LIC New Children’s Money back Plan
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| Launch Date | Table No. | UIN | Status |
| 2/3/2015 | 832 | 512N296V01 | Active |
About LIC New Children's Money Back Plan
- A child plan, suitable to fulfil child’s educational and marriage requirements, etc.
- One can opt to differ the periodic returns and choose final payment amount of a higher value
- Has an additional option to include premium waiver rider
- A plan bought by parent or grandparent for a child aged 0 to 12 years
How does this plan work?
Under LIC New Children's Moneyback Plan, individual will choose a Sum assured for a policy paying term that is determined by the following equation (25yrs – Age of child). In return he gets the Sum Assured + Bonuses in the following 2 payment options:
Option 1: Sum Assured + Bonus at the age of 25 yrs of the child
Option 2: Receive 20% of the basic sum assured, each year at the child’s age of 18, 20 and 22 and the remaining 40% Sum assured + Bonus at the age of 25 Yrs of the child.
Now let’s understand this plan by an example:
Childs Age: 5 Years
Sum Assured: 5lac
Policy term = 25 – 5(25- Childs age) = 20 Yrs
Premium paying term = 25 – 5(25- Child age) =20Yrs
In this case, a child’s age is 5 years so the premium paying term and policy term is same i.e. 20 years. The monthly premium for this example comes out to be Rs.2,250/- The parent has to pay this premium for 20 yrs (till child turns 25). In return he gets back Rs 5,00,000/- + vested bonuses (approx. 4,55,000) when the child turns 25 (under Option1).
The other available return under option 2 helps the child to get 20% (Rs. 100000/-) each at age 18, 20 and 22 year (of the Sum assured) and remaining 40% of the sum assured at maturity along with the vested bonuses.
Death Benefit under the Plan:
Due to an unforeseen event if the child dies his parents will receive death sum assured. Consider the following instances, wherein his parents will get the death sum assured:
|
Child’s entry Age |
Amount received |
|
<8 |
|
|
8-18 |
Higher amount from, 10times the total premium paid or basic sum assured comprising of bonus. Using the above example, parents will get SA + bonuses, so approximately Rs. 8,12,000 |
|
19 |
20% of basic sum assured (first survival benefit) + Higher amount from, 10times the total premium paid or basic sum assured comprising of bonus. Using the above example, parents get Rs. 1 lac + Rs. 5lac+ Bonus= approximately Rs. 10 lacs |
|
21 |
Two survival benefits (40% of basic sum assured) + Higher amount from, 10times the total premium paid or basic sum assured comprising of bonus. Using the above example, parents get Rs. 2 lac + Rs. 5lac+ Bonus= approximately Rs. 11 lacs |
|
>22- <25 [23] |
Three survival benefits (60% of basic sum assured) + Higher amount from, 10times the total premium paid or basic sum assured comprising of bonus. Using the above example, parents gets Rs. 3lac +Rs. 5 lac + bonus = approximately 13 lacs |
Why should you buy this plan?
- This plan secures child’s future educational and marriage expense
- Offers tax exemptions under section 80C on premiums paid
- Good accrued bonus offered on maturity amount
- Maturity amount is Tax free
COMPARE & BUY SIMILAR PLANS
Bonus History
Company Name : Life Insurance Corporation of India
Plan Name : New Children Money Back Plan
| BonusYear | RevBonus | MinPT | MaxPT | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | 3.8% | 13 | 15 | |||||||
| 2014 | 4.2% | 16 | 20 | |||||||
| 2014 | 4.8% | >20 | ||||||||
| 2015 | 3.80% | 13 | 15 | |||||||
| 2015 | 4.20% | 16 | 20 | |||||||
| 2015 | 4.80% | > 20 | ||||||||
| 2016-17 | 3.8% | 13 | 15 | |||||||
| 2016-17 | 4.2% | 16 | 20 | |||||||
| 2016-17 | 4.8% | >20 |
Bonus explained: For a sum assured of Rs. 100000/-, if the bonus declared is 4.2% or Rs 42/- per thousand, then the amount of Rs 4200/- gets accumulated into the policy for that year.
Who should buy this plan?
- Minimum and Maximum entry Age is 0 to 12 years.
- Minimum and Maximum maturity Age is 25 years.
- Policy Term = [25 – Age at Entry] years.
- Minimum basic sum assured is 1,00,000.
- Young parents who are planning to secure their child’s future educational expense
- Grandparents looking out for safe investment plan for their grandchildren’s future
- People looking out for low risk investment option
Riders & Add On
Waiver of Premium Rider:- In the event of death of the Proposer, all the future premiums gets waived off and all the benefits remain intact and paid to the nominee as per the policy Terms & Conditions
Company Overview
Life Insurance Corporation is a government owned insurance and Investment Company with its headquarters in Mumbai. LIC offers a wide range of products such as term plans, pension plans, group schemes and unit-linked plans. With a huge presence in overall Indian markets, unmatched distribution network, strong brand value and a wide range of products, LIC is the largest public insurance company in India.
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