LIC New Children's Money Back Plan – Benefits and Features

LIC’s New Children’s Money Back Plan is a Non-linked, Participating,

Individual Life Assurance policy. It provides financial security and support for education, marriage, and other essential needs of growing children through systematic survival benefits. In short, this plan offers a combination of protection and savings. 

Eligibility Criteria

The LIC New Children's Money Back plan comes with the following eligibility conditions: 

Other Important Details

Key Features of LIC New Children's Money Back Plan

LIC New Children’s Money Back Plan offers a myriad of benefits, as explained below. 

1. Policy Loan

What if we tell you LIC New Children's Money Back Plan offers policy loans? Yes, it’s true! You can take a loan against your policy after paying premiums for at least two full years. (Subject to Corporation terms)

Loan Eligibility

• For active policies: Up to 90% of Surrender Value.
• For paid-up policies: Up to 80% of Surrender Value.

2. Free Look Period

If you're not satisfied with the policy terms and conditions, you can return the policy within 15 days of receiving the policy bond. 

3. Grace Period

What if you have missed the due date of the premium payment? No worries! The company offers a grace period of 

• 30 days for yearly, half-yearly, or quarterly premiums.
• 15 days for monthly premiums.

During the grace period, the policy remains active, but if the premium isn’t paid by the end of the grace period, it will lapse.

4. Pay As You Want

The plan offers different premium payment terms, like annually, half-yearly, quarterly, or monthly basis. So, you can choose to pay the premium amount as you want. 

5. Surrender Benefit

Policyholders can surrender the policy anytime if they have paid premiums for at least two full years. Life Insurance Corporation will pay the higher of the Guaranteed Surrender Value or Special Surrender Value, which is based on the total premiums paid. 

Benefit Illustration of LIC New Children's Money Back Plan

Let’s say Mr. Sharma chose the LIC New Children's Money Back plan for their 12-year-old son. 

Below are the basic details: 

Here’s the list of benefits Mr. Sharma will be getting! 

• Total Premiums Paid (Over 13 years): ₹1,19,626 
• Survival Benefits (Paid at the end of 6th, 8th, and 10th years): ₹60,000.
• Maturity Benefit (On surviving the whole policy term): ₹40,000, along with bonuses.

Key Benefits of LIC New Children's Money Back Plan

1. Death Benefit

In the unfortunate scenario of Life Assured's death during the policy term, provided the policy is active, the death benefits will be as follows:

• On death before the date of risk commencement

An amount equal to the total premiums paid (excluding taxes, extra premiums, and rider premiums, if any) will be payable.

• On death after the date of risk commencement

"Sum Assured on Death" with vested Simple Reversionary Bonuses and Additional Bonus, if any, will be payable. 

Here, the “Sum Assured on Death” is defined as the higher of the Basic Sum Assured or 7 times the annualized premium. This death benefit will be at least 105% of the total premiums paid up to the date of death. 

2. Survival Benefit

If the Life Assured reaches the ages of 18, 20, and 22 and the policy is active (all premiums are paid), 20% of the Basic Sum Assured will be given on each of these policy anniversaries. 

3. Maturity Benefit

If the investor survives until the end of the policy term and the policy is active, the "Sum Assured on Maturity" will be given. This amount is 40% of the Basic Sum Assured, along with any vested bonuses and final additional bonuses, if any.

4. Participation in Profits

The policyholders investing in this policy will get profits from the Corporation and can earn Simple Reversionary Bonuses based on the Corporation's performance. 

A Final Additional Bonus may also be given when the policy ends due to a claim, either by death or maturity. (Not applicable for paid-up policies.)

Exclusions

If the policyholder commits suicide, the policy will be void under the following conditions:

• Within 12 months from the start of the policy:
  • Only 80% of the total premiums paid will be returned, provided the policy is active.
  • This clause does not apply if the Life Assured is below 8 years old when the policy started.
• Within 12 months of the policy revival:
  • The payout will be the higher of 80% of the total premiums paid or the surrender value available at the time of death.
  • This clause does not apply if the Life Assured is under 8 years old when the policy is revived or if the policy lapsed without acquiring a paid-up value.

Riders Available

• Option to defer the Survival Benefits

The policyholder can choose to receive the Survival Benefit(s) at any time on or after its due date while the policy is active. To avail of this benefit, the policyholder must inform the servicing branch six months prior to the due date of the survival benefit. 

• LIC’s Premium Waiver Benefit Rider

This rider can be added to an active policy if the Life Assured is a minor. It states that If the Proposer (the person who pays the premium) dies, future premiums for the base policy after the date of death will be waived until the rider term ends. 

• Option to take Death Benefit in installments

This option allows investors to receive the death benefit in installments over a period of 5, 10, or 15 years instead of as a lump sum.

The installments can be paid in advance yearly, half-yearly, quarterly, or monthly, depending on what chosen type. Below are the minimum amounts for each payment mode:

• • Monthly: ₹5,000

• • Quarterly: ₹15,000

• • Half-Yearly: ₹25,000

• • Yearly: ₹50,000

• Settlement Option for Maturity Benefit

The Settlement Option allows policyholders to receive the Maturity Benefit in installments over a time period of 5, 10, or 15 years instead of as a lump sum. Here’s how it works:

The installments can be paid in advance yearly, half-yearly, quarterly, or monthly mode. Below are the minimum amounts for each payment mode:

• • Monthly: ₹5,000

• • Quarterly: ₹15,000

• • Half-Yearly: ₹25,000

• • Yearly: ₹50,000

Premium Chart

Below is the sample illustrative premium chart for the Sum Assured of ₹1 Lakh. 

How to Buy LIC New Children's Money Back Policy 

To buy the LIC New Children's Money Back plan from InsuranceDekho, follow the below steps. 

1. Visit InsuranceDekho's official website and choose “Life Insurance” under the “Insurance” tab. 
2. Before you move forward, understand the policy details, benefits, and terms properly. If you need expert help, give us a call at +91-7551196989. 
3. Fill in your personal information and click "View Plans." 
4. Browse and select the "LIC New Children's Money Back Policy." Choose the desired sum assured and policy term that you have decided above. 
5. Enter your education, occupation, and annual income. Review the premium amount and proceed to payment. 
6. As part of the policy approval process, the company may perform a medical evaluation. Upon approval and successful completion, you’ll receive policy confirmation via email or SMS.

Frequently Asked Questions (FAQs) 

Ques 1. Is loan facility available under the plan? 

Ans. Yes! Policyholders can take loans if they have paid at least two full years’ premiums. 

Ques 2. What is the free-look period of LIC New Children's Money Back plan?

Ans. The Free Look Period of LIC New Children's Money Back plan is 15 days. It allows investors to review the policy and cancel it if it doesn’t meet their expectations.