LIC Komal Jeevan

About LIC Jeevan Komal

• It is a child plan, suitable to fulfil the child’s educational and marriage requirements, etc.
• Premium paying term is less than the policy term.
• The plan has an additional benefit of premium waiver rider
• A plan bought by parents or grandparents for a child aged 0 to 12 years
• Guaranteed additions and accrued bonuses paid on maturity
• The guaranteed addition paid is of Rs.75 per 1000 sum assured per year.
• Offers tax exemptions on premiums paid under 80C and the maturity amount is tax free under section 10(10D)

How does this plan work?

Under this plan an individual has to choose a Sum Assured whereas the term of the policy is determined by deducting the child’s age from 18 years. The premium has to be paid till the child turns 18. After the child turns 18 years old, he gets periodic repayment as survival benefit after every two years till the age of 24. Given is the proportion of repayment for every two years: 

The term ends when the child turns 26 years old and gets the maturity benefit which is a lumpsum of accrued guaranteed additions and loyalty additions. During the policy, if in-case due to an unfortunate demise of the life insured, his nominee receives a sum assured as the death benefit along with the accrued guaranteed additional bonuses if any. Refer the following table to understand death benefits at various age levels

Let us understand this by an illustration,

Consider,

Child’s age: 0 years.
Premium paying term: 18 years (18-0)
Policy term: 26 years
Premium paying mode: Annual
Sum assured: Rs 1 lakh

An individual buys this plan for his newly born child; the premiums have to be paid for 18 years (till child turns 18). The annual premium paid is Rs. 7281. After the child turns 18, he gets Rs. 20000 at the age of 18; Rs. 20000 at the age of 20; Rs.30000 at the age of 22 and Rs.30000 as survival benefit

When the child turns 26 years old, the policy term ends and on he receives a maturity amount of approximately Rs. 371000 (accrued guaranteed additions and loyalty bonus). If in-case due to an unfortunate death of the insured at the age of 12, his nominee gets approximately Rs. 178500. (Sum Assured + Accrued additions)

Understand the Bonus Declared

Bonus Rate – 2013-14

Bonus Explained:-  If the premium paying term chosen was 15 years then bonus for that year was 3.4% of the sum assured. In the above example for the year 2012-13 the individual would have got a bonus of 100000 × 3.4% = 3400.

Riders & Add On:

Premium Waiver Rider: In this rider, if the proposer dies, then the remaining premiums are laid-off.

Claim Process: 

Know Claim Process of LIC Jeevan Komal

Claim Process