I have a question on Jeevan Utsav’s Policy for Minor children. The 10% return received to the Child after 18 years of age is taxable? In Flexi plan the 75% amount of the total cumulated amount is taxable to the child. I am thinking about this policy for my child ( age -3 years) is it good or not? Request to suggest me best LIC policy for my Child.

Policy for Minor Children: The LIC Jeevan Utsav policy is a non-linked, non-participating, individual, savings, whole-life insurance plan. The policyholder can avail of tax benefits on the premium paid towards the LIC Jeevan Utsav policy under Section 80C of the Income Tax Act, 1961. Additionally, the benefits received are tax-free under Section 10 (10D) of the Income Tax Act.

In the Regular Income variant of the LIC Jeevan Utsav policy, the policyholder gets income equal to 10% of the Basic Sum Assured every year until the policyholder passes away.

As for the taxability, it’s important to note that if the Sum Assured on Death does not exceed (or equal) 10X Annualized premium, the maturity/survival benefit will not be exempt from tax. However, the death benefit will still be exempt from tax. Also if Sum Assured exceeds 10X of Annualized premium then maturity and survival benefits will not be taxable.

As for the best LIC policy for your 3-year-old child, there are several options you might consider:

LIC Jeevan Utsav: One of the Best Plans for children is to gift them lifetime guaranteed income.

Proposer Details

Child Age	3 Years
Plan Name	871-Jeevan Utsav
Sum Assured	2000000
Policy Term	97 Years
PPT	13 Years
Proposer Age	30 Years
PWB Rider	Yes

First Year Premium

YLY	HLY	QLY	MLY
167111	85073	42869	14397

2nd Year onwards Premium

YLY	HLY	QLY	MLY
163513	83242	41946	14087

Once the child’s age becomes 19 he will start getting a guaranteed income of Rs 200000 Yearly for a lifetime.

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LIC Jeevan Tarun Plan: This is a participating non-linked limited premium payment plan. It offers an attractive combination of protection and saving features for children.

Proposer Details

Child Age	3 Years
Plan Name	934-Jeevan Tarun
Sum Assured	2000000
Policy Term	22 Years
PPT	17 Years
Proposer Age	30 Years
PWB Rider	Yes

First Year Premium

YLY	HLY	QLY	MLY
103896	52524	26550	8850

2nd Year onwards Premium

YLY	HLY	QLY	MLY
101659	51393	25979	8660

Returns after 22 Years

Total Premium	Rs. 1730440
Total Returns	Rs. 4280000

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LIC Child Money Back 932: This is another option you might consider.

Proposer Details

Child Age	3 Years
Plan Name	932-Children’s Money Back
Sum Assured	2000000
Policy Term	22 Years
PPT	22 Years
Proposer Age	30 Years
PWB Rider	Yes

First Year Premium

YLY	HLY	QLY	MLY
100961	51043	25803	8601

2nd Year onwards Premium

YLY	HLY	QLY	MLY
98787	49944	25248	8416

Returns after 22 Years

Total Premium	Rs. 2175488
Total Returns	Rs. 4280000