LIC’s New Children Money Back Plan

Description

 

Key Features of LIC New Children’s Money Back Plan:

Plan Type:

• The plan is an individual, non-linked, participating life assurance money-back plan designed to provide financial support for a child’s future needs.

Payment of Premiums:

• Premiums can be paid on an annual, half-yearly, quarterly, or monthly basis. Monthly premiums can be paid through NACH (National Automated Clearing House) or salary deduction (SSS) only during the policy’s premium-paying period.

Grace Period:

• A grace period is provided for premium payments. Policyholders have 30 days for yearly, half-yearly, or quarterly premiums, and 15 days for monthly premiums from the date of the first unpaid premium to make the payment without the policy lapsing.

Loan Facility:

• Policyholders can avail a loan under the policy if they have paid at least two full years’ premiums and meet the specified terms and conditions set by the corporation.

Free Look-Up Period:

• After obtaining the insurance bond, the policyholder has a free look-up period of 15 days during which they may return the policy to the business and provide a justification for their choice if they are unhappy with the terms and conditions of the policy.

Surrender Benefit:

• If the policyholder has paid payments for a minimum of two complete years, they may surrender the coverage at any point. When the policy is surrendered, the surrender benefit—which is greater than the Guaranteed Surrender Value and the Special Surrender Value—will be given.

 

Benefits Offered by LIC New Children’s Money Back Plan:

Death Benefit:

• The death benefit will be paid out in the tragic event that the life guaranteed passes away while the policy is still in effect after the risk beginning date. The death benefit is guaranteed to be at least 105% of all premiums paid up until the date of death, and is calculated as the higher of the basic sum assured or seven times the annual premium.

Survival Benefit:

• The plan offers a survival reward if the life guaranteed lives until certain policy anniversaries, which happen at ages 18, 20, or 22. If the insurance is in effect, 20% of the basic sum insured is due on each of these occasions.

Maturity Benefit:

• The policyholder will get the sum promised at maturity when the insurance comes to a conclusion while it is still in effect. This sum comprises the vested simple revisionary bonuses as well as the last extra bonus. At maturity, the total amount promised equals 40% of the basic amount assured.

Participation in Profits:

• During its term of validity, the insurance shares in the company’s earnings. Simple reversionary incentives are available to policyholders, subject to the success of the firm. On the other hand, paid-up plans do not pay the last supplementary incentive. Furthermore, the last extra bonus will be announced within the policy during the year if it has not been claimed because of maturity or death.

 

Eligibility Conditions:

Parameters	Values
Minimum Entry Age	0 Years
Maximum Entry Age	12 Years
Minimum Basic Sum Assured	Rs. 1,00,000
Maximum Basic Sum Assured	No Limit
Policy Term/Premium Paying Term	(25 – Age At Entry) Years
Minimum/Maximum Maturity Age	25 Years