The cost of higher education for children is constantly rising. If you wish to make a secure investment for their education and future right now, child plans offered by the Life Insurance Corporation of India (LIC) can be an excellent option. These plans not only provide life cover but also offer benefits such as savings, bonuses, and tax exemptions under Section 80C of the old tax regime. However, before selecting any plan, it is crucial to understand its potential returns. The Internal Rate of Return (IRR) is considered a key metric for this purpose.

In 2026, three major LIC child plans—Jeevan Lakshya (933), New Children’s Money Back (932), and Jeevan Tarun (934)—are garnering significant attention. Let us explore the differences between them and determine which plan might be more beneficial for investment.

What is IRR, and why is it important?
IRR, or Internal Rate of Return, is the estimated annual return calculated based on the premiums paid by the investor and the total benefits received from the policy. These benefits include survival benefits, the maturity amount, and bonuses. In any investment plan, a higher IRR generally indicates better potential returns over the long term.

Comparison of the three plans
If a 'Sum Assured' of ₹10 lakh is chosen for a newborn child, the annual premium for all three plans comes to approximately ₹42,000. Among them, Jeevan Lakshya offers an IRR of around 7.02%, which is the highest of the three. Under this plan, the full Sum Assured and bonus are paid upon the completion of the 25-year term; additionally, survival benefits are provided during the policy tenure.

Meanwhile, the New Children’s Money Back plan offers an IRR of approximately 6.87%. In this plan, 20% of the Sum Assured is paid out when the child reaches the ages of 18, 20, and 22, while the remaining amount along with the bonus is paid upon maturity. On the other hand, the Jeevan Tarun plan offers an IRR of approximately 6.86%. Its standout feature is the flexibility to choose survival benefits ranging from 20% to 40% of the sum assured, based on requirements, between the ages of 20 and 24. The full sum assured, along with accrued bonuses, is paid out upon reaching the age of 25.

**Benefits Common to All Plans**
Investments in these three plans can be made for children aged between birth and 12 years. All these plans offer features such as life cover, bonuses, loan facilities, and surrender value. Additionally, in the event of the premium-paying parent's death, the 'Premium Waiver Rider' ensures that future premiums are waived, allowing the child to continue receiving all benefits as scheduled.

**Points to Consider Before Investing**
Experts advise against selecting a child plan based solely on projected returns. Decisions should be made after considering the child's current age, educational goals, the family budget, and your own financial requirements. Furthermore, it is essential to thoroughly read the policy's terms and conditions and consult an LIC agent or a certified financial advisor if necessary. Choosing the right plan today can significantly alleviate the financial burden of your child's higher education in the future.

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