LIC Children Money Back Plan

If you are looking for a one-stop solution to be financially prepared for your child’s future requirements in terms of education and more, you can certainly explore the LIC children money back plan. This plan is a great option for covering multiple financial requirements in one place, as it provides the benefits of life insurance while also ensuring a periodic flow of funds for the professional growth of your children.

Let’s explore the available LIC children money back policy in detail and how it can be beneficial for your child’s future planning.

New Professional Education Plan 257 – LIC's Children Money Back Plan

The New Professional Education Plan 257 can be categorised as an LIC money back policy which ensures a guaranteed payout to help meet the academic requirements of your child.

What’s remarkable about this plan is that it also bears the benefits of an insurance scheme and helps create a secure financial plan for the child in case of any eventuality. Upon maturity, or when the child completes 23 years of age, the maturity benefit along with accrued guaranteed addition would be paid.

Features of the Plan

Discussed below are the salient features of this LIC children money back plan –

• Age criteria - Children of up to 13 years of age are eligible for this policy. However, if your child is aged above 5, it is mandatory to show age proof in the form of a certificate from the school.
• Payment of premium - The premium for the policy can be paid either in instalments until the child turns 18 (full term option), in 5 years (limited term option), or a lump sum (one-time option). It must be noted that you can also take the advantage of the premium sealing option, where you can make savings by being eligible for a discount in case the premium is paid in advance for 5 years. Here, if any portion of the sum is not utilised, it can be refunded.
• Eligibility - Parents, grandparents, siblings, and other elder relatives of a child can sign up for the policy
• Maximum limit of insured money - The sum assured for this plan can go as high as US$500,000.
• Commencement of Life Cover - The cover for the life of the child commences either after the completion of 2 years or when the child turns 7 (whichever is later).
• Benefits in case of unfortunate death - In case of the unfortunate death of the child before the policy matures, the policyholder will receive the premium paid until death. If the child passes away after the policy commences but before maturity, the full sum assured along with the guaranteed bonus will be paid (without deducting any earlier instalments).
• Transfer of ownership - Upon completing 18 years, the ownership of the policy is automatically transferred to the child.
• Payment of sum assured - 20% of the sum assured will be paid to the child in instalments between the age of 18 and 22 years annually.
• Discontinuation of payment - In case you decide to voluntarily discontinue the premium payments, the plan will be converted into a paid-up policy for a reduced sum
• Used for a loan - This LIC children money back plan can be used as collateral or security while applying for a loan. However, for this, the policy must have been in existence for at least 2 years.

Note: While the child will continue to be covered under the plan despite the termination of payment, the premium must have been paid for at least 2 years for this to be valid..

Benefits of the LIC Children Money Back Plan

Discussed below are the benefits that you or your child can enjoy with this LIC children money back policy:

• Funding higher education: The LIC children money back policy is primarily designed to help you meet the financial requirements of your child and help them achieve their career goals with the best education with its guaranteed flow of money.
• Loyalty program: The policy is eligible for loyalty additions in the form of additional/bonus payouts. However, the rate of these payouts is not fixed and is dictated by LIC from time to time.
• Milestone payments: The policy comes with a provision of paying 20% of the money whenever the child crosses an age milestone. This ensures a balance between both the lock-up capital and corpus available to meet different financial goals.

To Conclude

The LIC children money back policy is one of the best options if you reside in the UAE and are looking for ways to secure your child's future, as this plan can come in handy when your child begins to pursue higher studies. Moreover, with benefits like life cover, you can be assured of this financial security even amidst adverse situations.

You can also use an LIC child money back plan calculator to get an estimate of the amount you need to pay in premiums for the desired sum assured and other such details.

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