LIC's Child Money Back Plan (932)


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LIC's Child Money Back Plan is a child plan that is designed for long term saving to meet the need of capital for child's Higher education, marriage or settlement to start a business(by grown up child at the age of 25 years) and as well to cover the life risk of the child. This plan gives regular income to the insured just after completion of 18th, 20th to 22nd birth anniversary as survival benefit, and in 25th year (the great year of Maturity benefit) of age policy matures. Policy can be proposed by parents, grandparents of a child aged 0 days (as soon as your child is born, however birth certificate is a requirement ) to 12 years. Minimum sum assured is 100000 INR and there is no upper limit of sum assured. This plan insures life of child since the age of 8 years or two years of policy, whichever happens first- depending on entry level age of child. Proposer of this plan can avail the benefit of Premium waiver in case of their own death. However, death of proposer will not effect the maturity or sum assured of child's life. Premium paid in this policy can be claimed as 80C rebate and maturity value is tax free as per 10(10D) clause. To know about this policy let us start with its features:

 Premium paying term: 25 years - the age of child at entry level

eg. If you buy a policy when your child is already 2 years old the premium paying term will be

25 - 2 = 23 years

 Policy term (time until your policy matures): same as premium paying term

 Minimum Sum Assured: 100000

 Maximum Sum Assured: unlimited (with special medical reports and income proof)

 Minimum Entry Level Age: 0 years

 Maximum Entry Level Age: 12 years in last birthday

Minimum / Maximum Maturity Age: 25 years

 Maximum Accidental Death and Disability benefit rider applicable from the age of 18 to 25 years

Survival Benefit: 20 percent of Basic Sum Assured at the end of 18th, 20th, 22nd year of insured child's birth anniversary

 Maturity Benefit: 40 percent of Sum assured + Bonus  (for illustration keep on reading)

 Minimum years to pay premium: 2years (after paying premium for 2 years one can stop paying premium; your money will be safe to withdraw or for loan

 Loan and Surrender: after 2 years of policy period considering there is no unpaid premium in first 2 years of policy period.

 Revival: Policy can be revived within 5 years of lapsation.

 Benefit illustration:

Mukul Gandhi (30years age) an entrepreneur has purchased Child Money Back Plan of Sum assured 1000000 INR for his daughter Megha at the age of  0 years with Premium Wavier Benefit Rider, after considering following benefit illustration:-

LIC's Child Money Back Plan (932) Benefit Illustration
Policy Term 25 25 25
Premium Paying term 25 25 25
Sum Assured 200000 500000 1000000

Per Day Premium

(1st Year/after 1st year)

24/23 59/58 119/116

Monthly Premium

(1st Year/after 1st year)

760/743 1855/1815 3709/3629

Quarterly Premium

(1st Year/after 1st year)

2279/2230 5564/5444 11127/10888

Half Yearly Premium

(1st Year/after 1st year)

4510/4413 11004/10767 22008/21534

Yearly Premium

(1st Year/after 1st year)

8920/8728 21761/21293 43522/42585

Total Premium Paid

(Based on Yearly Mode)

218392 532793 1065562
Money back Amount 40000 100000 200000
Total Money Back 120000 300000 600000
Sum Assured 80000 200000 400000
Bonus 225000 562500 1125000
Final Additional Bonus 90000 225000 450000
Total 515000 1287500 2575000

All of these maturity is tax free under income tax act 10 (D)

*all maturity projection is based on current rate of bonus paid by LIC.