Best LIC Child Plans In India For 2024
LIC of India has a vast customer base of over 250 million lives. It strives to maintain the same service and the pricing of the products in the ever-competitive insurance sector. LIC offers a huge range of insurance products, including child plans, protection plans in the form of term plans, savings, and investment plans available in both ULIP or conventional form and pension plans.
The child insurance plans offered by LIC are specifically designed to ensure a financially secure future for the child and help them achieve the major milestones of life. Moreover, along with the benefit of financial security, the LIC Child Insurance Plans also offer life protection to the child in case of any eventuality.
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Best Child Insurance Plans Offered by LIC in 2024
Following are the child insurance plans offered by LIC and their features and benefits.
LIC New Children’s Money Back Plan
This child plan by lic is a participating, non-linked, traditional, money-back plan.
- This policy is a tailor-made scheme that caters to marriage, education, and other needs of growing kids via Survival Benefits.
- Moreover, it offers the rock cover on a child’s life during the policy term and for the survival benefits on the survival to the end of the stipulated duration.
Benefits of LIC’s New Children’s Money-Back Plan
Death Benefits
In the event of the unfortunate demise of the life assured during the tenure of the policy, the death benefit is payable as:
- On the demise of the Life Assured before the commencement date of risk: Return of premium (s) exclusive of extra premium, rider premium, and taxes, if any, is paid to the policy's beneficiary.
- On the Life Assured's demise after the commencement date of risk: Sum Assured on Death and the vested Final Additional Bonus and Simple Reversionary Bonus (if any) shall be payable.
Survival Benefits
- In case the life assured survives the policy's term coinciding with or right away following the accomplishment of ages 22, 20, and 18 years, 20 % of the Basic Sum Assured on every occasion shall be paid if the policy is active.
Maturity Benefits
- If the life assured is surviving the specified maturity date if the policy is active, the SA on maturity (that is 40 % of the Basic SA) together with vested Final Additional Bonus and Simple Reversionary Bonus, if any, shall be paid.
LIC Jeevan Tarun
LIC Jeevan Tarun child plan is a non-linked participating limited premium payment plan.
- It offers the combined benefit of savings and life protection features for children.
- The plan is specifically designed to cater to the educational and other financial needs of the growing children.
Benefits of LIC Jeevan Tarun Plan
Death Benefit
- In the event of the demise of the life assured, the death benefit is offered to the beneficiary of the policy (the child ) as:
- On death before commencement of risk: The entire amount of premium paid to date, excluding taxes, extra premium, and rider premium, if any, is payable to the policy's beneficiary without interest.
- On death after commencement of risk: The death benefit is offered as the total sum assured amount on death plus vested reversionary bonus and final additional bonus if any is paid to the policy's beneficiary.
- The sum assured on death is defined as a higher of 125% of the total sum assured amount or 7 times the annualized premium. The death benefit offered to the beneficiary should be 105% of the total premium paid to date.
Survival Benefits
- A fixed percentage of the sum assured is paid on each policy anniversary to the child after he/she completes 20 years of age.
- The survival benefit continues to be paid for the next four policy anniversaries.
- The fixed percentage of the sum assured depends on the option chosen by the life assured when purchasing the policy.
Maturity Benefits
- In case of survival of the life assured during the tenure of the policy, the sum assured on maturity along with the final additional bonus and vested reversionary bonus, if any is paid to the insured.
- Let’s take a fixed percentage of the sum assured amount in maturity for various options.
Tax Benefit
- LIC Jeevan Traun’s plan provides the benefit of tax exemption to the policyholder.
- The premium paid towards the policy up to the maximum limit of 1.5 lakh and the maturity proceeds are tax exempted under sections 80C and 10(10D) of the Income Tax Act.
Conclusion
Child Insurance plans have become very important because they specifically provide for your child's future even in your absence. The inbuilt premium waiver rider ensures that the plan continues even after the parent's death and the benefits accrue and when they are payable so that the benefits can be utilized for the purpose for which it was initially planned, i.e. for the child's future.
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