The Child Future Plan offered by the Life Insurance Corporation of India is tailored to meet the marriage, educational and other requirements of growing children. The LIC’s Child Future Plan offers risk cover on the child’s life during the term of the policy and the extended term. The extended term continues for 7 years after the policy term is expired.
In order to be eligible for the LIC’s Child Future Plan, a customer has to fulfil certain eligibility criteria with respect to his/her age and the amount of insurance he/she seeks. These conditions are as shown below:
|Parameters||Criteria for Eligibility|
|Minimum age at entry||0 years|
|Maximum age at entry||12 years|
|Minimum age at maturity||23 years|
|Maximum age at maturity||27 years|
|Term of the policy||11 years to 27 years|
Sum Assured – It is the amount that the policyholder gets upon the maturity of the life insurance policy. In case of death of the policyholder while the plan is still active, the sum assured is paid to the nominee or beneficiary of the policyholder. The minimum sum assured under the LIC’s Child Future Plan stands at Rs.1 lakh. The maximum sum assured under this policy is Rs.1 crore.
|Maximum sum assured||Rs.1 crore|
|Minimum sum assured||Rs.1 lakh|
Premiums – It is the amount that the policyholder pays in order to keep the insurance policy active and running. The premium paying term under the LIC’s Child Future Plan is 6 years. The premium payment modes under this policy are yearly, half-yearly, quarterly and monthly.
|Premium payment term||
|Premium payment mode||Yearly, half-yearly, quarterly and monthly|
*Premiums may vary depending upon factors like term of the plan, age, location and applicable taxes/GST.
|Survival Benefit||In case the assured person survives till the end of a specific time period, maturity benefit is payable.
|Death Benefit||Upon death of the insured person, the nominee of the policyholder receives the sum assured along with additional bonuses and Simple Reversionary Bonuses. Only the sum assured is paid out if the death of the policyholder occurs during the policy’s extended term.|
|Auto Cover||In case the policyholder pays premiums for 2 years in full but fails to pay any subsequent premium amount, death cover will be continued for 2 years from the first unpaid premium date.|
|Premium Waiver Benefit||The proposer may choose to opt out of this particular benefit if he/she is between the age of 18 years and 55 years. This benefit offers premium waiver upon the proposer’s demise.|
No rider plans or add-on plans are available to the policyholder with the LIC’s Child Future Plan.
For the first year, suicide is excluded for the Premium Waiver Benefit. There are no other exclusions under the Child Future Plan offered by the Life Insurance Corporation of India.
|Grace period||The policyholder can avail a grace period of 30 days for making the premium payments. The benefits continue unaffected during this period.|
|Revival||In case the LIC’s Child Future Plan lapses, it can be revived within a period of 5 years. However, all unpaid premiums along with interest must be cleared. Evidence of continued insurability must be provided by the policyholder to revive his/her policy.|
|Cooling-off period||In case the policyholder is not satisfied with the terms and conditions of the plan, he/she can choose to return the policy document within a period of 15 days from the issuance date of the policy.|
Tax benefits can be availed with the LIC’s Child Future Plan under the prevailing tax laws.
LIC or Life Insurance Corporation of India is one of the leading insurance solution providers in this country. This organisation has been taking care of the insurance needs of the people of this country for a very long time. The plans designed by the Life Insurance Corporation of India comes with great innovation and flexibility. They are tailored to meet the changing needs and requirements of the customers. The claim settlement ratio of LIC stands at 98%.