​Risk Commencement Date in LIC New Children’s Money Back Plan

Last Updated: Feb 24, 2022 | 2,248 Views
In the LIC New Children’s Money Back Plan, the life cover does not start immediately in all cases. It would depend on the age of the Child at the time of taking the plan. Let us understand this better in this post.
  • If the Child dies before the risk commencement date, only the premiums paid so far are returned to the nominee.
  • If the Child dies after the risk commencement date, the Sum Assured on Death + Simple Reversionary Bonus + Final Additions are paid to the nominee.

So it is important to understand from when the risk is covered.
  • In case the age of the child is less than 8 years at the time of taking the policy - The risk cover benefits will only start one day before the policy completes 2 years or one day before the policy anniversary immediately after the child turns 8.
  • In case the age of the child is 8 years or more - The risk cover starts immediately.
 
Let us understand the “Risk Commencement” date in LIC Children’s Money Back Plan with the help of a few examples:

Example 1
 
Suppose policy start date = 25th July, 2017
Age of Child = 3 years
Risk Commencement date = 24th July, 2019

 
Example 2
 
Suppose policy start date = 25th July, 2017
Age of Child = 7 years
Risk Commencement date = 24th July, 2018
 

Example 3
 
Suppose policy start date = 25th July, 2017
Age of Child = 8 years
Risk Commencement date = 25th July, 2018

Hope this makes it absolutely clear when the risk cover starts for the child. If you have any queries regarding this, please add a comment below and we would be happy to help.

Read the Review of LIC New Children’s Money Back Plan.

Deepak Yohannan
Deepak Yohannan is the CEO of MyInsuranceClub. He enjoys writing on Personal Finance and contributes regularly on sites like Reuters & Moneycontrol. He is a strong proponent of online insurance and is often found pointlessly babbling about it!