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LIC Child Future Plan

Parents are most concerned when it comes to securing their child's future. A child education plan is the easiest way to financially secure the future of one’s child. All insurance providers in India offer child insurance plans and one of the most popular plans among them is Child Future Insurance Policy offered by the Life Insurance Corporation of India. 

Child Future Insurance Policy is uniquely designed to meet different financial needs of a growing child. The plan not only helps parents bear the increasing cost of education but also financially takes care of the other important milestones in a child’s life, for example, marriage.

This policy will prevent all the risks on the life of the child not only during the policy term but also during the extended tenure. Here, the extended tenure refers to the seven years term after the completion of the policy term.

For your convenience, Child Future Insurance Policy provides flexibility to choose the Sum Assured (S.A.) amount, the maturity age, the policy term, the mode of premium payment and the premium frequencies as well. Moreover, a policyholder can also pay the premiums annually, semi-annually, or quarterly. The policyholder can also opt for the payment mode in which the premiums will be automatically deducted from your salary account every month. A policyholder may also pay the premiums for 6 years or up to 5 years before the completion of policy term.

Child Future Insurance Policy - Premium Rates

For 6 years’ Premium paying term

Age(in Years)

Maturity Age

 

23 years

24 years

25 years

26 years

27 years

0

112.55

108.00

103.65

99.45

95.45

4

132.35

127.00

121.85

116.90

112.15

8

156.20

149.90

143.85

138.05

132.45

12

184.20

176.85

169.75

162.95

156.40

 

For Premium paying term = Policy Term less 5 years

Age(in Years)

Maturity Age

 

23 years

24 years

25 years

26 years

27 years

0

53.10

49.45

46.20

43.25

40.60

4

71.80

66.90

61.65

57.00

52.95

8

107.80

96.30

86.75

78.75

71.90

12

184.20

155.40

133.90

117.25

108.05

 

(Note: Above are some of the sample premium rates per Rs. 1000/- S.A.)

Child Future Insurance Policy - Benefits

Survival Benefits: On the policyholder’s survival till the maximum of the specified duration, an amount specified below is payable:

  • 5 years before the date of maturity of the policy – 25 percent of the Sum Assured
  • 4 years before the date of maturity of the policy – 10 percent of the Sum Assured
  • 3 years before the date of maturity of the policy – 10 percent of the Sum Assured
  • 2 years before the date of maturity of the policy – 10 percent of the Sum Assured
  • 1 year before the date of maturity of the policy – 10 percent of the Sum Assured
  • On the date of maturity of the policy – 50 percent of the Sum Assured along with vested simple reversionary bonuses and additional bonuses, if any.

Death Benefit: On the death after the Date of Commencement of Risk - Sum Assured along with vested Simple Reversionary Bonuses and additional Bonuses, shall be payable (if there are any).

On the insured’ death during the Extended Tenure - Sum Assured is payable.

On the insured’s death before the Date of Commencement of Risk - All the premiums paid (excluding extra premium and premium for premium waiver benefit, if any,) along with interest of 3% p.a. compounding shall be paid.

Following is a table showing the eligibility criteria of the policy

Minimum Entry Age

0 years (last birthday)

Maximum Entry Age

12 years (last birthday)

Minimum Maturity Age

23 years (last birthday)

Maximum Maturity Age

27 years (last birthday)

Minimum Sum Assured

Rs. 1,00,000

Maximum Sum Assured

Rs. 100,00,000

Policy term

11 to 27 years

Premium Paying term

6 years and Policy term less 5 years

 

Grace Period

The policyholder is allowed to make the payment of due premiums in one calendar month. This period of one month is known as the Grace period.

Revival

If the policy lapses, it can be recovered only if the policyholder pays all the due premiums with interest within a term of five years, subject to submission of satisfactory proofs of continued insurability. The rate of interest applicable will be as fixed by LIC from time to time.

Written By: PolicyBazaar - Updated: 27 August 2019