Hello dear friends, welcome again to our blog. Friends today i am here again to talk about LIC’s best Children’s Money back plan for children.
Children’s Money back policy (Table no 932)
LIC’S Children’s Money back is a plan which grows with your child. And a plan,which will help you to meet your children’s education, marriage and other growing needs. In this article i will give you detailed information regarding LIC’S Children’s Money plan.
About the Plan
It is a regular premium payment money back plan with profits. This plan has no connection with share market.
This plan has four mode of premium payment.Yearly,Half yearly, Quarterly and Monthly. You can choose the premium payment option as per your convenience. In this plan the grace period for premium payment is one calendar month but not less than 30 days for quarterly, halfyearly and yearly mode. However,the grace period for monthly mode payment is 15 days.
Basic Details of this plan:
The minimum entry age in this plan for child is 91 days or 0 year (last birthday). And the maximum entry age is 12 year (last birthday)
The policy term of this plan is 25 years.i.e.the maturity will be at 25 years.
Minimum sum assured under this plan is Rs 100000. There is no limit for maximum sum assured. However it depends upon the income of the proposer.
Lets check out the Plan Benefits
On Death of the life assured before the commencement of risk. All the premium paid excluding tax,extra premium and rider shall be payable.
On Death of the life assured after the commencement of risk. Death sum assured,vested simple Revisionary bonuses and Final additional bonus shall ne payable.
Remember the policy shall be in full force in both cases
Because this is a child plan so commencement of risk starts after the two years from the date of commencement or as early as the child attend the age of 8years.
If the policy remains in full force,the life assured will get survival benefits after the completion of 18years,20years and 22years. And will get the maturity at the age of 25 years.
Premium Waiver Benefit
The proper can opt for this benefit if he medically fit and aged between 18 and 55. Under this benefit if the proposer died,all the premium shall be waived.
Surrender Value : you can surrender the policy at any time after the completion of two years premium paid.
Loan : You can avail loan after the payment of premiums for at least two full years.
Income Tax Benefit
Under section 80c,you are eligible to rebate Tax for premium paid under this policy. And maturity under this policy is relaxable under section 10 (10D).
Now lets understand this plan with a simple example.
Mr.X who buys the policy with a sum assured of Rs 1000000 ,then his annual premium will be Rs 47858 for his child whose age is 2 years.In this case the policy term will be reduced to 23 years. As per the policy ,the plan provides money back benefits at the 18th,20th and 22nd year policy anniversary. So Mr x will receive the money back when the child attaineds the age of 20 years,22 years and 24years. And he will receive the benefits as below.
|At 20 years||200000INR i.e.20% of MSA|
|At 22 years||200000INR i.e.20% of MSA|
|At 24 years||200000INR i.e.20% of MSA|
The policy will continue to be in force even if Mr.X dies during the policy term. The child will get premium waiver benefits from LIC and all the premiums will be waived off.
So guys this is the plan and hope you like it. Keep visiting our blog everyday for more such products.Share this on facebook and whatsaap.
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