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In today’s times, the cost of children’s higher education and their future is skyrocketing. If you are also worried about your child’s education and future and are looking for a safe investment, then child plans of Life Insurance Corporation of India (LIC) can be a great option for you. These plans not only give a strong life cover to the child, but also offer the dual benefits of savings and bonuses. Besides, you also get the benefit of tax exemption under Section 80C under the old tax rules. But before investing it is very important to know how much return you will get on your money.

What is IRR and why is it important for investing?

Before investing in any LIC policy, it is very important to understand its ‘Internal Rate of Return’ (IRR). IRR is the estimated annual return which is determined based on the premium paid by you and the total benefits you receive at the end of the policy (like maturity amount and bonus). In simple words, the higher the IRR of the scheme, the higher will be the value of your investment in the long run. LIC’s three flagship child schemes in 2026—Jeevan Lakshya (933), New Children’s Money Back (932) and Jeevan Tarun (934)—are quite popular among investors.

Comparison of all three Dhaakad schemes

If you take a ‘Sum Assured’ (sum assured) of Rs 10 lakh in the name of a newborn child, you will have to pay a premium of approximately Rs 42 thousand annually. Let us see which of these plans is most beneficial:

• Life Goals: Its IRR on policy term of 25 years is about 7.02 percent, which is the highest among these three. In this, the full sum assured and bonus is available at the end of the policy.
• New Children’s Money Back: Its IRR is around 6.87 percent. In this, 20-20 percent of the sum assured is given in installments at the age of 18, 20 and 22 years of the child, which helps in the education expenses.
• Jeevan Tarun: Its IRR is approximately 6.86 percent. Its specialty is that in this you can choose survival benefit of 20 to 40 percent as per your need between the age of 20 to 24 years.

Features of LIC child plans

The biggest beauty of all these plans is that they provide the facility of ‘Premium Waiver Rider’. That is, if unfortunately any untoward incident happens to one of the parents taking the policy, then the further premium is waived off and the child continues to get full benefits as per the schedule. Apart from this, these schemes also offer facilities like loan facility and surrender value. You can start investing in these from the birth of the child till the age of 12 years.

Keep these things in mind before investing

Investment experts always advise not to choose any policy only on the basis of returns. While taking an investment decision, carefully consider your child’s current age, education goals, your family budget and future financial needs. Read the terms and conditions of the policy carefully and it would be better to talk to a certified financial advisor or an authorized agent of LIC. The right investment made at the right time can reduce the financial burden of your child’s future to a great extent.