July 15, 2024

Securing Your Child’s Future with LIC Child Insurance Policy Financial Protection Explained

4 min read
How does an LIC child insurance policy

As parents, ensuring the financial security and well-being of our children is a top priority. Life Insurance Corporation of India (LIC) offers child insurance policies specifically designed to provide financial protection and support for your child’s future. In this article, we will explore how LIC child insurance policies work, the benefits they offer, and how they can help secure a bright and stable future for your child.

How Does an LIC Child Insurance Policy Provide Financial Protection?

LIC child insurance policies serve as long-term savings and protection instruments, providing financial security for your child’s future. Here’s how they work

Policy Term and Premium Payments

 The policyholder selects a specific policy term, typically aligning with the child’s future needs, such as higher education or marriage. Regular premiums are paid throughout the term to build a corpus and ensure the policy remains active.

Also Read  Step-by-Step Guide to Register for Pradhan Mantri Rojgar Protsahan Yojana

Sum Assured

 The policy offers a sum assured, which is the guaranteed amount payable in case of the policyholder’s demise during the policy term. This sum assures the child’s financial security, ensuring that their goals and dreams are not compromised in the event of an unfortunate event.

Maturity Benefit

If the policyholder survives the policy term, a maturity benefit is provided. This benefit typically includes the accumulated corpus, bonuses, and any applicable additions declared by LIC. It serves as a lump sum amount that can be used to support the child’s higher education, career aspirations, or other financial goals.

Additional Riders

 LIC child insurance policies often come with optional riders, such as critical illness cover or premium waiver benefit. These riders provide additional protection and financial support in case of unforeseen circumstances, ensuring the child’s future goals remain intact.

Benefits of LIC Child Insurance Policies

Financial Protection

LIC child insurance policies offer financial protection by providing a guaranteed sum assured in case of the policyholder’s demise. This ensures that your child’s future goals and dreams are secured even in your absence.

Also Read  Things To Consider For The Stroller Your Baby Sits In

Savings and Growth

 These policies serve as an effective savings instrument, allowing you to build a corpus over the policy term. The accumulated corpus, along with bonuses and additions, helps meet your child’s future financial needs.

Tax Benefits

 Premiums paid towards LIC child insurance policies are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the maturity amount or death benefit received is tax-free under Section 10(10D), subject to specific conditions.


LIC child insurance policies offer flexibility in terms of premium payment frequency, policy term, and choosing optional riders. This allows you to customize the policy according to your financial capabilities and the child’s specific requirements.

Frequently Asked Questions (FAQs)

At what age can I purchase an LIC child insurance policy for my child?

LIC child insurance policies can generally be purchased for children aged 0 to 12 years. The minimum and maximum entry ages may vary depending on the specific policy.

Can I change the beneficiary of the LIC child insurance policy?

Yes, the beneficiary of the LIC child insurance policy can be changed during the policy term, subject to specific terms and conditions set by LIC.

What happens if I miss paying the premium for my LIC child insurance policy?

LIC provides a grace period for premium payment, usually 30 days. If you fail to pay the premium within this period, the policy may lapse. However, LIC offers provisions for policy revival within a certain period, subject to specific terms and conditions.

Also Read  Tips to Select the Best Packaging Supplier for Small Business

Can I take a loan against my LIC child insurance policy?

LIC child insurance policies generally do not offer loan facilities. These policies are primarily designed for long-term financial protection and savings for your child’s future.

What documents are required to purchase an LIC child insurance policy?

The required documents may include identity proof, address proof, age proof of the child, and income proof of the policyholder. It is advisable to check with LIC or the agent for the specific documentation requirements.


LIC child insurance policies provide crucial financial protection for your child’s future, ensuring their dreams and aspirations are not compromised. With features like a guaranteed sum assured, maturity benefits, tax benefits, and flexibility, these policies serve as an effective tool for long-term savings and security. Assess your child’s future needs and consult with LIC representatives to choose the most suitable child insurance policy that aligns with your financial goals and aspirations for your child.

Read Also : Secure Your Retirement with LIC Pension Plans Understanding Benefits and Features

error: Content is protected !!