Children are the world’s future, and as parents, we strive to give our children a strong foundation on which to build their lives. The LIC’s New Children’s Money Back Plan is a one-of-a-kind plan that covers a variety of needs for growing children, such as education, weddings, and other expenses. In addition to risk coverage for children, this non-linked money-back scheme provides survivorship benefits.
What is LIC’s New Children’s Money Back Plan?
Individuals who are interested in participating in this policy should consider the basic criteria listed below.
- The LIC New Children’s Money Back Plan is a popular and luxurious option among parents and grandparents because it offers financial security to children up to the age of 25 through a lump sum payment and maturity. Children are seen as the future of any country. As a result, having a well-thought-out financial plan in place is critical to ensuring that money does not stand in the way of a child’s dreams.
- 0 years (at birth) is the minimum entry age. To participate, you must be at least 12 years old. They reach maturity at the age of 25.
Features
Highlights of the New LIC Children’s Money Back Plan
Some of the scheme’s most prominent features are listed below.
| Type of strategy | Participating in a non-linked money-back scheme |
| The plan’s starting point | Personable |
| Policy’s duration | plus or minus 25 years from the date of admission If the policy term is (25-7) = 18 years, for example, the entry age is 5. |
| Maturity has numerous advantages. | At the end of the term, you will receive a maturity benefit equal to the amount guaranteed plus any applicable bonuses. |
| The frequency of premium payment | You can rely on us to deliver whether it’s monthly, quarterly, half-yearly, or annually |
| Take out a loan | It’s possible to get a loan with the policy |
| There is a grace period. | (1) You’ll have 15 days to pay if you choose the monthly payment option (2) You’ll have 15 days to pay if you choose the monthly payment option |
| Take a break and look for something free to do. | The policy must be returned within 15 days of purchase. |
| Re-Emergence | lapsed policies can be revived by paying the entire outstanding balance within two years of the first unpaid du |
| Guaranteed Amount | (1) A minimum of one lakh rupees is required. (2) No such thing as a maximum. |
| The insurance policy’s coverage | Death, maturity, and survival have all been shown to have advantages. |
Benefits
Some of the benefits of LIC’s New Children’s Money Back Plan are listed below
- Maturity Benefit – At the end of the period, you will receive a maturity benefit equal to the sum assured plus any accrued bonuses.
- Survival Benefit – A survival benefit equal to 20% of the basic sum assured is paid when the life assured reaches certain age milestones.
- Death Benefit – If the life assured dies after the risk begins while the policy is in effect, the sum assured on death will be paid, along with any accrued bonuses.
- Profits of the Corporation – Policyholders are entitled to a portion of the LIC’s profits and, as a result, receive bonuses.
- Surrender Value – After three years, individuals can surrender their policies for an assured surrender value.
- Save Money – You can save money by getting a rebate from LIC on high premium amounts.
- Loan – With this policy, you can borrow money to cover unexpected expenses.
Product Specification
| The sum assured by the plan | (1) A minimum of INR 1 lakh is required. (2) Maximum – The strategy has no upper limit |
| The Coverage Provided by the Plan | Advantages of aging, dying, and surviving |
| Policy Types | Participating in a non-stock-market-linked money-back plan. |
| Policy Foundations | on an individual basis |
| Make a Long-Term Strategy. | The entry age has been lowered by 25 years. |
Policy Details
Monthly premium payments are given a 15-day grace period, while quarterly, half-yearly, and annual premium payments are given a 30-day grace period. The policy’s full set of benefits will be active during the grace period. If the individual does not pay the premium during the grace period, the policy will lapse.
Policy surrender – The policy can be surrendered after three years of premium payments. Surrender value is a percentage of total premiums paid, minus any additional premiums, rider premiums, or survival benefits that are already due or payable. The policy’s year and term determine the surrender value.
Free Look Period – If an individual or policyholder is unhappy with the policy’s terms and conditions, he or she may return the policy to the company within 15 days, citing the reasons for cancellation. The company will cancel the policy and refund the premium paid after deducting the proportionate risk premium for the period on the cover, as well as any other applicable charges like stamp duty.
Inclusion
Loan facility – The surrender value accumulated in the policy can be used to obtain a loan against it. The loan is disbursed according to the company’s current terms and conditions.
Exclusions
- Only 80% of the premiums paid are returned to the nominee if the Life Assured was over the age of 8 and committed suicide within 12 months of the policy’s inception.
- If the suicide occurs within 12 months of revival and the Life Assured was over the age of 8, the higher of 80% of premiums paid or acquired Surrender Value is paid.
- If the life assured, whether sane or insane, commits suicide within 12 months of the policy’s inception or revival date, no death benefit will be paid
- The insurance company will only reimburse 80% of the premiums paid back to the nominee. The clause is null and void if the life assured is under the age of eight years.
In Terms of Riders
Rider for the LIC Premium Waiver Benefit – The LIC’s New Children’s Money Back Plan includes a very useful premium waiver rider that is available for the life of the proposer, who is 18 to 55 years old. The rider can be added to the base plan for an additional fee. If the proposer dies during the active policy term, his or her future premiums under the basic plan will be waived. If the proposer commits suicide within the first 12 months of the policy’s start date or the first 12 months of the policy’s revival date, the proposer will not be eligible for the rider benefit.
Tax Benefits – The premiums paid for the policy can be claimed as a tax deduction under Section 80C of the Income Tax Act of 1961. In the same way, the claim amount received from the policy is tax-free under Section 10(10D) of the Income Tax Act of 1961.
LIC’s New Children’s Money Back Plan
Inclusions
This plan includes the LIC Premium Waiver Benefit Rider. If you want more coverage, you can add a rider. As a rider, the proposer’s life (parent or grandparent of the child) can be added. If the proposer died during the policy’s term, the premiums owed would be waived. LIC would pay the premium, and the policy would continue to function normally. Any unpaid survival, death, or maturity benefits will be paid as promised after that.
Individuals can purchase the Premium Waiver Benefit Rider, which effectively waives all future premiums if the subscriber (paying) dies. Individuals can choose to add the Premium Waiver Benefit Rider to their policy, which effectively waives all future premiums if the subscriber (paying) passes away.
Premiums can be paid annually, quarterly, half-yearly, or monthly, and the policy and premiums can be purchased and paid using a Salary Savings Scheme. There will be a grace period if you do not pay your premium by the due date
The grace period for car insurance premiums would be 15 days, and it would be 30 days for all other modes of premium payment.
The grace period for car insurance premiums would be 15 days, and it would be 30 days for all other modes of premium payment.
| The age of the child | Insured Sum of INR 2 Lakhs | Guaranteed amount of INR 5 Lakhs | Amount assured: INR ten lakhs |
| Five Years 10 | Rs. 780 | Rs. 26.460 | Rs. 52,000 |
| 10 years | Rs. 15406 | Rs. 38,024 | Rs. 76,048 |
| 12 years | Rs. 18,012 | Rs. 44,541 | Rs. 89,082 |
Exclusions
Suicides, unfortunately, are not covered by the plan. If the insured is over the age of eight and commits suicide within the first year after purchasing the policy, 80% of the premiums will be refunded. Similarly, if the child commits suicide within a year of the policy is revived, the higher of 80% of the premiums paid or the surrender value acquired by the plan will be refunded. No death benefit would be paid in these circumstances.
Documents Required
- It is necessary to have a valid government-issued identification card, such as a driver’s license, passport, aadhaar card, or Pan card
- All ages are welcome to participate.
- An electric bill, a phone bill, or any other utility bill that shows your current address is acceptable.
- History of medical conditions
- Any documentation that proves your identity
- A medical examination will be performed if necessary
- On a case-by-case basis, any other documents that the life insurance company may request
FAQs-
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Q1. What is the policy renewal process for LIC – New Children’s Money Back Plan?
a) The policy will last for twenty years, with coverage lasting up to twenty-five years because the child is five years old.
b) If the child survives his or her injuries, there is a chance that he or she will be adopted.
c) When the child reaches the age of 18, i.e. after 13 years of policy coverage, the first money-back benefit will be paid at 20% of the sum assured. As a result, the parent is eligible for an INR 1 lakh survival benefit. This money can be used to fund the child’s post-secondary education
d) When the child turns 20, he or she will be entitled to an additional 20% of the sum assured, which is INR 1 lakh.
e) When the child turns 20, he or she will be entitled to an additional 20% of the sum assured, which is INR 1 lakh.
f) When the plan matures, the remaining sum assured will be paid, along with any bonuses vested under the plan.
g) If the child dies, the parents will be responsible for the child’s funeral expenses.
h) Risk coverage would start after the second policy anniversary. If the child died before that period, the premiums paid would be refunded
i) The full sum assured of INR 5 lakhs, as well as any vested bonuses, will be paid if the child dies before the policy’s second anniversary. -
Q2. How can I check the policy status for LIC – New Children’s Money Back Plan?
Step 1: Visit the official LIC website and log in with your username and password.
Step 2: Log in to your account and choose ‘View Enrolled Policies’ from the drop-down menu.
Step 3: You’ll be taken to a page where you can view all of the policies that have been enrolled. -
Q3. What is the policy cancellation process for LIC – New Children’s Money Back? Plan?
a) Documents pertaining to the policy bond.
b) Payment of the surrender value is requested.
c) Payment of the surrender value is requested.
d) Fill out the LIC NEFT form.
e) Information about your bank account.
f) An Aadhar card, a pan card, or a driver’s license are examples of original identification.
g) A check has been voided.
h) Handwritten letter to LIC outlining the reasons for the service’s demise. -
Depending on the policyholder’s preferences, the premiums can be paid annually, monthly, quarterly, or half-yearly. Regular premium payments are popular because they help to keep premiums low.
Premiums aren’t paid in the same way that you pay for everything else. Your method of premium
payment determines the frequency with which payments are made. It also determines whether
you pay by cash, check, credit card, or another method. -
a) Pay the entire amount upfront before the insurance coverage begins.
b) Premiums are paid on a monthly basis.
c) Quarterly premiums are paid four times a year.
d) Semi-annual premiums are significantly less expensive than monthly premiums because they are paid twice a year. -
Q6. What is the Invest Protect Option?
Short-term investors should consider bank CDs and Treasury securities. Over time, fixed or indexed annuities, as well as indexed universal life insurance products, can outperform Treasury bonds