Lic Children Plans| Lic of India
It is designed to meet the increasing educational, marriage and other needs of growing children.
Features
· It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.e. 7 years after the expiry of policy term).
· A number benefits can be availed on surviving by the life assured to the end of the specified durations
· You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium payment and Premium Waiver Benefit
· Premiums can be paid yearly, half yearly, quarterly, monthly or through salary deductions over the term of policy and it can be paid either for 6 years or up to 5 years before the policy term
Survival Benefits
On life assured surviving to the end of the specified durations an amount specified below is payable:
(1) 5 yrs before the date of expiry of term: 25% of Sum assured
(2) 1yr t0 4 yrs before the date of expiry of term: 10% of Sum assured
(3) On the date of expiry of the policy term: 50% of Sum assured along with simple reversionary bonus and final bonus.
Death Benefit
On death (after the Date of Commencement of Risk) - Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus, if any shall be payable.
On death during the Extended Term - Sum Assured is payable.
On death (before the Date of Commencement of Risk) - All the premiums paid (excluding extra premium and premium for premium waiver benefit, if any,) along with interest of 3% p.a compounded yearly shall be payable.
Auto Cover
If after at least two full years’ premiums have been paid, and any successive premium be not duly paid, full death cover shall continue for a period of two years from the due date of the First Unpaid Premium (FUP). In this Period, one or more installments of premiums with interest can be paid without submission of evidence of health.
Premium Waiver Benefit
If Proposer aged between 18 and 55 and is medically fit, he can opt for this benefit. It provides waiver of premiums on death of proposer (but not available in case of suicide within one year of policy). Any premiums that have fallen due and not paid during the Auto Cover period shall also be waived.
Participation in Profits of the Corporation
Simple Reversionary Bonuses shall be declared per thousand Sum Assured annually at the end of each financial year depending upon the Corporation’s experience, provided the policy is in full force. In case of a paid up policy, bonuses shall be payable only if, at least, 3 full years’ premiums have been paid. On surrender, the discounted value of vested bonuses, if any, (if not paid earlier) will be payable. Final (Additional) Bonus may also be declared in addition.
Paid-up Value:
If at least three full years’ premiums have been paid and any subsequent premium is not duly paid, this policy shall not be wholly canceled but shall become paid-up.
If policy becomes paid-up before the commencement of risk, then the policy shall be free to receive the Guaranteed Surrender Value. If the policy is not surrendered, this Guaranteed Surrender Value shall be payable on the expiry of policy term or on death of Life Assured, if earlier.
If policy becomes paid-up after the commencement of risk, then the sum assured of policy shall be reduced to such a sum (paid-up value), as shall bear the same proportion to the full Sum Assured as the number of premiums actually paid bears to the total number of premiums fixed for in the policy. This reduced value (paid up value) along with vested bonuses, if any, shall be payable on the date of expiry of policy term or at Life Assured’s prior death. No survival benefit shall be payable under a reduced paid-up policy. Extended Term cover shall cease to apply if the policy is in lapsed/ Paid-up condition.
Surrender Value
The policy can be surrendered if at least 3 years premium have been paid. The Guaranteed Surrender Value will be as under:
i. Before commencement of risk: 90% of the total premiums paid (excluding premiums for the first year).
ii. After commencement of risk: 90% of the total premiums paid (excluding premium for the first year) before commencement of risk and 30% of premiums paid on and after the commencement of risk.
Grace Period:
A grace period of one month but not less than 30 days will be allowed for payment of premiums.
Revival
If the policy is lapsed paying arrears of premium together with interest within a period of five years can revive it. The rate of interest applicable will be as fixed by the Corporation from time to time.
Cooling-off period:
The policy can be returned if you are not satisfied with the “Terms and Conditions” of the policy.
Eligibility
Min Entry age: 0 yrs
Max Entry age: 12 yrs
Min Maturity age: 23 yrs
Max Maturity age: 27 yrs
Min Sum assured: Rs 1 lakh
Max Sum assured: Rs 1 crore
Policy Term: 11 to 27 yrs
Premium paying term: 6 yrs and policy term 5 yrs.
