LIC’s New Children's Money Back Plan
Updated On Dec 06, 2023
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Recently Life Corporation Of India has come up with a money-back plan for children, LIC’s New Children's Money Back Plan is a participating plan specifically designed to meet educational, marriage and other financial requirements of a growing child through guaranteed payouts through the policy term known as survival benefits. This plan provides life cover for the child during the policy term and survival benefits to fulfil the financial requirements of a growing child at different stages of his/her life.
Parents and grandparents are eligible to purchase this plan for their children between the ages of 30 days to 12 years.
Key Features of LIC’s New Children’s Money Back Plan
Following are the key features of Life Insurance Corporation’s New Children's Money Back plan:
- LIC Provides life cover to the child.
- Survival benefits are provided on the completion of ages 18 years, 20 years and 22 years.
- 20% of the sum assured is provided as survival benefits.
- Provides maturity benefits.
- Allows wealth appreciation.
Benefits of Purchasing LIC’s New Children’s Money Back Plan
The following are the benefits of purchasing LIC’s New Children Money Back plan:
Life Cover: LIC’s New Children Money Back plan provides life coverage to the child. In case of an untimely demise of the life assured during the policy term, the insurance company shall provide death benefits as follows:
- Demise before the date of risk commencement: Death benefit will be equal to the total amount of premiums paid till the date of demise after excluding taxes and rider premium (if any).
- Demise after the date of risk commencement: Death benefit will be equal to the sum assured plus a simple reversionary bonus and final additional bonus (if any).
2. Survival Benefit: LIC’s New Children Money Back plan provides survival benefits when the life assured completes the following ages: 18, 20 and 22 years. The survival benefits will be paid immediately upon completion of the above-mentioned ages and will be calculated as 20% of the sum assured.
3. Participation in Profits: LIC’s New Children Money Back plan is a participating plan. Simple reversionary bonuses shall be declared upon the policy as per the insurance provider’s performance. Final additional bonuses may also be declared upon the policy at the time of maturity or in case of claim settlement.
4. Maturity Benefit: LIC’s New Children Money Back plan also provides maturity benefit in case the life assured survives the entire policy term. Maturity benefit shall consist of a sum assured, a simple reversionary bonus and a final additional bonus (if any). The sum assured on maturity will be equal to 40% of the total sum assured.
LIC’s New Children’s Money Back Plan Eligibility Criteria
The following is the eligibility criteria for LIC’s New Children’s Money Back plan:
|Minimum Entry Age||30 days|
|Maximum Entry Age||12 years|
|Minimum Sum Assured||INR 1 Lakh|
|Maximum Sum Assured||No Limit|
|Policy Term||25 years|
|Premium Payment Term||Same as policy term|
|Maximum Maturity Age||25 years|
Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the article's contents as conclusive and should research further or consult an expert in this regard.