LIC New Children's Money Back Plan 732 is a with-profit child plan sold since the October 2024 revamp. It pays 20% of the sum assured when the child turns 18, 20 and 22, and the remaining 40% plus bonuses at 25. Premiums run until maturity. For a 5-year-old with ₹5 lakh cover, the yearly premium is about ₹27,955, with no GST on top.
Children's Money Back 732 Premium & Payout Calculator
Your estimate
Money back + maturity, with estimated bonus
- Premium per instalment
- ₹27,955
- Policy termPremiums are paid for the full term
- 20 years
- Total premium paid
- ₹5,59,100
- Survival benefits (money back)20% of sum assured at ages 18, 20 and 22
- ₹3,00,000
- Estimated maturity amount40% of sum assured + bonus at age 25
- ₹6,00,000
- Total bonus (estimated)
- ₹4,00,000
- Sum assured on deathplus bonus accrued; never below 105% of premiums paid
- ₹5,00,000
- Full risk cover starts at age
- 7 years
- Approx. return (IRR)
- 5.14%
- Total premium paid₹5,59,10062%
- Net gain₹3,40,90038%
Money back and maturity schedule
| Child’s age | Policy year | Sum assured part | Bonus | Payout |
|---|---|---|---|---|
| 18 years | 13 | ₹1,00,000 | ₹0 | ₹1,00,000 |
| 20 years | 15 | ₹1,00,000 | ₹0 | ₹1,00,000 |
| 22 years | 17 | ₹1,00,000 | ₹0 | ₹1,00,000 |
| 25 years | 20 | ₹2,00,000 | ₹4,00,000 | ₹6,00,000 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is LIC New Children’s Money Back Plan 732?
LIC New Children’s Money Back Plan 732 is a savings-cum-insurance policy taken on a child’s life. It is a non-linked, with-profit (participating), individual money back plan. The plan is built around one idea: money should arrive when a child’s big expenses arrive. It pays three instalments in the late teens and early twenties, then a final lump sum at 25.
Plan 732 came in LIC’s October 2024 product revamp as the new version of Children’s Money Back Plan 932. The benefit design is the same, but it follows IRDAI’s revised rules on surrender values and has a higher minimum sum assured. The UIN is 512N296V03.
Use the calculator above to see the premium for your child’s age and the exact year each payout falls due.
Plan 732 at a glance
| Feature | Details |
|---|---|
| Plan number / UIN | 732 / 512N296V03 |
| Plan type | Participating money back plan for children |
| Entry age of child | 0 to 12 years |
| Maturity age | 25 years (fixed) |
| Policy term | 25 minus entry age (13 to 25 years) |
| Premium paying term | Same as policy term |
| Minimum sum assured | ₹2,00,000 (no upper limit) |
| Money back | 20% of sum assured at ages 18, 20 and 22 |
| Maturity benefit | 40% of sum assured + bonuses at 25 |
| Premium modes | Yearly, half-yearly, quarterly, monthly |
| Optional rider | Premium Waiver Benefit (on the proposer) |
| Status | Available for new policies |
Eligibility
| Condition | Requirement |
|---|---|
| Life assured | The child |
| Proposer | Parent or grandparent |
| Minimum entry age | 0 years |
| Maximum entry age | 12 years (last birthday) |
| Age at maturity | 25 years |
| Minimum basic sum assured | ₹2,00,000 |
The earlier you start, the longer the term and the smaller each premium. A newborn gets a 25-year policy; a 12-year-old gets 13 years, with a much higher yearly outgo for the same cover.
How the Plan 732 premium is calculated
The premium depends on only two things: the child’s age (which also fixes the term) and the sum assured. Gender and the parent’s age do not change the base premium. Our calculator works like this:
- A tabular rate per ₹1,000 sum assured is picked for the child’s age. The rates follow the sample premiums in LIC’s Plan 732 sales brochure: for example, ₹11,682 a year for a 5-year-old with ₹2 lakh cover, which the calculator reproduces exactly. Ages between the published points (0, 5, 10 and 12) are interpolated.
- A high sum assured rebate of ₹2.50 per ₹1,000 applies from ₹5 lakh, and ₹4 per ₹1,000 from ₹10 lakh.
- A mode rebate of 2% for yearly and 1% for half-yearly payment is applied.
- No GST is added: individual life insurance premiums are exempt from 22 September 2025. Policies bought before that date paid 4.5% GST in the first year and 2.25% after.
Worked example: a parent buys ₹5 lakh cover for a 5-year-old. The term is 20 years.
| Item | Amount |
|---|---|
| Yearly premium | ₹27,955 |
| Premium paying term | 20 years |
| Total premium over 20 years | ₹5,59,100 |
| Monthly instalment instead | ₹2,379 |
At ₹5 lakh, the yearly premium rises from about ₹21,265 for a newborn to about ₹46,255 for a 12-year-old. The premium chart under the calculator shows every age.
Tip: paying yearly is cheaper than paying monthly. In the example above, monthly payment adds about ₹11,900 over the full term.
Money back and maturity schedule
For the same 5-year-old with ₹5 lakh cover and an assumed bonus of ₹40 per ₹1,000 a year:
| Child’s age | Policy year | What is paid | Amount |
|---|---|---|---|
| 18 | 13 | 20% of sum assured | ₹1,00,000 |
| 20 | 15 | 20% of sum assured | ₹1,00,000 |
| 22 | 17 | 20% of sum assured | ₹1,00,000 |
| 25 | 20 | 40% of sum assured + bonus | ₹6,00,000 |
The total comes to about ₹9,00,000 against ₹5,59,100 of premium, an approximate return of 5.14% a year. The ₹4 lakh bonus at maturity is an estimate. LIC declares the actual bonus each year, and it can be higher or lower. A final additional bonus, if declared, would come on top.
Death benefit
If the child dies after risk cover has started, the nominee receives:
- the sum assured on death: the higher of the basic sum assured or 7 times the annualised premium, plus
- all bonuses accrued up to that point.
Money back instalments already paid are not deducted. The death benefit is also never less than 105% of the premiums paid.
For children below 8, risk starts two years after the policy begins or on the policy anniversary on or after the eighth birthday, whichever is earlier. Before that date, a death claim returns the premiums paid (excluding taxes and rider premiums). For a child who enters at 5, full cover starts at age 7.
Other benefits
- Premium Waiver Benefit rider: for an extra premium, future premiums are waived if the proposer (usually a parent) dies. The child’s payouts continue as planned.
- Vesting: at 18, ownership of the policy passes to the child.
- Surrender and loan: once the policy acquires a surrender value, you can surrender it or take a loan against it. Under the 2024 rules, early surrender values are better than in Plan 932. Check the estimate with our LIC surrender value calculator.
- Grace period: 30 days for yearly, half-yearly and quarterly premiums, and 15 days for monthly.
Tax benefits
Premiums paid for your child’s policy qualify for the Section 123 of the Income-tax Act, 2025 (earlier Section 80C) deduction (old tax regime, up to ₹1.5 lakh a year across eligible investments). Money back instalments and the maturity amount are generally tax-free under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)), as long as the premium conditions in the Act are met.
Who should consider Plan 732?
It suits parents who:
- want guaranteed, low-risk money at fixed ages for college fees and early career costs;
- prefer a forced savings habit with life cover on the child;
- are comfortable with moderate returns of around 5–6% a year.
It is less suitable if you want high growth or maximum life cover. The policy insures the child, not the earning parent. Many families pair it with a term plan on the parent, or compare it with other options in our LIC child plan calculator.
Plan 732 vs Plan 932 vs Jeevan Tarun 734
| Children’s Money Back 732 | Children’s Money Back 932 | Jeevan Tarun 734 | |
|---|---|---|---|
| Status | Available | Withdrawn | Available |
| Payout ages | Fixed: 18, 20, 22, then 25 | Fixed: 18, 20, 22, then 25 | Flexible options from 20 to 24, then 25 |
| Minimum sum assured | ₹2 lakh | ₹1 lakh | ₹2 lakh |
| Surrender rules | Revised 2024 norms | Older norms | Revised 2024 norms |
If you hold a 932 policy, nothing changes for you. It continues with the original terms. Choose 732 when you want a predictable schedule. Choose Jeevan Tarun 734 if you want to decide how much comes back before 25.
How to use this calculator
- Enter your child’s current age. The term fills in automatically.
- Enter the sum assured you want (₹2 lakh or more).
- Select the premium mode.
- Adjust the bonus rate for a cautious or an optimistic view.
- Open the money back and maturity schedule under the results to see each payout by age and policy year.
All figures are estimates for planning. They match LIC’s brochure samples at the published ages; the final premium comes from LIC’s own quotation.
Frequently asked questions
What is the entry age for LIC Children's Money Back Plan 732?
The child can be insured from birth up to 12 years of age (last birthday). Because the policy always matures when the child turns 25, the term runs from 13 years (entry at 12) to 25 years (entry at 0). A parent or grandparent proposes the policy on the child's life.
When does Plan 732 pay money back?
LIC pays 20% of the basic sum assured on the policy anniversaries when the child reaches 18, 20 and 22. That is 60% of the cover back in three instalments during the college years. The remaining 40%, plus all bonuses, is paid at maturity when the child turns 25.
How much premium do I pay for ₹5 lakh in LIC 732?
For a 5-year-old child and ₹5 lakh sum assured, our calculator estimates a yearly premium of about ₹27,955. Individual life policies carry no GST from 22 September 2025, so that is the full amount due. Monthly payment works out to roughly ₹2,379 per instalment.
Is the bonus paid on the full sum assured after money back?
Yes. Simple reversionary bonuses in LIC money back plans are declared on the full basic sum assured every year, even after survival benefits have been paid. So the three payouts at 18, 20 and 22 do not reduce the bonus that builds up until age 25.
What happens if the child dies during the policy term?
After risk cover starts, the nominee gets the sum assured on death plus accrued bonuses, without deducting money back already paid. The amount is never less than 105% of premiums paid. If death happens before risk commencement, LIC refunds the premiums paid, excluding taxes and rider premiums.
When does risk cover start for a young child in Plan 732?
If the child is 8 or older at entry, cover starts immediately. For younger children, risk begins two years after the policy starts or on the policy anniversary on or after the eighth birthday, whichever comes first.
What is the difference between LIC 732 and 932?
Plan 732 is the revised version of Plan 932. The payout pattern at 18, 20, 22 and 25 is unchanged. The main changes are a higher minimum sum assured of ₹2 lakh and the new surrender value rules that give better value if you exit early.
Can I get tax benefits on LIC Children's Money Back 732?
Premiums paid for a child's policy qualify for deduction under Section 123 (earlier 80C) in the old tax regime. Survival benefits and the maturity amount are generally exempt under Schedule II (earlier Section 10(10D)), provided the premium stays within the limits set in the Income Tax Act.
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.