LIC Child Plans

• Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
• Claim up to Rs. 1,50,000 deduction under section 80C**
• Choose between annual and monthly premium payment options

A child insurance plan is a type of insurance policy that offers a savings cum protection option for children. Child insurance plans, by way of their frequent payouts, are designed to meet any monetary needs that your child might have in the future, even in your absence. The Life Insurance Corporation of India (LIC) offers attractive child insurance plans at affordable rates, to customers.

Benefits of LIC Child Insurance Plans

• Child insurance plans provided by LIC are very flexible in nature. Thus, the proposer can choose the policy term, the percentage of survival benefits payable, the sum assured, etc.
• These plans also provide a risk cover against death, and in the event of the policyholder’s death, the death sum assured will be paid to the nominee.
• Child insurance plans provide regular survival benefits, thereby helping one’s children meet significant milestones in the future.
• Child insurance plans from LIC also pay additional bonuses that can help one receive a larger payout.
• The proposer can also purchase LIC’s Premium Waiver Benefit Rider if they wish to customise their policy’s coverage.
• The proposer can also claim tax benefits as per Section 80C and Section 10(10D) of the Income Tax Act, 1961.

List of Child Insurance Plans offered by LIC

1.LIC’s New Children’s Money Back Plan

The New Children’s Money Back Plan from Life Insurance Corporation of India is a non-linked, participating, money-back insurance plan. This plan is created to provide a life cover and also provide survival benefits that will help one’s children meet their needs in the future.

Features and Benefits of LIC’s New Children’s Money Back Plan

• This plan provides a risk cover to the child during the policy tenure.
• The policy can be purchased for any child between the age of 0 and 12 years, by his/her parents or grandparents.
• This plans provides policyholders the option to defer the date of their survival benefit payout. Thus, the policyholder can either opt to receive the benefits as per schedule or take them at a later date.
• The proposer can purchase LIC’s Premium Waiver Benefit Rider on his/her own life. Thus, even if the proposer passes away during the policy tenure, the premiums payable under the base policy will be waived off.
• In addition to the survival benefit which is payable after the life assured attains certain ages, the policy also provides a death/maturity benefit, based on the eventuality.
• The minimum sum assured that one can opt for under this plan is Rs.1 lakh. There is no limit on the maximum sum assured.
• The maximum maturity age under this policy is 25 years.
• Premiums can be paid on an annual, bi-annual, quarterly, or monthly basis by the proposer.
• The insurer also offers a rebate under this policy. Thus, if one opts for the yearly/half-yearly mode of payment or opts for a sum assured over Rs.2 lakh, one can claim a rebate from the insurer.
• The policyholder can opt for a loan against their policy once the policy has acquired a surrender value.

2.LIC’s Jeevan Tarun Plan

The Jeevan Tarun Plan from Life Insurance Corporation of India (LIC) is a participating, limited premium payment, non-linked insurance plan for children. The plan provides survival benefits and a maturity benefit, which will help the policyholder meet their future financial goals.

Features and Benefits of LIC’s Jeevan Tarun Plan

• The proposer, at the time of purchasing the policy, can choose the proportion of the maturity benefit and the survival benefits, which the insurer will have to pay to the policyholder.
• The insurer also gives policyholders the option to take a loan against this policy to meet any emergency needs that they might have.
• The policyholder will receive survival benefits every year after he/she attains the age of 20 years, and the maturity benefit upon attaining the age of 25 years.
• The proposer can also purchase LIC’s Premium Waiver Benefit Rider by paying an additional premium. With this rider, if the proposer passes away any time during the policy tenure, future premium payments will be waived off and the policy benefits will continue being paid as per schedule.
• The minimum sum assured is Rs.75,000 under this plan. There is no maximum limit on the sum assured amount.
• The minimum age at entry for this plan is 90 days and the maximum age at entry is 12 years. The maximum maturity age for this plan is 25 years.
• Premiums towards this plan can be paid on a yearly, half-yearly, quarterly, or monthly basis.
• The policyholder will be eligible for a rebate on the sum assured upon opting for the yearly or half-yearly mode of premium payment, or upon opting for a sum assured over Rs.2 lakh.

Why do you need Child Insurance Plans from LIC?

With life being so uncertain, it is best to always be prepared for any eventuality. Child insurance plans from LIC come with a range of benefits, such as a death/maturity benefit, survival benefits, option to avail a loan against the policy, etc. Also, with the insurer’s Premium Waiver Benefit Rider, you are at least guaranteed that your children will be provided the means to achieve their goals regardless of what happens in the future.

Coming to the insurer, LIC is one of the most preferred insurance firms in the country. They have decades of experience to their credit and have consistently reported a high claim settlement ratio. The claim settlement ratio for FY15-16 was 98.33%, one of the highest in the country. The insurer has a range of plans on offer, thus ensuring that there is something for every single customer. The insurer also has several customer care channels, including city-based contact numbers, email IDs and an SMS-based helpline service.