LIC New Children’s Money Back Plan (832): Features, Benefits and Premium Calculator
LIC New Children’s Money Back Plan (832): Features, Benefits and More:
LIC New Children’s Money Back Plan is a participating non-linked, with profit and regular premium payment money back plan. This plan is also one of the most popular plan of LIC. This Plan is specially designed to meet the educational, marriage and other needs of the growing child through survival benefits.
This Plan provides risk cover on the life of the child during the policy term and a number of survival benefits to meets various financial needs of the children.
The Plan can be purchased by any of the parent or grand parent for a child aged 0-12 year.
This Plan also takes care of the liquidity needs through its loan facility.
Key Features of LIC New Children’s Money Back Plan:
- The Plan is aimed to meet children’s education, marriage and other needs.
- Life Risk in this Plan is child and not the parent.
- This is a participating plan.
- LIC’s premium waiver riders makes this plan more beneficial.
- Rebate is also offered to policy holder if he opt for higher sum assured.
- Premium Paid are exempted from income tax under section 80C.
- Amount received on maturity or on death is exempted under section 10 (10D).
Benefits of LIC New Children’s Money Back Plan:
On the death of the child before commencement of the risk i.e. within 8 years of age, all premium paid (excluding taxes, extra premium, and rider premium if any) will be returned
On the death of the child after the commencement of the risk i.e. 8 years of age, Sum Assured on death, vested Simple Reversionary Bonuses and Final Additional Bonus if any will be paid.
Maximum Sum Assured on Death can be absolute amount assured on death i.e. basic sum assured or 10 times of annualized premium which ever is higher. The death benefit shall not be less than 105% of all the premium paid till the date of death.
If the Life Assured survive till the policy anniversary coinciding with or immediately following the completion of ages 18 years, 20 years and 22 years, 20% of the basic sum assured on each occasion will be paid, provided the policy is in full force.
If the policy holder survive till the end of policy term he will get Sum Assured on Maturity (which is 40% of the basic sum assured), vested Simple Reversionary Bonuses and Final Additional Bonus if any provided all the premiums have been paid.
Participation in Profit:
The policy also participate in the profit of the corporation. The policy holder is entitled to receive bonuses declared by LIC from time to time provided the policy is in full force.
Option to Defer the Survival Benefits: Policy holder will have option to defer his survival benefits to after due date and get increased survival benefits.
Premium Waiver Benefit Rider: LIC’s premium waiver benefit rider is available as an optional rider on the life of the proposer aged between 18 to 55 years by payment of additional premium. In case of the death of the proposer, the premium under the basic plan falling due after the death shall be waived.
Premium paid is exempted u/c 80C and the amount received on death or maturity is also exempted u/s 10 (10D).
Loan Facility: Loan facility is also available after the completion of 3 years.
Eligibility and other restrictions:
- Minimum age of entry : 0 years
- Maximum age of entry : 12 years
- Policy term: (25- age at entry) years
- Maximum/ Maximum Maturity Age: 25 rears
- Basic Sum Assured : Minimum Rs. 100000 and Maximum no limit (in multiple of Rs.10000).
Mode of Payment of Premium:
Premium can be paid monthly, quarterly, half yearly and yearly.
Rebate on mode and high sum assured:
- Quarterly and monthly mode nil
- Half yearly mode 1%
- Yearly mode 2%
Basis sum assured rebate:
- 100000 to 190000 Nil
- 200000 to 490000 2 per thousand of Basic Sum Assured
- 500000 and above 3 per thousand of Basic Sum Assured
Lapse, Revival and paid up value: If the premium is not paid within the grace period the policy will lapse. Lapsed Policy can be revived within a period of two consecutive years from the date of first unpaid premium on the payment of all the arrears of premium with interest. However if at least three full years premium have been paid and any subsequent premium be not duly paid, this policy shall continue as a paid up policy.
The policy can be surrendered for cash provided at least three full years premiums have been paid. The surrender value percentage will depend on the policy term and the policy year in which surrendered.
Premium Calculator: For the calculation of premium of LIC New Children’s Money Back Plan, LIC Premium Calculator can be used. To calculate premium click on Premium Calculator
For Detail information of the plan visit: LIC New Children Money Back Plan
For other updates and information Click here