The CDA Endowment Vesting At 18 Plan from the Life Insurance Corporation of India (LIC) is a “with-profit”, endowment, life insurance plan. This plan helps parents or legal guardians to provide a risk cover to their children. The risk cover is provided for the period following the deferment date. This plan also provides a maturity benefit if the child survives till completion of the policy tenure. The life assured/nominee can claim tax benefits, as per prevailing laws of the Income Tax Act, 1961.
The sum assured is the minimum amount of money that the insurer guarantees to pay to the policyholder/nominee, before the addition of any bonuses. For this policy, the parent/legal guardian will have to choose the sum assured amount at the time of purchasing the policy. When opting for the sum assured, make sure to consider the needs of the child/family, liabilities, inflation, etc. to arrive at an optimum sum assured amount.
The premium is an amount of money that one pays to the insurer in exchange for the risk cover provided by the policy. For the CDA Endowment Vesting At 18 Plan, premium payments can be waived off upon the death of the proposer, provided the proposer has opted for this benefit at the time of purchasing the policy.
|Deferment Date||Policy anniversary on/after the child/ life assured attaining the age of 18 years|
|Premium Payment Mode||
|Premium Range||Will vary on the basis of the policy tenure, age at entry, sum assured, etc.|
*Premiums vary based on age, location, plan term, GST, and other factors.
|Death Benefit||If the policyholder passes away after the date of deferment, the sum assured amount along with vested bonuses will be paid to the nominee. If the policyholder’s death occurs before the date of deferment, all premiums paid till date will be returned.|
|Maturity Benefit||At the completion of the policy tenure, the sum assured amount along with bonuses will be paid to the policyholder.|
The insurer offers add-ons/riders that can be purchased along with this policy for an enhanced protection. The proposer will have to pay an additional premium to avail these benefits.
Other Key Features
|Surrender Value||The policyholder can choose to surrender the policy provided the policy has been active for at least 3 years. The insurer will pay the policyholder the Guaranteed Surrender Value or the Special Surrender Value, based on whichever is the higher of the two.|
|Bonuses||Since this is a “with-profit” plan, the insurer will declare the Simple Reversionary Bonus for each financial year. Post declaration, the bonus will become a part of the payout provided by the policy.|
The policyholder/proposer can claim tax deductions for premiums paid during a given year and benefits received, under the prevailing laws of the Income Tax Act, 1961. However, you will have to make sure to consult a tax advisor, since tax laws can be modified by the government without prior notice.
Every parent wishes to secure the lives of their children and help them realise their dreams. With the CDA Endowment Vesting At 18 Plan, not only are you purchasing a risk cover for your child, but you are also providing them the means to pay for any financial needs that might arise in later years.
LIC, which was nationalised in the year 1956, is currently one of the most preferred life insurance companies in the country. The insurer, today, has a pan-India reach with around 2,048 computerised branches, 8 zonal offices, 113 divisional offices, and 1381 satellite offices. Since its nationalisation, the company has crossed several milestones in the life insurance sector. For FY15-16, the insurer reported a claim settlement ratio of 98.33% and a grievances resolved ratio of 100%.
Note: This plan has been withdrawn by LIC.
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