LIC Child Future Plan



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
Age Maturity 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
Age Maturity 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 mode 2% of Tabular Premium
Half-yearly mode 1% of the tabular premium
Quarterly & Salary deduction NIL

Sum Assured Rebate:

Sum Assured Rebate (Rs.)
1,00,000 to 2,99,999 Nil
3,00,000 to 4,99,999 1.5 %o S.A.
5,00,000 and above 2 %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 term 25% of the Sum Assured
4 years before the date of expiry of policy term 10% of the Sum Assured
3 years before the date of expiry of policy term 10% of the Sum Assured
2 years before the date of expiry of policy term 10% of the Sum Assured
1 years before the date of expiry of policy term 10% of the Sum Assured
On the date of expiry of policy term 50% 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 YEAR TOTAL PREMIUMS PAID BENEFIT ON DEATH DURING THE YEAR
GUARANTEED VARIABLE TOTAL
SCENARIO 1 SCENARIO 2 SCENARIO 1 SCENARIO 2
1 10158 10463 0 0 10463 10463
2 20316 21239 0 0 21239 21239
3 30474 32339 0 0 32339 32339
4 40632 43772 0 0 43772 43772
5 50790 55548 0 0 55548 55548
6 60948 100000 13200 54000 113200 154000
7 60948 100000 15400 63000 115400 163000
8 60948 100000 17600 72000 117600 172000
9 60948 100000 19800 81000 119800 181000
10 60948 100000 22000 90000 122000 190000
11 60948 100000 24200 99000 124200 199000
12 60948 100000 26400 108000 126400 208000
13 60948 100000 28600 117000 128600 217000
14 60948 100000 30800 126000 130800 226000
15 60948 100000 42000 180000 142000 280000
16 60948 100000 44800 192000 144800 292000
17 60948 100000 47600 204000 147600 304000
18 60948 100000 50400 216000 150400 316000
19 60948 100000 53200 228000 153200 328000
20 60948 100000 56000 240000 156000 340000
21 60948 100000 58800 252000 158800 352000
22 60948 100000 61600 264000 161600 364000
23 60948 100000 64400 276000 164400 376000
24 60948 100000 67200 288000 167200 388000
25 60948 100000 70000 300000 170000 400000
26 100000 0 0 100000 100000
27 100000 0 0 100000 100000
28 100000 0 0 100000 100000
29 100000 0 0 100000 100000
30 100000 0 0 100000 100000
31 100000 0 0 100000 100000
32 100000 0 0 100000 100000

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 YEAR TOTAL PREMIUMS PAID BENEFIT ON DEATH DURING THE YEAR
GUARANTEED VARIABLE TOTAL
SCENARIO 1 SCENARIO 2 SCENARIO 1 SCENARIO 2
1 10158 0 0 0 0 0
2 20316 0 0 0 0 0
3 30474 0 0 0 0 0
4 40632 0 0 0 0 0
5 50790 0 0 0 0 0
6 60948 0 0 0 0 0
7 60948 0 0 0 0 0
8 60948 0 0 0 0 0
9 60948 0 0 0 0 0
10 60948 0 0 0 0 0
11 60948 0 0 0 0 0
12 60948 0 0 0 0 0
13 60948 0 0 0 0 0
14 60948 0 0 0 0 0
15 60948 0 0 0 0 0
16 60948 0 0 0 0 0
17 60948 0 0 0 0 0
18 60948 0 0 0 0 0
19 60948 0 0 0 0 0
20 60948 25000 0 0 25000 25000
21 60948 10000 0 0 10000 10000
22 60948 10000 0 0 10000 10000
23 60948 10000 0 0 10000 10000
24 60948 10000 0 0 10000 10000
25 60948 50000 70000 300000 120000 350000

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 YEAR TOTAL PREMIUMS PAID BENEFIT ON DEATH DURING THE YEAR
GUARANTEED VARIABLE TOTAL
SCENARIO 1 SCENARIO 2 SCENARIO 1 SCENARIO 2
1 4528 4664 0 0 4664 4664
2 9056 9468 0 0 9468 9468
3 13584 14415 0 0 14415 14415
4 18112 19512 0 0 19512 19512
5 22640 24761 0 0 24761 24761
6 27168 100000 12000 39000 112000 139000
7 31696 100000 14000 45500 114000 145500
8 36224 100000 16000 52000 116000 152000
9 40752 100000 18000 58500 118000 158500
10 45280 100000 20000 65000 120000 165000
11 49808 100000 22000 71500 122000 171500
12 54336 100000 24000 78000 124000 178000
13 58864 100000 26000 84500 126000 184500
14 63392 100000 28000 91000 128000 191000
15 67920 100000 39000 127500 139000 227500
16 72448 100000 41600 136000 141600 236000
17 76976 100000 44200 144500 144200 244500
18 81504 100000 46800 153000 146800 253000
19 86032 100000 49400 161500 149400 261500
20 90560 100000 52000 170000 152000 270000
21 90560 100000 54600 178500 154600 278500
22 90560 100000 57200 187000 157200 287000
23 90560 100000 59800 195500 159800 295500
24 90560 100000 62400 204000 162400 304000
25 90560 100000 65000 212500 165000 312500
26 100000 0 0 100000 100000
27 100000 0 0 100000 100000
28 100000 0 0 100000 100000
29 100000 0 0 100000 100000
30 100000 0 0 100000 100000
31 100000 0 0 100000 100000
32 100000 0 0 100000 100000

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 YEAR TOTAL PREMIUMS PAID BENEFIT ON DEATH DURING THE YEAR
GUARANTEED VARIABLE TOTAL
SCENARIO 1 SCENARIO 2 SCENARIO 1 SCENARIO 2
1 4528 0 0 0 0 0
2 9056 0 0 0 0 0
3 13584 0 0 0 0 0
4 18112 0 0 0 0 0
5 22640 0 0 0 0 0
6 27168 0 0 0 0 0
7 31696 0 0 0 0 0
8 36224 0 0 0 0 0
9 40752 0 0 0 0 0
10 45280 0 0 0 0 0
11 49808 0 0 0 0 0
12 54336 0 0 0 0 0
13 58864 0 0 0 0 0
14 63392 0 0 0 0 0
15 67920 0 0 0 0 0
16 72448 0 0 0 0 0
17 76976 0 0 0 0 0
18 81504 0 0 0 0 0
19 86032 0 0 0 0 0
20 90560 25000 0 0 25000 25000
21 90560 10000 0 0 10000 10000
22 90560 10000 0 0 10000 10000
23 90560 10000 0 0 10000 10000
24 90560 10000 0 0 10000 10000
25 90560 50000 65000 212500 115000 262500

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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