LIC Child Future Plan
LIC Child Future Plan is a Money Back Endowment Plan for the benefit of a child such that, Sum Assured plus Bonus is paid immediately to the nominee on death of the Life Insured. However, if the child outlives the entire tenure, then he receives 115% of the Sum Assured. He would receive 25% of the Sum Assured 5 years before the date of expiry of policy term. Then he would receive 10% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy. Also, when the policy matures, he would receive the 50% of the Sum Assured along with Vested Bonus and Final Addition Bonus, if any.
Key Features
Benefits
In case of death of the Life Insured, i.e. child after risk commencement, the nominee would receive the Sum Assured + Vested Bonus + Final Addition Bonus.
However, if the Life Insured, i.e. the child dies before risk commencement, then the nominee would receive all basic premiums paid till date + 3% p.a. interest compounded annually.
In case of death during Extended Term, then only Sum Assured is payable.
On life assured (i.e child) surviving till the end of the specified duration, LIC will pay the amount mentioned below
5 years before the date of expiry of policy term - 25% of the Sum Assured
4 years before the date of expiry of policy term - 10% of the Sum Assured
3 years before the date of expiry of policy term - 10% of the Sum Assured
2 years before the date of expiry of policy term - 10% of the Sum Assured
1 year before the date of expiry of policy term - 10% of the Sum Assured
On maturity, the Life Insured, i.e. the child gets the 50% of the Sum Assured + Vested Bonus + Final Addition Bonus.
Tax Benefit
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
FAQs
What happens if you stop paying the premiumThe policy will lapse if the premium stops. However if at least 3 years’ premium shave been paid then the policy acquires a Paid Up Value and the risk cover continues at the reduced Sum Assured. The reduced Sum Assured and the accrued Bonus would be payable on Maturity or on earlier death. It can also be revived within 5 years from the due date of first unpaid premium.
What happens if you want to surrender the policySurrender Value is paid if premiums for 3 years have been paid up. Before commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid – 1st year premium.
After commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid before commencement of risk – 1st year premium + 30% of premiums paid on and after the commencement of risk.
What happens if you want a loan against your policy Loan is not available under this policy.
