Let’s take a sneak peek into the LIC Child Future Plan and be taught extra about its options, advantages and so forth.
What is a Child Insurance?
Insurance is a way of defending in opposition to monetary loss. It is a sort of threat administration which is used as a hedge in opposition to the chance of a contingent or any form unsure loss sooner or later. The entity which gives insurance coverage is named as an insurer. The particular person or an entity who buys the insurance coverage is named a policyholder or insured.
The Child Insurance is a type of everlasting life insurance coverage that insures the lifetime of a minor youngster. It is bought with a sole intention to safe the lifetime of the kid in opposition to all of the sudden and sudden future occasions.
What is Premium?
The sum of money charged by the insurer for the protection of the set forth as per the insurance coverage coverage from the insured constitutes premium of the coverage.
What is LIC Child Future Plan?
The LIC Child Future Plan is a sort of a reimbursement endowment plan which is designed specifically to profit a toddler in such a method that the sum assured and the bonus quantity is straight away paid to the nominee in case of the loss of life of the life insured.
The plan is drafted to satisfy the rising academic, marriage and different bills of the rising kids. The plan guarantees to supply the chance protection on the lifetime of the kid not solely until the period of the coverage however the protection extends for a interval of seven years after the expiry of the coverage time period.
The LIC will probably be entitled to pay quite a few survival advantages to the surviving youngster until the tip of the desired period, that’s if the kid outlives the coverage tenure, then the kid will probably be entitled to obtain 115% of the sum assured. The youngster will additional obtain 25% of the sum assured 5 years earlier than the date of expiry of the coverage time period and lastly the surviving youngster will probably be eligible to obtain 10% of the sum assured over the last Four years, Three years, 2 years and 1 yr earlier than the ultimate maturity of the kid insurance coverage coverage. And lastly, when the coverage matures, the kid will obtain the 50% of the sum assured together with the accrued vested bonus and remaining further bonus, if any.
Features of LIC Child Future Plan
The following are the options of LIC Child Future Plan
• The plan gives threat cowl to the kid not solely in the course of the tenure of the coverage but additionally in the course of the prolonged time period of seven years put up maturity of the coverage.
• Get further rider of premium waiver profit.
• The survival profit is 25% and 10% of the sum assured will probably be paid if the kid survives in the course of the tenure of the coverage.
• Ge maturity good thing about 50% of the sum assured plus vested bonus and remaining further bonus, if any declared, postmaturity of the coverage.
Benefits of LIC Child Future Plan
The following are the advantages of the LIC Child Future Plan
• Income Tax Benefit – Life insurance coverage premium quantity paid as much as Rs 1,00,000 every year is eligible for deduction below Section 80C of the Income Tax Act of 1964.
• Death Benefit – In case of the loss of life of the kid after the graduation of threat then the nominee will probably be entitled to obtain the sum assured, vested bonus and remaining further bonus.
In case if the insured dies earlier than the graduation of threat, then the nominee is entitled to obtain all the idea premium quantity paid until date + 3% every year compounded curiosity.
In case of loss of life in the course of the prolonged time period, then the nominee is entitled to obtain solely the sum assured.
Date of graduation of threat: If the age of the life assured (youngster) is as much as 10 years, then threat shall start both after 2 years from the beginning date of the coverage time period or from the coverage anniversary corresponding with or instantly following the completion of 5 years of age of life assured whichever is later. In different circumstances, the chance will begin from the coverage anniversary date corresponding with or subsequent following the 12th birthday of the kid.
• Survival Benefit – If the life assured survives until the tip of the tenure of the coverage then the LIC will probably be entitled to pay the quantity specified under:
Expiry of Policy Term Sum Assured
5 years earlier than the date of expiry of coverage time period 25% of the Sum Assured
Four years earlier than the date of expiry of coverage time period 10% of the Sum Assured
Three years earlier than the date of expiry of coverage time period 10% of the Sum Assured
2 years earlier than the date of expiry of coverage time period 10% of the Sum Assured
1 years earlier than the date of expiry of coverage time period 10% of the Sum Assured
On the date of expiry of coverage time period 50% of the Sum Assured together with vested Simple Reversionary Bonuses and Final (Additional) Bonus, if any.
• Auto Cover – During the interval of auto cowl, a number of installments of premiums with curiosity could be paid with out submission of proof of well being. If any subsequent premium quantity shouldn’t be duly paid put up two years of fee of premiums, then the loss of life cowl on the life assured will proceed for a interval of two years from the due date of the First Unpaid Premium (FUP) interval.
• Premium Waiver Benefit – The proposer can go for this profit if they’re within the age vary of 18-55 years and are medically match. This possibility gives a waiver of premiums within the occasion of the loss of life of the proposer. The advantages will stay in drive in the course of the auto cowl interval and any unpaid premium quantity and never paid in the course of the tenure of the auto cowl interval will probably be waived off. This profit won’t be relevant within the occasion of suicide by the proposer inside a interval of 1 yr of the acquisition of the coverage.
• Options – The proposer can select for Sum Assured (S.A.), Mode of Premium Payment, Maturity Age, Premium Waiver Benefit, Policy Term on the time of filling up the applying kind.
The following paperwork are required to be submitted together with the duly crammed in utility kind bearing the signature of the policyholder on the time of proposal of LIC Child Future Plan:
• Child’s Birth Certificate (if age is under 5 years) or School ID Card (if age is above 5 years).
• Policy Holder’s Address Proof
• Policy Holder’s age proof with related identification card
• Income Proof (earlier Three months wage slip, earlier Three years ITR/Form 16)
• Policy Holder’s and youngster’s passport dimension images
What is Grace Period?
Under the LIC Child Future Plan, a grace interval is one calendar month however not lower than 30 days will probably be allowed to the insured for the fee of the premium quantity.
How to revive the coverage?
In case of the lapse of the coverage, the identical could be revived by paying the arrears of premium together with curiosity expenses inside a interval of 5 years, topic to the submission of passable proof of continued insurability. The relevant charge of curiosity is fastened by the company on occasion.
What is cooling off interval below LIC Child Future Plan?
If the policyholder shouldn’t be glad with the phrases and situations of the coverage then they’ll return the coverage to the LIC inside a interval of 15 days from the date of buy of the coverage.
Is there any mortgage facility out there below LIC Child Future Plan?
No, any sort of mortgage facility be it a housing mortgage facility or mortgage in opposition to LIC Child future plan shouldn’t be out there below the LIC Child Future Plan to the policyholder.
Can a policyholder Surrender the Policy? What is the Surrender Value?
Yes, the policyholder can give up the coverage in return for money after finishing at the least three years of paying premiums. The assured give up worth will probably be as talked about under:
Before the graduation of threat
The policyholder will get 90% of the whole quantity of premiums (excluding the primary yr premium) paid.
After the graduation of the chance
The policyholder will get 90% of the whole quantity of premiums (excluding the first yr premium) paid earlier than graduation of the chance and also will earn 30% of the premiums paid on and after the graduation of threat.
LIC’s New Children’s Money Back Plan (desk No.832)
It has determined to introduces LIC’s NEW CHILDREN’S MONEY BACK PLAN (Plan No.832), which might be opened on the market from 4th March, 2015.
The Unique Identification Number (UIN) for LIC’s New Children’s Money Back Plan is 512N296V01. This quantity needs to be quoted in all related paperwork furnished to the Policyholders and different customers (public, distribution channels, and so on.).
LIC’s New Children’s Money Back Plans is a non-linked, with-profits, common premium fee a reimbursement plan specifically designed to satisfy numerous monetary wants of kids by means of Survival Benefits. It gives for the chance cowl on the life of kid in the course of the coverage time period and variety of survival advantages on surviving to the tip of the desired durations. The advantages and different particulars of the plan are given under.
The advantages payable below an inforce coverage are as below:
a) Death Benefit:
On loss of life Before the Date of Commencement of Risk:
An quantity equal to the whole quantity of premium/s paid excluding taxes, additional premium and rider premium, if any shall be payable.
On loss of life After the Date of Commencement of Risk:
Death Benefit, outlined as sum of “Sum Assured on Death” and vested Simple Reversionary. Where “Sum Assured on Death” is outlined as increased of 10 occasions of annualized premium or Absolute quantity assured to be paid on loss of life i.e. Basic Sum assured. 105% of the whole premiums paid as on date of loss of life.
The premiums talked about above exclude tax, additional premium and rider premium, if any.
b) Survival Benefit
On the Life Assured surviving on every coverage anniversary coinciding with or instantly following the completion of ages 18 years, 20 years and 22 years of Life Assured, 20% of the Basic Sum Assured on every event shall be payable supplied the coverage is in full drive.
c) Maturity Benefit:
On the Life assured surviving the stipulated date of maturity, Sum Assured on Maturity (which is 40% of the Basic Sum Assured) together with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.
d) Participation in earnings:
Depending upon the Corporation’s expertise the insurance policies shall take part within the earnings and shall be eligible for Simple Reversionary Bonus at such charge and on such phrases as could also be declared by the Corporation.
Final Additional Bonus may additionally be declared below the coverage which will probably be payable on the expiry of the coverage time period or on earlier loss of life, supplied the coverage has run for sure minimal time period.
3. Option to defer the Survival Benefit(s):
The policyholder could have the choice to take the survival profit (s) at any time on or after its due date however in the course of the forex of the coverage. In case of deferment of a due survival profit(s) opted by the policyholder, the Corporation pays elevated survival profit (s) equal to
Survival Benefits % * Sum Assured * Factor relevant to Survival Benefit (s)
These elements are enclosed as Annexure – I
This possibility shall be required to be intimated by the policyholder six months earlier than the due date of the Survival Benefit (s) in writing.
4. LIC’s Premium Waiver Benefit Rider (UIN: 512B204V01)
LIC’s Premium Waiver Benefit Rider is out there on fee of further premium. This rider could be opted for together with the fundamental plan on the inception or at any time in the course of the coverage time period supplied the excellent coverage time period of the fundamental plan is at the least 5 years.
a) If this rider is opted for, in case of loss of life of the proposer, the fee of the premiums falling due after the date of loss of life shall be waived;
b) The Premium Waiver Benefit shall be granted on the idea of the proposer’s age, private declaration and different associated paperwork. In case it’s discovered that any unfaithful or incorrect assertion is contained therein or any materials info is withheld, then and in each such case however topic to the provisions of Section 45 of the Insurance Act, 1938, as amended on occasion, all declare to the profit shall stop and decide;
Date of graduation of threat below the plan:
In case the age at entry of the Life Assured is lower than Eight years, the chance below this plan will start both sooner or later earlier than the completion of two years from the date graduation of coverage or sooner or later earlier than the coverage anniversary coinciding. For these aged Eight years or extra, threat will start instantly.
Date of vesting below the plan:
The coverage shall mechanically vest within the Life Assured on the coverage anniversary coinciding with or instantly following the completion of 18 years of age and shall on such vesting.
For LIC’s Premium Waiver Benefit (PWB) Rider – elective:
(a) Minimum Entry Age :  years (accomplished)
(b) Maximum Entry Age :  years (Nearer Birthday)
(c) Premium paying time period : Same as fundamental plan
(d) Maximum cowl ceasing age :  years (Nearest Birthday)
6. Mode of Premium Payment :
The modes of premium fee allowable are Yearly, Half Yearly, Quarterly, and Monthly [ECS only or through salary deductions (SSS)].
7. Premium Rates:
8. Grace Period for Payment of Premium:
A grace interval of 1 month however not lower than 30 days will probably be allowed for yearly, half-yearly, quarterly modes and 15 days for month-to-month mode of premium fee.
If loss of life of the Life Assured happens inside the grace interval however earlier than the fee of premium then due, the coverage will probably be handled as inforce and the advantages will probably be paid after deductions of the mentioned unpaid premium as additionally the unpaid premium/s falling due earlier than the subsequent anniversary of the coverage.
If the premium shouldn’t be paid earlier than the expiry of the times of grace, the coverage lapses.
If the coverage has not lapsed and the declare is admitted in case of loss of life below the coverage the place the mode of fee of premium is apart from yearly, unpaid premium(s), if any, falling due earlier than the subsequent coverage anniversary shall be deducted from the declare quantity.
The above grace interval can even apply to rider premium because the rider premium is to be paid together with Basic Premium.
Yearly mode : 2% of tabular premium
Half-yearly mode : 1% of tabular premium
Quarterly and month-to-month : NIL
High Sum Assured Rebate:
Basic Sum Assured Rebate (Rs.)
1,00,000 to 1,90,000 Nil
2,00,000 to 4,90,000 2 per thousand Basic Sum Assured
5,00,000 and above Three per thousand Basic Sum Assured
10. CEIS Rebate:
If an worker of the Corporation has taken the plan for the advantage of his/her youngster/kids then he/she shall be eligible for a rebate on tabular premium below Corporation’s Employee Insurance Scheme (CEIS) supplied coverage shouldn’t be taken by means of any Agent/ Corporate Agent/ Broker/ Direct Sales Executives and so on and are as below:
Policy Term CEIS Rebate
13 and 14 years 5%
15 years & above 10%
This rebate shall be relevant for each fundamental plan in addition to on rider premium if opted for.