What is LIC Children Money Back Plan and its benefits
✅LIC Children Money Back Plan is a traditional policy offering survival benefits, maturity benefits, and life cover, ensuring financial security for your child’s future.
The LIC Children Money Back Plan is a specialized insurance policy offered by the Life Insurance Corporation of India (LIC) designed to cater to the financial needs of children at various stages of their life. This plan not only provides risk coverage for the child’s life during the policy term but also offers survival benefits at specified durations to meet the educational and other financial requirements of growing children.
Understanding the intricacies and benefits of the LIC Children Money Back Plan is crucial for parents who wish to secure their child’s future. This plan is structured to provide periodic payouts, which can be used for educational expenses, marriage, or any other significant financial needs. Below, we delve deeper into the features, benefits, and eligibility criteria of this plan to help you make an informed decision.
Key Features of LIC Children Money Back Plan
Some of the main features of this policy include:
- Policy Term: The policy term is either 25 years minus the age at entry of the child or 25 years from the date of commencement of the policy, whichever is earlier.
- Survival Benefits: The plan provides survival benefits of 20% of the Sum Assured at the ages of 18, 20, and 22 years.
- Maturity Benefit: If the policyholder survives the policy term, they will receive 40% of the Sum Assured along with the applicable bonuses.
- Death Benefit: In the unfortunate event of the death of the policyholder, the nominee will receive the Sum Assured along with accrued bonuses.
- Premium Waiver Benefit: This optional rider ensures that all future premiums are waived off on the death of the proposer, ensuring the continuation of the policy benefits without financial burden.
Benefits of LIC Children Money Back Plan
The LIC Children Money Back Plan offers several benefits that make it a desirable option for securing a child’s future:
- Financial Security: The plan ensures financial protection for the child in case of the death of the parent.
- Periodic Payouts: The survival benefits are designed to meet significant educational or other financial milestones in the child’s life.
- Tax Benefits: Premiums paid under this policy qualify for tax deductions under Section 80C of the Income Tax Act, 1961. Additionally, the maturity benefits are tax-free under Section 10(10D).
- Bonus Facility: The plan participates in LIC’s profit and is eligible for bonuses, which enhance the overall returns.
- Loan Facility: Policyholders can avail of a loan against the policy, providing a financial cushion in times of need.
Eligibility Criteria
To be eligible for the LIC Children Money Back Plan, the following criteria must be met:
- Minimum Entry Age: 0 years (child)
- Maximum Entry Age: 12 years (child)
- Minimum Sum Assured: INR 1,00,000
- Maximum Sum Assured: No limit
By understanding these key aspects of the LIC Children Money Back Plan, parents can ensure that they are making a well-informed decision that will provide financial stability and security for their child’s future. This plan stands out due to its well-structured benefits and the financial safety net it offers during crucial stages of a child’s life.
Eligibility criteria and age requirements for LIC Children Money Back Plan
Eligibility criteria and age requirements for LIC Children Money Back Plan
When considering the LIC Children Money Back Plan, it is crucial to understand the eligibility criteria and age requirements associated with this policy. This plan is specifically designed to secure your child’s future financially, providing a lump sum amount at certain intervals to meet their educational expenses or other life milestones.
Parents or legal guardians can purchase this plan for their children to ensure a stable financial foundation for their future. The child is the nominee under this policy, and in case of any unfortunate event, the sum assured is paid to the nominee to secure the child’s future.
Key Eligibility Criteria:
- Minimum Age: The child should be a minimum of 0 years old to be eligible for this plan.
- Maximum Age: The child can be a maximum of 12 years old to avail of this policy.
- Policy Term: The policy term typically ranges from 25 to 40 years, ensuring long-term financial security for the child.
Age Requirements:
Age plays a significant role in determining the premium amount and the coverage period of the policy. The earlier the policy is purchased, the better it is in terms of premiums and coverage. For example, if a child is enrolled in the LIC Children Money Back Plan at the age of 1, the premium amount would be considerably lower compared to enrolling at the age of 10.
It is recommended to start planning for your child’s future as early as possible to leverage the benefits of compounding and secure their financial stability. By investing in this plan, parents can ensure that their child’s education, marriage, or any other financial needs are taken care of without any compromise.
Understanding the eligibility criteria and age requirements for the LIC Children Money Back Plan is essential to make an informed decision and provide a strong financial foundation for your child’s future.
Premium payment options and policy terms overview
Let’s delve into the Premium payment options and policy terms of the LIC Children Money Back Plan. Understanding these aspects is crucial for making informed decisions when it comes to securing your child’s future.
1. Premium Payment Options:
When it comes to the LIC Children Money Back Plan, there are typically three main premium payment options available:
- Regular Premium: Under this option, the policyholder pays premiums regularly throughout the policy term.
- Limited Premium: In this scenario, premiums are paid for a limited period, which is shorter than the policy term.
- Single Premium: This option involves making a one-time lump sum payment at the beginning of the policy term.
Each of these premium payment options has its own set of benefits and considerations. For instance, a Single Premium option may offer convenience and potentially lower overall costs, while a Regular Premium option allows for spreading out payments over time, making it more manageable for some individuals.
2. Policy Terms Overview:
The LIC Children Money Back Plan typically offers flexible policy terms to suit the needs of different individuals. Policyholders can choose a policy term based on their financial goals and the milestones they wish to achieve for their child. Common policy terms may range from 10 to 25 years, providing ample time to accumulate savings and secure the child’s future.
It’s important to carefully consider the policy term when selecting a plan, as it can impact factors such as the maturity benefit, premium amounts, and overall financial planning for your child’s future expenses.
By understanding the Premium payment options and policy terms of the LIC Children Money Back Plan, you can make informed choices that align with your financial objectives and ensure a secure financial future for your child.
Frequently Asked Questions
What is LIC Children Money Back Plan?
LIC Children Money Back Plan is a non-linked, with-profit, regular premium payment money back plan specially designed to meet the educational, marriage, and other needs of growing children.
What are the key benefits of LIC Children Money Back Plan?
The key benefits of LIC Children Money Back Plan include financial protection in case of policyholder’s death, survival benefits, and maturity benefits for the child’s future needs.
Can I avail tax benefits with LIC Children Money Back Plan?
Yes, policyholders can avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, for premiums paid and benefits received.
What is the minimum and maximum entry age for this plan?
The minimum entry age for the child is 0 years (completed) and the maximum entry age is 12 years for children’s parents or grandparents.
Is loan facility available with LIC Children Money Back Plan?
Yes, loan facility is available under this plan after the policy acquires a surrender value.
Can I surrender the policy before maturity?
Yes, policyholders can surrender the policy before maturity, subject to terms and conditions, and receive the surrender value.
- Flexible premium payment options
- Survival benefits at specified intervals
- Death benefits to ensure financial security for the child
- Maturity benefits to meet the child’s future needs
- Additional riders for enhanced coverage
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