India’s largest life insurance company, Life Insurance Corporation (LIC) is offering an insurance-cum-investment policy for children. This new policy is called ‘The New Children's Money Back Plan’ which is designed to meet the educational, marriage and other needs of growing children through survival benefits, as per LIC's website @ licindia.in.
According to the website, it provides for the risk cover on the life of child at the policy term and a slew of survival benefits on surviving to the end of the specified duration. Adding to it, LIC offers a range of term insurance, pension plan, endowment, unit-linked, health insurance and money back products.
Details of the premium & the sum assured applicable to the New Children's Money Back Plan:
LIC's New Children's Money Back Plan can be purchased by the parent or grandparent for a child up to 12 years of age for a minimum sum assured of Rs.1 lakh, and in multiples of Rs.10,000 thereof, as per LIC website.
This New Money Back Plan does not have any limit for the maximum sum assured for the policy.
Interestingly, the policy term for plan is 25 years. If the age at entry of the life assured is less than eight years, the risk under the plan commences either one day before the completion of two years (from the date commencement of policy) or one day before the policy anniversary coinciding with or immediately following the completion of eight years of age, whichever is earlier.
Money back benefits offered by LIC under New Children's Money Back Plan:
Under the plan, LIC pays 20 per cent of the basic sum assured to the policy holder after the child completes 18 years, 20 years and 22 years of age each. The left out 40 per cent amount will be payable to the policy holder at the end of 25 years along with vested simple reversionary bonuses and final additional bonus.
Check LIC’s sample premium rates (per Rs.1,000) applicable to the New Children's Money Back Plan:
|
Age (in years) |
Premium (Rs.) |
|
0 |
44.15 |
|
5 |
57.00 |
|
10 |
80.60 |
|
12 |
93.90 |
Source: licindia.in
It is to be noted that, non-payment of the premium within the grace period leads to policy lapse. However, a lapsed policy can be revived within a period of two consecutive years from the date of first unpaid premium but before the date of maturity, as stated by LIC.
