Benefits of LIC New Children's Money Back Plan

What is LIC New Children’s Money Back Plan? 

LIC New Children’s Money Back Policy offered by the LIC of India allows the policyholder to secure their child's future. The plan has several benefits and features, making it an ideal choice for your child’s financial security. The plan, along with death and maturity benefits, offers survival benefits of 20% of the sum assured if 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.

What are the Benefits of LIC New Children’s Money Back Plan?

Below are some benefits of LIC New Children’s Money Back Plan

• Financial Protection: The plan provides financial protection to the child in case of the policyholder's unfortunate demise (parent or guardian). The death benefit includes the sum assured and bonuses, if any, which ensure financial stability for the child's future.

• Survival Benefits: The plan offers survival benefits at regular intervals during the policy term. These survival benefits are paid out as a percentage of the sum assured, typically as money-back instalments. It can help fund the child's educational expenses or other financial needs at specific milestones.

• Maturity Benefit: If the child survives till the end of the policy term, they receive the maturity benefit, which includes the remaining sum assured and accrued bonuses. This can be a lump sum for the child's future aspirations or higher education expenses.

• Limited Premium Payment Term: LIC New Children's Money Back Plan's premium payment term is shorter than the policy term. This means you only need to pay premiums for a limited duration while enjoying the benefits throughout the policy term.

• Bonus Accumulation: The plan participates in profits, and policyholders may receive regular bonuses and a final additional bonus, if any, based on LIC's performance. These bonuses add to the overall maturity value of the policy.

• Loan Facility: After a specific period, you can avail of a loan against the policy's surrender value, providing a source of funds in times of financial need.

• Tax Benefits: Premiums paid for LIC New Children's Money Back Plan are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the maturity proceeds and death benefit are usually tax-exempt under Section 10(10D), subject to prevailing tax laws.

Who are Eligible to Buy LIC New Children’s Money Back Plan?

In the End

To secure your children's future. LIC New Children’s Money Back Plan is one of the ideal options. The plan allows you to plan the best for your child and ensure that money is not a barrier between them and their dreams.