Children Money Back Plan: During the policy, it acts as a risk cover for children. The entry age for this plan is 0-12 years.
It is an important responsibility for your children to protect their future as well as tomorrow. They need help at different points of life from time to time. Keeping in mind all their needs, the Life Insurance Corporation launched the New Children Money Back Plan. This plan has been designed keeping in mind all such needs.
LIC New Children Money Back Plan (Table No 932) is a non-linked (market risk free), Individual Life Insurance Money Back Plan. During the policy, it acts as a risk cover for children. The entry age for this plan is 0-12 years and parents or grand parents can buy this plan for their children. This policy matures at the age of 25 years. In this way, the duration of the policy for a child depends on the age at which this plan has been purchased. This is for a maximum of 25 years and a minimum of 13 years. The minimum sum assured for this policy is 1 lakh rupees. Maximum is not a limit for some assurance. Payment can be made on an annual, half-yearly, quarterly and monthly basis.
How to get money back?
This plan gives three types of benefits. First Survival Benefit. Under this, at the age of 17, 20 and 22, 20-20 percent of the sum assured is available as moneyback. For example, if the sum of 1 lakh rupees is insured, then at the age of 17, 20, 22 years, 20-20 thousand rupees will be received as moneyback. On completion of 25 years, you will get 40 thousand rupees. This is a maturity benefit. Talking about the death benefit, if the child dies during the policy, then the parent gets some assurance and bonus. Talking about risk cover, risk cover starts as soon as you take a policy between 8-12 years. It starts two years after taking the policy at a younger age.
Tax benefits and loan facilities
Talking about the rider, parents will have to pay some extra premium for this. The advantage of this is that if the parent dies, then LIC will pay the premium itself and the child will continue to get all kinds of benefits. If this rider is not taken, then the premium should be deposited in any case only then this policy will remain alive. On investing in it, deduction under Section 80C is also provided. Apart from this, loan facility is also available.