LIC Child Future Plan

Features of LIC Child Future Plan

1. Options

   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. 

2. Payment of Premium

   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 completing the policy term.

LIC Child Future Plan Sample Premium Rates

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

Mode Rebate

Sum Assured Rebate

Child Future Insurance Policy - Benefits

1. 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 and vested simple reversionary bonuses and additional bonuses, if any.

2. Death Benefit

   On the death after the commencement date of risk - Sum Assured along with vested simple reversionary bonuses and additional bonuses shall be payable (if there are any).

   On the insured demise during the extended tenure - The 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.

3. Tax Benefit

   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.

Eligibility Criteria of LIC Child Future Plan

Following is a table showing the eligibility criteria of the policy.

Auto Cover

If the policyholder pays the policy's premium 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 the 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.

Premium Waiver Benefit

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 remain intact.

Surrender Value

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:

1. Before commencement of risk

   90% of the total premium paid till date (excluding the 1st policy year premium)

2. 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.

   If any, the cash value of existing vested bonuses 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.

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.

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