Compare LIC Child Plans

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Life Insurance Corporation of India

The oldest player in the insurance sector, since 1956, LIC of India has been catering to insurance needs of the entire nation. Being the only player till 2002, LIC grabbed the maximum market share and is still the tallest player in the market. With as many as 250 million customers, its reach is humungous and for most customers, life insurance still means LIC. It has extensive reach in the market with wide variety of plans that generations of families are using and are happy with. With increasing competition, the company has also evolved with its product portfolio and brings some of the best plans to its customer for maximum life insurance coverage at least possible cost.

Life Insurance Corporation of India- Child Plans

The child plans offered by the LIC of India are tailor-made for different needs and requirements when it comes to child’s secure financial future. The two plans offer distinct features at affordable rates and come in the category of Money Back variants.

List of Child Plans Offered By Life Insurance Corporation of India, With Features, Benefits And Eligibility

LIC’s New Children’s Money Back Plan

Features:

  • Limited premium plan that earns applicable bonuses too
  • Children below the age of 8 years enjoy the deferment period under this policy. Risk cover begins one day before the completion of 2 years of the policy inception or one day before the policy anniversary that coincides with or follows the child’s 8th birthday
  • The policy vests in the name of the child, who is the life assured and shall then become policyholder on the policy anniversary falling after his 18th birthday
  • Loan facility provided
  • Tax benefits are available

Benefits:

  • The policy offers survivor benefits @20% of the sum assured at each policy anniversary after the child attains the age of 18, 20 and 22 years
  • The plan allows the policyholder to postpone the receipt of survival benefits within the policy term. In such a case, the benefit will be calculated as Survival Benefit % * Sum Assured * applicable Survival Benefit factor
  • Maturity Benefits: At the time of maturity, the policyholder shall receive 40% of the sum assured plus simple reversionary bonuses plus final additional bonus, if any
  • Death Benefit: The death benefits are applicable under following two options:
    1. If the insured dies during the deferment period, that is, when the risk has not begun, only the paid premiums till the date of death shall be returned
    2. In case the insured dies post deferment period, the sum assured that is the higher of chosen sum assured or 10 times the annual premium, vested simple reversionary bonuses and final addition bonus, if any shall be paid, subject to a minimum of 105% of all premiums paid till the date of death
  • Choosing yearly or half-yearly premium paying options can earn a rebate on premium @ 2% and 1% respectively
  • Using the policy, loans can be availed to meet financial requirements
  • Premium waiver rider is applicable under the plan so that after the death of the proposer, the future premiums are waived off and paid by the company
  • Income tax benefits are available under section 80C and section 10 (10) D

Eligibility:

Entry Age Min: 0 years | Max: 12 years
Maturity Age Max: 25 years
Policy Term 25 years – entry age of the child
Sum Assured Min: Rs. 1 lakh | Max: No limit
Premium Payment Term 10 years, 7 years or (term – 5) years
Premium Payment Frequency Yearly, half-yearly, quarterly or monthly

Jeevan Tarun

Features:

  • Traditional child plan that is a combination of endowment and money back plan
  • Applicable bonuses shall be paid
  • Limited premium payment plan
  • Multiple survival and maturity benefits are offered
  • Children under the age of 8 years are offered a deferment period. The risk cover begins one day before completion of 2 years of policy term or one day before policy anniversary that coincides with or follows the child’s 8th birthday
  • The policy will vest in the name of the child, who is the life assured and shall then become the policyholder on the policy anniversary falling after his 18th birthday
  • The money back benefits start getting paid on the policy anniversary that coincides or follows the child’s 20th birthday and shall continue for 5 years till the insured turns 25years old

Benefits:

  • Four options to receive maturity and survival benefits available to the policyholder are:
    1. No survival benefit is offers and at the time of maturity 100% of the sum assured shall be paid
    2. 5% of the sum assured is paid every year for 5 years as money back and then at the time of maturity, 75% of the sum assured along with vested bonuses shall be paid
    3. 10% of the sum assured is paid every year for 5 years and then 50% of sum assured and vested bonuses shall be paid at the time of maturity
    4. 15% of the sum assured is paid every year for 5 years as money back and then 25% of the sum assured is paid at the time of maturity
  • Death Benefits: The death benefits shall be paid under following two circumstances:
    1. If the insured dies during the deferment period, when the risk has not begun, only the paid premiums shall be paid to the nominee
    2. If the insured dies post deferment period, the sum assured on death, which is the higher of 125% of the chosen sum assured or 10 times the annual premium, simple reversionary bonuses and final additional bonus, if any, is paid to the nominee subject to a minimum of 105% of all premiums paid till the date of death
  • Waiver of future premiums riders is applicable in the plan where the future premiums shall be waived off and paid by the company after the death of the proposer
  • Facility to avail loan under this policy is offered
  • Selecting a high sum assured of Rs. 2 lakhs and above attracts rebate on premium
  • Choosing to pay premium on a yearly or half-yearly basis can also get a discount on premium @2% and 1% respectively
  • Income tax benefits are applicable under section 80C and section 10 (10) D

Eligibility

Entry Age Min: 0 years | Max: 12 years
Maturity Age Max: 25 years
Policy Term 25 years – entry age of the child
Sum Assured Min: Rs. 1 lakh | Max: No limit
Annual Premium Amount Min: Rs. 24,000 | Max: No limit
Premium Payment Term 10 years, 7 years or (term – 5) years
Premium Payment Frequency Yearly, half-yearly, quarterly or monthly
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