LIC's New Children's Money Back Plan - Discussed in Detail

LIC's New Children's Money Back Plan is a participating plan specifically designed to meet a growing child's educational, marriage, and other financial needs through guaranteed payouts through the policy term known as survival benefits. This plan offers life insurance for the kid during the policy term as well as survival benefits to meet the financial needs of a growing child at various periods of his or her life. This plan is available to parents and grandparents for their children aged 30 days to 12 years.

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.
• Corporation Profits:  Policyholders can share in LIC's profits and earn incentives as a result.
• Surrender Value: Individuals can surrender their policies after three years to get an assured surrender value.
• Rebates: LIC offers a refund on high premium amounts, which can help you save money.
• Loan: Under this program, one can obtain a loan to help them deal with an emergency.

Conclusion 

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.

Also Read: 

How To Purchase A Good MB Plan?

Differences Between Money Back Plans and Term Insurance Plans