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

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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)
Simple Reversionary Bonus is declared per thousand Sum Assured annually at the end of each financial year.  Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier. Simple Reversionary Bonus accrues during the premium paying term and is paid at the end of the premium paying term or on earlier death along with the final additional bonus, if any. No bonus is paid on death after the premium paying term.
Final Addition Bonus may also be payable provided the policy has run for certain minimum period. This is not guaranteed. 

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

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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

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Disability Benefit Rider

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LIC’s New Term Assurance Rider

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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

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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

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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

​Individuals can choose to return the policy within 15 days of purchasing it

Grace Period

  • 15 days for monthly payment option
  • 30 days for other payment modes

Nomination

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Assignment

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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

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Maturity Claim

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Surrender Claim

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Examples

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FAQs

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