LIC New Children’s Money Back Premium Payment Plan (table No. 832) is the latest 2nd plan launched by LIC. With that LIC has launched Jeevan Sangam Single premium payment policy for next 90 days. Both the policies are launched in the month of March to target people who are still busy in last minute income tax saving. LIC money back plans are very popular and previously also LIC has launched New money back plan. Let’s check out how this new Children’s Money Back Premium Payment Plan is different from the previous lic policies.
New Children’s Money Back Premium Payment Plan Features and Benefits
This is a non-linked, with profit, regular premium payment money back plan with which one can buy life cover and also et return on investment. The key highlights of Children’s Money Back Premium Payment Plan are as below
- The age limit of the children is set to 0 – 12 years old. And the proposer or who is going to buy this policy could be from age range of 18 -50 years.
- The policy term is set till 25 years of age. Means the day your kid will reach age of 25 years, your policy will mature. That means you have to calculate your Children’s Money Back Premium Payment Plan tenure by deducting your child’s current age from 25.
- To enjoy LIC premium waiver benefit, the age limit is different, 18-55 years.
- Min sum assured value is 1 lakh and there is no upper limit for that. One can pay LIC premium for this plan by all modes of payment.
- Death benefit will be provide in condition, but the maximum value can’t be more than 105% of the premium paid.
- The age of commencement is set as 8 years. If death happen before that then only premium paid amount will be provided as death benefits after deducting service tax. But if death happen after commencement then death benefit will be sum assured value + Accured bonus + FAB .
- On maturity 40% of the sum assured value with vested bonus and FAB will pe paid. Remaining amount will be paid after completion of 18 years, 20 years and 22 years. 20% in each set of years as money back.
- A grace period of 30 days max provided for yearly, half yearly and quarterly premium paid and 15 days for rest.
- One can avail rebate of premium payment up to 3% as per payment mode chosen. For sum assured value more than 5 lakh, 3% rebate will be provided.
- One can surrender this policy after complete 3 years of premium payment. If one stop paying premium before that policy will be lapsed.
Don’t Miss 30 questions to review LIc e Term plan
Should I buy Children’s Money Back Premium Payment Plan?
First thing one should think before considering LIC new Children’s Money Back Premium Payment Plan is why an insurance plan for your kid? If you are planning for child education then why not concentrate of maximum return? Do you think LIC policies will give maximum return on investment? Buy a pure online term plan and then invest your money for more than 10+ years in Mutual fund. If you are not comfortable with equity, then invest in PPF account or even latest Sukanya Samriddhi Account could be a best option if your kid is a girl child. I will share more information regarding this Children’s Money Back Premium Payment Plan including premium calculation and actual return on investment in coming days. Keep visiting my blog for more updates.