Introduction
LIC’s New Children’s Money Back Plan is a participating non-linked money back plan. This plan is specially designed to meet the educational, marriage and other needs of growing children through Survival Benefits. In addition, it provides for the risk cover on the life of child during the policy term and for number of survival benefits on surviving to the end of the specified durations.
Table No.
832
Plan Type
Non -linked, With-Profits, Regular premium payment Money back plan.
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
0 years
Maximum :
12 years
Maturity Age
Minimum
Write down here
Maximum
25 years
Basic Sum Assured
Maximum
1 Lakh
Minimum
No Upper Limit
Policy Term
25 – entry age
Policy Paying Term
7 pay, 10 pay or (term-5)
Premium Payment Frequency
nnual, half-yearly, quarterly, monthly
Coverage
Death Benefit
- Death Benefit
- Survival Benefit
- Maturity Benefit
- Participation In Profit
- Simple Reversionary Bonus
- Final (Additional) Bonus (if any)
Key Features
- Participating non-linked money back plan eligible for bonus
- Designed to cater to educational, marriage and other needs of growing children
- Offers cover on the life of child during the policy term
- Can be bought by parent or grandparent for a child aged 0 to 12 years
- Plan suitable to meet Educational and Marriage expenses of children having age between 0 years (last birthday) and 12 years (Last birthday) of age.
- Money back available on 18 th, 20th and 22 nd years of age of the child.
- Plan matures on the 25th age of the child.
- Premium need to be paid up to 25 th of age of the child. (For example: If the child is having 2 years of age, premium has to be paid for 23 years.)
- Maturity amount and survival benefits available are exempted from Income tax under section 10(10D) of income tax act.
- Tax rebate under section 80 C of Income Tax act can be availed on the Premium paid. Read more : Calculate your Income Tax liability using income tax calculator.
- Premium Waiver Benefit (PWB) rider is available as an additional option for New Children’s Money Back Plan.
Policy Benefits
Death Benefit
- In case of death of the child before the commencement of risk : All premiums paid are returned to the nominee, excluding taxes and rider premiums.
- In case of death of the child after the commencement of risk : The nominee will receive the “Sum Assured on Death” + Simple Reversionary Bonus + Final Addition Bonus which would be have declared throughout the policy term.
Sum Assured on Death = Higher of the following:
- 10 times the Annualised Premium
- Basic Sum Assured mentioned in the policy
Survival Benefit
On Policy Anniversary immediately after the child is 18 years old – 20% of Basic Sum Assured
On Policy Anniversary immediately after the child is 20 years old – 20% of Basic Sum Assured
On Policy Anniversary immediately after the child is 22 years old – 20% of Basic Sum Assured
Maturity Benefit
40% of Basic Sum Assured + Simple Reversionary Bonuses + Final Addition Bonus
Every year LIC declares bonuses for various plans. It would depend on the company’s performance. There is no way to know these bonus rates in advance.
Rebate
Write down here
Profit Participation
Policyholders are eligible to participate in profits earned by LIC, earning bonuses through the same.
Ideal Plan
This plan is ideal to educational, marriage and other needs of growing children.
Tax Benefits
Tax Benefits on Premiums: under section 80C
Tax Benefits on Death Benefit Amount: under section 10(10D)
Tax Benefits on Survival & Maturity Amount: under section 10(10D)
Loans
Policyholders can avail a loan through the policy
Riders
Premium Waiver Benefit (PWB) rider is available as an additional option for New Children’s Money Back Plan.
LIC’s Premium Waiver
Benefit Rider is available as an optional rider on the life of proposer aged
between ages 18 to 55 years by payment of additional premium. In case of death
of the proposer, the premiums under the basic plan falling due after the date of
death shall be waived. The cost of medical and special reports shall be borne by
the proposer. This rider shall not operate in the event of death of the proposer by
his own hands whether sane or insane within 12 months from the date of
issuance of First Premium receipt or within 12 months from the date of revival.
Accidental Death and Disability Rider
Write down here
Disability Benefit Rider
Write down here
LIC’s New Term Assurance Rider
Write down here
Surrender Value
Guaranteed Surrender Value
The Guaranteed Surrender value during policy term shall be a percentage of total premiums paid excluding extra premiums and premiums for riders, if opted for. This percentage will depend on the policy term and policy year in which the policy is surrendered.
Special Surrender Value
Write down here
Paid-up value
If at least 3 full years’ premiums have been paid, then this policy shall continue as a paid-up policy.
The Basic Sum Assured under the policy shall be reduced to such a sum, called Paid-up Sum Assured and shall bear the same ratio to the Basic Sum Assured as the premiums paid bears to the total number of premiums payable i.e. Basic Sum Assured *(number of premiums paid / number of premiums payable).
This Paid-up Sum Assured along with vested simple reversionary bonuses (if any), is payable on maturity or death.
Rebates
Rebate on Premium Payment Mode
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly, Monthly, SSS – NIL
Rebate on Sum Assured
Write down here
High Sum Assured and Mode Rebate
Basic Sum Assured (B.S.A) Rebate (Rs.)
1,00,000 to 1,90,000 Nil
2,00,000 to 4,90,000 2 per thousand B.S.A.
5,00,000 and above 3 per thousand B.S.A.
Other Details
Revival Period
Lapsed policies can be revived within 2 years of first unpaid due by paying the entire pending amount
Free Look Period
Grace Period
- 15 days for monthly payment option
- 30 days for other payment modes
Nomination
Write down here
Assignment
Write down here
Exclusions
Suicide
- In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee if the Life Assured was aged more than 8 years.
- In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid if the Life Assured was aged more than 8 years and the policy had acquired a paid-up value.
Claim Process
Death Claim
Write down here
Maturity Claim
Write down here
Surrender Claim
Write down here
Examples
Write down here
FAQs
Write down here