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LIC Child Career Plan

Specially designed to meet the burgeoning needs of children, the Life Insurance Corporation of India has introduced Child Career Insurance Policy. This is a money back endowment plan that has been launched for the benefits child and provide risk coverage during the policy term and during the extended term. Under LIC Child Career Insurance policy, the sum assured plus bonus is paid immediately to the beneficiary on the death of the life insured on the commencement of risk.

Besides this, if the child outlives the entire policy tenure, then he/she is provided with 105% of the sum assured. 5 years prior to the date of expiry of policy term, the child would receive 30 % of the sum assured along with the vested simple reversionary bonus. After that, he/she would receive 15% of the sum assured in the last 4years, 3 years, 2 years and 1 year before maturity of the policy tenure. On the maturity of the policy, the child will receive the remaining 15% of the sum assured along with the final additional bonus.

Let us now discuss the features and benefits of the plan in more detail.

Key Features of the Policy:

  • The plan not only provides risk cover on the life of the child during the tenure of the policy but also during the extended tenure of 7 years post maturity.
  • The policy offers survival benefits as 30% of the sum assured. The balance sum is payable in the last 4 years, 3 years, 2 years and 1 year before policy maturity.
  • The vested simple reversionary bonus is also payable on the 5th year, prior expiry of the policy tenure.
  • The maturity benefit of the policy is 15% of the sum assured including the final addition bonus.
  • The plan provides add-on rider as the premium waiver rider.

Benefits of LIC Child Career Insurance Policy

Death Benefit

In the event of the unfortunate demise of the life insured during the tenure of the policy, the beneficiary will receive the sum assured plus bonus. However, if the child i.e. the life insured dies before the risk commencement, then the beneficiary of the policy will receive the entire basic premium paid until death with 3% interest compounded annually.

Survival Benefit

If the child survives the entire policy term, he/she will receive 30% of the sum assured along including the vested simple reversionary bonus, 5 years before the policy expiration date and the remaining sum is paid in four installments- the last 4 years, 3 years, 2 years and 1 year before policy maturity.

Maturity Benefit

On the maturity of the policy, the insured i.e. the child receives the 15 % of the sum assured in addition to the final additional bonus.

Income Tax Benefit-

The premium paid up to Rs 1,00,000 are exempt from tax deduction under section 80C of Income Tax Act.

Here, let us include a case study to explain how the Plan Works:

Miss Dipanjali took LIC’s Child Career plan for her newborn baby. She chose the policy tenure of 25 years and the premium payment tenure of 6 years. Miss Dipanjali opted for a sum assured of Rs1,00,000 and the monthly premium paid by her is Rs10,128. The extended tenure of the policy is 7 years.  If she dies during the tenure of the policy, then the child will receive the death benefit and the premium will be waived off.

To help our customers know more about the policy, here we have explained the eligibility criteria of the policy in a tabular form




Tenure of the Policy



Sum Assured



Tenure of Premium Payment


Policy term-5 years

Entry Age



Maturity Age



Single premium



Payment Mode

Yearly, Half-yearly, quarterly, monthly


Along with all these benefit, the plan also provides add-on benefits as premium waiver benefit rider. Moreover, in case the insured fails to pay the premium on time, the insured can pay all the due premiums within a grace period of 30 days. To avail the utmost benefits offered by the policy, you can compare the quotes online and choose the most suitable plan for yourself.

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Written By: PolicyBazaar - Updated: 22 October 2020