LIC child future plan is designed specifically to meet the expenses of marriage, education and other needs of growing children. Risk cover is offered to the child during the policy term and also for the extended term of 7 years.
Eligibility Criteria for LIC Child Future Plan
The eligibility criteria is as follows:
|Minimum entry age||0 years|
|Maximum entry age||12 years|
|Minimum age at maturity||23 years|
|Maximum age at maturity||27 years|
|Minimum sum assured||Rs.1 lakh|
|Maximum sum assured||Rs.1,00,00,000|
Key Features of LIC Child Future Plan
Some of the most important features of this scheme are as follows:
|Plan Type||Money back endowment plan|
|Premium paying terms||6 years and policy term less 5 years|
|Premium payment frequency||Quarterly, half-yearly, annually and through salary deductions|
|Policy term||11 - 27 years|
|Survival benefits||On surviving till the end of the durations as specified, the insured will be paid the following amounts:
|Death Benefits||In the event the insured dies during the policy term, the following benefits will be paid to the nominee:
|Auto Cover||If the insured has paid two years premium but has not paid any subsequent premium, then the death cover will continue for 2 years from the due date of the first unpaid premium.|
|Premium waiver benefit||Premium is waived if the proposer dies, the benefit will remain in force.|
|Paid up value||If three years premiums have been paid but the subsequent premiums have not been paid, then the policy will become paid-up.|
|Surrender Value||The policy can be surrendered after having paid at least 3 years premiums.|
|Grace period||30 days grace period is allowed for paying the premiums.|
|Revival||If the policy has lapsed, it can be revived after paying the premiums that are due.|
|Nomination||Nominations are accepted under this policy.|
|Free Look Period||Policyholder can return the policy within 15 days from the activation of the policy term if he or she is not satisfied with the policy.|
|Exclusions||Suicide committed in the first year is excluded for Premium Waiver Benefit.|
Benefits of LIC Child Future Plan
The following are the benefits of this scheme:
- Death benefit, survival and maturity benefit is offered under this scheme.
- Policyholder can also enjoy the auto cover and premium waiver benefit.
- Premiums paid under life insurance policy are exempted from tax under Section 80C and maturity proceeds are exempted from tax under Section 10 (10D)
How The LIC Child Future Plan Works
The policyholder has the option to choose a premium payment period of 6 years, he or she can make the payments annually, through salary deductions, half-yearly or quarterly modes. The policy term can be extended for 7 years. The policyholder gets the advantage of death benefit, maturity benefit and survival benefit. If the proposer dies during the premium payment term, the premium payment will be waived. If the assured is a newborn and his father wished to take LIC Child Future Plan for 25 years and the premium payment term is 6 years and the sum assured is Rs.1 lakh and the premium to be paid is Rs.4,528. The mode of premium payment is yearly. Total investment is Rs.90,560. The guaranteed return is as follows:
- For 20th year: Rs.25,000
- For 21st year: Rs.10,000
- For 22nd year: Rs.10,000
- For 23rd year: Rs.10,000
- For 24th year: Rs.10,000
- On maturity, i.e. the 25th year, the return will be Rs.50,000 plus bonus, if any.
Premium waiver benefit is available for this LIC child plan.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017