LIC International Child Education Plan 272

This way, the plan enables parents to set aside money for their child's future.

About LIC International Child Education Plan 272

The LIC International Child Education Plan 272 entails building up the child's future using a fixed saving scheme rather than a market-linked investment option. It offers the proposer a Basic Sum Assured, along with Guaranteed Additions that are added each year, either at maturity or in case of death of the life assured during the plan period. The LIC International Child Education Plan also gives an option of Premium Waiver Benefit.

Key Features of LIC International Child Education Plan 272

The plan is built around a few defining features that separate it from a standard endowment policy:

• Non-linked, non-participating, limited premium endowment plan designed specifically for children

• Guaranteed Additions accrue every policy year on the Basic Sum Assured, alongside the base maturity or death payout

• Risk commences from the policy anniversary immediately after the child turns 7 (last birthday), or two years from the policy commencement date, whichever is later

• An optional Premium Waiver Benefit Rider protects the policy if the proposer dies during the term

• Premium can be paid over a limited term of 5 or 7 years, rather than through to maturity

Eligibility Criteria for LIC International Child Education Plan 272

Eligibility under LIC International Child Education Plan 272 is set by the sum assured chosen, the child's entry age, and the policy and premium paying terms:

Benefits of LIC International Child Education Plan 272

LIC International Child Education Plan 272 benefits are as follows:

Death Benefit

If the life assured dies during the policy term but before the risk commencement date, the total premiums paid till the date of death are returned to the proposer, excluding any extra or rider premiums.

If death occurs after the risk commencement date, the Basic Sum Assured along with accrued Guaranteed Additions is paid instead, going to the proposer if the life assured is under 18, or to the nominee or beneficiary if they are 18 or above. The policy terminates once this payment is made.

Maturity Benefit

The Basic Sum Assured, along with accrued Guaranteed Additions, is paid as a lump sum to the policyholder on survival to the end of the policy term, after which the policy terminates.

Guaranteed Additions

Guaranteed Additions accrue on completion of every policy year at a rate of USD 30 per annum for every USD 1,000 of Basic Sum Assured.

Premium Waiver Benefit Rider

This optional rider waives all future premiums if the proposer dies during the policy term. The plan continues to be treated as in-force, and every benefit under it is paid out on the events described in the policy, exactly as it would be for a fully premium-paid policy.

Nominee / Beneficiary

The life assured can appoint a nominee or beneficiary once they turn 18, either at the time of taking the policy or later by endorsement. This appointment can be changed during their lifetime, provided the change is submitted in writing and registered by the company. If the life assured survives to maturity, any nominee appointment is automatically cancelled, and the maturity amount is paid directly to the life assured.

Policy Details of LIC International Child Education Plan 272

LIC International Child Education Plan 272 has several features that shape how the policy is administered. Below are the policy details discussed briefly:

Grace Period

A grace period of one calendar month, but not less than 30 days, applies to yearly, half-yearly, and quarterly premiums, and 15 days to monthly premiums.

Free Look Period

If the policyholder is not satisfied with the policy terms and conditions, the policy can be returned within the free look period. The premium paid will be refunded after deducting applicable charges, such as proportionate risk premium, medical examination expenses (if any), and stamp duty, as per the policy terms.

Paid Up Value

The policy acquires a paid-up value once three full policy years of premium have been paid. If a subsequent premium is missed after this point and beyond the grace period, the policy converts to a reduced paid-up policy rather than lapsing outright.

Surrender Value

A surrender value becomes available once three full policy years of premium have been paid. If this threshold has not been reached, the policy lapses without acquiring any surrender value. On surrender, the higher of the Guaranteed Surrender Value and the Special Surrender Value is payable.

Revival / Reinstatement

A lapsed policy can be revived within the company's revival period, subject to proof of continued insurability and payment of all arrears with interest at the rate prevailing at the time of revival. Any rider attached to the policy can only be revived together with the base policy, not on its own.

Loan Facility

Once the policy has acquired a surrender value, the life assured or proposer can take a loan of up to 80% of that surrender value, subject to satisfactory title to the policy and its assignment to the company.

Exclusions of LIC International Child Education Plan 272

Suicide

If the death of the life assured results directly or indirectly from suicide, whether sane or insane at the time, within 12 months of the risk commencement date, the policy becomes void. The exception is to the extent of a bona fide beneficial interest acquired by a third party for valuable consideration, provided written notice of that interest was given to the company at least one calendar month before the death.

Other Restrictions

If a nominee causes the death of the life assured through a violent act, that nominee forfeits the right to the death benefit, though it remains payable to other legal heirs. Claims arising directly or indirectly from war, invasion, riot, civil commotion, rebellion, or terrorism are not payable under this plan.

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