Under the LIC New Children Money Back plan, the benefit of money back is available at the age of 18, 20 and 22 years. Maturity benefit is available at the age of 25 years. If the proposer parent dies on taking the rider, then all the premium will also be waived.
People come from villages to cities for better life and better education of children. In such a situation, it is very important to secure their future. To secure the future of children in every way, LIC has a policy named LIC Child Money Back Plan whose table number is 932. In this plan, the parent or guardian is the proposer while the children are the policy holders.
Talking about the eligibility of this policy, the minimum entry age is zero years. The maximum entry age is 12 years. Talking about the policy term, from the time this policy starts, the premium has to be deposited till the child completes 25 years of age. Accordingly, its policy term is of 0-13 years
The policy term and premium paying term are the same for this scheme. This policy matures when the child completes 25 years. Under this policy, 20 percent of the money back is available on the child’s completion of 18 years. Similarly, on completion of 20 years, again 20 percent and on completion of 22 years, again 20 percent
There is a premium waiver rider in this policy. Under this, if the proposer dies, there is no need to pay the premium after that. This does not affect the benefit in any way. Loan facility is also available under this policy.
Loan can be taken after two years of the policy. Talking about the tax rules, the benefit of deduction under section 80C is available on payment of premium. The death benefit or maturity is also tax free under section 10(10D).
Talking about the benefits available under this policy, then if A’s age is 30 years and his son’s age is 2 years and he enrolls for this scheme, then the premium paying term for him will be 23 years.
Monthly premium without rider will be Rs 735 including tax, quarterly premium will be Rs 2203, half yearly premium will be Rs 4359 and annual premium will be Rs 8624. The monthly premium with the rider will be around Rs 815. Accordingly, he will deposit Rs 2.25 lakh in 22 years.
Talking about the benefits received, at the age of 18, 20 and 22 years, 20-20 percent of the sum assured will get Rs 40-40 thousand in the form of money back. On completion of 25 years, the remaining 40 percent of the sum assured i.e. 80 thousand rupees will be available.
According to the present rule, a vested simple revisionary bonus of 2 lakh 7 thousand will be available on the sum assured of 2 lakhs. Along with this, 50 thousand rupees will be available as additional bonus.
In this way the child will get Rs 3.37 lakh at the age of 25. 1.2 thousand would have already been received separately as money back. If he also wants to pay it at the time of maturity, then at the time of maturity, a total of 4.57 thousand rupees will be received.
