As a parent, your child’s future is always on your mind. From their first day of school to their higher education and eventual career launch, every milestone requires careful emotional and financial nurturing. However, with the rising costs of education and inflation, simply saving money in a bank account is no longer enough.

This is where the LIC New Children’s Money Back Plan 732 steps in. It is a specialized life insurance policy designed to provide guaranteed financial support at exact stages of your child’s life. But how do you know how much to invest today to get the desired amount tomorrow?

LIC Money Back Plans Calculator

Use our free LIC money back plans calculator to estimate premium, maturity value, survival benefits and returns for popular LIC money back policies such as Bima Shree, Bima Ratna, Jeevan Tarun and New Money Back Plans.

That is exactly what the LIC New Children’s Money Back Plan 732 Calculator helps you figure out. In this comprehensive guide, we will break down the policy details, explain how the survival benefits work, and show you how to use the calculator to plan a stress-free future for your child.

What is LIC New Children’s Money Back Plan 732?

The LIC New Children’s Money Back Plan 732 is a traditional, non-linked, participating money-back life insurance plan. Let’s decode that: “non-linked” means your hard-earned money is not tied to the risky stock market, ensuring absolute safety. “Participating” means your policy earns a share of LIC’s profits in the form of annual bonuses.

This plan is uniquely structured to provide life insurance coverage for the child while offering periodic lump-sum payouts (survival benefits) when the child reaches the crucial ages of 18, 20, and 22. Finally, a substantial maturity benefit is paid when the child turns 25, giving them a solid financial foundation to start their adult life.

Quick Snapshot of LIC Plan 732 Details

Before diving into the calculations, it is highly important to understand the basic eligibility and parameters of the policy. Here is a quick overview:

Policy Feature	Complete Details
Plan Name	LIC New Children’s Money Back Plan (Table No. 732)
Minimum Entry Age	0 Years (Newborns up to 90 days old)
Maximum Entry Age	12 Years
Maturity Age	25 Years (Fixed for all policyholders)
Policy Term	25 Years minus the Child’s Entry Age
Premium Paying Term	Same as the Policy Term
Minimum Sum Assured	₹2,00,000
Maximum Sum Assured	No upper limit (available in multiples of ₹10,000)
Premium Payment Modes	Yearly, Half-yearly, Quarterly, Monthly (NACH)
Loan Facility	Available after 2 full years of premium payment
Official site	licindia.in

Why Do You Need the LIC Plan 732 Calculator?

Insurance policies involving money-back payouts, accrued bonuses, and GST on premiums can be highly complex to calculate manually. A minor error in calculation might leave you under-prepared for your child’s college fees.

The LIC New Children’s Money Back Plan 732 Calculator is an advanced online tool designed to eliminate this guesswork. By simply entering a few basic details, the calculator instantly provides:

• The exact premium you need to pay (including first-year and subsequent-year taxes).
• A clear timeline of the survival benefits you will receive.
• The estimated maturity value, including projected bonuses.
• The total life cover applicable year by year.

Using this Lic Premium calculator empowers parents to test different “Sum Assured” amounts to see which premium fits their monthly budget perfectly.

Decoding the Survival Benefits (Money-Back Payouts)

The biggest selling point of this policy is its milestone-based payouts. Children’s educational expenses do not arrive all at once; they come in stages. LIC designed this plan to match those exact stages.

Under this plan, LIC pays 20% of the Basic Sum Assured at three specific milestones:

• At Age 18: Ideal for college admission fees or coaching classes.
• At Age 20: Perfect for funding the second or third year of graduation, or buying a high-end laptop for studies.
• At Age 22: Highly useful for post-graduation fees, professional certifications, or studying abroad.

Because these payouts are guaranteed, parents can have peace of mind knowing that liquid cash will be available precisely when their child needs it the most.

The Grand Finale: Maturity Benefit at Age 25

When the child reaches the age of 25, the policy matures. This is the age when most young adults are looking to start a business, get married, or invest in their first home.

The maturity benefit is a massive financial boost. It includes:

1. 40% of the Basic Sum Assured: (Since 60% was already paid at ages 18, 20, and 22).
2. Vested Simple Reversionary Bonuses: The total bonuses declared by LIC over the entire policy term.
3. Final Additional Bonus (FAB): A one-time extra bonus (if declared by LIC) for staying invested until maturity.

The combination of the final 40% payout plus decades of accumulated bonuses makes the maturity value significantly larger than the initial sum assured.

Step-by-Step Guide: How to Use the Calculator

Using the LIC New Children’s Money Back Plan 732 Calculator is incredibly user-friendly. Just follow these four simple steps:

Step 1: Enter the Child’s Age
Input the exact age of your child. Remember, the child must be between 0 and 12 years old to be eligible for this plan.

Step 2: Decide the Sum Assured
Enter the total coverage amount you want. Start with at least ₹2,00,000. If you are aiming to fund higher education, consider a sum assured of ₹10,00,000 to ₹20,00,000 based on your budget.

Step 3: Choose Premium Frequency
Select how you want to pay—Yearly, Half-yearly, Quarterly, or Monthly. (Pro tip: Choosing the Yearly mode usually gives a 2% rebate on the premium!).

Step 4: Hit Calculate
Click the calculate button. The tool will instantly generate a detailed table showing your premium schedule, the years you will receive money back, and the final maturity amount.

Example Illustration: Seeing the Numbers in Action

Let’s understand how this plan works in real life with a practical example.

Suppose Mr. Sharma buys this policy for his daughter, Ananya, who is currently 5 years old. He chooses a Basic Sum Assured of ₹10,00,000.

• Child’s Age: 5 Years
• Policy Term: 20 Years (25 fixed maturity age – 5 years entry age)
• Premium Paying Term: 20 Years

The Payout Schedule for Ananya will look like this:

• When Ananya turns 18: She receives ₹2,00,000 (20% of 10 Lakhs).
• When Ananya turns 20: She receives another ₹2,00,000.
• When Ananya turns 22: She receives a third payout of ₹2,00,000.

At Maturity (When Ananya turns 25):
She will receive the remaining ₹4,00,000 (40% of SA) PLUS the accumulated bonuses of the last 20 years. Assuming a standard historical bonus rate, the final maturity amount often exceeds the original 10 Lakh sum assured, creating massive wealth for her future.

(Note: Bonus rates depend on LIC’s actual performance and are not guaranteed. Always check current rates).

The Most Crucial Feature: Premium Waiver Benefit (PWB) Rider

If there is one piece of advice every financial planner gives regarding child plans, it is this: Always add the Premium Waiver Benefit (PWB) Rider.

God forbid, if the parent (the proposer) passes away during the policy term, the family’s income stops. Without the PWB rider, the policy might lapse because the family cannot pay the premiums.

However, if you have opted for the PWB rider, LIC will waive all future premiums. The policy remains 100% active, and the child will still receive the payouts at ages 18, 20, 22, and the full maturity amount at 25. This rider guarantees that your child’s dreams will not be compromised, even if you are not around.

Death Benefit Details

While the policy is heavily focused on savings and survival benefits, it is fundamentally a life insurance product. If the unforeseen happens and the child (life assured) passes away during the policy term, LIC pays a Death Benefit to the parents.

The Death Benefit is the higher of:

• 10 times the annualized premium.
• The absolute Sum Assured to be paid on death.

Additionally, LIC pays any accumulated bonuses. A highly favorable clause in Plan 732 is that any survival benefits already paid to the child are NOT deducted from the final death claim amount.

Tax Benefits of LIC Plan 732

A smart investment is one that saves you money on taxes today while building wealth for tomorrow. LIC New Children’s Money Back Plan 732 is highly tax-efficient.

• Section 80C: All the premiums you pay for this policy are fully deductible from your taxable income under Section 80C of the Income Tax Act, up to a maximum limit of ₹1.5 Lakhs per financial year.
• Section 10(10D): The survival benefits (money-back payouts) and the final maturity amount received by the child are completely tax-free in their hands, subject to prevailing tax laws.

LIC Plan 732 vs. LIC Jeevan Tarun (Plan 934)

Parents often get confused between LIC Plan 732 and LIC Jeevan Tarun. While both are excellent child plans, they function differently. Here is a quick comparison:

Feature	LIC Plan 732 (Children’s Money Back)	LIC Jeevan Tarun (Plan 934)
Payout Structure	Fixed (20% at 18, 20, and 22 years)	Flexible (Choose from 4 different payout options)
Maturity Age	25 Years	25 Years
PWB Rider	Optional but highly recommended	Optional but highly recommended
Best For…	Parents who want fixed, predetermined milestones	Parents who want to customize the percentage of payouts

If you want a straightforward plan where payouts happen automatically at specific educational milestones, Plan 732 is the winner.

Things to Consider Before Buying

While the LIC New Children’s Money Back Plan 732 is a fantastic tool for conservative investors, you should keep a few points in mind:

• Long-Term Commitment: This policy requires discipline. You must pay premiums until the child turns 25. Surrendering the policy early will result in financial loss.
• Bonus Dependency: A large portion of the maturity value comes from bonuses, which are declared annually by LIC and depend on their corporate profits.
• Inflation: Ensure that the Sum Assured you choose today is large enough to beat education inflation 15 to 20 years down the line. Use the calculator to project realistic future values.

Final Conclusion

Securing your child’s future is not a task that can be delayed. The LIC New Children’s Money Back Plan 732 Calculator is an empowering tool that takes the guesswork out of financial planning. It helps you design a safety net that guarantees liquidity during your child’s most critical educational years.

By combining life insurance, milestone-based money-back benefits, tax savings, and the ultimate protection of the Premium Waiver Rider, Plan 732 stands out as a robust choice. Do your calculations today, choose an adequate Sum Assured, and take the first step toward funding your child’s biggest dreams with absolute certainty.

Frequently Asked Questions (FAQs)