Which Is The Best Plan In Lic For Child

LIC or Life Insurance Corporation of India holds the record of being the oldest and the most reliable life insurance companies in India. It was enforced by the Life Insurance Corporation Act that was passed by the Parliament of India 1st September, 1956. The relaxation of the stringent regulations in the insurance sector was initiated by the Government of India in January 2002 to introduce private players in the industry, thus, breaking LIC’s monopoly.

Top Child Plans offered by LIC

Let’s take a look at the LIC Child Plans.

LIC Jeevan Tarun Plan

The Jeevan Tarun Plan is a participating, non-linked limited premium payment plan that is a healthy mix of insurance and savings for your child’s future. It is an effective insurance plan that will enable you to fulfil his/her dreams of admission to the preferred education course, hostel charges and other expenses.

Salient features and benefits:

• It is a traditional child plan that is a blend of Endowment Plan and Money Back Plan.
• A parent or grandparent of a child between 0 and 12 years of age can become the policyholder
• There is no cap on the maximum sum assured for the plan
• Flexible premium payment options, along with a free lock-in period of up to 15 days, so as to enable the policyholder to return the policy if it does not meet his/her objectives.
• Offers LIC premium waiver benefit rider
• The loan can be availed against the plan only after it has reached a surrender value
• It includes an annual survival benefit for children between aged between 20 and 24 years.
• It is available in four categories ranging from 5% to 15% every 5 years on the sum assured.
• Offers maturity benefit after the policy term of a maximum of 25 years less entry age. It ranges from 25% to 100% of the sum assured. This can vary on the basis of the selected option.
• The plan becomes null and void in case of suicides during the policy term.
• Survival benefits are available under four options which can range from 5% to 15%, for the sum assured every year for 5 years.
• This survival benefit is payable annually to the policyholder, beginning from the completion of 1 year of the policy.
• Add-on rider is available on an additional premium payment.
• On the first unrepaid premium payment, the policy can be revived within 2 years on payment of discontinuance charges.
• Tax benefits are applicable under Section 80C and maturity benefits can be availed under Section 10(10D) of the Income Tax Act, 1961.

LIC New Children’s Money Back Plan

The New Children’s Money Back Plan is tailor-made to help your child achieve milestones like higher education, marriage, etc. by planning for the finances well in advance. It helps you to be prepared for the rising expenses involved in admissions at institutes for higher education, vocational training and other expenditures.

Salient features and benefits:

• Eligible for parents or guardians with children below 12 years of age.
• Policy term extends to a maximum of 25 years less age at entry.
• No cap is applicable on the sum insured, payable along with additional bonuses and maturity benefits
• Survival benefits are paid back along with incentives at the rate of 20%
• The premium is payable monthly or quarterly or half-yearly or yearly as per the discretion of the policyholder
• Eligible for attractive rebates on payment of high premium amounts
• Entitled to bonuses through corporation profits earned by LIC
• Eligible for tax benefit under Section 80C of the Income Tax Act, 1961
• Premium waiver rider can be availed in case of the death of the policyholder.
• Death of the policyholder during the deferment period makes the insured eligible for all the premium paid till date
• Revival of lapsed policy is possible on payment of the entire sum due within two years of the first unrepaid premium
• Loan facilities can be availed on this plan to overcome unforeseen exigencies
• The policy has a surrender option after 3 years of the start of the policy.

Conclusion

With a LIC Child Plan, you can be assured that your child’s education or marriage will not be interrupted even after your sudden death. In case such a scenario arises, your insurance provider pays a certain percentage of the sum assured or a lump sum immediately. Besides, it also starts offering annual pay-outs till the end of the policy tenure.

Also read: What Is The Best Savings Plan For A Child

What Is A Child Protection Plan