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    LIC's New Children Money Back Plan (832): Should You Invest?


    LIC has recently come up with a New Children Money Back Plan, providing one more option among the many that are available in the market.

    This plan is a non-linked money back plan, which would eventually enable to meet meet the child's multiple financial needs including education, marriage, further studies abroad etc.

    The plan also has a survival benefit like most other plans from Life Insurance Corporation.

    During the policy term, there is a risk cover on the life of child, which means that if anything were to happen to the child, the parent or the guardian would end up getting the money.

    LIC's New Children Money Back Plan: Should You Invest?

    Another interesting feature of the plan is that it also covers risk for a periodic payment on surviving to the end of the specified duration.

    LIC New Children Money Back Plan Table 832

    Children Min and Maximum age 0-12
    Policy term 25 years minus age at entry
    Minimum and Maximum maturity age 25 years
    Minimum Basic Sum Assured Rs 1,00,000
    Maximum Basic Sum Assured No Limit

    Death Benefits

    In event of death before the date of commencement of risk, an amount which is equal to the total amount including premium/s paid excluding taxes, extra premium and rider premium, will be payable.


    If the event happens after the date of commencement of risk, death benefit, will be sum assured on death along with bonuses and final additional bonus.

    This death benefit shall not be less than 105% of the total premiums paid as on date of death.

    Survival Benefit

    When Child Complete 18 years 20% of Sum Assured
    When Child Complete 20 years 20% of Sum Assured
    When Child Complete 22 years 20% of Sum Assured
    Maturity 40% of the Basic Sum Assured also bonus if any

    Premium waiver

    Premium waiver can be availed on payment of additional premium. If this rider is opted for, in case of death of the proposer, the payment of the premiums falling due after the date of death shall be waived

    High Sum Assured Rebate

    Basic Sum Assured Rebate
    Rs 1,00,000 - 1,90,000 Nil
    Rs 2,00,000-4,90,000 2 % thousand basic sum assured
    Rs 5 00,000 & above 3 % per thousand of Basic Sum Assured
    Modes of Premium Payment All modes i.e. Yearly, Half-yearly, Quarterly and Monthly.


    A loan can also be availed, but that is  applicable only after 3 full years of the payment of premiums.

    Also, there has to be a declaration from the proposer to the effect that loan is raised for the benefit of the minor life assured. What this essentially means is that the amount has to be used for the benefit of the child.

    Should You Buy The LIC New Children Money Back Plan?

    The scheme is good for those looking at a predefined target to meet the needs of a child. The returns may not be better then bank interest rates but, it does provide some insurance benefit.

    If you have a girl child's education a better prospect would be the Sukanya Samrudhi Yojana Account, where interest income is tax free and the current interest rate is a huge 9.1%.

    It gives you tax benefits Under Sec 80C and also the interest income is free from tax.

    Read more about: lic money back plan
    Story first published: Wednesday, March 4, 2015, 12:58 [IST]
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