LIC New Children's Money Back Plan
The LIC New Children’s Money Back Plan (Plan No. 932, UIN No. 512N296V02) was created while keeping in mind the needs and requirements of children’s growth and development. The plan also includes risk coverage for the child’s life during the policy period, as well as a number of survival benefits if the child survives until the conclusion of the policy period.
This plan can be purchased by either the grandparents or the parents of a child between the ages of 0 and 12 years. In basic terms, it is a culmination of insurance and investment plans that will assist you in securing your child’s bright future.
Let’s look at the LIC’s New Children Money Back Plan in more depth.
What Are The Key Features Of LIC New Children’s Money Back Plan?
Some of the salient features of LIC New Children’s Money Back Plan are as follows:
Plan Type: It is an individual, non-linked, participating, life assurance money back plan.
Payment Of Premiums: Premiums can be paid on an annual, half-yearly, quarterly, or monthly basis (via NACH or salary deduction (SSS) only) throughout the policy’s premium-paying period.
Grace Period: From the date of the first unpaid premium, a grace period of 30 days for yearly, half-yearly, or quarterly premiums and 15 days for monthly premiums will be permitted.
Loan Facility: The loan can be received under the policy if at least two full years’ premiums have been paid and the terms and conditions as specified by the corporation from time to time have been met.
Free Look Up Period: If the policyholder is dissatisfied with the policy’s “Terms and Conditions”, he or she may return the policy to the corporation within 15 days of receiving the policy bond, explaining the reasons.
Surrender Benefit: If two full years’ premiums have been paid, the policy can be surrendered at any time.
Eligibility Criteria Of LIC New Children’s Money Back Plan
|Minimum Entry Age||0 Years|
|Maximum Entry Age||12 Years|
|Minimum Basic Sum Assured||Rs. 1,00,000|
|Maximum Basic Sum Assured||No Limit|
|Policy Term/Premium Paying Term||(25 – Age At Entry) Years|
|Minimum/Maximum Maturity Age||25 Years|
Benefits Offered By LIC New Children’s Money Back Plan
Listed below are the key benefits offered by LIC’s New Children’s Money Back Plan:
The sum insured on death, as well as any collected bonuses, will be paid if the life assured passes away after risk beginning while the policy is in force. The higher of the basic sum assured or 7 times the yearly premium is the “Sum Assured on Death.” This death benefit must be at least 105 % of all premiums paid up to the date of death.
If the life assured survives each policy anniversary occurring with or immediately following the completion of ages 18, 20, or 22 years, 20% of the basic sum assured is payable on each occasion, providing the policy is in existence.
If the life assured survives the policy period while the plan is still in effect, the sum assured on maturity will be paid, along with the final additional bonus and vested simple revisionary bonuses, with the total assured on maturity equalling 40% of the basic sum assured.
Participation In Profits
When the policy is in effect, it will share in the company’s profits and be eligible for simple reversionary incentives based on the company’s performance. The final additional incentive will not be paid under paid-up policies. Similarly, if the policy has not been claimed by demise or maturity, the final additional bonus will be announced within the policy during the year.
Functioning Of LIC New Children’s Money Back Plan
To better understand how this plan works, consider Mr. and Mrs. Aggarwal, parents of 1-year-old Nitesh. The couple is well-off and works as managers, but they choose the plan to ensure that Nitesh’s financial needs are addressed in the future. His father choose a basic sum assured of Rs. 15 lakhs for which he pays a yearly premium of approximately Rs 25,000.
How will the plan function if the child doesn’t die?
When Nitesh reaches the age of 18, he will receive 20% of the benefits or Rs. 3 lakhs. When he turns 20 and 22, he receives further survival benefits of Rs. 3 lakhs each. When he reaches the age of 25, he will get a payment equal to the remaining 40% of the total assured, i.e. Rs 6 lakhs, plus any accrued additional benefits.
How will the plan function if the child dies?
If Nitesh dies unexpectedly 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.
What Are The Options Benefits Available Under LIC New Children’s Money Back Plan?
Under the LIC’s New Children’s Money Back Plan, the following options are available to the policyholder:
Options To Defer The Survival Benefit
The policyholder will have the option to take the survival benefit(s) at any time during the policy’s currency, whether on or after the due date. The policyholder must notify the servicing branch of the policy for this option in writing six months prior to the due date of the survival benefit.
Individuals can choose to add the “Premium Waiver Benefit Rider” to their policy, which effectively waives all future premiums in the event of the subscriber’s death (the person who pays the premium).
Option To Take Death Benefit In Installments
Under an in-force and paid-up policy, this is an option to receive the death benefit in installments over a set term of 5, 10, or 15 years rather than a lump sum payment.
Settlement Option For Maturity Benefit
Under an in-force and paid-up policy, the “Settlement Option” allows you to collect your maturity benefit in installments over a 5-, 10-, or 15-year term instead of a lump-sum payment.
What Are Excluded Under LIC New Children’s Money Back Plan?
The policy shall be void in the following conditions:
If the life assured was older than 8 years and committed suicide within 12 months of the policy’s start, only 80% of the premiums paid are repaid to the nominee.
If the life assured was over the age of 8 years and the policy had gained the paid-up value, the higher of 80 % of premiums paid or acquired surrender value is paid in the event of suicide within 12 months of revival.
Can I Purchase LIC New Children’s Money Back Plan Online?
You can purchase this policy from a LIC representative by setting up a meeting with him or her. You can also apply for LIC’s New Children’s Money Back Plan at the company’s office by visiting your nearest LIC branch. In case you still face any issues, feel free to reach out to the talented experts of Probus Insurance.
Frequently Asked Questions
1. What are the documents required for purchasing LIC’s New Children’s Money Back Plan?
Following are the documents required for purchasing LIC’s New Children’s Money Back Plan:
Identity proof of the child and the parent/grandparent proposing insurance
Address proof of the parent
Photographs of the child and the proposer
Age proof of the child and the proposer
Duly filled and signed proposal form
Income proof of the parent
2. Can tax benefits be availed under the LIC’s new money back plan for a child?
Yes. Under Section 80 C and Section 10 (10 D), tax benefits can be availed under LIC’s New Children’s Money Back Plan.
3. What is the date of commencement of risk under the LIC’s New Children’s Money Back Plan?
If the life assured’s age at entry is less than 8 years (last birthday), the risk under this plan will begin either one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever comes first. Risk will begin immediately for people aged 8 and above from the date of policy issuance.
4. Can LIC’s New Children’s Money Back Plan be revived?
Yes. The coverage will lapse if premiums are not paid within the grace period. The policy can be revived after a 5-year term from the date of the first unpaid premium.
5. How much rebate does LIC offer under LIC’s New Children’s Money Back Plan?
Rebates in premiums of 2% and 1% are offered by LIC for paying premiums on a yearly or half-yearly basis.