Here's What You Should Know About LIC’s New Children’s Money Back Plan

If you are worried about your child’s future and want to make it secure, then you may subscribe to Life Insurance Corporation’s New Children’s Money Back Plan. The plan covers educational, marriage and other needs of growing children and provides financial security to the child up to the age of 25 years.

It also offers survival benefits. This plan is applicable for a child falling in 0-12 age group. Apart from these benefits, New Children’s Money Back Plan includes risk cover on the life of child during the policy term.

A beneficiary can claim the amount due to him after attaining the age of 25. The policy does not include the entry age of the beneficiary. Upon maturity of the policy, the sum assured along with simple revisionary bonuses and final additional bonus; if any, will be paid.

The surviving benefit depends on the life assured surviving on each of the policy anniversary. The anniversary can coincide with or immediately follow the completion of ages 18 years, 20 years and 22 years. In this case, the beneficiary will receive 20 per cent of the basic sum assured on each occasion. To claim this benefit, a person must ensure that the policy is active.

One will get Rs 1 lakh as the minimum basic sum assured. There is no limit on maximum basic sum assured.

In case the insurer dies, his family or nominee will get complete sum assured at demise including bonuses.

Those who are interested in buying the policy can pay premium yearly, half-yearly, quarterly or monthly. The state insurer also provides the facility of grace period for paying premium. If somebody has chosen to pay premiums yearly, half-yearly or quarterly, he will get a grace period of 30 days. On the other hand, if premium is paid monthly, in this case the grace period offered is 15 days.

LIC also allows the buyers of this policy a revival option. If the policy has become inactive or not remained in force due to non-payment of premiums, then in that case it can be revived within a period of five consecutive years from the date of first unpaid premium.