LIC Child Career Plan is a money back endowment plan that has been launched for the benefits child and provide risk coverage during the policy term and during the extended term. The sum assured plus bonus is paid immediately to the beneficiary on the death of the life insured on the commencement of risk.
Besides, if the child outlives the entire tenure, then he actually received 105% of the Sum Assured. He would receive 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term. Then he would receive 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy. Also, when the policy matures, he would receive the remaining 15% of the Sum Assured along with Final Addition Bonus, if any.
Source :- exidelife . in
Features Of LIC Child Career Plan:
Death Benefit: In the event, the life insured dies during the policy term, the nominee will receive death benefit along with a bonus, if any.
Survival Benefit: The policyholder will get the following for specified durations:
Source :- maxlifeinsurance . com
30% of sum assured with a vested and simple reversionary bonus for 5 years before the date of expiry of policy term. 15% of sum assured for 4 years, 3 years, 2 years and 1 year before the date of expiry of the policy term. 15% sum assured and a final additional bonus if any is paid on maturity.
Premium waiver benefit: This benefit can be taken if the policyholder is aged between 18 – 55 years. If the proposer dies, then the premiums will be waived.
Auto Cover: If 2 years premiums have been paid after which the policyholder fails to pay subsequent premiums, then he will continue to get death cover for 2 years from the due date of the first unpaid premium.
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Minimum – Rs.1,00,000 Maximum – Rs.1,00,00,000
Minimum Premium amount:
Rs.20,000 for first premium
Premium paying term:
6 years or up to 5 years before the policy term.
Premium paying frequency:
Quarterly, half-yearly, yearly or through salary deductions over the policy term.
Source :- policydunia . com
Benefits Of LIC Child Career Plan:
Death Benefit :
In case of death of the Life Insured, i.e. child after risk commencement, the nominee would receive the Sum Assured plus Bonus. However, if the Life Insured, i.e. the child dies before risk commencement, then the nominee would receive all basic premiums paid till date + 3% p.a. interest compounded annually.
On Survival of the Life Insured, i.e. child, he receives 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy. This is one of the benefits of the LIC Child Career Plan.
Maturity Benefit :
On maturity, the Life Insured, i.e. the child gets the remaining 15% of the Sum Assured plus the final addition Bonus.
Source :- medimanage . com
Income Tax Benefit :
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. This is one of the benefits of the LIC Child Career Plan.