Understanding LIC Child Education Plan

The Life Corporation of India (LIC) has developed a money-back plan for children. The LIC New Children's Money Back Plan is a participation plan that provides guaranteed payouts known as survival benefits over the policy duration to fulfill a growing child's educational, marriage, and other financial obligations. This plan covers life insurance for the Child for the lifetime of the policy, as well as survival benefits to help meet the financial needs of a growing child at various stages of life. This program is open to parents and grandparents with children aged 30 days to 12 years.

Features of the LIC Child Education Plan

The following are the major aspects of the LIC Child Education Plan  program:

• Life insurance covers adolescents.
• At the ages of eighteen, twenty, and twenty-two, survival prizes are given out.
• Payments to survivors are determined at a rate of 20% of the guaranteed amount.
• It is beneficial to have prior experience.
• Allows for the accumulation of wealth.

Benefits of the LIC Child Education Plan

Some of the benefits of purchasing a LIC Child Education Plan  include:

1. Insurance Protection

The LIC Child Education Plan  covers coverage for the child's life. The insurance company will pay the following death benefit if the life guaranteed dies before the end of the policy period.

2. Death occurs before the risk's start date

The death benefit will be equal to the total amount of premiums paid up to the date of death, minus taxes and rider premiums (if any)

3. Survival's Advantages

When the life insured reaches the ages of 18, 20, and 22, the LIC Child plan offers survival awards. Survivor payments will be given when the above-mentioned ages are met and will be computed at 20% of the entire amount insured.

4. Profit Split

The LIC Child Education Plan idea includes profit-sharing. On the basis of the insurance provider's performance, simple reversionary bonuses will be declared on the policy. At the policy's maturity or in the case of a claim settlement, final supplementary incentives may be given.

5. Maturity Reward

The LIC Child Education Plan gives a maturity bonus if the life insured lives to the end of the policy term. The money committed, a basic reversionary bonus and a final bonus should all be included in maturity benefits (if any). The sum promised at maturity will be equivalent to 40% of the total value insured.

6. Profits of Corporations

Policyholders can participate in the LIC's profits and get benefits as a consequence.

7. Surrender's Value

Individuals can surrender their insurance for an assured surrender value after three years. LIC gives a premium refund on large premium amounts, which can help you save money.

Conclusion

It's vital to make financial plans for your child's future so that he or she can fulfil his or her goals. As a result, you should set aside finances for your child's future. However, if you pass away too soon, you may not be able to leave your Child enough money. In this case, children's insurance coverage may be beneficial. Regardless of whether the parent is alive or not, these agreements ensure that a financial corpus is generated. The LIC Child Education Plan is one such Child insurance plan that might assist guarantee your child's financial future.

Also read - How Life Insurance Can Help You Fund Your Child's Dream?

What Are Child Education Plans? What Are The Benefits Of Purchasing It?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.