When we say that today’s world is to be the future world, what we mean is, today’s people and their contribution is that which is going to mold the world, its ways, and its life for the future. Today’s people may not remain and survive in the future, but the expectation is, today’s children will survive. Hence, it becomes essential for us to secure our children future and provide them in the time of need. LIC Children Plan is specially designed to meet the increasing educational, marriage and other needs of growing children. It provides the risk cover on the life of a child not only during the policy term but also after 7 years from the expiry of policy. The number of Survival benefits is payable on surviving by the life assured to the end of the specified duration.
Benefits
Maturity Benefit of LIC New Children Money Back Plan
The maturity benefit of the New Children Money Back Plan gives good maturity benefits provided the policy is in full force. The Sum Assured on Maturity will be 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus (if any).
Death benefit of LIC New Children Money Back Plan
The death benefit of the Life Assured before the stipulated Date of Maturity provided the policy is in full force is as follows-
On the death of the Life Assured before the date of commencement of risk: Return of premium/s excluding taxes, extra premium, and rider premium, if any.
On death after the date of commencement of risk: Death benefit can be defined as Sum Assured on Death and vested Simple Reversionary Bonuses and Final Additional Bonus will be payable. The Sum Assured on Death will be higher than 10 times of annualized premium or Absolute amount assured to be paid on Death i.e. Basic Sum Assured. This death benefit shall not be less than 105% of the total premiums paid as on date of death.
Survival Benefit
There is a survival benefit in this policy. 20% of the Basic Sum Assured will be payable on the completion of ages 18 years, 20 years and 22 years on each occasion provided that the policy is in full force.
Optional Benefit
LIC New Children Plan provides the following optional benefit that can be opted by the policyholder-
- Option to defer the Survival Benefit
- LIC’s Premium Waiver Benefit Rider (UIN: 512B204V01)
Eligibility for New Children Money Back Plan
| Maximum Entry Age | 12 years |
| Minimum Entry Age | 0 years |
| Maturity Age | 25 years |
| Policy Term | 25 years |
| Minimum Sum Assured | Rs.1 lakh |
| Maximum Sum Assured | No limit |
| Premium Payment Term | 10 years, 7 years or (term 5) |
| Premium Payment Frequency | Yearly, half-yearly, quarterly, monthly |
| Minimum Annual Premium | Rs.24, 000 |
| Maximum Annual Premium | No limit |
Rebates
| Yearly mode | 2% of Tabular Premium |
| Half-yearly mode | 1% of Tabular premium Quarterly |
| Monthly, SSS | NIL |
| High Sum Assured Rebate | 3,00,000 to 4,90,000 |
| Basic Sum Assured | 1,00,000 to 1,90,0002 |
Revival
A lapsed policy can be revived within a period of two consecutive years from the date of first unpaid premium but before the date of maturity, as the case may be by paying all the arrears of premium together with interest.
Surrender Value
The policy can be surrendered provided at least three full years premiums have been paid. The Guaranteed Surrender value shall be a percentage of total premiums.
Policy Loan
The loan can be availed under the policy provided the policy. You may contact LIC branch for loan enquiry.
Cooling-off period
If the Policyholder is not satisfied with the policy can be returned to the Corporation within 15 days from the date of receipt of the policy bond stating the reasons of objections. The total amount will be paid after deducting the documentation charges.
Exclusion
In the case of Suicide at any time within 12 months, the policy will be voided. In the instance of the suicide of the policyholder it would not matter if the policyholder is mentally fit or unfit but by committing suicide he/she would make the policy ineffective.
