LIC sells four annuity plans and one unit-linked pension plan. Here is how immediate and deferred annuities differ, which options pay most and how the pension is taxed.
Quick answer
LIC sells three child plans in 2026: Amritbaal 774, Jeevan Tarun 734 and New Children's Money Back 732. The best depends on your goal. Amritbaal gives a guaranteed sum at 18 to 25 for 5 to 7 years of premiums. Jeevan Tarun suits flexible payouts at 20 to 24, Plan 732 fixed payouts at 18, 20 and 22. For a 5-year-old with ₹5 lakh cover, yearly premiums range from about ₹27,955 to ₹99,625.
The best LIC plan for a child depends on when the money is needed and how long you are willing to pay. LIC currently sells three child plans: Amritbaal 774 for a guaranteed lump sum, Jeevan Tarun 734 for flexible payouts in the college years, and New Children’s Money Back 732 for fixed payouts at 18, 20 and 22. This guide compares them side by side, with premiums from our calculators for the same child and the same cover.
Independent guide: we are not LIC or an LIC agent and earn nothing from any plan named here. All three plans were on LIC’s website as on 30 September 2026. Premiums are estimates from our calculators and carry no GST, because individual life insurance premiums are GST-exempt from 22 September 2025.
LIC child plans on sale in 2026
In all three plans the child is the life assured, and a parent or grandparent proposes the policy and pays the premiums. The policy vests in the child at 18. This matters: the plan protects the savings goal, not the parent’s income. The parent’s own life cover has to come from a separate term plan.
- Amritbaal 774: non-participating, so no bonus. It adds a guaranteed ₹80 per ₹1,000 of basic sum assured every policy year and pays everything at the maturity age you choose. Premiums run for 5, 6 or 7 years, or you pay once.
- Jeevan Tarun 734: participating (with bonuses). Premiums stop when the child turns 20 and the policy ends at 25. You choose whether 0%, 5%, 10% or 15% of the sum assured is paid each year from age 20 to 24.
- New Children’s Money Back 732: participating. It pays 20% of the sum assured at ages 18, 20 and 22, then 40% plus bonuses at 25. Premiums are paid for the whole term.
LIC child plans compared
| Feature | Amritbaal 774 | Jeevan Tarun 734 | Children’s Money Back 732 |
|---|---|---|---|
| Child’s entry age | 30 days to 13 years | 30 days to 12 years | 0 to 12 years |
| Maturity age | Your choice, 18 to 25 | 25 (fixed) | 25 (fixed) |
| Policy term | Maturity age minus entry age (10 to 25 years; 5+ for single premium) | 25 minus entry age | 25 minus entry age |
| Premium payment | 5, 6 or 7 years, or single premium | Until the child turns 20 | Full policy term |
| How returns build | Guaranteed additions, ₹80 per ₹1,000 a year | Bonuses (not guaranteed) | Bonuses (not guaranteed) |
| Money before maturity | None (maturity can be taken in instalments) | Optional, 5–15% a year at 20–24 | Fixed 20% at 18, 20 and 22 |
| Minimum sum assured | ₹2 lakh | ₹2 lakh | ₹2 lakh |
| Premium Waiver Benefit rider | Yes, limited pay only | Yes | Yes |
For children under 8 at entry, risk cover in all three starts two years after the policy date or at the policy anniversary after age 8, whichever is earlier. Before that, a death claim returns the premiums paid.
Worked example: one child, three plans
Take a 5-year-old child, ₹5 lakh basic sum assured, yearly premiums through an agent. For the two bonus plans we use the same assumed bonus of ₹40 per ₹1,000 a year so the comparison is fair; LIC declares the real rate each year and it can be higher or lower.
| Plan and choice | Yearly premium | Years paid | Total premium | What the child gets | Approx. yearly return |
|---|---|---|---|---|---|
| Amritbaal 774, 5-year pay, maturity at 25 | ₹99,625 | 5 | ₹4,98,125 | ₹13,00,000 at 25 (guaranteed) | about 5.5% |
| Amritbaal 774, 7-year pay, maturity at 25 | ₹73,625 | 7 | ₹5,15,375 | ₹13,00,000 at 25 (guaranteed) | about 5.6% |
| Jeevan Tarun 734, Option 1 | ₹29,492 | 15 | ₹4,42,380 | about ₹9,00,000 at 25 | about 5.4% |
| Children’s Money Back 732 | ₹27,955 | 20 | ₹5,59,100 | ₹1 lakh at 18, 20 and 22, about ₹6 lakh at 25 | about 5.1% |
The Amritbaal premiums for this age are LIC’s own brochure sample. The other premiums, and all return figures, are our calculator estimates; the Amritbaal returns are our own rough calculation from the same figures.
Three points stand out:
- The headline maturity is misleading on its own. Amritbaal’s ₹13 lakh looks far bigger than ₹9 lakh, but you pay roughly the same total, only much earlier. Money paid earlier has longer to earn. Once timing is counted, all three return roughly 5 to 5.5% a year.
- Certainty differs. Amritbaal’s ₹13 lakh is fixed by formula: ₹5 lakh × (1 + 0.08 × 20 years). The ₹9 lakh in the other two depends on bonuses.
- Cash flow differs most. Amritbaal needs about ₹1 lakh a year for five years. Plan 732 spreads a smaller premium over twenty years. Jeevan Tarun sits in between and finishes when the child turns 20.
If your child will need money at 20 to 22, Jeevan Tarun under Option 3 costs ₹31,169 a year for the same cover. It pays ₹50,000 a year from 20 to 24 and about ₹6.5 lakh at 25 at the same ₹40 bonus, so the total is still about ₹9 lakh; you simply get part of it earlier. Try your own child’s age in the LIC child plan calculator.
The Premium Waiver Benefit rider
All three plans allow LIC’s Premium Waiver Benefit rider on the life of the proposer. If the parent who pays dies during the rider term, LIC waives every base premium due after the death. The policy continues and the child still receives the full maturity and payouts.
The main conditions, from LIC’s brochures and the rider terms:
- The proposer must be 18 to 55 at entry, and the rider must end by the proposer’s age 70.
- At least five years of premiums must remain, and the child must still be a minor when the rider is added.
- The rider premium cannot exceed 30% of the base premium. Only base-plan premiums are waived, not other riders.
- With Amritbaal’s single premium there is nothing left to waive, so the rider applies only to limited pay.
What it costs, from our rider calculator, for a 35-year-old parent:
| Base plan | Base premium | Rider term | Rider premium | Premiums waived if the parent dies in year 1 |
|---|---|---|---|---|
| Jeevan Tarun 734 (example above) | ₹29,492 | 15 years | ₹956 a year | ₹4,12,888 |
| Amritbaal 774, 5-year pay | ₹99,625 | 5 years | ₹408 a year | ₹3,98,500 |
The longer the premium term, the more the rider is worth and the more it costs. It matters most on Plan 732 and Jeevan Tarun, where premiums run for 15 to 20 years. The rider is not a substitute for term cover on the parent; it only keeps this one policy going.
Tip: add the rider when you buy the policy. The rate is set at your current age, and the rider then covers the whole premium term.
Which LIC child plan fits which goal
There is no single winner; match the plan to the goal:
- A known amount on a known date (say, a degree at 18 or a fund at 21): Amritbaal 774 fits, because its maturity is guaranteed and you choose the maturity age. It also suits parents who expect high income now and want to finish paying in 5 to 7 years.
- Money spread across college years, with some flexibility: Jeevan Tarun 734 fits. Option 1 keeps everything for age 25; Options 2 to 4 release money from 20 to 24. Premiums finish when the child is 20.
- Fixed instalments at 18, 20 and 22 with the smallest yearly premium: Children’s Money Back 732 fits, at the cost of paying for the full term.
- Maximum growth over 15+ years: none of these. Traditional child plans are built for safety. Some families pair a smaller child plan with a separate investment and a term plan on the earning parent. Our best LIC plans guide covers the wider choices.
Tax and GST
Premiums qualify for deduction under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) in the old tax regime, within the ₹1.5 lakh limit. Maturity and survival payouts are generally exempt under Section 11 read with Schedule II (earlier Section 10(10D)) if the yearly premium stays within 10% of the sum assured and total yearly premiums on such policies issued from 1 April 2023 stay within ₹5 lakh. Amritbaal’s short-pay and single premiums are large compared with the basic sum assured, so check how the death cover option you pick affects this with a tax adviser.
No GST applies to premiums or rider premiums from 22 September 2025.
Mistakes to avoid
- Insuring the child but not the parent. A child plan’s cover is on the child. The family’s real risk is losing the earning parent, which a term plan addresses far more cheaply.
- Comparing only the maturity figure. Compare total premiums, when you pay them and when the money comes back.
- Treating bonuses as guaranteed. Test a lower bonus rate in the calculator before relying on a with-profit figure.
- Picking a premium term you cannot sustain. Surrendering a child plan early returns far less than you paid.
Key takeaways
- LIC sells three child plans in 2026: Amritbaal 774, Jeevan Tarun 734 and New Children’s Money Back 732.
- Amritbaal gives a guaranteed sum at a maturity age you choose (18 to 25) with 5 to 7 years of premiums.
- Jeevan Tarun and Plan 732 mature at 25 and depend on bonuses; Jeevan Tarun lets you choose payouts from 20 to 24, Plan 732 pays at 18, 20 and 22.
- For a 5-year-old with ₹5 lakh cover, all three return roughly 5 to 5.5% a year on our estimates.
- The Premium Waiver Benefit rider costs little and keeps the plan going if the paying parent dies.
- Compare by goal, cash flow and certainty, then confirm the premium in LIC’s own quotation.
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Frequently asked questions
Which is the best LIC plan for a child in 2026?
It depends on when you need the money and how you want to pay. Amritbaal 774 gives a guaranteed amount at a maturity age you choose between 18 and 25. Jeevan Tarun 734 lets you pick how much comes back each year from 20 to 24. Children's Money Back 732 pays fixed instalments at 18, 20 and 22, then the balance at 25.
Which LIC child plans are currently on sale?
As on 30 September 2026, LIC's website listed three plans built for children: Amritbaal (Plan 774), Jeevan Tarun (Plan 734) and New Children's Money Back (Plan 732). Older versions such as Plans 934, 834 and 932 are withdrawn and only matter to existing policyholders.
What is the entry age for LIC child plans?
Amritbaal 774 accepts children from 30 days to 13 years. Jeevan Tarun 734 accepts 30 days to 12 years. Children's Money Back 732 accepts children from 0 to 12 years. Jeevan Tarun and Plan 732 always mature at 25, while Amritbaal lets you choose a maturity age from 18 to 25.
Should I add the Premium Waiver Benefit rider to a child plan?
It depends on how much the family relies on the paying parent. The rider waives all remaining base premiums if the proposer dies during the rider term, so the child's plan continues in full. It costs a small share of the premium; for a 35-year-old parent on Jeevan Tarun 734 our calculator estimates about ₹956 a year.
Which LIC child plan gives the highest return?
On our calculator figures for a 5-year-old with ₹5 lakh cover, all three land at roughly 5 to 5.5% a year. Amritbaal's maturity is guaranteed, while Jeevan Tarun and Plan 732 depend on bonuses that LIC declares each year. Treat the with-profit figures as estimates, not promises.
Is there GST on LIC child plan premiums?
No. Individual life insurance premiums, including child plans and riders, are exempt from GST from 22 September 2025. Before that date, traditional plans carried 4.5% GST in the first year and 2.25% afterwards, which is why older receipts show higher amounts.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.