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.
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)
|
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 |
The below illustration is for a healthy child opting for a Sum Assured = Rs. 1,00,000
Policy Term= 30 years.
Riders- There are 2 riders available with this plan- Premium Waiver Benefit rider and Accidental Benefit.
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.
You want a loan against your policy – Loan in not available under this plan.