LIC’s New Children’s Money Back Plan
The LIC’s New Children’s Money Back Plan is specially designed to cater to education, marriage and other needs of growing children. It helps to secure the children’s future even if the parent is not around.
The LIC’s New Children’s Money Back Plan is a participating plan designed to provide financial support for the education, marriage, and other needs of growing children. The plan is a non-linked money-back plan that offers a limited premium payment feature. The policy can be purchased by a parent or grandparent for a child aged 0 to 12 years, with a maturity age of 25 years.
The plan offers a loan facility after 3 years and can be surrendered after 3 years of full premium payment. Premiums can be paid on a yearly, half-yearly, quarterly, and monthly (ECS) basis, with rebates given for yearly and half-yearly payment modes. The basic sum assured is a minimum of Rs. 1,00,000 with no maximum limit, with rebates also given for higher sum assured amounts.
The policy provides a death benefit, maturity benefit, and survival benefits at certain ages, and offers tax benefits under sections 80C and 10(10)D of the Income Tax Act. Additionally, the policy offers an optional rider (LIC’s Premium Waiver Benefit Rider) which can be added to the policy.
15 LIC’s New Children’s Money Back Plan
- 1) It is a participating plan with limited premium payment feature. It is non-linked money back plan.
- 2) It provides cover for the life of the child during the policy term along with survival benefits.
- 3) This policy can be bought by parent or grandparent for a child aged 0 to 12 years. The maturity age is 25 years.
- 4) Loan facility is also available in this policy after 3 years from the start of the policy.
- 5) The policy can be surrendered after 3 years of full premium payment.
- 6) The policy premiums can be paid in yearly, half-yearly, quarterly and monthly basis (only ECS).
- 7) Rebate is given for yearly and half-yearly mode of premium payment.
- 8) Basic sum assured is minimum Rs.1,00,000 and there is no maximum limit.
- 9) Rebate is also given for higher sum assured amount (above Rs. 2,00,000).
- 10) The Death Benefit is Sum Assured + Simple Reversionary Bonuses + Final Additional bonus.
- 11) The Maturity Benefit is 40% of the basic Sum Assured + Simple Reversionary Bonus + Final Additional Bonus.
- 12) The Survival Benefit equivalent to 20% of the basic sum assured will be paid when the child attains 18, 20 and 22 years.
- 13) One can avail tax benefits under section 80C for the premium paid.
- 14) The maturity amount is also tax-free under section 10(10)D.
- 15) LIC’s Premium Waiver Benefit Rider is an optional rider that can be bought with this policy.
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