LIC Child Plan

LIC Child Plan

Whether you are a proper Indian resident or an NRI living in Canada, every parent wants to have enough savings for their child's studies and an overall comfortable lifestyle. However, owing to the family's responsibilities, creating such a saving fund or maintaining it often becomes challenging.
Moreover, an accident or an adverse event might occur, disturbing your monthly budget, your efforts to save for your child, and impact your kid's studies. The last thing you would want is to see your kid deprived of the studies and lifestyle they deserve due to an unfortunate event. While no one can control fate, you can surely invest in schemes that safeguard your child's best interests.

Notable Features of LIC Child Plan

Maximum Plan Term: 25 years

The maximum amount for insurance: Unlimited

Child Age: Between one day to twelve years

The minimum amount for insurance: Rs.1 lakh

Grandparent, mother, or father can be proposers

Maturity Tenure: In the twenty-fifth year of the insured kid

Mode for Premium Payment: Every month, every quarter, every six months, or yearly.

Other Important Things to Know

Apart from the features mentioned above, here are more aspects to keep in mind:

Premium Waiver Benefit

It is available at a minimal cost, where future premiums are exempted in the event of the death of the policy purchaser (proposer). The benefits from the plan are distributed under the plan's schedule to the child. It is important to know that in Children Plans, insurance cover is granted to the person who is proposing (father and mother).

Therefore, the policies can be described as "Insurance for the Child" plans and not "Insurance of the Child" plans, which cover the cost of education, career, and marriage for the child. Therefore, premium waiver benefit is a major part of the Child Plan which ensures the needed funds are in place for your child at the right moment.

Surrender Conditions

Part of the sum paid as a premium may be refunded upon surrender of the policy when the proposer has paid the premiums for at least three consecutive years after purchasing the policy.

Loan

You can also take a loan against this policy if you have paid the premiums for at least three years.

Wrapping Up

The children's money-back plan, also known as the child education plan from LIC, is a simple and reliable way for NRIs to help their children meet their financial needs shortly. It is a well-planned insurance policy for non-resident Indians that will provide cash when it is most required for your children.