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Deferment of Survival Benefits in LIC New Children’s Money Back Plan

Deferment of Survival Benefits in LIC Children’s Money Back Plan

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2 mins 24 secs
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Last Updated - May 12, 2023
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You have an optional benefit of taking the Survival Benefits at a later point in time. Let us understand how this works with the help of an example.

Suppose Samik who was 5 years old had taken this plan. The Basic Sum Assured of the plan is Rs. 1,00,000. The survival benefits would be as follows:

After he attains the age of 18 years = 20 % of Basic Sum Assured = Rs. 20,000
After he attains the age of 20 years = 20 % of Basic Sum Assured = Rs. 20,000
After he attains the age of 22 years = 20 % of Basic Sum Assured = Rs. 20,000

For each of these benefits, he can choose to take any time till he reaches the age of 25 (when the policy term end).

If he chooses to take any of these at a later point in time, he would be eligible for a multiplication factor as shown in the table below.

nFactornFactornFactor
11.00450291.13050571.25650
21.00900301.13500581.26100
31.01350311.13950591.26550
41.01800321.14400601.27000
51.02250331.14850611.27450
61.02700341.15300621.27900
71.03150351.15750631.28350
81.03600361.16200641.28800
91.04050371.16650651.29250
101.04500381.17100661.29700
111.04950391.17550671.30150
121.05400401.18000681.30600
131.05850411.18450691.31050
141.06300421.18900701.31500
151.06750431.19350711.31950
161.07200441.19800721.32400
171.07650451.20250731.32850
181.08100461.20700741.33300
191.08550471.21150751.33750
201.09000481.21600761.34200
211.09450491.22050771.34650
221.09900501.22500781.35100
231.10350511.22950791.35550
241.10800521.23400801.36000
251.11250531.23850811.36450
261.11700541.24300821.36900
271.12150551.24750831.37350
281.12600561.25200841.37800

Where n= Number of completed months from the due date of Survival Benefit to the actual date of Survival Benefit payment

At the age of 18, he is eligible to get Rs. 20,000.

Suppose he chooses to defer this payment by 42 months. He would be eligible for a factor of 1.1890.
He would now get: Rs. 20,000 x 1.1890 = Rs. 23,780

Suppose he chooses to defer this payment by 52 months. He would be eligible for a factor of 1.2340.
He would now get: Rs. 20,000 x 1.2340 = Rs. 24,680

Similarly, he could choose to defer any of the 3 Survival Benefit tranches till the end of the policy term and avail a higher payout. This could be useful to those who want a lump sum payment at the end of the policy term.

Click here for an Understand of the benefits of LIC New Children’s Money Back Plan.

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Jay Vasa is a content writer, who has got his core emphasis on insurance related information. The sole motive of writing articles is to spread appropriate information to the people regarding one of the important and discussed topic in today's time.