LIC New Children’s Money Back Plan

LIC New Children’s Money Back Plan- An Overview

The LIC New Children’s Money Back Plan was a unique insurance-cum-investment plan designed for children aged between 0 to 12 years, and it could be purchased by their parents or grandparents. This plan offered by the LIC aimed to ensure a bright and secure future for children by providing financial security up to the age of 25 years, enabling them to achieve important milestones. As a participating plan, it was eligible for bonuses based on the performance of the plan. Additionally, it offered a lump sum and maturity benefits to support the child's goals.

However, it is important to note that the LIC New Children’s Money Back 932 Plan is no longer available for sale, as the company has withdrawn it.

Key Features of LIC’s New Children’s Money Back Plan

Listed below are the important features of LIC New Children’s Money Back Plan:

• This plan is subject to one individual at once and is a non-linked money-back plan for the children as they grow up.

• The LIC New Children’s’ Money Back plan offers survival benefits, maturity benefits and death benefits.

• The policy period is based on the maturity age, which is 25 years minus the age of entry. For instance, if the entry age is 9, the period will be 25-9=16 years.

• An individual could also choose the premium waiver benefit rider option, which implies that if the insured passes away, the remaining premiums will be waived.

• The probability of obtaining a high sum assured rebate is based on the rebate mode. If the mode is half-yearly, it will be 1 percent of the tabular premium. The mode will be 2 percent of the tabular premium if it is yearly. The rebates are not payable for monthly and quarterly modes.

Eligibility Criteria of LIC’s New Children’s Money Back Plan

LIC’s New Children’s Money Back Plan Benefits

Listed below are the three key benefits offered within LIC New Children’s Money Back Plan:

• Survival Benefit: When the life assured survives every policy anniversary that is either coinciding or is followed with the completion of 17, 20 and 22 years of age, then 20 per cent of the sum assured on either of the occasions will be payable if the LIC New Children’s Money Back Plan is in force.

• Maturity Benefit: If the life assured survives the policy period when the plan is still in force, then the sum assured on maturity, along with the final additional bonus and vested simple revisionary bonuses, will be payable, wherein the sum assured on maturity is equivalent to 40 percent of the basic sum assured.

• Death Benefit: If, under any unfortunate circumstances, the policyholder is no longer alive, the sum payable will be the complete sum assured at demise, including the bonuses.

• Participation in Profits: When the policy is in force, it will participate in the profits of the corporation and entitled to obtain simple reversionary bonuses as per the corporation’s experience. Within paid-up policies, the final additional bonus will not be payable. Likewise, the final additional bonus will be declared within the policy during the year where the policy has not been claimed either by demise or maturity.

• Additional Protection through Riders

  • LIC’s Premium Waiver Benefit Rider is available under the plan, where the premium is waived in case of the proposer's death.

  • Rebates in premiums for choosing yearly and half-yearly modes of premium payment @ 2% and 1% respectively.

  • High Sum Assured rebate for Sum Assured levels of 2 lakhs and above.

Policy Details of LIC’s New Children’s Money Back Plan

• Grace Period: A 15-day grace period is allowed for premium payment in monthly mode and 30 days in other modes. If the policyholder fails to make payment within the grace period, the policy lapses

• Policy Termination or Surrender Benefit: The Policyholder can surrender the policy and receive the Surrender Value after 3 completed years’ premiums have been paid. The Surrender Value will be higher than the Guaranteed Surrender Value (GSV) or the Special Surrender Value.

• GSV = (GSV % of Premiums paid – Survival Benefits already paid) + GSV % of vested Bonuses

• Free Look Period: If you are not pleased with the coverage and terms and conditions of the policy, you can cancel it within 15 days of receiving the policy documents, provided there has been no claim.

Exclusions of LIC New Children’s Money Back Policy

• In case of suicide committed within 12 months of policy inception, only 80% of premiums paid are returned to the nominee if the Life Assured was aged more than 8 years.

• In case of suicide within 12 months of revival, a higher of 80% of premiums paid or acquired Surrender Value is paid if the Life Assured was aged more than 8 years and the policy had acquired a paid-up value.

FAQs