LIC Child Career Plan

  • 3 Comments
  •  
  • 22,740  Views


Policy Discontinued

LIC Child Career Plan

 

LIC Child Career Plan is a Money Back Endowment Plan for the benefit of a child such that Sum Assured plus Bonus is paid immediately to the nominee on death of the Life Insured after commencement of risk. However, if the child outlives the entire tenure, then he actually received 105% of the Sum Assured. He would receive 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term. Then he would receive 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy. Also, when the policy matures, he would receive the remaining 15% of the Sum Assured along with Final Addition Bonus, if any.

 

 

Key Features of LIC Child Career Plan

 

  • This plan provides the risk cover on the life of child not only during the policy term but also during the extended term of 7 years post maturity.
  • The Survival Benefit is 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy. 
  • Maturity Benefit is 15% of the Sum Assured along with Final Addition Bonus, if any declared.
  • There is an additional rider of Premium Waiver Benefit. 

 

Benefits you get from LIC Child Career Plan

 

Death Benefit – In case of death of the Life Insured, i.e. child after risk commencement, the nominee would receive the Sum Assured plus Bonus.

However, if the Life Insured, i.e. the child dies before risk commencement, then the nominee would receive all basic premiums paid till date + 3% p.a. interest compounded annually.

 

Survival Benefit – On Survival of the Life Insured, i.e. child, he receives 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy

 

Maturity Benefit – On maturity, the Life Insured, i.e. the child gets the remaining 15% of the Sum Assured plus the final addition Bonus.

 

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

 

 

Eligibility conditions and other restrictions in LIC Child Career Plan

 

 

Minimum

Maximum

Sum Assured (in Rs.)

1 lakh

1 crore

Policy Term (in years)

11

27

Premium Payment Term (in years)

6

Policy Term- 5

Entry Age of Life Insured (in years)

0

12

Age at Maturity (in years)

23

27

Single Premium (in Rs.)

-

-

Payment modes

Yearly, Half-Yearly, Quarterly & SSS

 

 

Sample illustration of LIC Child Career Plan

 

Premium = Rs.4513/- , Age of Life Insured, i.e. Child = 0 year

Policy Term = 25 years, Payment Mode = Yearly

Premium Paying Term = 20 years, Sum Assured = Rs 1,00,000

Total Investment = Rs 4513 X 20 = Rs 90260/-

 

Guaranteed Return is

Year 20 = Rs 30000/- + Bonus (Variable)

Year 21 = Rs 15000/-

Year 22 = Rs 15000/-

Year 23 = Rs 15000/-

Year 24 = Rs 15000/-

Maturity Benefit at the End of Year 25 = Rs 15000/- + Bonus (Variable)

 LIC Child Career Plan Sample Benefits & Returns

 

Additional Features and Benefits of LIC Child Career Plan

 

Riders – There is 1 additional rider available in this policy

Premium Waiver Benefit rider.

 

 

What happens if?

 

You stop paying the premium – The policy will lapse if the premium stops. However if at least 3 years’ premium shave been paid then the policy acquires a Paid Up Value and the risk cover continues at the reduced Sum Assured. The reduced Sum Assured and the accrued Bonus would be payable on Maturity or on earlier death. It can also be revived within 5 years from the due date of first unpaid premium.

 

You want to surrender the policy – Surrender Value is paid if premiums for 3 years have been paid up. Before commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid – 1st year premium. After commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid before commencement of risk – 1st year premium + 30% of premiums paid on and after the commencement of risk.

 

You want a loan against your policy – Loan is not available under this policy.

 

 

Alternate Child Plans from different insurance companies

 

1.     MetLife Met Bhavishya

2.     SBI Life Scholar II

3.     Bharti AXA Life Bright Stars EDGE

 

 

Other Child Plans from Life Insurance Corporation of India

 

 

 

 

 

 

1.     LIC Jeevan Anurag

2.     LIC CDA Endowment Vesting At 21

3.     LIC CDA Endowment Vesting At 18

4.     LIC Jeevan Kishore

5.     LIC Jeevan Chhaya

6.     LIC Marriage Endowment Or Educational Annuity Plan

~ By Deepak Yohannan
Note: This is a statement of facts based on the information collected from the LIC Child Career Plan brochure and insurance company's website. It should not be construed as a Critical or Favourable LIC Child Career Plan Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


Leave a Comment

Give information about LIC Child Carriir plan

By Archana on Dec 11, 2012 Reply

plz tell me one time payment for this policy

By Shailesh Khapre on Apr 19, 2012 Reply

pls let me know the Premium Waiver Benefit rider and what amt needs to pay a person if they avail this benefit and is there is any age criteria for this

By Umesh on Dec 17, 2011 Reply

Know more about this policy

Date of Birth

  

  I agree to the Terms & Conditions
  and Privacy Policy.

Save Tax and Protect your Family
MyInsuranceClub.com is Approved Web Aggregator

Stay Connected!