Are you worried about securing the future of your children? You need to take a look at the new Children’s Money Back policy offered by LIC. If you are a parent or a grandparent of a child, you can easily purchase this policy and provide many benefits for their future needs. It will be very useful when you have to arrange money for their educational requirements. By carefully planning the tenure of the policy, you will easily be able to arrange money for their marriage and other important stages in their life. The policy also provides health cover for your kids by choosing this policy. Let us look into the amazing features of this policy.
If your child is more than 8 years old when buying the policy, the risk cover will begin immediately. However, if the child is less than 8 years, you need to wait for nearly 2 years from the commencement of policy to get the risk cover. The risk cover will begin a year after the commencement of policy, if the child has completed 8 years by that time.
You can choose any mode of payment as per your convenience. There are options to pay the premium monthly, quarterly, half-yearly and even annually. If you own a business, you can choose to pay the premium annually so that you will not have a monthly commitment. On the other hand, if you are a salaried person, you can choose a monthly premium as this can become part of your savings plan. You can choose to pay the premium through Electronic Clearing Service or Salary Savings Scheme mode, according to your convenience.
The rates for the premium depend on the age of the child for whom the insurance policy is taken and it increases as the entry age increases.
When you take a look at the above rates, you can clearly note that the rates increase by a lot when you enter the policy at a later stage. For this reason, you should make it a point to begin saving at an early stage and get the best premium rates from the company. Keep in mind that the premium rates mentioned are approximate and it do not include service tax.
You will be glad to know that you can even get some rebates when you choose some mode of payment and these are also applicable for high value sum assured policies.
It is not possible to pay the premium on time on a regular basis. In some cases, there may be a slight delay due to unforeseen circumstances. There is no need to worry about this aspect as the company provides a grace period for the payment of premium amount. In the same manner, it is also possible to revive the policy if it has lapsed due to the non-payment of premium amount.
There is no risk of the policy becoming void if you have paid the premium for the entirety of three years. It acquires the status of a paid up policy and the value will be determined depending on the sum assured and the number of premiums paid along with the pending premiums.
For some reason, if you are not able to continue with the policy, you can even surrender it and get your savings back. However, the policy needs to have completed three full years with regular premium payments to avail this option. There will be some service tax deduction along with a few other deductions, before the savings are paid back to you.
It is possible to get loan on the policy after it has acquired some surrender value. Remember that you can still continue to keep the policy active by paying regular premiums even after taking a loan against your policy.
If you are not completely satisfied with the terms and conditions mentioned in the policy, you even have the option of returning the policy within 15 days after the commencement of policy. After you clearly mention the reason for rejecting the policy, the company will deduct some amount and pay back the premium amount to you.
There are different benefits of availing this policy for your children. Let us look into each one of them in detail.
If the child has survived throughout the tenure of the policy, you can get 20% of the sum assured after the child completes the age of 18. In the same way, 20% of the basic sum assured will be given on the occasion of completion of 20 years and 22 years as long as the policy is active.
At the time of the policy’s maturity, the remaining 40% of the basic sum assured along with bonuses will be paid to the insured.
The company also gives bonus on the sum assured amount as long as the policy is active. It is given at the maturity of the policy or when the person dies after commencement of risk cover.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
You must understand that you can take this policy as a parent or grandparent for your child. In this case, the benefits will be paid only on the death of the child and this does not protect the future of the children, if the proposer dies before the completion of the policy. In order to secure this aspect, you can choose the Premium Waiver Benefit Rider option and this gives complete protection even for the children. In this scenario, if the proposer dies during the tenure of the policy, there is no need to pay further premiums and the child will get all the benefits upon maturity of the policy.
This is the complete overview of the Children Money Back Policy from LIC of India. You can get in touch with your insurance advisor and fill up the application form to get the policy. You may also need to undergo medical tests as per the guidelines of the company.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insure. Tax benefit is subject to changes in tax laws. *Standard T&C Apply