LIC Children's Deferred Endowment Assurance Plan Vesting At 18

LIC Children’s Deferred Endowment Assurance Plan Vesting at 18

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.

Key Features of LIC’s CDA Plan Vesting at 18

• This plan can be done by the child’s parents or grandparents or any near relative.
• There are 2 stages of this plan- the Deferment Period and the period after the Deferred Date
• Risk starts on the Deferred Date, i.e. 21 years of the Life Insured in this policy.
• No Medical Tests are required where the Deferment Period is 10 years or more.
• Loyalty or Terminal Bonus is payable on death or maturity.
• An Additional Premium Waiver Benefit rider can be taken along with this plan.

Benefits you get from LIC’s CDA Plan Vesting at 18

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)

Eligibility in LIC’s CDA Plan Vesting at 18

Sample illustration of premium amount in LIC’s CDA Plan Vesting at 18

The below illustration is for a healthy child opting for a Sum Assured = Rs. 1,00,000

Policy Term= 30 years.

Additional Features and Benefits of LIC’s CDA Plan Vesting at 18

Riders- There are 2 riders available with this plan- Premium Waiver Benefit rider and Accidental Benefit.

What happens if?

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.