Life Insurance Corporation (LIC) of India is the oldest and only public sector life insurance company that offers a variety of life insurance products to cater to the customers’ insurance needs. With LIC, you can choose plans such as term insurance, endowment, money back, child plans, whole life plans, etc. With its products, LIC has secured over 250 million lives.
In this blog, we are focusing on LIC’s Best Child Insurance Plans you can invest in 2019-20.
LIC’s Jeevan Tarun is a limited premium plan that provides the dual benefit of savings and protection for your children. This plan provides Survival Benefit that helps to meet the education/other needs of your children. This plan also takes care of liquidity needs. You can choose from different plan variants to enhance life coverage.
In the event of your unfortunate demise during the policy term, Sum Assured on Death plus Vested Simple Reversionary Bonuses & Final Additional Bonus is payable to the nominee, as Death Benefit. The total death benefit payable cannot be less than 105% of all the premiums paid.
On your survival till completion of the policy term, Sum Assured on Maturity plus Vested Simple Reversionary Bonuses & Final Additional Bonus is payable.
On your survival at the completion of the policy anniversaries with or following 20 years and thereafter every year for the next 4 policy years.
This policy pays Simple Reversionary Bonuses, depends on the profits of the Corporation. You will also receive Final Additional Bonus, in the event of a claim arising from death or maturity.
This plan offers an option to avail of the loan facility. To take advantage of this facility, the policy must have acquired the surrender value.
You can avail tax benefits under section 80C for the premiums paid and the policy benefits are eligible for tax deduction under section 10 (10D) of the Income Tax Act, 1961.
LIC’s New Children’s Money Back Plan is a non-linked, participating money back plan that offers survival benefit at the end of the specified durations. With the survival benefit, you can easily fulfill your children’s financial obligations like his/her education & marriage and any other costs incurred in raising a child. This child plan also provides the life cover that ensures financial security for your child, even in your absence.
In the event of the unfortunate demise of the life insured before the maturity of the policy, Sum Assured on Death plus Vested Simple Reversionary Bonuses & Final Additional Bonus is payable to the nominee. The total death benefit payable under this plan is always higher than 105% of all the premiums paid. The death benefit is payable only when the policy is in force.
On your survival till completion of the policy term, 40% of the basic sum assured plus Vested Simple Reversionary Bonuses & Final Additional Bonus is payable.
20% of the basic sum assured is payable on coinciding with or immediately following the completion of 18 years, 20 years and 22 years. You can take this benefit on or after the due date, but during the policy term. In case of deferment, the increased survival benefit equal to Survival Benefits % * Sum Assured * (Factor applicable to Survival Benefit) is payable.
Simple Reversionary Bonuses is declared depending on the profits of the Corporation. Final Additional Bonus is also available, in the event of a claim arising due to death or maturity.
An option to avail the loan facility is available.
Under this policy, you can avail of tax benefits under section 80C & 10 (10D) of the Income Tax Act, 1961.
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