same as policy term
- Sum assured
- ₹2 Lakh and above
- Maximum maturity age
- 25 years
- UIN
- 512N296V03
We checked the plan number and UIN above against LIC's own page for this plan on 2026-10-02. Check it on licindia.in
Is it 732, 932 or 832?
This plan is 732 with UIN 512N296V03: the UIN is on the cover of LIC's current sales brochure and the plan number is in the heading of its Annexure 1. The V03 is a version marker, so this is the third version. LIC's withdrawn plans page lists Plan 832 (UIN 512N296V01) as withdrawn in financial year 2019-20 and Plan 932 (UIN 512N296V02) as withdrawn in financial year 2024-25. If 932 or 832 is what your policy document says, that document governs your policy; a later version does not change the terms yours was sold on.
What are the benefits of LIC New Children's Money Back Plan?
What does LIC New Children's Money Back Plan pay on death?
Sum Assured on Death, the higher of the Basic Sum Assured and 7 times the annualised premium, never less than 105% of premiums paid, plus vested simple reversionary bonuses and Final Additional Bonus. Survival benefits already paid are not deducted. If the child was under 8 at entry and dies before risk cover starts, LIC refunds the premiums paid instead, without interest.
What do you get at maturity?
40% of the Basic Sum Assured plus vested simple reversionary bonuses on the full sum assured plus Final Additional Bonus, at age 25.
Who is LIC New Children's Money Back Plan for?
Parents who want money arriving in stages through the college years, at 18, 20 and 22, with a final amount at 25.
What should you watch out for?
Premiums run for the full term, to age 25, so a newborn's policy is 25 years of payments. Jeevan Tarun covers the same ages and stops premiums at 20. Compare the total premium payable on both before choosing.
What does LIC New Children's Money Back Plan cost?
Worked out on a 20-year term with premiums paid for 20 years. Change any of these in the calculator above for your own figures.
By sum assured, at age 5
| Sum assured | Premium a year | Total paid in | Projected maturity |
|---|---|---|---|
| ₹5,00,000 | ₹27,980 | ₹5,59,600 | ₹6,35,000 |
| ₹10,00,000 | ₹54,490 | ₹10,89,799 | ₹12,70,000 |
| ₹25,00,000 | ₹1,36,225 | ₹27,24,498 | ₹31,75,000 |
Premiums are modelled on this plan's own tabular rates; the maturity figure assumes LIC's current bonus rates hold for the full term, which is not guaranteed.
LIC's own sample premium, from the brochure
From the sourceNot modelled: this is the table LIC prints in its own brochure (Sales brochure, section 6 Sample Illustrative Premium), at ₹2,00,000 of cover, the sum assured LIC chose to illustrate. Everywhere else on this page the premium is worked out for the sum assured you enter; here it is fixed at that figure, because that is what LIC published.
These figures are taken from the document linked below. Check them there.
| Age at entry | 13 years | 15 years | 20 years | 25 years |
|---|---|---|---|---|
| 0 | Not printed | Not printed | Not printed | ₹9,006 |
| 5 | Not printed | Not printed | ₹11,682 | Not printed |
| 10 | Not printed | ₹16,395 | Not printed | Not printed |
| 12 | ₹19,002 | Not printed | Not printed | Not printed |
Priced on ₹2,00,000 of cover, exclusive of taxes, standard lives. Our own model is anchored on the age 5, 20-year term cell in this table; the other cells are the real test of the model, and the editorial and methodology policy publishes how far off they run.editorial and methodology policy publishes how far off they run.
Where the maturity figure comes from
Taken apart, on the ₹5,00,000 policy in the first table. Only the first line is guaranteed by the contract. Everything under it is bonus, declared a year at a time and assumed here to carry on at the rate this page uses.
- Basic sum assured (guaranteed)
- ₹2,00,000
- Vested reversionary bonus, 20 years at ₹39 per ₹1,000
- ₹3,90,000
- Final Additional Bonus, ₹90 per ₹1,000
- ₹45,000
- Paid at maturity
- ₹6,35,000
- Income paid before then, 3 payments of ₹1,00,000 from year 13
- ₹3,00,000
- Return a year on the premiums, if the bonus rate holds
- 5.49%
When does LIC New Children's Money Back Plan pay for itself?
The grey line is what you have paid in by each policy year. The yellow line is what the policy has paid back by then. They cross in year 20, which is the point the policy has returned everything it cost.
That return counts everything the policy pays back, income included, against everything you put in, after the cost of the life cover it carried for 20 years. It is not a market return. Change the bonus rate and it changes with it.
Who can take LIC New Children's Money Back Plan?
Age to start
- Minimum
- 30 days
- Maximum
- 12 years
Policy term
- Minimum
- 13 years
- Maximum
- 25 years
Age when the policy matures
- Maximum
- 25 years
Your age at entry plus the policy term cannot come to more than 25.
Years you pay for
- Premium paying term
- Same as the policy term
Sum assured
- Minimum
- ₹2,00,000
- Maximum
- No limit set by LIC
LIC caps this by what underwriting allows rather than with a printed figure. This calculator accepts up to ₹5 Crore.
The calculator applies every limit above. LIC sets them out under "Eligibility Conditions and Other Restrictions" on page 2 of the New Children's Money Back Plan sales brochure, linked in the form above.
Surrender value, paid-up value and loan
A 20-year commitment is a long one, and the question that follows a premium quote is usually what happens if you stop. Under the IRDAI rules in force since 1 October 2024, New Children's Money Back Plan can be surrendered once the first policy year is complete and one full year's premium has been paid. Stop before that and the policy lapses with nothing to show for it.
From then you are paid the higher of two figures. The special surrender value, what the reduced, paid-up policy is worth today rather than at maturity, is available from the end of the first year. The guaranteed surrender value needs two full years' premiums, and is a percentage of the total premiums paid, first year included: 30% in year 2, 35% in year 3, 50% from year 4 to year 7, then rising to 90% in the last two years. Which of the two comes out higher changes with duration, so the last column below is the one to read.
| Years paid | Total paid in | Guaranteed value | Special value | You would get |
|---|---|---|---|---|
| 1 year | ₹27,980 | ₹0 | ₹9,634 | ₹9,634 |
| 2 years | ₹55,960 | ₹16,788 | ₹20,905 | ₹20,905 |
| 3 years | ₹83,940 | ₹38,868 | ₹34,023 | ₹38,868 |
| 5 years | ₹1,39,900 | ₹86,554 | ₹66,755 | ₹86,554 |
| 10 years | ₹2,79,800 | ₹1,96,297 | ₹2,00,753 | ₹2,00,753 |
On the ₹5,00,000 policy from the tables above, at age 5. Held to maturity the same policy is projected to pay ₹6,35,000, which is the number to read every row here against. Surrender values are modelled on the IRDAI 2024 basis, using the guaranteed surrender value grid printed in the New Jeevan Anand (715) brochure; a policy sold before 1 October 2024 runs on the older rules in its own document, and your own policy schedule is what governs.
Paid-up value: the other way to stop
You do not have to take the money out. Stop paying after at least one full year's premium and the policy continues at a reduced sum assured instead, keeping the cover and the bonuses already vested. The reduction is worked on the premium paying term, not the policy term, which is the point most calculators get wrong: on this policy the denominator is 20, so 10 years paid out of 20 leaves 50% of the sum assured standing, plus the bonus already vested.
Loan against the policy
Once the policy has a surrender value it can also be borrowed against, which is worth knowing before you surrender in a hurry. LIC lends a percentage of the surrender value rather than of the sum assured, and sets a different percentage for an in-force policy and a paid-up one. Those percentages sit in the policy conditions, so ask your servicing branch for the figure that applies to yours. On New Jeevan Anand (715), for example, the brochure allows 50% of the surrender value before two full years' premiums and 75% after, or 40% and 65% on a paid-up policy.
To run these figures on your own policy, use the LIC surrender value calculator, which takes the premium and the years paid off your own policy document. If you are weighing it up rather than pricing it, we have written about whether surrendering an LIC policy is worth it.
Tax on LIC New Children's Money Back Plan
Two provisions do the work, and both turn on the size of the premium rather than on the plan. The Income-tax Act, 2025 renumbered both from 1 April 2026 without changing the rules, so each is given here under its old number and its new one.
Section 80C, now Section 123, on what you pay in
Premiums count towards the ₹1.5 lakh limit, in the year they are paid, if you are on the old regime. The deduction is restricted where the annual premium is more than 10% of the sum assured.
Section 10(10D), now Schedule II, on what comes back
Maturity proceeds are exempt where the premium in every year stays inside 10% of the sum assured, and, for a policy issued on or after 1 April 2023, where the premiums on all such policies together stay inside ₹5 lakh a year. Death proceeds are exempt either way.
Where this policy sits
The ₹5,00,000 policy priced above costs ₹27,980 a year, which is 5.6% of the sum assured. That is inside the 10% test, on both provisions. A larger sum assured moves the ratio down.
GST
Nil. Individual life insurance premiums have been exempt since 22 September 2025, so the instalment the calculator shows is the amount that leaves your account.
None of this is tax advice. Which regime you are on, what else you hold and when the policy was issued all change the answer, so confirm your own position with a tax adviser before you rely on it.
How this calculator works
New Children's Money Back Plan is priced here on its own parameters, not a generic formula. We build the plan's full cash-flow schedule, meaning the death benefit in each policy year, every survival payout and the maturity value, then discount it on a basis calibrated to a reference premium for this plan. That reference is checked two ways: against LIC's published tabular rate, and against the return the plan's own benefits imply for the policyholder.
- Reference premium
- ₹59.60 per ₹1,000 at age 5, 20-year term, 20-year premium term
- Discount basis
- 6.24% a year, on LIC (2012-14) Ultimate mortality
- Reversionary bonus
- ₹39 per ₹1,000 sum assured a year, from LIC's bonus table for the 31 March 2021 valuation, for its predecessor Plan 932. Later declarations, which pay higher rates on larger sums assured, are not reflected, so the figure may be low.
- Final Additional Bonus
- ₹90 per ₹1,000 at a 20-year term
- GST
- Nil. Individual life insurance premiums have been exempt from GST since 22 September 2025, so the instalments shown are what you actually pay.
Bonus rates are declared annually and are not guaranteed; only the sum assured and any contractual guaranteed additions are. Read our editorial and methodology policyfor the full basis, and confirm every figure with LIC before you buy.
Check the source:New Children's Money Back Plan on licindia.inLIC valuation and bonus declarationsIRDAI regulations
How LIC New Children's Money Back Plan compares
The plans people weigh this one against, and what separates each from it.
| Plan | Policy term | You pay for | Cover from | What is different |
|---|---|---|---|---|
| New Children's Money Back PlanNo. 732 · this page | 13 to 25 years | The full term | ₹2 Lakh | A child plan that pays 20% of the sum assured at ages 18, 20 and 22, and the rest at 25. |
| Jeevan TarunNo. 734 | 13 to 25 years | Term minus 5 years | ₹2 Lakh | A child plan with four payout patterns, funding ages 20 to 25. |
| AmritbaalNo. 774 | 10 to 25 years | 5, 6, 7 years | ₹2 Lakh | A child plan with ₹80 per ₹1000 guaranteed addition every year. |
| New Money Back Plan - 20 YearsNo. 720 | 20 years | 15 years | ₹2 Lakh | 20% of the sum assured back in years 5, 10 and 15, and the rest at maturity. |
| Jeevan LakshyaNo. 733 | 13 to 25 years | Term minus 3 years | ₹2 Lakh | Endowment built around a family income benefit if the parent dies. |
To price several of these against each other on the same age and sum assured, the LIC premium calculator runs every plan on the site through the same engine and puts the answers in one table.
LIC New Children's Money Back Plan: frequently asked questions
When does LIC's New Children's Money Back Plan pay out?
20% of the Basic Sum Assured on the policy anniversary on or after the child's 18th, 20th and 22nd birthdays, then 40% with vested bonuses and any Final Additional Bonus at maturity, on the anniversary at age 25. On a ₹2 lakh sum assured that is ₹40,000 three times and ₹80,000 plus bonuses at the end.
Who can buy the plan and for what age of child?
A parent or grandparent, for a child aged 0 to 12 years last birthday. The policy term is 25 minus the child's age at entry, so it runs from 13 to 25 years.
How long do I pay premiums?
For the whole policy term. The brochure sets the premium paying term equal to the policy term, so premiums continue until the policy matures at 25.
What is the premium for ₹2 lakh?
LIC's brochure prints yearly premiums, before tax, for a ₹2 lakh Basic Sum Assured: ₹9,006 at age 0, ₹11,682 at age 5, ₹16,395 at age 10 and ₹19,002 at age 12. The calculator above prices other ages and amounts on a model calibrated to those figures.
What is the minimum sum assured?
₹2,00,000, with no upper limit. It goes up in steps of ₹5,000 to ₹4,50,000, then ₹50,000 to ₹9,00,000, then ₹1,00,000.
Can I leave a survival benefit with LIC and take it later?
Yes. Ask in writing at the servicing branch six months before it falls due, and you can take it at any time up to maturity. LIC then pays it increased by a factor of 1.0045 for every completed month it was left, so 12 months gives 1.054 times and 24 months 1.108 times.
What happens if the child dies before risk cover starts?
If the child was under 8 at entry, cover starts two years after the policy begins or on the policy anniversary on or after the 8th birthday, whichever is earlier. A death before then returns the premiums paid, excluding taxes, extra premium and rider premium, without interest.
What does the Premium Waiver Benefit Rider do here?
It is taken on the proposer's life. If the proposer dies, the premiums falling due after the death are waived until the rider term ends and the policy carries on. The rider term is 25 minus the child's age when the rider is taken, and the rider is not allowed if that term plus the proposer's age exceeds 70.
Is this plan 732, 932 or 832?
All three are versions of the same product. Plan 832 (UIN 512N296V01) was withdrawn in 2019-20 and Plan 932 (UIN 512N296V02) in 2024-25, according to LIC's withdrawn plans page. The current version is Plan 732 (UIN 512N296V03), and the calculator prices it. If your policy document says 832 or 932, that document governs your policy.
Can the maturity or death benefit be paid in instalments?
Yes. Either can be spread over 5, 10 or 15 years. The death benefit option is set up by the policyholder while the child is a minor, or by the life assured after 18. The maturity option has to be chosen at least three months before maturity. Minimum instalments are ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly or ₹50,000 yearly.
Spot something wrong?
If a figure on this page disagrees with an LIC premium notice, bonus statement or benefit illustration, tell us and we will check it against the brochure. Anything else you think this page gets wrong is just as welcome.
Related calculators
Plans people usually weigh up against New Children's Money Back Plan before deciding.
Jeevan Tarun
No. 734A child plan with four payout patterns, funding ages 20 to 25.
Open calculatorAmritbaal
No. 774A child plan with ₹80 per ₹1000 guaranteed addition every year.
Open calculatorNew Money Back Plan - 20 Years
No. 72020% of the sum assured back in years 5, 10 and 15, and the rest at maturity.
Open calculatorJeevan Lakshya
No. 733Endowment built around a family income benefit if the parent dies.
Open calculator