Introduction:
This plan is specially designed to meet the increasing educational, marriage and other needs of growing children. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.e. 7 years after the expiry of policy term). A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations.

Options:
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium payment and Premium Waiver Benefit.

Payment of Premiums:
You may pay the premiums regularly at yearly, half-yearly, quarterly or through Salary deductions over the term of policy. Premiums may be paid either for 6 years or upto 5 years before the policy term.

Sample Premium Rates:
Following are some of the sample premium rates per Rs. 1000/- S.A.:

For 6 years’ Premium paying term
AgeMaturity Age

23

24

25

26

27

0

112.55

108.00

103.65

99.45

95.45

4

132.35

127.00

121.85

116.90

112.15

8

156.20

149.90

143.85

138.05

132.45

12

184.20

176.85

169.75

162.95

156.40

For Premium paying term  = Policy Term less 5 years
AgeMaturity Age

23

24

25

26

27

0

53.10

49.45

46.20

43.25

40.60

4

71.80

66.90

61.65

57.00

52.95

8

107.80



96.30

86.75

78.75

71.90

12

184.20

155.40

133.90

117.25

108.05

Mode and High S.A. Rebates:

Mode Rebate:

Yearly mode2% of Tabular Premium
Half-yearly mode1% of the tabular premium
Quarterly & Salary deductionNIL

Sum Assured Rebate:

Sum AssuredRebate (Rs.)
1,00,000 to 2,99,999Nil
3,00,000 to 4,99,9991.5 %o S.A.
5,00,000 and above2 %o S.A.

Benefits:

    • Survival Benefit:
      On life assured surviving to the end of the specified durations an amount specified below is payable:
5 years before the date of expiry of policy term25% of the Sum Assured
4 years before the date of expiry of policy term10% of the Sum Assured
3 years before the date of expiry of policy term10% of the Sum Assured
2 years before the date of expiry of policy term10% of the Sum Assured
1 years before the date of expiry of policy term10% of the Sum Assured
On the date of expiry of policy term50% of the Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus, if any.

  • Death Benefit:
    On death (after the Date of Commencement of Risk) – Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus, if any shall be payable.On death during the Extended Term – Sum Assured is payable.

    On death (before the Date of Commencement of Risk) – All the premiums paid (excluding extra premium and premium for premium waiver benefit, if any,) along with interest of 3% p.a compounding yearly shall be payable.

Auto Cover:
If after at least two full year’s premiums have been paid, and any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the due date of the First Unpaid Premium (FUP). During this Auto Cover Period, one or more instalments of premiums with interest can be paid without submission of evidence of health. On payment of one or more of the arrears of instalment premiums with interest, the Auto Cover Period of 2 years shall be extended from the due date of new FUP. Premium Waiver Benefit shall remain inforce during the Auto Cover period.

Premium Waiver Benefit:
The proposer can opt for this benefit if aged between 18 and 55 and is medically fit. It provides waiver of premiums on death of proposer. Further the benefit shall remain in force during the Auto cover period. Any premiums that have fallen due and not paid during the Auto Cover period shall also be waived. This benefit shall not be available in case of suicide by the proposer within one year of policy. Further, revival of the policy shall be subject to medical fitness of the proposer.

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Eligibility Conditions and Other Restrictions:

(a)Minimum Entry Age:0 years (last birthday)
(b)Maximum Entry Age:12 years (last birthday)
(c)Minimum Maturity Age:23 years (last birthday)
(d)Maximum Maturity Age:27 years (last birthday)
(e)Minimum Sum Assured:Rs. 1,00,000
(f)Maximum Sum Assured:Rs. 100,00,000
(g)Policy term:11 to 27 years
(h)Premium Paying term:6 years and Policy term less 5 years

Participation in Profits of the Corporation:
Simple Reversionary Bonuses shall be declared per thousand Sum Assured annually at the end of each financial year depending upon the Corporation’s experience, provided the policy is in full force.  In case of a paid up policy, bonuses shall be payable only if, at least, 3 full years’ premiums have been paid. On surrender, the discounted value of vested bonuses, if any, will be payable. Final (Additional) Bonus may also be declared in addition.

Paid-up Value:
Not withstanding the death benefit provided under the Auto Cover period, if at least three full years’ premiums have been paid and any subsequent premium be not duly paid, this policy shall not be wholly void but shall become paid-up.

If policy becomes paid-up before the commencement of risk, then the policy shall be entitled to receive the Guaranteed Surrender Value. If the policy is not surrendered, this Guaranteed Surrender Value shall be payable on   the expiry of policy term or on death of Life Assured, if earlier.

If policy becomes paid-up after the commencement of risk, then the sum assured of policy shall be reduced to such a sum, called paid-up value, as shall bear the same proportion to the full Sum Assured as the number of premiums actually paid bears to the total number of premiums stipulated for in the policy. This reduced value (called paid up value) along with vested bonuses, if any, shall be payable on the date of expiry of policy term or at Life Assured’s prior death. No survival benefit shall be payable under a reduced paid-up policy. Extended Term cover shall cease to apply if the policy is in lapsed/ Paid-up condition.

Surrender Value:
You may surrender the policy for cash after at least three full years’ premiums have been paid. The Guaranteed Surrender Value will be as under:

  • Before commencement of risk: 90% of the total amount of premiums (excluding premiums for the first year ) paid.
  • After commencement of risk: 90% of the total amount of premiums (excluding premium for the first year) paid before commencement of risk and 30% of premiums paid on and after the commencement of risk.

The Guaranteed Surrender value calculated above will be subject to the deduction of the total amount of survival benefits that might have become due on or before the date of surrender. Further all extra premiums and/or any other premium including premium for Premium Waiver Benefit shall not be considered in the premiums refunded.

The cash value of any existing vested bonuses, if any, will also be paid.

Corporation may, however, pay Special Surrender value as the discounted value of Paid up value and existing vested bonus, as applicable on date of surrender. The Special Surrender value will be subject to the deduction of the survival benefits which have become due on or before the date of surrender.

The Special Surrender value will be payable provided the same is higher than Guaranteed Surrender value.

Grace Period:
A grace period of one calendar month but not less than 30 days will be allowed for payment of premiums.

Revival:
If the policy is lapsed, it can be revived by paying arrears of premium together with interest within a period of five years, subject to production of satisfactory evidence of continued insurability. The rate of interest applicable will be as fixed by the Corporation from time to time.

cooling-off period:
If you are not satisfied with the “Terms and Conditions” of the policy you may return the policy to us within 15 days.

Exclusions:
Suicide is excluded for Premium Waiver Benefit for first year. No other exclusions.

Miscellaneous Provisions:

Date of commencement of risk :  If age of Life Assured is upto 10 years, risk shall commence either after 2 years from the date commencement of policy or from the policy anniversary coinciding with or immediately following the completion of 5 years of age of Life assured, whichever is later. In other cases, risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the Life Assured.

Date of Vesting: The policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.

Statutory warning :
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your Insurer carrying on life insurance business.  If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page.  If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns.  These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including future investment performance.”

Benefit Illustration1

Age of LA (Yrs.): 0
Term(Yrs.): 25
Age At Maturity (Yrs.): 25
PPT(Yrs.): 6
Sum Assured(Rs.): 100000
Premium: 10158
Extd Term(Yrs.): 7

END OF YEARTOTAL PREMIUMS PAIDBENEFIT ON DEATH DURING THE YEAR
GUARANTEEDVARIABLETOTAL
SCENARIO 1SCENARIO 2SCENARIO 1SCENARIO 2
11015810463001046310463
22031621239002123921239
33047432339003233932339
44063243772004377243772
55079055548005554855548
6609481000001320054000113200154000
7609481000001540063000115400163000
8609481000001760072000117600172000
9609481000001980081000119800181000
10609481000002200090000122000190000
11609481000002420099000124200199000
126094810000026400108000126400208000
136094810000028600117000128600217000
146094810000030800126000130800226000
156094810000042000180000142000280000
166094810000044800192000144800292000
176094810000047600204000147600304000
186094810000050400216000150400316000
196094810000053200228000153200328000
206094810000056000240000156000340000
216094810000058800252000158800352000
226094810000061600264000161600364000
236094810000064400276000164400376000
246094810000067200288000167200388000
256094810000070000300000170000400000
2610000000100000100000
2710000000100000100000
2810000000100000100000
2910000000100000100000
3010000000100000100000
3110000000100000100000
3210000000100000100000

Benefit Illustration2

Age of LA (Yrs.): 0
Term(Yrs.): 25
Age At Maturity (Yrs.): 25
PPT(Yrs.): 6
Sum Assured(Rs.): 100000
Premium: 10158
Extd Term(Yrs.): 7

END OF YEARTOTAL PREMIUMS PAIDBENEFIT ON DEATH DURING THE YEAR
GUARANTEEDVARIABLETOTAL
SCENARIO 1SCENARIO 2SCENARIO 1SCENARIO 2
11015800000
22031600000
33047400000
44063200000
55079000000
66094800000
76094800000
86094800000
96094800000
106094800000
116094800000
126094800000
136094800000
146094800000
156094800000
166094800000
176094800000
186094800000
196094800000
206094825000002500025000
216094810000001000010000
226094810000001000010000
236094810000001000010000
246094810000001000010000
25609485000070000300000120000350000

Benefit Illustration3

Age of LA (Yrs.): 0
Term(Yrs.): 25
Age At Maturity (Yrs.): 25
PPT(Yrs.): 20
Sum Assured(Rs.): 100000
Premium: 4528
Extd Term(Yrs.): 7

END OF YEARTOTAL PREMIUMS PAIDBENEFIT ON DEATH DURING THE YEAR
GUARANTEEDVARIABLETOTAL
SCENARIO 1SCENARIO 2SCENARIO 1SCENARIO 2
1452846640046644664
2905694680094689468
31358414415001441514415
41811219512001951219512
52264024761002476124761
6271681000001200039000112000139000
7316961000001400045500114000145500
8362241000001600052000116000152000
9407521000001800058500118000158500
10452801000002000065000120000165000
11498081000002200071500122000171500
12543361000002400078000124000178000
13588641000002600084500126000184500
14633921000002800091000128000191000
156792010000039000127500139000227500
167244810000041600136000141600236000
177697610000044200144500144200244500
188150410000046800153000146800253000
198603210000049400161500149400261500
209056010000052000170000152000270000
219056010000054600178500154600278500
229056010000057200187000157200287000
239056010000059800195500159800295500
249056010000062400204000162400304000
259056010000065000212500165000312500
2610000000100000100000
2710000000100000100000
2810000000100000100000
2910000000100000100000
3010000000100000100000
3110000000100000100000
3210000000100000100000

Benefit Illustration4

Age of LA (Yrs.): 0
Term(Yrs.): 25
Age At Maturity (Yrs.): 25
PPT(Yrs.): 20
Sum Assured(Rs.): 100000
Premium: 4528
Extd Term(Yrs.): 7

END OF YEARTOTAL PREMIUMS PAIDBENEFIT ON DEATH DURING THE YEAR
GUARANTEEDVARIABLETOTAL
SCENARIO 1SCENARIO 2SCENARIO 1SCENARIO 2
1452800000
2905600000
31358400000
41811200000
52264000000
62716800000
73169600000
83622400000
94075200000
104528000000
114980800000
125433600000
135886400000
146339200000
156792000000
167244800000
177697600000
188150400000
198603200000
209056025000002500025000
219056010000001000010000
229056010000001000010000
239056010000001000010000
249056010000001000010000
25905605000065000212500115000262500

Notes :

(i) This illustration is applicable to a standard (from medical, life style and occupation point of view) life.

(ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively.  In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be.  The Projected Investment Rate of Return is not guaranteed.

(iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.

EXTRACT from Section 41 of the Insurance Act :

No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of  the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate,  except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer : provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bonafide insurance agent employed by the insurer.

Any person making default in complying with the provisions of this Section shall be punishable with a fine which may extend to Rs.500 / –

Note : “Conditions apply” for which please refer to the Policy document or contact our nearest Branch Office.

LIC Child Future Plan
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