LIC Child Career Plan is a money-back endowment plan that has been launched for the child of the benefits and provides risk coverage during the policy term and the extended term. The sum assured plus the 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 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 the policy term.
Then he would receive 15% of the Sum Assured in the last 4 years, 3 years, 2 years, and 1 year before the 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.
Features Of LIC Child Career Plan:
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- The plan offers two different premium savings depending on the sum assured and the premium payment method you select for your kid’s policy.
- In the final five years of the program, survival benefits are paid to the policyholder
- The strategy is a bonus-earning participating policy.
- Bonuses aid in improving the benefits that are paid out under the scheme.
- The plan permits a seven-year extension of the coverage duration.
- No matter whether survivorship benefits have previously been obtained, the whole sum assured is paid at death.
- Even in case the premiums aren’t paid, the insurance nevertheless permits auto coverage.
- A premium waiver rider is an optional form of insurance.
Coverage Of The LIC’s Child Career Policy:
Death Benefit Of The LIC’s Children Career Policy: In the event, the life insured dies during the policy term, the nominee will receive a death benefit along with a bonus, if any.
Survival Benefit Of The LIC’s Children Career Policy: The policyholder will get the following for specified durations:
30% of the sum assured with a vested and simple reversionary bonus for 5 years before the date of expiry of the policy term. 15% of the 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 Of The LIC’s Kid Career Policy:
If 2 years of 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.
Sum Assured Of The LIC’s Kid Career Policy:
Minimum – Rs.1,00,000 Maximum – Rs.1,00,00,000. If the company makes a profit as well as declares a bonus during the policy’s lifetime, the plan is eligible for simple reversionary bonuses. Additionally, if the insured person passes away or the plan matures, a last additional bonus may be paid.
Minimum Premium Amount And Premium Paying Term:
The minimum is INR 20,000 for the first premium.
And 6 years or up to 5 years before the policy term is needed
Premium Paying Frequency:
Quarterly, half-yearly, yearly, or through salary deductions over the policy term.
Benefits Of LIC Children Career Plan:
A kid insurance plan that protects the youngster is called the LIC Child Career Plan. This typical money-back plan offers regular money-back benefits that, when needed, give your child cash support.
The plan also provides a longer duration for your child’s life to be covered. So, here are some of the major benefits of LIC’s child career plan.
Death Benefit Of LIC Children Career Plan:
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.
Survival Benefit Of LIC Children Career Plan:
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 the 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 Of LIC Children Career Plan:
On maturity, the Life Insured, i.e. the child gets the remaining 15% of the Sum Assured plus the final additional Bonus.
Income Tax Benefit Of LIC Children Career Plan:
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.
How To Surrender LIC Child Career Plan
If premiums for three years have been paid in full, surrender value is paid. The Assured Surrender Amount is 90% of the entire premiums paid – first-year premium – prior to the start of the risk.
The Assured Surrender Value after the start of the risk is 90% of the entire amount of insurance premiums prior to the start of the risk minus the first year premium plus 30% of insurance premiums on and after the start of the risk.
SUMMARY:
If the premium is not paid, the policy will expire. But if at least three years’ worth of premiums has been paid, the policy becomes paid up and the risk coverage continues with the lower Sum Assured.
On Maturity or premature death, the decreased Sum Assured and accumulated Bonus would be payable. Within five years following the first unpaid premium’s due date, it can also be reactivated.
FAQ:
Q. What does LIC Child Plan mean?
A. Through Survival Benefits, this plan is specifically created to support the developing needs of children in terms of school, marriage, and other necessities.
Additionally, it offers a number of survival bonuses for children who live to the end of the stated lengths as well as risk coverage on a child’s life during the policy term.
Q. Which LIC insurance is ideal for a family from the middle class?
A. Because it also enables raiders and other benefits to improve their coverage and obtain an alluring refund, Jeevan Amar is a smart choice for the middle class.
The minimum age for admission is 18, and the max-age at maturity is 80. The policy’s duration ranges from 10 to 40 years.
Q. What is the LIC child money-back plan?
A. The LIC New Children’s Money Back plan offers three types of benefits: survival, maturity, and death.
The policy term is based on the assumption that the maturity age is 25 years old less the entering age.
For instance, the period will be 25-9=16 years if the entering age is 9 years.
Q. Which plan is best for child education?
A. SIP is preferable if your motivation for purchasing is an investment. SIP yield is preferable in the long run.
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