LIC Child Plans
Child plans from LIC are specifically designed to offer security and planned savings for the future of your children. They help in paying for your children’s education, upbringing, marriage, job, as well as other expenses.
These solutions are available to fulfill your children’s ambitions in their lives. Even after the death of a parent, LIC child plans provide a financially secure future for a child as well as encouragement to achieve his or her life goals.
Types Of LIC Child Plans
Following are the top child plans offered by LIC:
|LIC Jeevan Tarun Plan|
|LIC New Children’s Moneyback Plan|
1. LIC Jeevan Tarun Plan
The Jeevan Tarun Plan is a non-linked, participation plan for children that provides a good balance of insurance and savings. The plan is specifically tailored to fulfill the financial requirements of growing children.
- On each policy anniversary corresponding with or immediately succeeding the completion of 20 years of age, and thereafter on each of the next four policy anniversaries, a specified percentage of the sum assured or survival benefit will be paid.
- The policy also provides a death benefit, in which the nominee will receive a specific amount of sum assured.
- The minimum and maximum maturity age for the plan is 25 years.
- The plan also has rider options for the policyholder to enhance the coverage.
2. LIC New Children’s Money Back Plan
The LIC’s New Children’s Money Back Plan is a one-of-a-kind plan created to meet the diverse needs of growing children, such as education, weddings, and so on. In addition to the risk protection for children, this participating, non-linked money-back scheme provides survival benefits.
- The policy provides a death benefit, in which the nominee would receive a certain amount of sum assured.
- The minimum and maximum maturity age for the life assured under the plan is 25 years.
- The policy provides 20% of the sum assured as a survival benefit if the child follows the completion of 18, 20, and 22 years.
- The policy also offers 40% of the sum assured as a maturity benefit.
Why Should You Choose LIC Child Plans?
The LIC child plans offer various benefits to your child as well as your family. You should choose LIC child plans because of the following reasons:
- Financial Protection: Although your earnings offer your child all of life’s stability and comfort, a child insurance plan from LIC will serve as a safety net in case financial support is interrupted due to any reason. This amount of money, which you specify when you purchase the policy, can cover your child’s requirements as they grow.
- Support You In Your Child’s Fees: LIC child plans can assist you in paying your child’s fees. In case you are no more, these insurance plans pay a specific percentage of the sum assured.
Moreover, there will also be periodic annual payouts until the end of the policy term. These amounts will be helpful to take care of the school expenses in the absence of the breadwinner.
- Tax Benefits: As child plans are life insurance plans, they are eligible for tax benefits. As per Section 80 C of the Income Tax Act, 1961, you can claim up to 1.5 lakh in deductions for your child’s insurance premiums.
- Helps In Your Child’s Higher Education: Getting your child a higher education can be really expensive. If you plan well at an early age of the child and purchase a LIC child plan, you will be able to meet your child’s higher educational requirements in time.
In case the breadwinner expires in the mid of the higher studies, LIC doesn’t terminate the plan. Instead, the company continues to pay for the future premiums for your child.
- Helps In Your Child’s Wedding: LIC child plans can also be helpful in carrying out expenses for your child’s wedding. When your child reaches a marriageable age, these plans may provide a lump sum amount so that your dream of the perfect wedding for your child can become true.
Functioning Of LIC Child Plans
In order to understand how LIC child plans work, we need to take a plan and learn its functioning. Let’s take LIC’s New Children’s Money Back plan!
Suppose we have Mr. and Mrs. Sinha, parents of 1-year-old Rakesh. They are both financially equipped and decided to opt for having LIC’s New Children’s Money Back plan.
They choose a basic sum assured of Rs. 15 lakhs, for which they have to pay a premium of Rs. 25,000 per year. They pay the premium amount regularly in order to avoid any policy lapse.
What Will Happen If Rakesh Survives?
When Rakesh reaches the age of 18, he will receive 20% as a part of the survival benefit. This means he will receive Rs. 3 lakhs. When he will turn 20 and 22 years, he will get additional survival benefits of Rs. 3 lakhs each. When he will turn 25, he will receive 40% of the sum assured as maturity benefit, i. e. Rs. 6 lakhs. Therefore, he will receive the following amounts if he survives the policy term:
|Age Of Rakesh||Benefits He Will Receive|
|At 18||20% Of SA (Rs. 3 Lakhs)|
|At 20||20% Of SA (Rs. 3 Lakhs)|
|At 22||20% Of SA (Rs. 3 Lakhs)|
|At 25||40% Of SA (Rs. 6 Lakhs)|
|Total Benefit||Rs. 15 Lakhs + Any Additional Benefit|
What Will Happen If Rakesh Dies?
If Rakesh dies prematurely within the policy period, the parents will receive a death benefit if the death occurs after the risk period has begun. The premiums paid will be refunded in the event of death prior to the start of the risk period.
How To Purchase LIC Child Plans?
LIC child plans can be purchased by brokers, agents, and other intermediaries. You can also pay a visit to the nearby branch office and the company’s agent will guide you to choose a suitable LIC child plan as per your needs and requirements. You can also call the company’s customer care at +91-022 6827 6827 from Monday to Friday, 8:00 am to 8:00 pm. The customer care executive will help you understand the process for purchasing a child plan from LIC.
Frequently Asked Questions
You need to pay a visit to the nearby branch office or call the company’s customer care number. You can talk to the customer care representative to provide further details.
You can easily check your LIC child plan’s policy status by logging in to your LIC e-portal. However, if you are not a registered online user, then you need to first register yourself with the LIC e-portal.
Life insurance can be purchased for any number of children, regardless of their age, gender, or marital status.
Jeevan Tarun is considered to be the best LIC child plan as it provides a suitable balance of security and savings for a child’s future requirements.