LIC New Children's Money Back Plan

The New Children’s Money Back Plan from Life Insurance Corporation of India (LIC) is a non-linked, participating, money-back life insurance policy. The plan provides a risk cover for the child, during the policy tenure. In addition, the Survival Benefits payable by this plan are specifically designed to meet the needs and expenses of one’s children.

The policyholder can either claim the survival benefit on its actual due date or choose to take it on a later date, as per his/her requirements. The proposer can also opt to purchase LIC’s Premium Waiver Benefit Rider, which will be applicable on the life of the proposer. Tax benefits, as per prevailing Income Tax laws, can be claimed by the proposer or the policyholder.

Eligibility - Who is the New Children’s Money Back Plan for?

Policyholders who would like to purchase this policy will have to ensure that they meet the eligibility criteria set by the insurer.

Parameters	Criteria for eligibility
Minimum age at entry	0 Years
Maximum age at entry	12 Years
Maximum age at maturity	25 Years

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured

The sum assured is a guaranteed sum of money that will be paid by the insurer to the policyholder or the nominee, before the inclusion of any bonus. Policy buyers will have to opt for a preferred sum assured amount before the commencement of the risk cover, and the premiums payable will be linked to the sum assured.

Minimum Sum Assured	Rs.1 lakh
Maximum Sum Assured	No limit

Premium*

The premium is a certain amount of money that a policyholder pays for the insurance policy in order to enjoy its coverage. For the New Children’s Money Back Plan, the premium payable will vary as per the sum assured, the policy tenure, the life assured’s age at entry, riders opted for, etc. Certain specifics related to your premium payment mode and policy tenure are listed in the table below.

Policy Tenure	(25 – Life Assured’s Entry Age) years
Premium Payment Mode	Annual Bi-Annual Quarterly Monthly

*Premiums vary based on age, location, plan term, GST, and other factors.

Plan Coverage - What the New Children’s Money Back Plan covers?

Death Benefit	If the life assured passes away after the risk cover has commenced, a death benefit, which will include the Death Sum Assured, Final Additional Bonus, and Simple Reversionary Bonus, will be paid by the insurer.
Survival Benefit	If the policyholder survives the policy anniversaries immediately after he/she attains the ages of 18 years, 20 years, and 22 years, 20% of the sum assured will be paid as the survival benefit.
Maturity Benefit	If the life assured survives till maturity of the policy, he/she will be paid 40% of the sum assured amount, Final Additional Bonus, and the Simple Reversionary Bonus, as the maturity benefit.

Riders/Add-On Plans – Additional coverage under LIC’s New Children’s Money Back Plan

While purchasing this policy, the proposer can also opt to purchase LIC’s Premium Waiver Benefit Rider. This rider is taken on the proposer’s life by paying an extra premium. In case the proposer passes away during the tenure of the base policy, all premiums payable towards the base policy will be waived off.

Exclusions - What the New Children’s Money Back Plan doesn’t cover?

The New Children’s Money Back Plan comes with a suicide exclusion. If the policyholder happens to succumb to an untimely death due to him/her committing suicide within 1 year of the commencement of the risk cover, the insurer will return 80% of the premiums paid. No other benefit shall be payable. If the policyholder commits suicide within 1 year of reviving or reinstating the policy, the insurer will return 80% of the total premiums paid till date or the surrender value of the policy, based on whichever is the higher of the two

Other Key Features – Free-Look Period, Surrender Value, Grace Period, etc.

Cooling-Off/Free-Look Period	Policy buyers have 15 days from when they purchase the policy to return it if they don’t find the policy terms and conditions to be satisfactory.
Policy Loan	Once the plan has acquired a certain surrender value, one can avail a loan against the policy.
Surrender Value	Policyholders can surrender their policy if they have paid premiums for at least 3 policy years. The surrender benefit payable will be the Guaranteed Surrender Value or the Special Surrender Value, based on whichever is higher.
Paid-Up Value	If premiums for the first 3 years have been paid and the following premium payments have been missed, the policy will be converted into a paid-up policy.
Policy Revival	Lapsed policies can be revived within 2 years from the date of the first due unpaid premium. To revive the policy, due premiums need to be cleared with an interest.
Rebate	Policyholders can avail a rebate on the premium if they pay their premiums on a yearly or half-yearly basis. Policyholders can also avail a high sum assured rebate if they opt for a sum assured over Rs.2 lakh.
Grace Period	Grace period of 30 days for yearly, half-yearly, and quarterly modes of payment is provided. Grace period of 15 days for the monthly mode of payment is provided.
Deferment of Survival Benefits	The life assured can opt to receive the survival benefit on the actual due date or on a later date that’s within the policy tenure.
Participation in Profits	Along with the death and maturity benefit, the policyholder is also eligible to receive the Simple Reversionary Bonus and the Final Additional Bonus, which are declared by the company.

Tax Benefits – How you can save with the New Children’s Money Back Plan?

In addition to the policy benefits that one is entitled to receive, you can also save on tax if you purchase the New Children’s Money Back Policy. Tax benefits, as per Section 80C and Section 10(10D) of the Income Tax Act, can be claimed for the premium amount paid and the payouts received.

Benefits of choosing LIC

• Online Policy Purchase: Certain policies can be purchased directly through LIC’s official website. This option makes the process of purchasing the policy more convenient and hassle-free for the customer.
• Customer Service: The insurer has branch offices across the country. Based on where one lives, one can view the address and contact details of a branch near them. LIC also has an SMS-based helpline service.
• Premium Calculator: You can calculate the premiums for various plan by keying-in certain details on the insurer’s official website. This will help you find a plan that best matches your needs.
• Premium Payments: Premiums can be paid through offline and online modes. You can either pay it through LIC’s website or you can choose to pay it at the nearest LIC branch. In addition, payments can also be done at an Axis bank branch, a Corporation bank branch, or through merchants or franchisees.

Why you should buy the New Children’s Money Back Plan from LIC of India?

The New Children’s Money Back Plan from LIC is a smart option for individuals looking to safeguard the interests of their children, irrespective of what may or may not happen in the future. While rising costs and inflation are a concern for all, the guaranteed benefits payable under this policy can meet whatever financial needs one’s children might have once they grow up.

LIC is one of the most well-reputed life insurance firms in India. Through their years of experience in the life insurance market, they have over-time built a niche for themselves. The company has reported a high claim settlement ratio of 98.33% for FY15-16, which demonstrates how important customer satisfaction is for the insurer. The company also has a range of insurance products on offer, in order to cater to everybody’s needs.