LIC Child Plan

One great investment scheme is LIC Child Plan for NRIs staying in Canada and other countries. It provides attractive returns and consistent saving options - the correct amount at the most suitable time. LIC is a reputed insurance provider, and this endowment plan is amongst the most popular plans by the company. 

The main advantages of the LIC Child Education policy include:

• The insured gets 40% of the sum assured + Final Addition Bonus (FAB) + other bonuses at the time of maturity. 
• The insured gets 20% of the sum assured at ages 18, 22, and 24. 

For instance, the kid's age is one year and the amount assured is one crore. In that case, the kid will receive Rupees twenty lakh at ages 18, 22, and 24. Moreover, he/she will also receive 40% of the sum assured + Final Addition Bonus (FAB) + other bonuses at the time of policy maturity. You can use this amount for your little champ's marriage or his/her higher studies and other lifestyle requirements. 

Notable Features of LIC Child Plan

• Maximum Plan Term: 25 years
• The maximum amount for insurance: Unlimited
• Child Age: Between one day to twelve years
• The minimum amount for insurance: Rs.1 lakh
• Grandparent, mother, or father can be proposers
• Maturity Tenure: In the twenty-fifth year of the insured kid
• Mode for Premium Payment: Every month, every quarter, every six months, or yearly.

Other Important Things to Know

Apart from the features mentioned above, here are more aspects to keep in mind:

1. Premium Waiver Benefit

   It is available at a minimal cost, where future premiums are exempted in the event of the death of the policy purchaser (proposer). The benefits from the plan are distributed under the plan's schedule to the child. It is important to know that in Children Plans, insurance cover is granted to the person who is proposing (father and mother). 

   Therefore, the policies can be described as "Insurance for the Child" plans and not "Insurance of the Child" plans, which cover the cost of education, career, and marriage for the child. Therefore, premium waiver benefit is a major part of the Child Plan which ensures the needed funds are in place for your child at the right moment.

2. Surrender Conditions

   Part of the sum paid as a premium may be refunded upon surrender of the policy when the proposer has paid the premiums for at least three consecutive years after purchasing the policy.

3. Loan

   You can also take a loan against this policy if you have paid the premiums for at least three years. 

Wrapping Up

The children's money-back plan, also known as the child education plan from LIC, is a simple and reliable way for NRIs to help their children meet their financial needs shortly. It is a well-planned insurance policy for non-resident Indians that will provide cash when it is most required for your children.

Frequently Asked Questions