Raising a child today requires significant time, effort, and capital. With the rise in inflation, the cost of education is now higher than ever and is expected to rise further in the future. A life insurance policy for children from LIC will ensure that you are ready to provide for your child’s basic necessities for a successful future.Read more
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The Life Insurance Corporation of India (LIC) is a government-backed insurance provider and has been a trusted brand for the last 66 years. With Children’s Day just around the corner, we are going to discuss the best child plans you can buy through LIC to secure your child’s future.
The benefits of LIC child plans are as follows:
Takes Care of School Fees: In case the assured parent passes away, the plan pays the death benefit which aids the child in taking care of their school fees in the sudden absence of the income earner. Similarly, on outliving the policy term the maturity benefit can be utilised to pay the school fees.
Covers Higher Education Expenses: Education is getting increasingly expensive, and with inflation, in place, college fees can be a burden on your family. To stop this from affecting your child’s bright future, invest in the best LIC plans for children.
Helps Fund Marriage: Most of these plans allow lump sum maturity benefits which can be utilized during the child’s marriage.
Covers Urgent Medical Expenses: Your savings in a LIC policy that has accumulated over the years can help fund costly medical treatments.
This Children’s Day, why not gift your kids something meaningful that can set them up for life? LIC of India has launched several child plans that can secure your child’s future in the long run. You can choose the plan most suitable to you and avail yourself of the different benefits through these plans.
In addition to a life cover, the best LIC plans for children are participating in nature, therefore your child would receive additional bonuses in the form of dividends declared by LIC. These bonuses are added to the death or maturity benefit. Some of these plans are:
This is a low-risk, life assurance savings plan, that offers four options with various survival and maturity benefits. LIC Jeevan Tarun plan can be bought for a child between 0 to 12 years of age, by a parent or a grandparent only. The survival benefit payments will be made annually from ages 20 - 24 years, as per the chosen option, and maturity benefits will be at 25 years.
Benefits of The Plan
A fixed amount as per the option chosen, will be payable for 5 years, from the age of 20 to 24 years. The option once selected cannot be changed.
At the age of 25 years, a fixed amount will be paid as a maturity benefit according to the option chosen.
If the life assured passes away during the policy tenure, then the Sum Assured on Death will be paid to the nominee, as death benefit.
Under the Premium Payment Benefit Rider, if the proposer dies within the premium paying term, the premiums from that point until the end of the rider term shall be waived.
With the Settlement Option of Maturity Benefit, you can receive the maturity benefit in installments over the course of 5 to 15 years instead of a lump sum. This will ensure that your child receives a certain amount regularly upto 15 years.
This is a life insurance, money-back plan can be purchased by a parent or grandparent for a child aged between 0 to 12 years of age. LIC’s New Children’s Money Back Plan was specially designed keeping the education, marriage, and needs of a child in mind. This plan also provides liquidity through its loan facility.
Benefits of The Plan
20% of the basic sum assured will be paid on the completion of each age for 18 years, 20 years, and 22 years, provided the policy is still in force.
The Sum Assured on Maturity will be payable at the age of 25 years.
In case of policyholder’s untimely death within the policy term, the Sum Assured on Death will be paid as death benefit.
With this plan, you have the option of deferring the survival benefit.
Through the Settlement Option of Maturity Benefit, your child can receive the maturity benefit in installments for 5 to 15 years, as per selection, instead of a lump sum.
LIC’s New Money Back Plan - 20 Years is a life assurance plan, that offers protection against death throughout the policy term and compensation for survival at regular intervals. This plan also provides liquidity through its loan facility.
Benefits of The Plan
20% of the Basic Sum Assured will be payable on the 5th, 10th, and 15th policy year.
40% of the remaining sum assured will be provided as a Maturity Benefit on surpassing the maturity of the policy.
The death benefit payable is the Sum Assured on Death, provided that the policy is still in effect.
This plan also offers Additional Riders like accidental Death and Disability Rider, Accident Benefit Rider, New Term Assurance Rider, New Critical Illness Benefit Rider, and Premium Waiver Benefit Rider.
With the Settlement Option of Maturity Benefit you can select for how long you want your child to receive the maturity amount in installments. It can be selected for 5 to 15 years.
This is a whole life plan, that offers a combination of security and income to your family. Through LIC Jeevan Umang, you can get annual survival benefits from the end of the premium paying term till maturity and a lump sum payment as maturity or death benefit in case of policyholder’s death within the policy term. This plan also provides liquidity through its loan facility.
Benefits of The Plan
If all the premiums have been paid, then at the end of the premium paying term, 8% of the Basic Sum Assured will be payable each year, until the survival or maturity of the life assured (whichever is earlier).
On the maturity of the policy the Sum Assured at Maturity which is equal to the Basic Sum Assured will be payable.
If the policyholder passes away within the policy term then the beneficiary receives teh Sum Assured on Death as death benefit.
This plan also offers Additional Riders like Accidental Death and Disability Rider, Accident Benefit Rider, New Term Assurance Rider, New Critical Illness Benefit Rider, and Premium Waiver Benefit Rider.
A child insurance plan is the most suitable way of securing your kid’s future. It ensures that your child is able to continue with their education even after your unfortunate demise. The nominee or the child/children will receive a regular amount that can be used to pay for their education, in case of your untimely death.
As LIC child plans are a long-term investment, they allow you to build a corpus over time to take care of your kid’s future. Through these plans, you can invest when the child is small, and by the time they are grown up, you would have saved enough to take care of your child's expenses. These plans can help you cover not only your child’s higher education but also college expenses and medical charges.
For example, say that you invest in the LIC New Money Back Plan - 20 Years for your child who is 10 years old at the time. If you assure a sum of Rs. 10 Lacs, then your child will receive Rs. 2 Lacs each at the age of 15 years, 20 years, and 25 years as Survival Benefit and Rs. 4 Lacs as Maturity Benefit at 30 years of age.
You can use online tools like LIC Calculator that allow you to determine the premium you would need to pay to receive the desired return. These help you figure out the premiums payable each year and the benefits throughout the policy specific for each plan in an easy and time-efficient way.
You can purchase the best LIC plans for children both, online and offline. However, there are a few certain plans that are available only for the online mode. The ones available offline can be bought by visiting the nearest broker, bank, or agent. Experts suggest buying the plans online as it is easier to keep track of the policy details online.
Child insurance helps ensure that your child’s important expenses like higher education are taken care of even in your absence. It makes sure your family is not burdened by your child’s unexpected medical emergencies or wedding expenses. This children’s day think about your child’s future in advance and gift them the security of a lifetime with LIC child plans.
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