LIC Child Future Plan

LIC Child Future 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. However, if the child outlives the entire tenure, then he receives 115% of the Sum Assured. He would receive 25% of the Sum Assured 5 years before the date of expiry of policy term. Then he would receive 10% 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 50% of the Sum Assured along with Vested Bonus and Final Addition Bonus, if any.

• This plan provides risk cover on the life of child not only during the policy term but also during the extended term of 7 years post maturity
• On life assured surviving, Survival Benefit of 25% and 10% of the Sum Assured is paid
• Maturity Benefit is 50% of the Sum Assured along with Vested Bonus and Final Addition Bonus, if any declared
• There is an additional rider of Premium Waiver Benefit 

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

In case of death during Extended Term, then only Sum Assured is payable.

Survival Benefit – On life assured (i.e child) surviving till the end of the specified duration, LIC will pay the amount mentioned below

5 years before the date of expiry of policy term - 25% of the Sum Assured

4 years before the date of expiry of policy term - 10% of the Sum Assured

3 years before the date of expiry of policy term - 10% of the Sum Assured

2 years before the date of expiry of policy term - 10% of the Sum Assured

1 year before the date of expiry of policy term - 10% of the Sum Assured 

Maturity Benefit – On maturity, the Life Insured, i.e. the child gets the 50% of the Sum Assured + Vested Bonus + 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

Premium = Rs 4,528/-

Age of Life Insured, i.e. Child = 0 year

Policy Term = 25 years, Yearly mode

PPT = 20 years

Sum Assured = Rs 1,00,000

Total Investment = Rs 4,528 X 20 = Rs 90,560/-

Guaranteed Return is

Year 20 = Rs 25,000/-

Year 21 = Rs 10,000/-

Year 22 = Rs 10,000/-

Year 23 = Rs 10,000/-

Year 24 = Rs 10,000/-

Maturity Benefit at the End of Year 25 = Rs 50,000/- + Bonus (Variable)

Riders – Premium Waiver Benefit Rider available in this policy

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 – 1^st year premium.

After commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid before commencement of risk – 1^st 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.

1.     MetLife Met Bhavishya

2.     SBI Life Scholar II

3.     Bharti AXA Life Bright Stars EDGE

1.     LIC Jeevan Anurag

2.     LIC CDA Endowment Vesting At 21

3.     LIC CDA Endowment Vesting At 18

4.     LIC Jeevan Kishore

5.     LIC Child Career Plan

6.     LIC Jeevan Chhaya

7.     LIC Marriage Endowment Or Educational Annuity Plan