LIC Children’s Money Back Plan is a non-linked, participating, and limited premium payment policy designed to secure the financial future of children. This plan offers a combination of savings and insurance benefits, including periodic payments at specific intervals during the policy term, lump-sum maturity benefits, and life coverage. It also provides the option to add riders for enhanced coverage. The plan aims to help parents meet their child’s education, marriage, and other financial needs.
As parents, we all aspire to create ample opportunities for our children to succeed in life, knowing that they are the future of our world. To this end, the LIC New Children’s Money Back Plan is a distinctive policy that addresses various requirements of growing children, such as education, marriage, and more. This non-linked, participating money-back scheme not only provides life coverage for children but also offers survival benefits.
Eligibility Criteria :
The following fundamental requirements should be taken into account by individuals who are interested in buying this policy.
| Minimum entry age of the child | 0 years (at birth) |
| Maximum entry age of the child | 12 years |
| Age at policy maturity | 25 years |
Key Features:
Listed below are some of the key features of this scheme.
| Plan type | Participating non-linked children’s money back scheme |
| Plan basis | Individual |
| Policy term | 25 years minus age of the child Example, if age of child at the time of taking policy is 5 years, then policy term is (25-7) = 18 years |
| Maturity benefits | A benefit payable at maturity, which is equal to the sum assured and accrued bonuses, will be provided. |
| Premium payment frequency | Monthly, quarterly, half-yearly or annually |
| Loan | Policyholders can avail a loan through the policy |
| Grace period | 15 days for monthly mode 30 days for other payment modes like yearly , half yearly and quarterly |
| Free look/cooling off period | Individuals can choose to cancel and return the policy within 15 days |
| Revival | Revival of lapsed policies is possible within two years from the first unpaid premium by paying the entire outstanding amount. |
| Sum assured | Minimum – Rs 1 lakh Maximum – No upper limit |
| Policy coverage | Death benefit, maturity benefit and survival benefit. Premium waiver benefit |
LIC Childrens Money back plan with an Example
Sanjay Kumar, who is 35 years old, intends to purchase this plan for his 6 month old daughter and proceeds with the following steps:
Sum assured : Rs 500000
Policy Term : 25 Years
Premium Paying Term : 25 Years
If Mr. Sanjay chooses the payment mode as YLY, then he has to pay Rs. 22009 for the first year and Rs. 21535 from the second year onwards.
Totally you will pay Rs.538849 in 25 years
Mr Sanjay’s daughter will receive the returns as follows:
At her Age:18 – Rs.100000
At her Age:20 – Rs.100000
At her Age:22 – Rs.100000
At her Age:25 – Rs.987500
In case of Natural Death at Age-5, Nominee will receive Rs.635000
( it is important to note that this is merely an estimation and the actual bonus declared may vary, either higher or lower than this amount.)
Frequently Asked Questions
The policy provides a maturity benefit that equals the sum assured and all the accrued bonuses during the policy term.
Yes, you can surrender the policy before the maturity date. However, the surrender value will be paid only after the completion of three policy years.
The surrender value for LIC Children Money Back Plan is calculated based on the number of premiums paid and the policy term.
If you miss paying a premium for LIC Children Money Back Plan, a grace period of 30 days is provided to pay the premium. If you fail to pay the premium even within the grace period, the policy will lapse.
Yes, you can take a loan against LIC Children Money Back Plan after the policy acquires a surrender value.
25 years minus age of the child
I’ve been looking for a savings plan for my child, and this article introduced me to LIC’s New Children’s Money Back Plan. The combination of life coverage and regular payouts is compelling
The New Children’s Money Back Plan appears to be a wise investment for parents. LIC’s reliable track record and the assurance of financial support at critical stages of a child’s life make this an attractive option
LIC’s Children’s Money Back Plan is a testament to their commitment to children’s financial well-being. The liquidity and financial support it offers at different stages of a child’s life are reassuring
This blog clarifies the importance of financial planning for a child’s future. LIC’s New Children’s Money Back Plan is a well-rounded solution that I’m seriously considering for my kid’s financial security
As a parent, I believe in planning ahead. LIC’s Children’s Money Back Plan allows me to do just that. The money-back benefits at key intervals will be a great help in funding my child’s education
The New Children’s Money Back Plan from LIC ensures a stable financial foundation for my child’s future. The survival benefits and final maturity payout make it an excellent choice for parents
I appreciate LIC’s commitment to children’s financial well-being. This plan offers peace of mind, knowing that I can provide for my child’s milestones and aspirations
Financial security is a top priority for my child’s future. The New Children’s Money Back Plan by LIC seems to offer both protection and savings, making it a sensible choice for parents like me
LIC’s New Children’s Money Back Plan is a fantastic way to secure your child’s future. The guaranteed payouts at various stages of their life provide financial support for their education and other needs
I’m impressed with LIC’s New Children’s Money Back Plan. This blog provides a comprehensive overview of its features and benefits, making it easier for parents like me to secure their child’s future financially