LIC Educational Annuity Plan

LIC educational annuity plan provides benefits for the different maturity dates selected. The benefits can be used to meet the marriage or educational expenses of your child.

Eligibility Criteria for LIC Educational Annuity Plan

The eligibility criteria is as follows:

Minimum entry age

18 years

Maximum entry age

60 years

Minimum age at maturity

-

Maximum age at maturity

70 years

Minimum sum assured

Rs.50,000

Maximum sum assured

No limit

Key Features of LIC Educational Annuity Plan

Some of the most important features of this scheme are as follows:

Plan Type

Endowment assurance plan

Plan basis

Individual

Policy term

5 - 25 years

Premium paying terms

Same as the policy term

Premium payment frequency

Monthly, quarterly, half-yearly and annually. Premiums can also be paid through salary deductions.

Maturity benefits

On maturity, the insured will get the sum assured along with the bonuses declared. The benefit can be either a lump sum amount at the end of the policy term or can choose a 10 half-yearly instalments.

Death Benefits

  1. Sum assured
  2. Accrued bonus

Supplementary benefits

The optional benefits can be added to the basic plan to get extra protection.

Surrender Value

Surrender value is available under the policy for earlier termination.

Guaranteed surrender value

The policy can be surrendered after it has been in force for over 3 years the guaranteed surrender value is 30% of the premiums paid.

Grace period

30 days grace period is allowed for paying the premiums.

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.

Loan

Not available.

Bonus

Simple Reversionary Bonuses are declared.

Benefits of LIC Educational Annuity Plan

The following are the benefits of this scheme:

  1. Death benefit and maturity benefit is offered under this scheme.
  2. Policyholder can also surrender the policy after 3 years.
  3. 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 Educational Annuity Plan Works

The policyholder has the pay the premium for the term he or she has opted. The policyholder can make the payments annually, through salary deductions, half-yearly or quarterly modes. The policyholder gets the advantage of death benefit and maturity benefit. If the proposer dies during the premium payment term, the premium payment will be waived.

If a 35 year old takes a LIC Educational Annuity Plan for 25 years, then he has to pay the premium for 25 years. The premium that he has to pay is Rs.3,727. His total investment will be Rs.93,175. His returns at 10% will be Rs.2,82,500 and at 6% will be Rs.1,69,500.

Riders

Premium waiver benefit and accidental death benefit is in-built for this LIC child plan. Additional riders can also be opted, they are term rider and critical illness rider.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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