Life Insurance Corporation of India is one of the oldest and undoubtedly the most trusted company in India. Buying a policy itself gives people panic attacks as they think it is very complicated. LIC has always come to the rescue for such people. LIC specializes in serving different insurance plans to their customers depending on the need such as investment plans, saving plans, health plans, child plans, and many more.
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When it comes to your child, all you want is the best of the world. In this article, we will extensively discuss various LIC Plans for Girl Child, Boy, and New Born Baby in your house. So let us dig in more into different LIC Child plans, their benefits, features, and much more.
LIC Child plans are the insurance policies offered by LIC for baby girl, boy, and newborn baby. These policies are effectively designed for children and their secure future. Child education, marriage, and career are some important aspects that LIC Child Plan covers.Here are various child plans offered by LIC and their important details.
LIC JeevanTarun Plan is a participating non-linked limited premium payment plan. This LIC money-back plan offers an attractive combination of protection and saving features for children. This LIC plan for kids is designed in such a way that it meets their educational and other financial needs while they are growing up.
LIC JeevanTarun Plan is an extremely flexible and easy plan in which the policyholder can choose the proportion of Survival Benefits to be availed during the term of the policy.
There are 4 options from which the proposer can avail the survival benefits:
Options |
Survival Benefit |
Maturity Benefit |
Option 1 |
No Survival Benefit |
100% of Sum Assured + vested Bonuses |
Option 2 |
5% of Sum Assured paid every year for the last 5 policy years |
The remaining 75% of the Sum Assured is paid + vested Bonuses |
Option 3 |
10% of Sum Assured paid every year for the last 5 policy years |
The remaining 50% of the Sum Assured is paid + vested Bonuses |
Option 4 |
15% of Sum Assured paid every year for the last 5 policy years |
The remaining 25% of the Sum Assured is paid + vested Bonuses |
In case of the sudden demise of the policyholder during the policy term, Sum Assured along with bonuses(if any) are to be paid to the nominee. Sum Assured is higher of:
If the policyholder survives till the maturity age, then a certain % of the Sum Assured is given to the policyholder as Survival Benefit in the last 5 years
If the policyholder survives the complete tenure of the policy, then the amount leftover of the Basic SA plus the bonuses acquired are paid to the policyholder as per Maturity Benefit
Age of Life Assured (nearer birthday) |
5 |
Option |
4 |
Policy Term (years) |
20 |
Premium payment term (years) |
15 |
Premium payment mode |
yearly |
Sum Assured (Rs.) |
1,00,000 |
Premium (excluding Taxes) (Rs.) |
6,375 |
Minimum Sum Assured |
Rs. 75,000 |
Maximum Sum Assured |
No Limit |
(The Sum Assured shall be in multiples of 5,000 from Sum Assured 75,000 to 100,000 and 10,000/- for Sum Assured above 100,000) |
|
Minimum Age at entry |
[90] days (last birthday) |
Maximum Age at entry |
[12] years (last birthday) |
Minimum/ Maximum Maturity Age |
[25] years (last birthday) |
Policy Term |
[25 – Age at entry] years |
Premium Paying Term (PPT) |
[20 – Age at entry] years |
Mode Rebate |
|
Yearly mode |
2% of Tabular Premium |
Half-yearly mode |
1% of Tabular premium |
Quarterly, Monthly mode |
NIL |
High Sum Assured Rebate (on Premium) |
|
Sum Assured (SA) |
Rebate (Rs.) |
75,000 to 1,90,000 |
Nil |
2,00,000 to 4,90,000 |
2 per thousand S.A. |
5,00,000 and above |
3 per thousand S.A. |
LIC’s New Children’s Money Back Plan is a non-linked, Individual, Life Assurance, Traditional money-back plan. A tailor-made LIC policy for kids to meet their education, marriage, and other needs while they grow up through Survival benefits. In addition, it offers risk cover on a child’s life during the policy period.
On the demise of the life assured during the policy term, the death benefit is payable as:
Return of premium exclusive of extra premium, rider premium, and taxes, if any, shall be payable
Sum Assured on Death and the vested Final Additional Bonus and Simple Reversionary Bonus (if any), shall be payable.
Sum Assured on Death is defined as higher of Basic Sum Assured or 7 times of annualized premium
On the survival of the life assured, the term of the policy coinciding with or right away following the accomplishment of ages 18, 20, or 20 years, 20 % of the Basic Sum Assured on each occasion shall be payable.
On survival of the life assured till the mentioned date of maturity, the Sum Assured (that is 40 % of the Basic SA) together with vested Final Additional Bonus and Simple Reversionary Bonus, if any, shall be payable.
Age of Life Assured |
12 Years (Last birthday) |
Policy term |
13 |
Premium Payment Mode |
Yearly |
Basic Sum Assured |
100000 |
Premium (Excluding Taxes) |
9202 |
Minimum Basic Sum Assured |
100,000 |
Maximum Basic Sum Assured |
No Limit |
(The Basic Sum Assured shall be in multiples of ` 10,000/-) |
|
Minimum Age at entry for Life Assured |
[0] years (last birthday) |
Maximum Age at entry for Life Assured |
[12] years (last birthday) |
Minimum/ Maximum Maturity Age for Life Assured |
[25] years (last birthday) |
Policy Term/Premium Paying Term |
[25 – Age at entry] years |
Mode Rebate: |
|
Yearly mode |
2% of Tabular Premium |
Half-yearly mode |
1% of Tabular premium |
Quarterly, Monthly (NACH or SSS) mode |
NIL |
High Sum Assured Rebate (on Premium): |
|
Sum Assured (S.A) |
Rebate |
1,00,000 to 1,90,000 |
Nil |
2,00,000 to 4,90,000 |
2 per thousand S.A. |
5,00,000 and above |
3 per thousand S.A |
The Career plan, as the name suggests, is specially designed to meet the career goals of your child along with other financial needs. This LIC plan for the newborn baby as well kids till the age of 12, offers risk cover on the life of the child not just during the policy term but also during the extended term (that is, 7 years after the expiry of the policy).
On the demise of the life insured during the policy tenure, the beneficiary will receive the Sum Assured + Bonus.
If the life insured dies before the risk commencement, then the beneficiary will receive a complete basic premium paid until death + 3% interest compounded annually.
On survival during the entire policy term, the child will receive 30% of the Sum Assured + vested simple reversionary bonus 5 years before the policy expiration date. The balance sum is payable in the last 4, 3, 2, and 1 year before maturity.
At the time of maturity, the insured receives the 15 % of the Sum Assured in addition to the final additional bonus, if any.
Benefits |
Minimum |
Maximum |
Age of Life Assured |
0 |
12 |
Policy term |
11 |
27 |
Premium Payment Mode |
Yearly, Half-yearly, quarterly, monthly |
|
Basic Sum Assured |
1,00,000 |
1,00,00,000 |
Maturity Age |
23 |
27 |
Mode Rebate |
|
Yearly mode |
2% of Tabular Premium |
Half-yearly mode |
1% of the tabular premium |
Quarterly & Salary deduction |
NIL |
High Sum Assured Rebate (on Premium) |
|
Sum Assured |
Rebate (Rs.) |
1,00,000 to 2,99,999 |
Nil |
3,00,000 to 4,99,999 |
1.5 % of S.A. |
5,00,000 and above |
2 % of S.A. |
LIC’s JeevanLakshya is a non-linked, traditional, participating, individual, life assurance plan which offers a combination of savings and protection. It offers Annual Income benefits, primarily for the benefit of children, in case of the unfortunate demise of the policyholder during the policy term. A lump sum amount is also paid if the policyholder survives the policy tenure. LIC JeevanLakshya also takes care of liquidity needs through its loan facility.
Depending on the customer’s need the policy offers some exquisite features. Some of the silent features offered by the plan are
The death benefit is the amount payable by the insurer to the policyholder in case of their unfortunate demise during the policy tenure, provided the policy is in force. The death benefit payable to the nominee of the policy is:
Sum Assured on Death along with vested Simple Reversionary Bonuses and Final Additional bonus if any.
The sum assured on death is defined as:
The death benefit paid to the nominee of the policy should not be less than 105% of the total premium paid.
On the survival of the policyholder through the entire policy tenure, provided all the premiums of the policy are dully paid and the policy is in force, maturity benefit offered is:
Sum Assured on Maturity along with Vested Simple Reversionary Bonus and Final Additional Bonus if any.
The Sum Assured on Maturity is equal to the Basic Sum Assured amount of the policy.
The policy participates in the profits of the corporation and is entitled to receive a Simple Reversionary Bonus declared as per the experience of the corporation, provided the policy is in force.
The Final Additional Bonus is also declared under the policy in the year the claim is made either as death or maturity.
Age of Life Assured (nearer birthday) |
30 Years |
Policy Term (years) |
25 Years |
Premium Payment Term |
22 Years |
Premium Payment Mode |
Yearly |
Basic Sum Assured (Rs) |
1,00,000 |
Premium (excluding Taxes) (Rs) |
4,366 |
Minimum Basic Sum Assured |
100,000 |
Maximum Basic Sum Assured |
No Limit |
(The Basic Sum Assured shall be in multiples of 10,000/-) |
|
Policy Term |
13 to 25 years |
Premium Paying Term |
(Policy Term – 3) years |
Minimum Age at entry |
18 years (last birthday) |
Maximum Age at entry |
50 years (nearer birthday) |
Maximum Maturity Age |
65 years (nearer birthday) |
Mode Rebate |
|
Yearly mode |
2% of Tabular Premium |
Half-yearly mode |
1% of Tabular premium |
Quarterly and Salary Deduction |
NIL |
High Sum Assured Rebate |
|
Basic Sum Assured (B.S.A) |
Rebate (Rs.) |
1,00,000 to 1,90,000 |
Nil |
2,00,000 to 4,90,000 |
2% of Basic Sum Assured |
5,00,000 and above |
3% of Basic Sum Assured |
All the LIC policies for baby girl, boy, and newborn have their uniqueness and benefits. The important thing is to decide which policy to choose from these wide ranges of policies that suit your requirements the best. From features, benefits to eligibilities, and rebates, all the important information is mentioned above to make your understanding and choice easier.
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