Analyzing The Importance Of The LIC New Children's Money Back Plan
Updated On Feb 15, 2022
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The Life Corporation of India (LIC) recently launched a children's money-back plan. The New Children's Money Back Plan from LIC is a participating plan meant to satisfy a growing child's educational, marriage, and other financial needs with guaranteed payouts known as survival benefits over the policy period. This plan includes life insurance for the child for the duration of the policy as well as survival benefits to satisfy the financial demands of a growing child at different stages of his or her life. Parents and grandparents can enrol their children aged 30 days to 12 years in this scheme.
Features of LIC's New Children's Money Back Plan
The major aspects of LIC's New Children's Money Back scheme are as follows:
- Provides The Child With Life Insurance.
- Survival rewards are available at the ages of 18 years, 20 years, and 22 years.
- Survival benefits are granted at a rate of 20% of the money guaranteed.
- Provides mature advantages.
- Allows for the accumulation of riches.
Benefits of Buying LIC's New Children's Money Back Plan
The following are some of the advantages of acquiring LIC's New Children Money Back plan:
- Life Coverage: The LIC's New Children Money Back plan includes life insurance for the kid. In the event of the life assured's untimely death during the policy term, the insurance company will pay the following death benefit.
- Death before the start date of the risk: The death benefit will be equal to the whole amount of premiums paid up to the date of death, excluding taxes and rider premiums (if any)
- Survival Benefit: The LIC's New Children Money Back plan offers survival rewards when the life assured reaches the ages of 18, 20, and 22. The survivor benefits will be paid immediately upon reaching the above-mentioned ages and will be calculated at 20% of the total insured.
- Profit Participation: LIC's New Children Money Back scheme is a profit-sharing plan. Simple reversionary bonuses will be declared on the policy based on the performance of the insurance provider. Final extra bonuses may also be issued on the policy at maturity or in the event of a claim settlement.
- Maturity Benefit: If the life insured survives the whole policy term, LIC's New Children Money Back plan also gives a maturity benefit. Maturity benefits should include the sum promised, a simple reversionary bonus, and a final bonus (if any). On maturity, the sum promised will be equal to 40% of the entire sum assured.
Planning a solid financial future for your child is critical so that he or she has the resources to follow his or her ambitions. That is why you should set aside money for your child's future. However, if you die too soon, you may not be able to leave your kid with the necessary financial corpus. This is where kid insurance policies come into play. These arrangements guarantee that a financial corpus is generated regardless of whether the parent is alive or not. One such child insurance plan is LIC's New Children's Money Back Plan, which assists in protecting your child's financial future.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.