State insurer Life Insurance Corporation (LIC) offers 'New Children’s Money Back Plan' to meet the educational, marriage and other needs of growing children through survival benefits. This plan offers financial security to the child up to 25 years of age by offering a lump sum amount along with maturity.

Live TV

Loading...

Additionally, it provides for the risk cover on the life of child during the policy term . The plan can be purchased by any of the parent or grand parent for a child aged 0 to 12 years.

Here are key things to know about LIC's 'New Children’s Money Back Plan':

Survival Benefits

On the life assured surviving on each of the policy anniversary coinciding with or immediately following the completion of ages 18 years, 20 years and 22 years, 20 percent of the basic sum assured on each occasion will be payable, provided the policy is in -force.

Maturity Period and Benefits

The policy period is on the premise of maturity age which is 25 years of age minus the age of entry.

On life assured surviving the policy term, provided the policy is in-force, 'Sum Assured on Maturity' along with vested simple reversionary bonuses and final additional bonus, if any, will be payable; where sum assured on maturity is equal to 40 percent of the basic sum assured.

Sum Assured

The minimum basic sum assured is Rs 1 lakh and there is no limit on maximum basic sum assured.

Premium payments

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through NACH or through salary deduction (SSS) only) over the premium paying term of the policy.

Death Benefits

On the death of the insured, the sum payable is complete sum assured at demise including bonuses to the sum.

Grace Period

A grace period of 30 days is allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of first unpaid premium. During this period, the policy will be considered in-force with the risk cover without any interruption as per the terms of the policy. If the

premium is not paid before the expiry of the days of grace, the policy lapses.

The above grace period will also apply to rider premiums which are payable along with premium for base policy.

Revival

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium . The revival will be effected on payment of all the arrears of premium(s) together with interest (compounding half-yearly) at such rate as may be fixed by the corporation from time to time and on satisfaction of continued insurability of the life assured and/or proposer.

First Published:Sept 21, 2020 5:13 PM IST