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LIC or Life Insurance Corporation of India holds the record of being the oldest and the most reliable life insurance companies in India. It was enforced by the Life Insurance Corporation Act that was passed by the Parliament of India 1st September, 1956. The relaxation of the stringent regulations in the insurance sector was initiated by the Government of India in January 2002 to introduce private players in the industry, thus, breaking LIC’s monopoly.
However, despite as many as 23 competitors in the industry, LIC still holds customer loyalty owing to its strong market presence and robust product range. It boasts of a majority of the market share with more than 250 million customers. It specialises in a wide range of insurance plans like LIC child plans, savings, investment plans, health plans, withdrawn plans, micro insurance plans, etc. as per 2016 data, its asset value is estimated at INR 2,529,390 crore or US$370 billion.
A child plan not only enables parents to financially secure the future of their children, but also acts as the guardian in case of the absence of the actual parent. LIC Child Insurance Plans assure parents of their ability to be a responsible provider for their children and guarantee a financially stable future.
Here are the primary features of LIC Child Plans:
‘Waiver of Premium’ rider, which is an in-built feature of every LIC child Plan, ensures that the insured, that is the child, becomes eligible for the pre-determined sum insured along with the accrued interest in case of the sudden death of the policyholder during the policy term. Not just that, the future premiums will be waived off, while the plan would continue as it would have had the policyholder been alive.
The ‘deferment feature, offered with some LIC Child Plans, enables the policyholder the benefit of postponing the risk coverage to a few years after the start of the policy tenure. This is usually applicable when the child is the insured. In case of the death of the child during the deferment period, the premiums paid till date are returned because life coverage was not applicable during this term.
The ‘vesting’ feature makes the insured child entitled to become the policyholder at a certain pre-determined age as the LIC Child Plan vests in his/her name. The vesting age is usually 18 years.
LIC Child Plans guarantee a financially secured future for a child and the encouragement to pursue his/her life goals, even after the death of the parent. It protects children against uncertainties and gives parents the opportunity to build on the savings for their children’s future over a long period of time.
Such plans inculcate a healthy saving habit and prepare for the future financial needs well in advance rather than having to arrange for the finances within a short span of time. Besides, LIC Child Plans are a mix of insurance and savings. Not just that, they serve as a tax-saving instrument that makes policyholders eligible for deductions under Section 80C and 10(10D) of the Income Tax Act, 1961.
Let’s take a look at the LIC Child Plans.
The Jeevan Tarun Plan is a participating, non-linked limited premium payment plan that is a healthy mix of insurance and savings for your child’s future. It is an effective insurance plan that will enable you to fulfil his/her dreams of admission to the preferred education course, hostel charges and other expenses.
Salient features and benefits:
The New Children’s Moneyback Plan is tailor-made to help your child achieve milestones like higher education, marriage, etc. by planning for the finances well in advance. It helps you to be prepared for the rising expenses involved in admissions at institutes for higher education, vocational training and other expenditures.
Salient features and benefits:
You can apply for a LIC Child Plan in two ways – online or through distributors.
There are some LIC insurance plans that can be applied online only. Visit the official portal to access the list or click here to be redirected to the list.
If you want to apply for a LIC Child Plan from the above list, you have to follow these steps:
If you want to opt for a LIC Child Plan that cannot be purchased online, you can contact their brokers, agents, banks, etc. to enable the expert professionals assist you with the application process.
LIC Child Plans help in meeting your financial objectives such as securing your child’s future ambitions and aspirations. Most importantly, it safeguards his/her future even after unforeseen eventualities. It offers your family the much-needed financial support to tide over your absence and its subsequent uncertainties.
Here are some of the benefits of LIC Child Plans:
With a LIC Child Plan, you can be assured that your child’s education will not be interrupted even after your sudden death. In case such a scenario arises, your insurance provider pays a certain percentage of the sum assured or a lump sum immediately. Besides, it also starts offering annual pay-outs till the end of the policy tenure.
The amount you will need to invest in the future towards your child’s higher education is usually difficult to predict. It depends on various parameters like the type of course that your child may like to pursue in the future, its geographical location, the rising costs of education, etc. Planning ahead when your child is very young gives you sufficient time to plan your finances efficiently. It also ensures that your child’s higher education would not get affected in case of an unfortunate event or he/she would not have to apply for a loan.
Not just school fees and higher education, co-curricular activities also help in character-building. In fact, certain child plans disburse a certain amount periodically, so that your child can pursue such activities seamlessly.
Your child’s wedding would not appear to be a huge task if you plan for it in advance. If you start a LIC Child Plan in a way that you will be eligible for a lump sum when your child attains a marriageable age, arranging for the necessary finances would not feel like a burden.
Which LIC plan is best for child?
Currently, LIC Child Plans can be classified into 2 categories. You can choose of one these as per your needs.
LIC Jeevan Tarun Plan
LIC New Children’s Moneyback Plan
Can an NRI buy life insurance in India?
Most life insurance companies in India offer their products to NRIs as well. To know the terms and conditions of LIC life insurance policies for NRIs, you can click here.
What is endowment plan of LIC?
An endowment life insurance plan offers the dual benefits of savings and life insurance policies. These include both death and maturity benefits, unlike pure term insurance plans. LIC Endowment Plans include surrender values, which refers to a specific percentage of the paid premiums as well as paid up values. The death benefits offer the sum assured of a minimum of INR 50,000, and is open to approval from insurance underwriters.
There are also additional benefits that the insured are entitled to in case of an unforeseen death of the policyholder or accidental disablement. These plans offer the flexibility of monthly premium payments and even discounts on high premium amounts payable annually. There are 10 types of LIC Endowment Plans that you can select from.
What is a child insurance plan?
A Child Insurance Plan is a savings as well as an insurance instrument. It helps you to become financially prepared for your child’s future milestones like higher education and marriage, and ensure financial security.
How to check policy status for LIC Child Plans?
If you had applied for your LIC Child Plan online, you can track it by visiting the official website. Here is the process that you need to follow:
Visit your nearest LIC branch to check your policy status.
What is the policy renewal process for LIC child plans?
For renewing your LIC Child Plan, you have to follow these steps:
What is the policy cancellation process for LIC Child Plans?
For cancelling your LIC Child Plan, you can visit your nearest LIC branch or get in touch with a distributor to assist you with the process.
What is the claim settlement process for LIC Child Plans?
For the claim settlement process, the nominee of the LIC Child Plan has to be physically present at an LIC branch for the customer service to guide them through the procedure.