LIC has always maintained the trust of Indian families and, therefore, continues to offer suitable plans for people of all ages. If you are worried about your child’s future, LIC’s New Children’s Money Back Policy can be a great option. This plan provides an opportunity to financially prepare for major expenses such as children’s education, higher education, and marriage. It also includes insurance coverage, periodic money-back payments, and bonuses, making it even more attractive.
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What is the LIC New Children’s Money Back Plan?
This plan is specifically designed keeping in mind the needs of children. The most significant feature is that investment can be started with a very small amount. By saving approximately ₹150 daily, parents can create a large fund for their child. This is a non-linked plan, so its security is not affected by market volatility. This policy can be taken for children aged 0 to 12 years, and the periodic money-back payments keep parents financially secure.
How is a Fund of ₹19 Lakhs Created?
In this plan, approximately ₹150 is saved every day, which amounts to about ₹4500 per month. Approximately ₹55,000 is accumulated annually. After investing for 25 years, the total contribution reaches approximately ₹14 lakhs. At maturity, the accumulated bonus and interest together transform this amount into a fund of approximately ₹19 lakhs. This amount proves very helpful for the child’s education, career, or marriage expenses.
When is the Money Back Received?
Understanding the financial needs at different stages of a child’s life, this policy provides money back at specific ages. 20 percent of the sum assured is returned at the age of 18. Another 20 percent is given at the age of 20. A further 20 percent is returned at the age of 22. Finally, the remaining 40 percent of the sum assured is paid out at age 25, along with a bonus. This payment pattern proves extremely useful for meeting children’s education and career needs.
Premium, Sum Assured, and Policy Term
The minimum sum assured in this plan is ₹1 lakh, while there is no fixed limit for the maximum amount. Investors can choose the sum assured according to their capacity and needs. The policy matures after 25 years, and the full maturity amount is paid only if premiums are paid for the entire term. If the policyholder dies during the policy term, the nominee receives the sum assured and bonus, along with at least 105 percent of the total premiums paid, providing financial security to the family.
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This plan is an excellent option for parents looking for a safe and reliable investment for their child’s future. For more information and to understand the terms and conditions, it is advisable to visit the official LIC website.