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|
|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||In the event the insured dies during the policy term, the following benefits will be paid to the nominee:
|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.|
|Bonus||Simple Reversionary Bonuses are declared.|
Benefits of LIC Educational Annuity Plan
The following are the benefits of this scheme:
- Death benefit and maturity benefit is offered under this scheme.
- Policyholder can also surrender the policy after 3 years.
- 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.
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.
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