LIC New Children Money Back Plan Review, Benefits, Eligibility and more: It is very important for parents to secure the future of their children. For this you can invest in a good place for your children. So that in future, the expenses of their studies or other needs can be easily met. For this you need to do better planning. To secure the future of your children, LIC has a life insurance policy called New Children Money Back Plan. Let us know in detail about this plan.
LIC New Children Money Back Plan Review
LIC New Children Money Back Plan is a non-linked, participating, individual life assurance money back plan. The plan is designed to meet the needs and requirements of growing children such as education, marriage, studying abroad, etc. through survival benefits. This insurance plan helps in securing the financial future of your child.
LIC New Children Money Back Plan Eligibility Criteria
| Name of Insurance: | LIC New Children Money Back Plan |
| Entry Age: | Minimum:- 00 Years Maximum:- 12 Years |
| Coverage (Basic Sum Assured): | Minimum:- Rs.1,00,000 Maximum:- No limit (Subject to Board approval) |
| Premium Paying Term: | (25 – age of entry) years |
| Policy Term: | (25 – age of entry) years |
| Maturity Age: | 25 years |
| Official website: | licindia.in |
LIC New Children Money Back Plan Features
Key features of LIC New Children Money Back Plan are as follows:
- This plan is designed to meet the education, marriage and other needs of the growing children.
- LIC New Children Money Back Plan offers Survival Benefit, Maturity Benefit and Death Benefit.
- New Children Money Back Plan provides cover on the life of the child during the policy term.
- There is also a premium waiver benefit rider option available. If the life assured dies, the rest of the premium will be waived off.
- A Final Additional Bonus can also be added to the plan benefit on maturity or death.
- This LIC New Children Money Back Plan can be purchased by the parent or grandparent for the child between the age of 0 to 12 years.
LIC New Children Money Back Plan Benefits
Death Benefit
Death benefit is paid in this plan on the death of the insured. which is like this:
- On death of the child before commencement of risk: All premiums paid excluding taxes and rider premium are returned to the beneficiary.
- On death of the child after the commencement of risk: The beneficiary of the life assured will receive “Sum Assured on Death” + Simple Reversionary Bonuses + Final Additional Bonuses which will be declared throughout the policy term.
Maturity Benefit
If the life assured survives the policy term, he/she is paid the Sum Assured on maturity along with Final Additional Bonus and vested Simple Reversionary Bonus. Wherein the Sum Assured on Maturity is equal to 40% of the Basic Sum Assured.
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Survival Benefit
In this insurance, if the insured survives for a specified period, then he is provided with the survival benefit. Which would be like this:
- 20% of Basic Sum Assured on completion of 18 years
- 20% of Basic Sum Assured on completion of 20 years of age
- 20% of Basic Sum Assured on completion of 22 years
Participation in Profits
The policy will participate in the profits of the Corporation and earns Simple Reversionary Bonuses. This bonus is declared as per the experience of the Corporation, provided the policy is in force. Final Additional Bonus can also be declared under this insurance plan. In the year in which the claim is made as a result of death or maturity of the policy.
Tex Benefits
Tax deduction can be claimed under section 80C of the Income Tax Act 1961 on the premium paid in this policy . Similarly, the claim amount received from the policy will be eligible for tax benefits under section 10(10D) of the Income Tax Act, 1961.
Riders of LIC New Children Money Back Plan
LIC Premium Waiver Benefit Rider
Under this rider, in case of an accidental death of the insured, the balance of the insurance i.e. the payment of the remaining premium of the insurance is waived off.
Grace Period
A grace period of 30 days is available for quarterly, half-yearly, and annual premium payments. Same if you pay monthly premium then you get 15 days discount. If the premium is not paid before the end date of the grace period, the policy will lapse.
Surrender Benefit
In this insurance plan, an option to surrender the policy is provided at any time after the policy has been continued for two consecutive years. In such situations, the insurer pays the higher of the Special Surrender Value or a surrender value equal to the Guaranteed Surrender Value.
Revival
If the premium is not paid within the grace period, the policy lapses. LIC New Children Money Back Plan provides the option to revive the policy but within 5 consecutive years. It means from the date of your first unpaid premium and it can be revived only before the maturity date.
Free look period
This plan gives a period of 15 days to the insured to think whether they want to continue with the plan or not. It gives you the option to cancel the policy within this period if the policyholder has not made any claim. That is, in this policy you get a free look period of 15 days.
The Bottom Line:
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