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LIC Children's Deferred Endowment Assurance Plan Vesting At 18

LIC’s CDA Plan Vesting at 18 is a child policy such that the premium is paid till the child reaches 18 years of age and then child becomes the owner of the policy. If the child dies within the policy tenure after risk commencement, then the Sum Assured along with Guaranteed Additions are paid and the policy is terminated.

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Can be done by any near relative
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Loyalty or Terminal Bonus
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No Medical Tests
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Key Features

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Can be done by any near relative

This plan can be done by the child’s parents or grandparents or any near relative.

There are 2 stages

There are 2 stages of this plan- the Deferment Period and the period after the Deferred Date

Risk starts on the Deferred Date

Risk starts on the Deferred Date, i.e. 21 years of the Life Insured in this policy.

No Medical Tests

No Medical Tests are required where the Deferment Period is 10 years or more.

Loyalty or Terminal Bonus

Loyalty or Terminal Bonus is payable on death or maturity.

An Additional Premium Waiver

An Additional Premium Waiver Benefit rider can be taken along with this plan.

Benefits

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Death Benefit

If the Life Insured, i.e. the Child dies after the Deferment Date, then Sum Assured + Bonuses are paid.

If the Life Insured, i.e. the Child dies before the Deferment Date, the sum of premiums are paid back

If the proposer, i.e. Parent or Grand Parent or Near Relative dies before the Deferment Date, the premium payment must be continued. However if Premium Waiver Benefit has been opted for, then the insurer would pay the premium on behalf of the deceased parent.

Maturity Benefit

Sum Assured + All Bonuses are payable in a lumpsum. 

Income Tax Benefit

Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

Riders

There are 2 riders available with this plan- Premium Waiver Benefit rider and Accidental Benefit.

Eligibility

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Minimum

Maximum

Sum Assured (in Rs.)

50,000

1 Crore

Policy Term (in years)

11

50

Premium Payment Term (in years)

 

Entry Age of Life Insured (Child)

0

14

Age at Maturity

30

60

Single premium (in Rs.)

NA

Payment modes

Yearly, Half-yearly, Quarterly

FAQs

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angle down iconWhat happens if You want to surrender the policy?

Surrender of policy is allowed only after completion of 3 years or more.

The Guaranteed Surrender Value before the Deferred Date is 90% of the premiums paid excluding the premiums paid during the first year.
After the Deferred Date,

(i) If deferment period is less than 10 years: 90% of the premiums paid before the deferment date excluding the premiums for the first year plus 30% of premiums paid after the deferred date.

(ii) If deferment period is 10 years or more: 90% of a cash option plus 30% of premiums paid after the deferred date.

angle down iconWhat happens if You want a loan against your policy?

Loan in not available under this plan.