LIC offers Jeevan Umang plan: daily savings of 45 rupees provide an income of 40,000 rupees over 100 years

Every person strives to ensure a safe future for themselves and their family, and often the solution to most problems comes with financial stability. Because of this, people look for various investment opportunities to start investing small amounts and have the possibility of receiving a large sum when needed.

For example, if your child is still young and you want to have a fund of 30–40 lakh rupees by the time they are 18–25 years old, it is crucial to start saving money in advance. You can work towards this goal by setting aside a small amount every month.

Today we will tell you about three LIC plans: Amritbal, Jeevan Tarun, and New Children's Money Back Plan. These three programs are designed with children's future needs in mind, although the methods of investment and the timing of receiving funds differ.

LIC Amritbal

If you want a certain additional amount added to your investments every year, the Amritbal plan from LIC can be a suitable option. Under this program, for every 1000 rupees of the base sum insured, an addition of 80 rupees is guaranteed for each full year the policy is active. Thus, the longer the policy term, the more savings will be added.

A policy under this plan can be issued for a child aged from 30 days to 13 years, and its maturity period can be set between 18 and 25 years. If you save 15,000 rupees monthly under this program, you will receive 23 lakh rupees upon completion of the term. With a monthly accumulation of 20,000 rupees, you will receive 30 lakh rupees.

LIC Jeevan Tarun

The LIC Jeevan Tarun plan can cover all of your children's expenses. This program has an option to receive a certain amount annually when the child is between 20 and 24 years old. Parents can choose one of four payment options within this plan. If you invest 5,000 rupees in this scheme, the annual income will be 60 thousand rupees. This means that with premium payments over 18 years, the total amount will reach 10.80 lakh rupees.

LIC New Children's Money Back

Some parents prefer that their child does not rely only on a lump-sum payment at age 25, but that financial assistance is provided at different stages of education. For such families, the LIC New Children's Money Back plan can be particularly useful. In this plan, 20% of the base sum insured is paid out when the child turns 18. Then another 20% is paid at ages 20 and 22. Thus, a total of 60% of the base sum insured is paid out in three stages. The remaining 40% of the amount is given to the child at 25 years old. Additionally, this policy accrues a bonus.

Every family worries about the expenses associated with a daughter's education and wedding. Under these circumstances, the Sukanya Samriddhi Yojana (SSY) government scheme offers an option for long-term savings in the daughter's name. The feature of this scheme is that funds only need to be deposited for 15 years, although the account is redeemed after 21 years. This means that even after the 15-year investment period is complete, interest continues to accrue on the deposited amount for the following six years.

Consider an example: if you invest 100,000 rupees annually, only 1.5 million rupees will come out of your pocket over 15 years. If the annual interest rate of 8.2% is maintained for the full 21 years, approximately 47.88 million rupees can be received at the time of maturity, of which about 3.28 million rupees will be interest.

For the quarter October-December 2026, the annual interest rate for Sukanya Samriddhi has been set at 8.2%. Interest under this scheme is compounded annually. This means that income is accrued not only on the initial deposit amount but also on previously earned interest, which promotes rapid growth of the fund in the long term. However, it should be noted that the government periodically reviews the interest rates for small savings schemes, so the 8.2% rate cannot be considered fixed for the entire 21 years. The calculation presented here is based on the assumption that the 8.2% rate is maintained throughout the entire period.

To understand the calculation mechanism, let's assume you deposit 100,000 rupees into the Sukanya Samriddhi account at the beginning of each financial year, assuming the rate remains at 8.2%. A total investment of 1.5 million rupees will be made over the first 15 years. After this, the contribution phase ends, but the account continues to earn interest until maturity.

This process is called compound interest (capitalization). The interest earned annually is added to the principal amount, and in the following year, interest is calculated on this increased amount. For example, if 100,000 rupees are deposited in the first year, 8,200 rupees in interest are accrued by the end of the year, making the total amount 108,200 rupees. In the second year, you deposit another 100,000 rupees, and interest is calculated on 208,200 rupees, yielding about 17,072 rupees. By the end of the second year, the balance will be 225,272 rupees. In the third year, after depositing another 100,000 rupees, the amount will reach 325,272 rupees, on which about 26,672 rupees in interest are accrued, bringing the total balance to approximately 351,945 rupees. This growth continues until the 15 years of investment expire, after which the amount may reach 47.88 million rupees upon maturity due to interest.

Sukanya Samriddhi allows withdrawals not only upon final maturity. There is an option for partial withdrawal to finance the daughter's higher education. For this, the daughter must reach the age of 18 or complete the 10th grade, whichever comes first. After meeting these conditions, up to 50% of the balance from the end of the previous financial year can be withdrawn. These funds can be used to pay for tuition and related expenses, provided the appropriate admission or payment documents are submitted for the withdrawal.

When investing in Sukanya Samriddhi, the minimum deposit allowed within one financial year is 250 rupees, and the maximum deposit is 1.5 million rupees.

After retirement, there is a need for regular monthly income, so it is crucial to plan for the future in advance. In addition to government programs, there is a scheme offered by the company called the LIC Smart Pension Plan.

The essence of this program is that a lump sum invested upon retirement allows one to receive a pension throughout life. This is an immediate annuity payment plan, meaning that monthly contributions are not required; it is sufficient to invest the entire amount once, after which, according to the chosen option, the pension can be received monthly, quarterly, semi-annually, or annually.

According to official LIC information, for a person aged 60 investing 10 lakh rupees, Option A, which provides a lifelong pension, yields an annual income of 85,000 rupees. Thus, an investment of 10 lakh rupees will provide an annual pension of 85,000 rupees.

If a monthly pension is required, under this scenario, it amounts to approximately 7,083 rupees per month. With the selection of Option B1 with a 5-year guarantee, the annual pension will be 84,500 rupees, or 7,042 rupees per month. If Option B2 with a 10-year guarantee is chosen, the annual income will be 83,200 rupees, and monthly income will be 6,933 rupees. Option B3 (15-year guarantee) offers an annual amount of 81,400 rupees, equivalent to 6,783 rupees per month. And if Option B4 with a 20-year guarantee is selected, the pension will be 79,200 rupees per year or 6,600 rupees monthly.

The minimum investment amount under this scheme is 1 lakh rupees. Any citizen of India can participate in this program. The participant's age can be from 18 years, and the maximum age for receiving the pension depends on the chosen pension option.