LIC New Children’s Money Back Plan Calculator (Plan 932)
The LIC New Children’s Money Back Plan (Table 932) is a participating non-linked individual life assurance plan designed to meet the educational and marriage expenses of growing children. This calculator shows you exactly how the plan works: you pay premiums for a fixed period, and in return, LIC provides Guaranteed “Survival Benefits” (Money Back) when your child reaches ages 18, 20, and 22, followed by a final maturity payout at age 25.
How to Use This Calculator
We designed this tool to help parents visualize the cash flow of this policy instantly.
- Enter Child’s Age: Input your child’s current age (between 0 to 12 years). This determines when the policy starts and when the “Money Back” payouts begin.
- Select Sum Assured: Enter the coverage amount (Minimum ₹1,00,000). This is the base figure on which all your payouts are calculated.
- View Illustration: Click “Generate Illustration” to see the full timeline.
- Money Back: See exactly how much cash you receive at specific ages.
- Maturity: See the final lump sum payment.
- Break-even: Check the “Policy Summary” box to see the exact year when your total returns exceed the premiums you have paid.
Note: You can download the year-wise illustration as a CSV file to discuss with your family or financial advisor.
Understanding the Payout Structure (Plan 932)
The unique selling point of this plan is its fixed timeline. Unlike other child plans where you might choose the payout date, Plan 932 is rigid to ensure money is available during key higher education years.
Here is the fixed schedule calculated on the Basic Sum Assured (BSA):
- Age 18: 20% of BSA (First Money Back)
- Age 20: 20% of BSA (Second Money Back)
- Age 22: 20% of BSA (Third Money Back)
- Age 25 (Maturity): 40% of BSA + Final Additional Bonus + Simple Reversionary Bonuses.
Important: The calculator above assumes the child survives the policy term. In case of the unfortunate death of the life assured (the child), the “Sum Assured on Death” plus vested bonuses are paid immediately to the nominee (parent/guardian), and the policy terminates.
Planning for a 3-Year-Old
Let’s say Mr. Sharma buys this plan for his 3-year-old son with a Sum Assured of ₹5,00,000.
- Premium Payment: He pays premiums for 20 years (until the child is 23).
- Total Policy Term: 25 years (until the child is 28—Wait, actually the policy matures at age 25 irrespective of entry age. Correction: For Plan 932, the policy always matures at Age 25. The Term = 25 – Entry Age).
The Payout Schedule for Mr. Sharma:
- When Son turns 18: Mr. Sharma receives ₹1,00,000 (20% of 5L). This helps with college admission fees.
- When Son turns 20: He receives another ₹1,00,000. Useful for mid-course fees or a semester abroad.
- When Son turns 22: He receives another ₹1,00,000. Useful for post-graduation or a starter fund.
- When Son turns 25: The policy matures. He receives the remaining ₹2,00,000 (40%) PLUS accumulated bonuses (which can be significant).
The Math: How Premiums & Returns Are Calculated
While LIC premium calculation involves complex actuarial tables based on age and health, the “Money Back” logic is simple arithmetic based on the Sum Assured.
Formula for Survival Benefit:
Payout = Basic Sum Assured × 20%
Formula for Maturity Benefit:
Maturity = (Basic Sum Assured × 40%) + Vested Simple Reversionary Bonuses + Final Additional Bonus
Note regarding the calculator: The tool above projects the Guaranteed Sum Assured portions clearly. Actual maturity values will be higher than the guaranteed amount because LIC declares bonuses (usually per ₹1,000 of Sum Assured) every year based on their profits.
Is This Plan Right for You?
Before investing, compare the features against your needs:
| Pros | Cons |
| Liquidity: You get cash in hand at crucial ages (18, 20, 22) without surrendering the policy. | Low Returns: Traditional endowment plans typically offer returns of 5-6%, which may barely beat inflation. |
| Premium Waiver: You can add a “Premium Waiver Benefit” rider. If the parent (proposer) dies, future premiums are waived, ensuring the child still gets the benefits. | Rigidity: You cannot change the payout years. If your child needs money at age 19 instead of 20, you have to wait. |
| Tax Benefits: Premiums are eligible for deduction under Section 80C, and maturity proceeds are tax-free under Section 10(10D). | Long Commitment: It is a long-term contract. Surrendering early usually results in a loss. |
Frequently Asked Questions (FAQs)
If you stop paying premiums after 2 years, the policy acquires a “Paid-up Value.” You won’t lose your money entirely, but the Sum Assured reduces proportionately, and future bonuses stop accruing.
Yes, a loan facility is available after paying premiums for at least 2 full years. The loan amount depends on the Surrender Value accumulated.
The child must be between 0 years (Newborn) and 12 years old. For children older than 12, this specific plan (932) is not available; you would need to look at general endowment plans.
Since the life assured is a minor (usually), the payments are made to the Proposer (Parent). Once the child turns 18, the title of the policy usually passes to them, but in practice, parents handle the financials until maturity.
Only the 40% of Sum Assured is guaranteed on maturity. The remaining amount depends on the bonuses declared by LIC over the 25-year period, which are not guaranteed but have historically been consistent.