LIC Child Money Back Plan 832 Premium Calculator: Comprehensive Guide to Securing Your Child’s Future

Are you a parent looking for an LIC Child Money Back Plan 832 Premium Calculator? Do you worry about funding their education or major life events? The LIC Child Money Back Plan 832 might be the solution you’re seeking. This comprehensive guide will walk you through the plan details and show you how to use the premium calculator effectively.

Let’s dive deeper into this:-

What is the LIC Child Money Back Plan 832?

LIC Child Money Back Plan 832 is a specialized insurance policy designed by the Life Insurance Corporation of India. It’s not just an insurance plan; it’s a financial tool crafted to support your child’s journey from adolescence to adulthood. This plan provides money at crucial stages of your child’s life while also offering the safety net of life insurance.

Key points about the plan:

• It’s a non-linked, participating plan.
• It offers regular payouts at specific ages.
• The plan includes a life cover for the child
• It comes with the potential for bonuses to enhance returns.

Key Features and Benefits

Let’s dive deeper into what makes LIC Child Money Back Plan 832 stand out:

These features make the plan a comprehensive financial solution for your child’s future needs.

LIC Child Money Back Plan 832 Premium Calculator: How it Works

The LIC Child Money Back Plan 832 premium calculator is a user-friendly tool designed to help you estimate your premium payments. Understanding how it works can help you make informed decisions about your child’s insurance coverage.

Here’s a step-by-step guide on how to use the calculator:

1. Enter your child’s age. This is crucial, as it determines the policy term.
2. Choose the sum assured: This is the total amount of insurance coverage.
3. Select the premium payment mode: Options typically include yearly, half-yearly, quarterly, or monthly
4. Input any additional riders you want: Such as the Premium Waiver Benefit
5. Click ‘Calculate’: The tool will process your inputs.

The calculator will then display:

• The premium amount you need to pay.
• The survival benefits your child will receive.
• At the end of the policy term, it will display the maturity benefit.

Using LIC Child Money Back Plan 832 Premium Calculator helps you plan your finances better and choose a sum assured that fits your budget and goals.

Eligibility and Policy Terms

Understanding who can buy this plan and its terms is crucial. Here are the detailed eligibility criteria and policy terms:

• Child’s age at entry: minimum 0 years (30 days) to maximum 12 years
• Policy term: Always 25 minus the child’s age at entry.
• Premium-paying term: Same as policy term
• Minimum sum assured: Rs. 1,00,000
• Maximum sum assured: no upper limit
• Premium payment modes: yearly, half-yearly, quarterly, and monthly (through ECS)

It’s important to note that the risk cover starts either one day before the child turns 8 or after 2 years from the policy commencement, whichever is later.

Survival and Maturity Benefits

One of the most attractive features of this plan is its structured payout system. Let’s break down the benefits your child receives:

Survival Benefits:

• At age 18: 20% of the sum assured
• At age 20: Another 20% of the sum assured
• At age 22, a further 20% of the sum assured.

These payouts are designed to coincide with important milestones in your child’s life, such as starting college or pursuing higher education.

Maturity Benefit:

• At age 25: 40% of the sum assured + vested simple reversionary bonuses + final additional bonus (if any)

This final payout can be a significant amount, helping your child start their adult life on a strong financial footing.

Tax Benefits

LIC Child Money Back Plan 832 offers attractive tax advantages:

• Premium payments are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. You can claim up to Rs. 1,50,000 per financial year.
• Payouts: All survival benefits and the maturity amount are tax-free under Section 10(10D) of the Income Tax Act, 1961.

Remember, tax laws can change, so it’s wise to consult a tax advisor for the most current information.

Pros and cons

Every financial product has its strengths and limitations. Let’s examine the pros and cons of LIC Child Money Back Plan 832:

Pros:

• Regular payouts aligned with the child’s needs.
• Life insurance ensures financial protection for the child.
• Tax benefits on premiums and payouts.
• Bonuses can significantly increase the total payout.
• The Premium Waiver Benefit ensures policy continuation even if the parent is not around.
• The loan facility provides financial flexibility.

Cons:

• Returns may be lower compared to market-linked investments.
• Limited flexibility in terms of payout structure.
• A long lock-in period may not suit everyone.
• Premiums might be higher compared to term insurance plans.

How to Use the LIC Child Money Back Plan 832 Premium Calculator

Utilizing the premium calculator effectively can help you make an informed decision. Here’s a detailed guide:

1. Navigate the Calculator and find the Plan 832 calculator
2. Enter your child’s details accurately:
   • Age
   • Gender
   • Sum assured amount
3. Choose your preferred premium payment mode.
4. Add any riders you’re interested in, like the Premium Waiver Benefit.
5. Click on ‘Calculate’ to get your results.

The calculator will show you:

• The premium amount for your chosen payment frequency
• A breakdown of the survival benefits
• The estimated maturity benefit

Pro tip: Try different sum assured amounts to see how it affects your premiums and benefits. This can help you find the right balance between coverage and affordability.

Making the Most of Your Policy

To maximize the benefits of your LIC Child Money Back Plan 832:

1. Start early: The younger your child, the longer the policy term and potentially higher returns.
2. Choose the right sum assured: Balance between adequate coverage and affordable premiums
3. Opt for yearly premium payments if possible. This often comes with a discount.
4. Consider adding the Premium Waiver Benefit: It ensures policy continuation even in your absence.
5. Stay informed about bonus declarations. LIC declares bonuses annually, which can boost your returns.
6. Keep your policy active. Avoid lapses by paying premiums on time.

More Related LIC Plan Calculators

• LIC Plan 133 Maturity Calculator
• LIC Plan 178 Maturity Calculator
• LIC Child Plan Calculator [Plan No. 934 & 932]
• LIC Jeevan Saral Plan 165 Maturity Calculator
• LIC Plan 815 Maturity Calculator
• LIC Plan 836 Maturity Calculator
• LIC Plan 814 Maturity Calculator
• LIC 917 Plan Calculator

Conclusion

LIC Child Money Back Plan 832 is a thoughtfully designed financial instrument for parents who want to secure their child’s future. It offers a blend of insurance protection and savings, with the added advantage of regular payouts that align with your child’s growing needs.

The LIC Child Money Back Plan 832 Premium Calculator is an invaluable tool in this process, allowing you to tailor the plan to your financial capacity and goals. By understanding how the plan works and using the calculator effectively, you can make an informed decision about your child’s financial future.

Remember, while this plan offers numerous benefits, it’s essential to consider your overall financial portfolio and long-term objectives. Consult with a financial advisor to see how LIC Child Money Back Plan 832 fits into your broader financial strategy.

FAQs

What is the minimum premium for LIC Child Money Back Plan 832?

The minimum premium depends on the sum assured and your child’s age. Use the premium calculator to find out the exact amount for your situation.

Can I surrender the policy before maturity?

Yes, you can surrender after paying premiums for 3 years. However, it’s generally advisable to continue until maturity to receive full benefits.

What happens if I can’t pay premiums?

If you’ve paid for at least 3 years, the policy becomes paid-up with reduced benefits. Otherwise, it may lapse.

Is a medical check-up needed for this plan?

Usually not, but LIC may ask for it in some cases, especially for higher sum-assured amounts.

Can I take a loan against this policy?

Yes, you can take a loan after paying premiums for 3 years. The loan amount is usually a percentage of the surrender value.

How are bonuses calculated in this plan?

LIC declares simple reversionary bonuses annually based on their performance. These are added to your policy and paid out at maturity.

Can I change the premium payment mode after buying the policy?

Yes, you can usually change the premium payment mode on policy anniversary dates.

What happens if the child passes away before maturity?

In such an unfortunate event, the sum assured along with bonuses is paid to the policyholder, and the policy terminates.