The Best LIC Newborn Baby Plan: Jeevan Lakshya vs. Kids Money Back Plan
When it comes to securing a childs future and providing financial support for their education and other needs, choosing the right insurance plan is crucial. Two of the most popular options offered by the Life Insurance Corporation of India (LIC) for newborns are the LIC Kids Money Back Plan and the LIC Jeevan Lakshya. In this article, we will explore the key features and considerations for both plans, and help you decide which one might be the best fit.
Key Features of LIC Kids Money Back Plan
Policy Term: The policy can be taken for a term of 25 years, but the child starts receiving benefits at specified intervals. Maturity Benefits: The plan provides a percentage of the sum assured at regular intervals, such as at ages 18, 20, and 22, which can be used for educational expenses. Death Benefits: In case of the unfortunate demise of the policyholder, the nominee receives the sum assured, ensuring financial security for the child. Survival Benefits: If the child survives the policy term, the remaining sum assured is paid out at maturity. Premium Payment: Premiums can be paid regularly or as a single premium payment. Rider Benefits: Additional riders such as accidental death benefits or critical illness coverage can enhance the coverage.Considerations for the LIC Kids Money Back Plan
Sum Assured: Select a sum assured that aligns with your financial goals for your childs future. Premium Affordability: Ensure that the premium payments fit within your budget. Flexibility: Check for options to modify the plan as your childs needs evolve.Key Features of LIC Jeevan Lakshya
Sum Assured: The policyholder selects a sum assured that covers the childs future needs. Protection Against Death: If the policyholder passes away, the nominee receives the sum assured immediately, providing instant financial security. Maturity Benefits: The nominee also receives the sum assured at maturity, ensuring a secure financial future for the child, regardless of the proposer's status. Premium Flexibility: Premium payments can be made annually, semi-annually, quarterly, or monthly. Rider Benefits: Additional riders can be added for extra protection against critical illnesses or accidents.Considerations for the LIC Jeevan Lakshya
Sum Assured: Choose an amount that best meets your childs future financial goals. Premium Affordability: Ensure that the premium payments are within your financial means. Value for Money: Consider the cost versus the benefits provided by the plan.My Personal Favourite: LIC Jeevan Lakshya
From my experience as an experienced financial advisor, I have found that the LIC Jeevan Lakshya plan stands out as an excellent choice for securing a childs future. Unlike the Kids Money Back Plan, which depends on the child reaching a certain age before receiving benefits, the Jeevan Lakshya ensures that the child receives the sum assured at maturity, ensuring financial security at a critical time.
Additionally, the Jeevan Lakshya provides protection against the unfortunate event of the proposers passing away, offering the nominee a lump sum amount immediately. This feature ensures that the child does not face any financial challenges should the parent pass away.
As mentioned, when we consider a childs future, it comprises of three important aspects: education, career, and marriage. All these require substantial funds at specific times. With Jeevan Lakshya, the funds are received on a predetermined maturity date, ensuring that the child has access to the required funds for their educational needs, without the uncertainty of being dependent on the proposer's survival.
I also recommend checking out the YouTube video I have created, where I delve into the details of both plans and provide additional insights that can help you make an informed decision.