LIC’s New Children’s Money Back Plan

• Survival Benefit as 20% of basic sum assured at 18, 20 & 22 years of age
• Maturity benefit
• Life cover available
• Participation in profits
• Choose rider to enhance protection
• Get high sum assured discount
• Premium rebate on choosing annually/semi annually premium payment mode
• Avail loan benefit
• Avail tax benefits

Death Benefit

In the event of death of the life insured before the date of maturity, but prior the date of commencement of risk, Return of Premium (excluding taxes, rider premium & extra premium, if any).

In the event of death of the life insured before the date of maturity, but after the date of commencement of risk, Sum Assured on Death plus Vested Simple Reversionary Bonuses & Final Additional Bonus is payable to the nominee. Sum Assured on Death is higher of Basic Sum Assured or 10 times of annualized premium.

The total death benefit payable cannot be less than 105% of all the premiums paid. This benefit is payable, subject to the policy is in-force.

If the age at entry is less than 8 years, the risk will commence either one day before the completion of 2 years from the date of commencement of the policy or one day before the policy anniversary coinciding with or following the completion of 8 years, whichever is earlier. If the age at entry is 8 years or more, the risk will commence immediately.

Maturity Benefit

On survival of the life insured till maturity of the policy, 40% of the basic sum assured plus Vested Simple Reversionary Bonuses & Final Additional Bonus is payable.

Survival Benefit

20% of the basic sum assured is payable on each of coinciding with or on completion of 18, 20 & 22 years of age. This benefit is payable, subject to the policy is in-force. You have an option to take the survival benefit on or after the due date, but during the policy term.

In case of deferment of the survival benefit, you will get the increased survival benefit equal to Survival Benefits % * Sum Assured * (Factor applicable to Survival Benefit).

Bonus

Simple Reversionary Bonuses is declared depending on the experience of the Corporation, provided the policy is in full force. Final Additional Bonus is also payable, in case of claim arising due to maturity or death.

Loan Benefit

Loan facility can be availed under this policy, after payment of three full policy years’ premiums.

Surrender Value

This policy acquires Surrender Value after paying at least three full policy years’ premium. The Guaranteed Surrender Value is a percentage of total premiums paid excluding any extra premium & taxes and less any survival benefit already paid. Guaranteed Surrender Value depends on the year of surrender. The Surrender Value of Vested Simple Reversionary Bonuses is also payable. The Special Surrender Value is payable, when it is more favorable to the policyholder.

Tax Benefit

Under this policy, you can avail tax benefits under section 80C & 10 (10D) of the Income Tax Act, 1961.

LIC’s Premium Waiver Benefit Rider can be opted under this plan, on payment of additional rider premium.

Raman at 5 years, wants to buy LIC’s New Children’s Money Back Plan to get regular money backs along with life protection. He opts the plan with the policy term of 20 years, sum assured is Rs 1,00,000 with annual premium of Rs 5,586.

Scenario A: Raman Survives the Policy Term

If Mr. Raman survives till the maturity of the policy term, he receives Rs 20,000 is payable on each of coinciding with or on completion of 18, 20 & 22 years of age, as the survival benefit. He also receives Rs 40,000 plus Vested Simple Reversionary Bonuses & Final Additional Bonus as the maturity benefit.

Scenario B: Raman dies during the Term of the Policy

In the event of demise of Mr. Raman during the 8^th policy term, Rs 1,00,000 plus Vested Simple Reversionary Bonuses & Final Additional Bonus is payable to the nominee.

Benefit Illustration:



Please Note: The benefits illustrated above are calculated at Projected Non-Guaranteed Investment Rate of Return assumption of 4% p.a. (Scenario 1) and 8% p.a. (Scenario 2) respectively. It is assumed that the rate of return will be able to earn throughout the term of the policy.