Is It Beneficial To Buy A LIC Child Plan?
Published On Nov 18, 2021
The Life Corporation of India (LIC) has developed a money-back plan for children. The LIC child plan is a participation plan that provides guaranteed payouts known as survival benefits over the policy duration to fulfil a growing child's educational, marriage, and other financial obligations. This plan covers life insurance for the Child for the lifetime of the policy, as well as survival benefits to help meet the financial needs of a growing child at various stages of life. This programme is open to parents and grandparents with children aged 30 days to 12 years.
LIC Children Plan Features
The primary characteristics of the LIC child plan programme are as follows:
- The youngster is covered by life insurance.
- Survival awards are awarded at the ages of eighteen, twenty, and twenty-two.
- Survivor payments are calculated at a rate of 20% of the guaranteed amount.
- Experience is advantageous.
- Allows for the creation of riches.
LIC Child Plan's Benefits
The following are some of the advantages of acquiring LIC child plan:
- Insurance Coverage
The LIC child plan includes life insurance for the Child. If the life assured dies early within the policy period, the insurance company will pay the following death benefit.
- Before the Risk's Start Date, Death
The entire amount of premiums paid up to the date of death, minus taxes and rider premiums, will be the death benefit (if any)
- Benefits of Survival
The LIC child plan pays survival rewards when the life assured reaches the ages of 18, 20, and 22. Survivor payments will be made after the above-mentioned ages have been achieved, and will be calculated at 20% of the total covered.
- Profit Share
Profit-sharing is part of the LIC child plan initiative. Simple reversionary bonuses will be declared on the policy based on the performance of the insurance provider. Final extra bonuses may be granted at the policy's maturity or in the event of a claim settlement.
- Maturity Payoff
If the life insured survives to the conclusion of the policy term, the LIC child plan pays a maturity bonus. Maturity benefits should contain the money pledged, a basic reversionary bonus, and a final bonus (if any). At maturity, the amount promised will be equal to 40% of the entire value insured.
- Corporation's Profits
Policyholders can share in the LIC's earnings and get incentives as a result.
- Value of Surrender
After three years, individuals can surrender their insurance for an assured surrender value. On significant premium amounts, LIC offers a premium refund, which can help you save money.
People can acquire a loan through this programme to help them deal with a financial emergency.
It's critical to plan for your child's financial future so that he or she can achieve his or her objectives. As a result, you should set away funds for the future of your child. However, if you die too soon, you may not be able to leave enough money to your Child. Children's insurance coverage may be useful in this situation. These agreements ensure that a financial corpus is created regardless of whether the parent is alive or not. One such child insurance plan is the LIC child Plan, which helps to secure your child's financial future.
You may also like to read - Know How Child Insurance Plans Can Help You Fund Your Child's Future Expenses
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.