LIC New Children Money Back Policy
(A Non –Linked, Participating, Individual, Life Assurance Savings Plan)
LIC’s New Children’s Money Back Plan is a Non-linked ,Participating, Individual, Life Assurance money back plan. This plan is specially designed to meet the educational, marriage and other needs of growing children through Survival Benefits. In addition, it provides for the risk cover on the life of child during the policy term and for number of survival benefits on surviving to the end of the specified durations.
The plan can be purchased by any of the parent or grand parent for a child aged 0 to 12 years.
Death Benefit-
On death of the Life Assured during the policy term provided the policy is in-force (i.e. all due premiums have been paid) shall be as under-
On death before the date of commencement of risk-
An amount equal to the total amount of premium/s paid excluding taxes, extra premium and rider premium, if any, shall be payable.
On death after the date of commencement of risk-
Death Benefit, defined as sum of “Sum Assured on Death” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.
Where “Sum Assured on Death” is defined as Higher of Basic Sum Assured or 7 times of annualized premium.
This death benefit shall not be less than 105% of the total premiums paid upto date of death.
The premiums mentioned above exclude taxes, extra premium and rider premium, if any.
Survival Benefit-
On the Life Assured surviving on each of the policy anniversary coinciding with or immediately following the completion of ages 18 years, 20 years and 22 years, 20% of the Basic Sum Assured on each occasion shall be payable, provided the policy is in -force.
Maturity Benefit-
On Life Assured surviving the policy term, provided the policy is in-force, “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable; where Sum Assured on Maturity is equal to 40% of the Basic Sum Assured.
Participation in Profits-
The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in -force.
Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity. Final Additional Bonus shall not be payable under paid-up policies.
The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be as approved by Central Government in accordance with provisions in this regard under LIC Act, 1956.
Eligibility Conditions and Other Restrictions-
Date of commencement of risk under the plan-
In case the age at entry of the Life Assured is less than 8 years (last birthday), the risk under this plan will commence either one day before the completion of 2 years from the date of commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately from the date of issuance of policy.
Date of vesting under the plan-
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.
Option to defer the Survival Benefit-
The policyholder will have option to take the Survival Benefit(s) at any time on or after its due date but during the currency of the policy. In case of deferment of a due Survival Benefit (s) opted by the policyholder, the Corporation will pay increased Survival Benefit (s) equal to Survival Benefits % Sum Assured.
This option shall be required to be intimated in writing by the policyholder six months before the due date of the Survival Benefit to the servicing branch of policy.
LIC Premium Waiver Benefit Rider
Under an in-force policy, this rider can be opted for on the life of Proposer of the policy, at any time coinciding with the policy anniversary but within the premium paying term of the Base Policy provided the outstanding premium paying term of the Base Policy and the rider is at least five years. Further, this rider shall be allowed under the policy wherein the Life Assured is Minor at the time of opting this rider. The Rider term shall be (25 minus age of the minor Life Assured) at the time of opting this rider. If the Rider Term plus proposer’s age is more than 70 years, the rider shall not be allowed.
If this rider is opted for, on death of Proposer, payment of premiums in respect of base policy falling due on or after the date of death till the expiry of rider term shall be waived.
The premium for LIC’s Premium Waiver Benefit Rider shall not exceed 30% of premiums under the base plan.
Benefits arising under this Rider shall not exceed the Basic Sum Assured under the Base Plan.
For more details on the above rider, refer to the rider brochure or contact LIC’s nearest Branch Office.
Payment of Premiums-
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through NACH or through salary deduction (SSS) only) over the premium paying term of the policy.
Grace Period-
A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of first unpaid premium. During this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy. If the premium is not paid before the expiry of the days of grace, the Policy lapses.
The above grace period will also apply to rider premiums which are payable along with premium for base policy.
Rebates-
Revival-
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium . The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured and/or Proposer (if LIC’s Premium Waiver Benefit Rider is opted for) on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.
The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved, accepted and revival receipt is issued by the Corporation.
Revival of rider, if opted for, will be considered along with revival of the Base Policy and not in isolation.
Policy Loan-
Loan can be availed under the policy provided, at least two full years premiums have been paid and subject to the terms and conditions as the Corporation may specify from time to time.
The maximum loan allowed under the policy, as a percentage of Surrender Value, shall be as under-
- For in-force policies – upto 90%
- For paid-up policies – upto 80%
The interest rate to be charged for policy loan and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.
Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.
