LIC New Children’s Money Back Plan
The future of the world depends on the strength of children today. But if they are not ready for that purpose, then it will be difficult for them to reach their goal. This is the reason why some premium policies are available to fully protect the future of children. Leach’s New Children Money Back Plan is known for its benefits, especially for growing children. Parents and grandparents can choose this policy for their beloved children to carry out two important tasks – security up to 25 years and maturity amount as lump sum.
Eligibility for this policy: The minimum age to apply for this scheme is immediately after birth and the maximum age of admission is 12 years. The maturity age is 25 years.
“LIC New Children’s Money Back Policy is very important for the bright future of children”
Features of LIC New Children’s Money Back Plan
Some of the features of LIC New Children’s Money Back Plan: –
- The scheme is a non-linked money back policy for growing children.
- Each scheme can be subjected to one person at a time.
- The policy term will be based on maturity age (25 years) – entry age. For example, if the entry age is 8 years, the policy term would be 25 – 8 = 17 years.
- The maturity benefit will be the sum of the base sum assured and bonus at the time of plan purchase.
- Premium can be paid based on various options available in the policy. In this case a person can pay monthly, quarterly, half-yearly and annual premiums.
- There is a special facility which provides loan facility to the policyholder from this scheme.
- Late payment or grace periods vary according to premium payment period frequencies. If the person is making monthly payments then the grace period is about 15 days and for other frequencies, it will be 30 days.
- The policy is refundable within 15 days from the date of purchase.
- There is an opportunity to revive the policy by paying all the unpaid premiums simultaneously within 2 years.
- There is no minimum limit of Rs 100000 for basic insurance and maximum upper limit.
- There are three main benefits in this policy, specifically maturity benefit, death benefit and survival benefit.
- The chances of getting a discount on higher insurance assurance are dependent on the mode of payment. In annual mode, it will be 2% of tabular premium and in semi-annual mode, it will be 1% of tabular premium. But for quarter and monthly modes, no rebate is payable. If the premium and all other payments are made for the subsequent three years, the scheme provides a paid-up amount. This policy will then not be treated as a zero plan and as of that time some benefits will be reduced in the policy:
- “Death Paid-up Sum Assured” after the untimely death of the policy holder – Premiums paid / Total number payable * Death Sum Assured
- “Maturity Paid-up Sum Assured” after maturity (premium paid / total amount paid) x (Sum Assured on Maturity + Total Survival Benefit payable under rules and regulations of the policy) – Survival Benefit already is paid.
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- The policy can be surrendered after completing three full years of premium payment. In that case, the surrender value will be the total percentage value of the premium paid, which will be excluded from any additional premium paid and premium rider values (if any) – survival benefits that are already payable and still the policyholder Will be payable to
- The customer can actually choose an option called “Premium Waiver Benefit Rider”. It will be waived on all premiums paid after the death of that customer.
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Benefits of LIC New Children’s Money Back Plan
There are three main benefits associated with the scheme:
- Maturity Benefit In this case the total sum assured will be given along with all bonuses added to the amount after maturity.
- Death Benefit: If there is an untimely death of the policy holder, then the amount payable will be the sum assured on death and the total of all bonuses involved.
- Survival Benefit: This is when, after reaching a certain age, the policy holder can get the amount from the policy. This is 20% of the basic sum insured.
Other benefits have also been found in this LIC New Children’s Money Back Plan:
- Corporation benefit: In this case, the policyholder can participate in the profit earning opportunity given by Liech and from there they can get bonus.
- Surrender amount: Surrender amount is assured from the date of purchase of the scheme. But this will only apply if the premium and all payments have been deposited without delay for 3 years.
- Discount: Lich will offer a discount on any higher premium price. This way the policyholder can save his money.
Required Documents For LIC New Children’s Money Back Plan.
The policy holder has to fill the application form or proposal application form.
- Complete medical history of the policy name holder will be required.
- KYC documents with current address proof are required.
- There may be some stages when the policy holders have to go through some medical examinations, but this depends on the sum assured and the age of the child.
Exclusion under certain cases
There are some circumstances when the LIC New Children’s Money Back Plan will not be approved:
If the policyholder commits suicide within 12 months from the date of risk commencement, Leach will pay only 80% of the premium which will be excluded from the additional premium and service taxes. This will also not apply if the entry age is below 8 years.
If the policyholder commits suicide within 12 months of the revival plan, the corporation will only pay more than 80% of the premium paid up to the death penalty and survival value, which will be excluded from any service tax and additional premium paid.
At the time of revival of this policy, the name of the policy name holder will not be included in the case of less than 8 years of age and if the policy has expired without paying the price.