LIC Child Career Plan is specifically designed to meet the educational and other needs of your child. Child will get risk cover during the policy term and during the extended term. You get to choose the sum assured, maturity age and premium payment mode and waiver benefits.
Eligibility Conditions of LIC Child Career Plan
|Entry Age||Minimum - 0 years Maximum - 12 years|
|Maturity||Minimum - 23 years Maximum - 27 years|
|Policy Term||Minimum - 11 years Maximum - 27 years|
Key Features of LIC Child Career Plan
|Sum assured||Minimum - Rs.1,00,000 Maximum - Rs.1,00,00,000|
|Minimum Premium amount||Rs.20,000 for first premium|
|Premium paying term||6 years or up to 5 years before the policy term.|
|Premium paying frequency||Quarterly, half-yearly, yearly or through salary deductions over the policy term.|
|Premium paying method||Monthly premium payment must be transmitted through ECS or direct debit.|
|Revival||If the premium due is not paid within the grace period, then the policy will lapse. The policy can be revived within 5 years from the date of the first unpaid premium or before maturity. The arrears must be paid with interest.|
|Bonuses||Simple reversionary bonus is declared at the end of each financial year. Additional bonus and vested bonuses are payable, if any.|
|Surrender Value||The policy can be surrendered after 3 years premium has been paid. The surrender value before commencement of risk is 90% of the total amount of premiums paid. Surrender value after commencement of risk is 90% of the total premiums paid before commencement of risk and 30% of premiums paid after commencement of risk.|
|Paid-up value||If the policyholder fails to pay subsequent premiums, then the policy shall not lapse and instead become paid-up provided that at least 3 full year's premiums have been paid.|
|Loan||Loan facility is not available.|
|Grace period||30 days grace period is allowed for paying the premium.|
|Free look period / Cooling off period||The plan has a 15 days free look within which you can return the policy.|
|Tax benefits||Prevailing tax benefits are applicable.|
|Nomination||You can appoint a nominee.|
|Exclusion||If the policyholder commits suicide within a year from the date of taking the policy, it is excluded for Premium Waiver Benefit.|
Advantages of LIC Child Career Plan
- Survival benefits are paid to the policyholder.
- Death benefit is offered to the nominee if the insured dies during the policy term.
- Auto cover and premium waiver benefit is available.
- Tax benefits can be availed.
- The policy can be surrendered after completing 3 policy years.
- Policy can be converted to paid-up if three full years premiums have been paid.
How the Plan Works
Miss Roopa took LIC Child Career Plan for her newborn child. The policy term she chose was 25 years and the premium payment term she chose was 6 years. The sum assured that she opted for was Rs.1 lakh. The monthly premium she had to pay was Rs.10,128. The extended term was 7 years. She will get survival benefit. If she dies during the term, the death benefit will be offered and the premium will be waived off.
The premium can be paid yearly, half-yearly, quarterly or through salary deductions. The monthly payments are to be made through ECS or Direct Debit.
There are no riders available with this policy.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017