LIC’s New Children’s Money Back Plan is a non-linked, with-profit, regular premium payment money back plan specially designed to meet various financial needs of children through Survival Benefits. It provides for the risk cover on the life of child during the policy term and number of survival benefits on surviving to the end of the specified duration’s.
Eligibility Conditions and Restrictions:-
- Child Age at Entry – Between 0 – 12 Years (Nearest Birthday)
- Proposer Age at Entry – Between 18 – 55 Year (Nearest Birthday)
- Policy Term – 25 – Child’s Age at entry (years)
- Premium Paying Term – 18 – Child’s Age at entry (years)
- Premium Payment Mode – Monthly (SSS, ECS), Quarterly, Half Yearly and Yearly
- Minimum Sum Assured – 1,00,000
- Maximum Sum Assured – No limit
Maturity Benefit (according to child’s age)–
- At 18 = 20% of SA
- At 20 = 20% of SA
- At 22 = 20% of SA
- At 25 = 40% of SA + Bonus+ Final Additional Bonus
Death Benefit – Date of commencement of risk under the plan: In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80C and the maturity received (returns) are exempted from tax under Section 10 (10A).
Surrender Value: The policy can be surrendered at any time during the policy term provided premiums have been paid for full three years.
Loan: Loan facility is available under this plan after the payment of premiums for atleast three full years and after obtaining the declaration from the proposer to the effect that loan is raised for the benefit of the minor life assured.
Suicide Clause: This policy shall be void
- If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim under this policy except for 80% of the premiums paid excluding any taxes and extra premium, if any, provided the policy is in force. This clause shall not be applicable in case age at entry of the Life Assured is below 8 years.
- If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes and extra premium, if any,) or the surrender value shall be payable. The Corporation will not entertain any other claim under this policy. This clause shall not be applicable:
- in case the age of the Life Assured is below 8 years at the time of revival; or
- for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policies.
- PWB available (Premium Waiver Benefit Rider)
- Free Look Period – If policy holder is not satisfied with “Terms and Condition” of policy he/she may return policy to LIC stating reason within 15 days from date of receipt of policy.
- Grace Period: A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.
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