LIC Children's Deferred Endowment Assurance Plan

The plan is no longer offered by LIC. The company introduced the Children's Deferred Endowment Assurance Plan, also called as the CDA endowment plan, under its child insurance schemes. It came with an insurance cover for the child and a savings avenue for parents. Any parent, legal guardian, or relative could purchase this policy for a child and pay the required premiums.

Read more
Investing in your child's future:A wise decision & a loving choice
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr Tax Free*

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

About LIC’s Children's Deferred Endowment Assurance Plan

It is a deferred endowment child plan by LIC that enables parents to cover the lives of their children. This means that the child is the life assured and the parent is the proposer of the plan. The LIC CDA plan vesting occurs when the child turns 21 years of age. This is when the life cover starts and the child becomes the owner of the policy.

Key Features of the Children's Deferred Endowment Assurance Plan

  • Premiums are payable Monthly, Quarterly, Half-yearly, or Yearly. 

  • LIC adds a bonus to the sum assured on death and maturity based on its profits in a financial year.

  • If the deferment stage is more than 10 years, medical tests are not required. 

  • The policy can be surrendered after 3 years of premium payment. 

  • The death benefit is not applicable if the child dies during the deferment stage. 

Eligibility Criteria

Criteria Minimum Maximum
Entry age of the child 0 17 years
Maturity age 30 years 60 years
Policy Term 13 years 50 years
Sum Assured Rs. 50,000 Rs. 1 Crore

People also read: Sukanya Samriddhi Yojana

Benefits of LIC’s Children's Deferred Endowment Assurance Plan

  • Death Benefit - Sum assured on death plus bonuses is payable to the family of the child on his/her death. In case the parent dies, premiums are waived off, however, only if one has added the premium waiver option at the time of purchase.

  • Maturity Benefit - The child receives the sum assured on maturity plus bonuses at the end of the policy term. 

  • Rider Benefit - This is extra protection available at an additional premium amount. The riders available with the Children's Deferred Endowment Assurance Plan are Premium Waiver Benefit Rider and Accidental Benefit Rider

  • Tax Benefit - The premium paid and the money received from the policy are eligible for tax benefits U/S 80C and 10(10D) of the Income Tax Act of 1961. 

Investment Investment
Secure Secure
Child Banner
Secure your child’s future with or without you
Start Investing
₹10,000/Month
& Get
₹1 Crore*
*Standard T & C Apply

How Does Children's Deferred Endowment Assurance Plan Work?

LIC CDA endowment vesting at 21 plan works in two stages -

  1. Deferment Stage - 

    • It starts from the date of policy purchase and lasts till the deferred date or till the child turns 21 years. 

    • This is the period when parents start paying premiums for the policy so that the child can benefit from the lump sum maturity proceeds.

    • If the child dies during this period, parents will receive a refund of the total premiums paid. 

  2. Insurance Period - 

    • It starts from the deferred date and continues till the end of the policy term or maturity date. 

    • This is the period during which the child gets life insurance protection from LIC. 

    • If the child dies during this period, parents can claim the sum assured on death along with applicable bonuses. 

    • If the child survives, they will receive the sum assured on maturity along with accrued bonuses. 

Invest More Get More
Invest ₹10K/Month YOU GET ₹1 Crores* For Your Child View Plans
Invest ₹8K/Month YOU GET ₹80 Lakhs* For Your Child View Plans
Invest ₹5K/Month YOU GET ₹50 Lakhs* For Your Child View Plans
Standard T&C Apply *

Surrendering Children's Deferred Endowment Assurance Plan 

Surrendering this CDA vesting plan at 21 is only possible after paying premiums for 3 years regularly. You will not get the entire sum assured but LIC will pay you a reduced amount called the Guaranteed Surrender Value (GSV). Here are some conditions to surrendering LIC Children's Deferred Endowment Assurance Plan - 

  • Policy surrender in stage I - LIC pays you 90% of all the premiums paid minus 1st year’s premium. 

  • Policy surrender in stage II - GSV depends on the deferment period. 

    • Less than 10 years - You get back 90% of premiums paid till the deferred date plus 30% of premiums that are paid after completion of the deferred date. This is excluding 1st year's premiums. 

    • Greater than or Equal to 10 Years - You get 90% of the cash here plus 30 percent of the paid premiums that are paid after completion of the deferred date. 

FAQ's

  • Who can buy the Children's Deferred Endowment Assurance Plan?

    Any parent, guardian, or relative of a child aged 0 to 17 years can buy this plan. 
  • Does LIC still offer the Children's Deferred Endowment Assurance Plan?

    No, LIC is currently not offering this plan anymore. You can check out its other child plans including - LIC's New Children's Money Back Plan and LIC's Jeevan Tarun.
  • When does the life cover start with Children's Deferred Endowment Assurance Plan?

    It starts when the child turns 21 years old and continues till the end of the policy term. 
  • Is the death benefit payable on the parent’s death?

    No, since the child is life assured, only his/her death will entitle nominees to the death benefit. On a parent's death, a premium waiver can be opted for.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

child plan investment

Investment

child plan secure

Secure

Secure your Child’s
Career Goal
Start Investing ₹10,000/Month
& Get ₹1 Crore*
*Standard T & C Apply
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Child Plan3

Child plans articles

Recent Articles
Popular Articles
Child Education Planner

05 Feb 2024

Ensure your child's dreams come true with a Child Education
Read more
Indian Bank Education Loan

16 Jan 2024

Indian Bank stands tall as a reliable partner in your academic
Read more
Education Loan for Abroad Studies

16 Jan 2024

Pursuing international education is a dream for many aspiring
Read more
Education Loan Without Collateral

16 Jan 2024

An Education Loan Without Collateral is a financial solution
Read more
Canara Bank Education Loan

15 Jan 2024

Canara Bank Education Loan is a comprehensive financial solution
Read more
Top 12 Government Schemes for Girl Child
Top 12 Government Schemes for Girl Child Government schemes for the girl child are a vital aspect of social welfare
Read more
How to Check Post Office Sukanya Samriddhi Yojana Account Balance
The Sukanya Samriddhi Yojana is a savings scheme launched in the year 2015 by Prime Minister Narendra Modi under
Read more
Sukanya Samriddhi Yojana Calculator
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme that aims to create a corpus to
Read more
Prime Minister Schemes For Boy Child
The Prime Minister Schemes for Boy Child stand as an important initiative aimed at nurturing the boy child and
Read more
Best Child Investment Plans to Invest in 2024
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL