In this article, we discuss the top two child plans from LIC. We talk about their benefits and how they can be of use to you and your child. Take a look. Life Insurance Corporation of India, or LIC, as it is commonly known is one of the oldest and the most reputed life insurance companies in the country. It has some very good insurance products. The child insurance plans from LIC especially stand out as they have some of the best features. In this article, we take a look at the LIC child plans and their features and benefits.
What is a child plan?
Before we proceed, let us first understand what a child plan is. A child insurance plan provides protection to a child by covering his parent. The parent is, therefore, the policyholder and the child is the beneficiary. So if anything happens to the parent, the sum assured from the child plan will be given to the child and can be used for her or his education, health and general well-being.
LIC child insurance plans
There are primarily two child plans available from LIC. They are:
- LIC Child Future Plan
- LIC Child Career Plan
Let us take a detailed look at these plans.
LIC Child Future Plan
The features of this LIC child plan are as follows:
- Waiver of premium: The premium is waived off if the parent, who is the policyholder, dies within the policy period. The insurer pays the premium on behalf of the parent and the plan continues with its regular payouts.
- Money back plan: This is a money back insurance plan where the child gets payouts at regular intervals. The payouts can be used to pay the child’s school and college admission fees and also to pay for her or his marriage later on in life.
- Death benefit and sum assured: If the parent dies with policy period, the nominee receives a death benefit right away along with any bonus that has been earned. If however the policy period is outlived, an amount equivalent to 115% of the sum assured is paid to the child.
- Additional cover: The child continues to stay covered for an added term of 7 years after the policy matures.
These features make the LIC Child Future Plan one of the best child insurance plans in India presently.
LIC Child Career Plan
Next, we have the Child Career Plan from LIC. This too is a money back plan where the child receives payouts at pre-decided intervals. The features of this plan include:
- Waiver of premium: Here too, the premium is waived off if the parent dies within the policy period. The child continues to remain covered however. He or she receives an additional coverage of 7 years after the policy matures.
- Survival benefit: The LIC Child Career Plan provides a survival benefit. A sum equivalent to 30% of the sum assured is paid in this case.
- Maturity benefit: When the policy matures, the child receives an additional amount, equivalent to 15% of the sum assured, along with the accumulated bonus.
- High age bracket: The plan can be taken for children between the ages of 0 month and 12 years. The maturity age of the policy varies between 23 and 27 years.
These are some of the features that make the LIC Child Career Plan stand out.
To sum it up
As we saw, the LIC child plans are packed with benefits. As a parent, you must do everything within your power to protect your child. A child is a gift and the gift needs care. So buy a child plan from the Life Insurance Corporation of India and keep your precious child secured. After all, you would want him or her to enjoy a comfortable life even after you are gone.