LIC’s New Children’s Money Back Plan is non-linked, with profits, regular premium payment money back plan specially designed to meet various financial needs of children through Survival Benefits
Insurance covers have become one of the essentials in today’s era in order to avoid any kind of financial crisis during an emergency. Every parent wants their child to be safe and protected from all the harms, so this Children’s Day, you can gift your child a protection cover in form of insurances.
Here are two insurance covers offered by Life Insurance Corporation of India (LIC) which you can gift your child:
LIC’s Child Money Back Plan
LIC’s New Children’s Money Back Plan is non-linked, with profits, regular premium payment money back plan specially designed to meet various financial needs of children through Survival Benefits.
It provides for the risk cover on the life of child during the policy term and number of survivals to the end of the specified duration. The silent feature of the plan are as under:
Premium Payment Mode: Yearly, halfly, quarterly, monthly(ECS)
Sum assured: Minimum sum assured is Rs 1,00,000 while there is no maximum sum assured limit (depending upon income).
Policy benefits:
1. On death: Before the date of commencement of risk: An amount equal to the total amount of premiums paid excluding taxes, extra premium and rider premium, if any shall be payable.
2. On death: After the date of commencement of risk: Death Benefit, defined as sum of Sum Assured on Death and vested Simple Revisionary Bonuses and Final Additional Bonus, if any, shall be payable.
Where Sum Assured on Death is defined as higher of 10 times of annualized premium or Absolute amount assured to be paid on death i.e. Basic Sum assured. This death benefit shall not be less than 105% of the total premiums paid as on date of death.
On survival: If policy is in full force: On the accomplishment of ages 18, 20, 22 years, 20 per cent of basic sum assured. While on maturity at age of 25 years 40 per cent of basic sum assured with vested bonus along with FAB will be given.
It can be noted that the policy can be surrendered at any time during the policy term provided premiums have been paid for full three years.
Loan facility is also available under this plan after the payment of premiums for at least three full years.
LIC’s Jeevan Tarun Plan
Jeevan Tarun Plan is non-linked, with-profits, Limited premium payment plan specially designed to meet the educational and other needs of growing children. Its premium payment mode is yearly, halfly, quarterly, monthly.
There is no minimum entry age while the maximum entry age is 12 years. Minimum sum assured is of Rs 75,000, while there is no limit for maximum sum assured.
Policy Benefits:
On death: Before the date of commencement of risk: An amount equal to the total amount of premiums paid excluding taxes, extra premium and rider premium, if any shall be payable.
On death: After the date of commencement of risk: Death Benefit, defined as sum of Sum Assured (SA) on Death and vested Simple Revisionary Bonuses and Final Additional Bonus, if any, shall be payable.
Where sum assured on death is defined as higher of 10 times of annualized premium or absolute amount assured to be paid on death i.e. 125 per cent of sum assured. This death benefit shall not be less than 105 per cent of the total premiums paid as on date of death.
On survival: Option is chosen at proposal stage.
Option-1: No survival, maturity benefit 100% S.A.
Option-2: 5% S.A. every year for 5 years from age 20 to 24, maturity benefit 75% S.A.
Option-3: 10% S.A. every year for 5 years from age 20 to 24, maturity benefit 50% S.A.
Option-4: 15% S.A. every year for 5 years from age 20 to 24, maturity benefit 25% S.A.
The policy can be surrendered at any time during the policy term provided premiums have been paid for full three years. Loan facility is also available under this plan after the payment of premiums for at least three full years.
