LIC or the Life Insurance Corporation of India is one of the most trusted brands when it comes to purchasing insurances. Be it a regular life insurance plan, an endowment plan or anything similar, they have been pioneers in the field and have a great customer satisfaction record.
Regulated by the Government of India, Child plans can vary like chalk and cheese. If you are watching for your kids or planning for their education, various plans are curated to achieve specific financial goals. In case of any unfortunate events, you can always count on a life insurance plan to take care of your child’s needs.
Child plans do not look out to insure the child. The life insurance usually covers the parents. The insurance cover allows the child to be protected in case of mishaps and accidents. However, the policy term can be extended and planned until the child becomes a major and become liable to pay the premiums on its own.
You rider plans, waiver plans, accrue a lump sum which is beneficial for your kids. There can be several money back plans which ensure a payout at the end of specific years which is determined during policy purchase. These funds are not terminated or the policy does not lapse even if you are not there to protect your child in the long run. The actual intention of purchasing plan helps you achieve all the goals that it was meant for.
Let us take a look at the most popular child plans offered by the house of the Life insurance Corporation of India:
|Money Back Plan||
1) One of the most traditional money back plans, this is for children who are aged lesser than 12 years.
2) Maximum policy term can range up to 25 years.
3) Premium can be paid as a lump sum or in installments that are half-yearly, quarterly, or even monthly
4) There is no cap on the maximum limit of sum assured
5) Eligible for tax benefit under Section 80 C
6) Death during the deferment period entitles you to get all the premiums paid till date
7) Survival benefits are returned in form of a 20% incentive.
8) Premium waiver rider is available in case of death of the policyholder.
9) Incredible maturity benefits. Sum assured is paid along with additional bonuses.
10) Lapsed policies can be revived by paying the entire sum due, within two years of the last non-payment schedule.
11) One can also avail a loan facility on the insurance plan.
12) Policy surrender option available after 3 years of policy purchase.
|Child Career Plan||
1) Allows you to create a lump sum for future financial goals such as marriage or education.
2) Risk cover extension up to 7 years
3) Policy term is limited to a maturity age of 27 years. However, the range can start from 11 years.
4) Tenure of premium payments can range from 6 months to 5 years.
5) Maximum sum assured can range up to 1 crore.
6) Payment can be made at once that is annually or half yearly. It could be quarterly or monthly too!
7) Maturity benefit is paid until 6 years of the policy term.
8) Additional bonuses are applicable on the last year with added maturity benefits.
9) Death benefits are applicable on the death of the child due to risks identified. Nominee becomes eligible to get the premiums and an added 3% which is the compound interest on the former.
10) Loan facilities are not available
11) Housing loan benefits surety not available.
12) Tax benefits applicable under section 80C.
13) Maturity returns can be claimed under Section 10(10D).
|LIC Jeevan Tarun||
1) Annual payouts for survival benefits.
2) Flexible premium payment options.
3) Free lock-in period until 15 days. You can always return it back if the plan does not suit your requirements.
4) LIC premium waiver benefit is available as a rider plan
5) The loan can be availed against the plan only after it has reached a surrender value.
6) Policy term can range up to a maximum 25 years.
7) Premium needs to be paid for a difference of age and 20 years post policy commencement.
8) Insure your child within 3 months of its birth.
9) Maximum entry age of the kids is 12 years.
10) There is no cap on the maximum sum assured for the plan.
11) An individual plan, it stands null and void in case of any suicides.
12) Survival benefits are available under four options which can range from 5%- 15%, for the sum assured every year for 5 years.
13) Maturity benefits can range from 25%-100% of the sum assured and can be different based on the option that you have chosen.
14) Policy revival is possible within 2 years of the first unpaid premium.
15) Discontinuance charges are applicable accordingly.
16) Tax benefits are applicable under section 80 C and maturity benefits can be claimed under Section 10 (10 D).
A Child Plan can help you stay prepared as it is a long-term product. You can secure your kids future as you can ensure with the above plans that there is an assured sum always available at all times during the existence of the place.
Pay the fees without a break, comfortably. In the absence of a breadwinner, these payouts can be periodic which can be either 10% of the sum assured until the end of the term.
You can also pick out partial withdrawals which can be used to harness the extra talents that can help your child grow as an individual. Be it singing, dancing, painting, or anything else, use the partial withdrawals to utilize it to the fullest.
Plan your child’s wedding. Secure that lump sum to make use of it when it’s time.
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