The LIC Child Career Plan is no longer sold by LIC. It was originally designed to meet the growing cost of a child’s education. This is a money-back endowment plan that provides risk coverage to the child 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.Read more
Buy LIC policy online
Guaranteed maturity with life
cover for securing family's future
Tax saving under Sec 80C &
Sovereign guarantee as per
Sec 37 of LIC Act
Let us now discuss the features and benefits of this child plan in more detail.
The plan provides risk cover on the child's life during the tenure of the policy and during the extended term of 7 years post maturity.
If the child outlives the entire policy tenure, then he/she is provided with 105% of the sum assured.
The maturity benefit of the policy is 15% of the sum assured, including the final addition bonus.
It comes with an auto cover period if premiums have been paid for 2 years in full. It activates when a parent misses a premium payment. During the auto cover period, the life cover on the child remains active for two years from the date of the first unpaid premium.
The plan provides the premium waiver rider. If premium paying parents opt for it, then on their death all the pending premiums will be waived off but the policy will continue.
In the event of the unfortunate demise of the life insured during the policy's tenure, the beneficiary will receive the sum assured plus bonus. If the child, i.e., the life assured, dies before risk commencement, then the policy's beneficiary will receive the premium paid until death with 3% interest compounded annually.
Five years before the policy expiration date , the child receives 30% of the sum assured including the vested simple reversionary bonus. The remaining sum is paid in four installments in the last 4 years, each installment equal to 15% of the sum assured.
On the maturity of the policy, the insured, i.e., the child receives an additional 15 % of the sum assured along with the final additional bonus.
The premium paid up to Rs 1,50,000 is exempt from tax deduction under section 80C of the Income Tax Act.
“Tax benefit is subject to changes in tax laws. Standard T&C apply.”
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 Rs 10,128. The extended tenure of the policy is 7 years.
If the parent dies during the policy term, then the future premiums will be waived off. Since the life cover is on the child, the death benefit is payable only on the death of the child.
If the child survives, he/she gets the following –
At the end of the 20th year of the policy term – 30% of Rs. 1,00,000 – Rs. 30,000 + Simple reversionary bonus
At the end of the 21st year of the policy term – 15% of Rs. 1,00,000 – Rs. 15,000
At the end of the 22nd year of the policy term – 15% of Rs. 1,00,000 – Rs. 15,000
At the end of the 23rd year of the policy term – 15% of Rs. 1,00,000 – Rs. 15,000
At the end of the 24th year of the policy term – 15% of Rs. 1,00,000 – Rs. 15,000
At the end of the 25th year of the policy term – 15% of Rs. 1,00,000 – Rs. 15,000 + Final additional bonus, if any.
To help our customers know more about the policy, we have explained the policy's eligibility criteria in a tabular form.
|Tenure of the Policy||11||27|
|Tenure of Premium Payment||6||Policy term-5 years|
|Payment Mode||Yearly, Half-yearly, quarterly, monthly|
If the parent fails to pay the premium on time, they can resume payment within a grace period of 30 days. To avail of the utmost benefits offered by the policy, you can compare the quotes online and choose the best options for yourself.
LIC Online Services
LIC Investment Plans
LIC Other Plans