LIC New Professional Education Plan 257

About LIC New Professional Education Plan 257

LIC New Professional Education Plan 257 is built around funding a child's professional education at a fixed point in the future, rather than leaving that cost to chance. The life assured receives the sum assured along with accrued bonus on maturity of the policy, and in the event of death before maturity, the sum assured with accrued bonus is paid to the beneficiary instead.

Key Features of LIC New Professional Education Plan 257

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

• The policy operates on the life of the child from the policy anniversary after the child turns 7, or two years from the policy start date, whichever comes later

• Coverage on the proposer's life continues if the Premium Waiver Benefit Rider has been availed

• More than one premium payment option is available, giving parents flexibility around how quickly the policy is funded

• A Guaranteed Addition accrues every policy year, alongside a discretionary Loyalty Addition

• Premium can be paid in advance for up to 5 years at a discounted rate under the Premium Sealing facility

• Premiums can be paid until the child reaches age 18 (23- the age of the child). A Limited Term option pays off the full premium over 5 years, and a Single Premium option is also available. Annualised premiums can be paid yearly, half-yearly, quarterly, or monthly.

Eligibility Criteria for LIC New Professional Education Plan 257

Eligibility under LIC New Professional Education Plan 257 is set by the child's age at entry, the sum assured chosen, and the premium paying term selected:

Benefits of LIC New Professional Education Plan 257

LIC New Professional Education Plan 257 benefits are as follows:

Maturity Benefit

The sum assured, along with accrued bonus, is paid to the life assured on maturity of the policy.

Death Benefit

If the life assured dies before maturity, the sum assured with accrued bonus is paid to the beneficiary instead.

Guaranteed Addition

Guaranteed Addition accrues at the end of every policy year at USD 25 per annum for every USD 1,000 of sum assured.

Loyalty Addition

Loyalty Addition is payable on maturity or death at a rate declared by the company from time to time. This rate is not guaranteed, since it depends on the company's future experience.

Optional Riders

Premium Waiver Benefit Rider: This optional rider protects the education fund if the proposer paying the premiums dies before the plan matures. All future premiums are waived, and the policy continues to be treated as in-force, with every benefit carrying on as if premiums were still being paid.

Policy Details of LIC New Professional Education Plan 257

LIC New Professional Education Plan 257 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.

Surrender Value

A surrender value becomes available once two full years of premium have been paid.

Loan Facility

A policy loan can be raised against the policy once it has acquired a surrender value, meaning after at least 2 years of premium payment.

Paid-Up Value

If premiums stop after two years due to unforeseen circumstances, the policy automatically converts to a paid-up policy for a reduced sum assured, payable at maturity or on earlier death. If a premium is missed after the grace period once at least two full years of premium have been paid, the policy also converts to reduced paid-up status.

Premium Sealing

Premium can be paid in advance for up to 5 years in a lump sum, at a discounted rate. Any unutilised portion of the advance lump sum is refundable.

FAQs