LIC Child Future plan is a comprehensive insurance policy, which is specifically designed to meet the various financial needs of children like education, marriage, medical emergency, etc. The policy offers insurance coverage to the child not only during the policy tenure but also during the extended term i.e. 7 years after the expiry of the policy term. On survival of the life assured to the end of the specific duration, survival benefits are offered at different intervals.
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 waiver benefit.
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 the policy term.
For 6 years’ Premium paying term |
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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 |
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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.)
Yearly Mode |
- |
2% of tabular premium |
Half-yearly Mode |
- |
1% of tabular premium |
Quarterly & Salary Deduction |
- |
Nil |
Sum Assured |
- |
Rebate (Rs.) |
1,00,000 to 2,99,999 |
- |
Nil |
3,00,000 to 4,99,999 |
|
1.5 %o S.A. |
5,00,000 and above |
- |
2 %o S.A. |
On the policyholder’s survival till the maximum of the specified duration, an amount specified below is payable:
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 demise 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.
The premium paid towards the policy up to the maximum limit of Rs.1.5 lakh is eligible for tax exemption U/S 80C of the IT Act.
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 |
If the policyholder pays the premium of the policy for two full years but fails to pay the subsequent premium, the policy will continue to provide coverage for the 2 years from the due date of first unpaid premium. During the auto cover period, the policyholder can clear the due premium. Moreover, during the auto cover period, the add-on benefit of the premium waiver remains enforced.
This is an add-on benefit offered by the policy wherein, all the future premium of the policy is waived off in case of the unfortunate demise of the policyholder (parents). The benefits offered by the policy remains intact.
The policyholder can surrender the policy after completion of the 3 policy years from the date of initiation. The guaranteed surrender value offered by LIC Child Future Plan is:
Before commencement of risk
90% of the total premium paid till date (excluding the 1st policy year premium)
After commencement of risk
90% of the total premium paid before the commencement of risk (excluding the 1st policy year premium) and 30% of the premium paid on and after the commencement of risk.
The cash value of existing vested bonuses, if any will also be paid to the insured person. Besides this, the surrender value to be paid to the insured person will be subject to the deduction of the total amount of due survival benefit on or before the date of surrender.
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.
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.
More Useful Resources
LIC Online Services |
LIC Child Plans |
LIC Other Plans |
LIC Jeevan Tarun Plan | ||