Children's Future

LIC child future plan is designed specifically to meet the expenses of marriage, education and other needs of growing children. Risk cover is offered to the child during the policy term and also for the extended term of 7 years.

Eligibility Criteria for LIC Child Future Plan

The eligibility criteria is as follows:

Minimum entry age	0 years
Maximum entry age	12 years
Minimum age at maturity	23 years
Maximum age at maturity	27 years
Minimum sum assured	Rs.1 lakh
Maximum sum assured	Rs.1,00,00,000

Key Features of LIC Child Future Plan

Some of the most important features of this scheme are as follows:

Plan Type	Money back endowment plan
Plan basis	Individual
Premium paying terms	6 years and policy term less 5 years
Premium payment frequency	Quarterly, half-yearly, annually and through salary deductions
Policy term	11 - 27 years
Survival benefits	On surviving till the end of the durations as specified, the insured will be paid the following amounts: 25% of sum assured is paid on surviving till 5 years before the date of expiry of the policy. 10% of sum assured is paid on surviving till 4 years before the date of expiry of the policy. 10% of sum assured is paid on surviving till 3 years before the date of expiry of the policy. 10% of sum assured is paid on surviving till 2 years before the date of expiry of the policy. 10% of sum assured is paid on surviving till 1 years before the date of expiry of the policy. 50% of the sum assured is paid along with the Simple Reversionary Bonus and additional bonus, if any on expiry of the policy term
Death Benefits	In the event the insured dies during the policy term, the following benefits will be paid to the nominee: Sum assured with Simple Reversionary Bonus and additional bonus, if any, will be paid if the insured dies after the date of commencement of risk. If insured dies during the extended term, the sum assured is paid. If the insured dies before commencement of the risk, the premiums paid along with a 3% interest per annum that is compounded will be paid.
Auto Cover	If the insured has paid two years premium but has not paid any subsequent premium, then the death cover will continue for 2 years from the due date of the first unpaid premium.
Premium waiver benefit	Premium is waived if the proposer dies, the benefit will remain in force.
Paid up value	If three years premiums have been paid but the subsequent premiums have not been paid, then the policy will become paid-up.
Surrender Value	The policy can be surrendered after having paid at least 3 years premiums.
Grace period	30 days grace period is allowed for paying the premiums.
Revival	If the policy has lapsed, it can be revived after paying the premiums that are due.
Nomination	Nominations are accepted under this policy.
Free Look Period	Policyholder can return the policy within 15 days from the activation of the policy term if he or she is not satisfied with the policy.
Loan	Not available.
Exclusions	Suicide committed in the first year is excluded for Premium Waiver Benefit.

Benefits of LIC Child Future Plan

The following are the benefits of this scheme:

• Death benefit, survival and maturity benefit is offered under this scheme.
• Policyholder can also enjoy the auto cover and premium waiver benefit.
• Premiums paid under life insurance policy are exempted from tax under Section 80C and maturity proceeds are exempted from tax under Section 10 (10D)

How The LIC Child Future Plan Works

The policyholder has the option to choose a premium payment period of 6 years, he or she can make the payments annually, through salary deductions, half-yearly or quarterly modes. The policy term can be extended for 7 years. The policyholder gets the advantage of death benefit, maturity benefit and survival benefit. If the proposer dies during the premium payment term, the premium payment will be waived. If the assured is a new born and his father wished to take LIC Child Future Plan for 25 years and the premium payment term is 6 years and the sum assured is ₹1 lakh and the premium to be paid is ₹4,528. The mode of premium payment is yearly. Total investment is ₹90,560. The guaranteed return is as follows:

• For 20th year: ₹25,000
• For 21st year: ₹10,000
• For 22nd year: ₹10,000
• For 23rd year: ₹10,000
• For 24th year: ₹10,000
• On maturity, i.e. the 25th year, the return will be ₹50,000 plus bonus, if any.