LIC New Professional Education Plan 257

LIC is one of the most trusted life insurers, aimed to mobilize people's savings in the best way. LIC (International) offers you the New Professional Education Plan to secure the guaranteed monetary outflow for your child’s professional education.

Features of New Professional Education (Plan - 257)

• Children who are between ages 0 - 13 years (last birthday) are eligible for this plan. 
• New Professional Education Plan (Plan 257) is a single premium plan. Parents can buy the policy for their children or it can be gifted by grandparents and elder members of the family. 
• The plan covers the life risks of the child after 2 years from the start of the policy or on the policy anniversary following the completion of 7 years by the child, depending on whichever is later.
• After the child attains 18 years of age, he/she is the absolute owner of the policy and the proposer ceases to have any interest in the policy.

Benefits of New Professional Education (Plan - 257)

New Professional Education Plan (Plan - 257) is a cashback plan for children. Under this plan, the sum assured payment will be made in installments starting from the policy anniversary after the child attains a certain age, provided the policy is in full force. The respective ages are mentioned below. Here are the payments made as per the plan:

• 20% of the sum assured on the policy anniversary after child’s 18th birthday
• 20% of the sum assured on the policy anniversary after child’s 19th birthday
• 20% of the sum assured on the policy anniversary after child’s 20th birthday
• 20% of the sum assured on the policy anniversary after child’s 21st birthday
• 20% of the sum assured on the policy anniversary after child’s 22nd birthday

The guaranteed addition of the policy will be paid in a lump sum if the child insured survives to the end of the policy term. In case of any loyalty addition, it will be payable along with the maturity benefit.

In case of the death of the child after the commencement of risk, and before policy maturity, the full sum assured will be paid along with guaranteed and loyalty addition (if any). No deductions are made from the earlier installments during this payment.

If the child’s death occurs before the commencement of risk, the premium paid till the date of death excluding extra premiums and/or rider premiums if any shall be payable to the proposer.

If the proposer dies, a premium waiver benefit rider may be availed due to which all the future premiums are waived, but the benefits of this plan continue and shall be paid on events as described in the policy.

Guaranteed Addition

You are liable to get guaranteed addition on completion of every policy year. The payment will be at a rate of USD 25 p.a. per 1000 sum assured.

Loyalty Addition

This policy will also be eligible for loyalty addition which is payable on the maturity/death at a rate fixed by the company from time to time. Loyalty addition is not guaranteed; it depends on the future experience of the company.   

Premium Waiver Benefit – Optional Rider 

In case of the unfortunate death of the proposer, this benefit can be availed under the plan to waive all future premiums. However, this will not terminate your policy, it will continue to be in force and all benefits shall be paid timely as per the policy bond.

The Premium Payment 

• You can choose flexible premium payments
• Payment of premium till age 18 of the child (23- Age of the child)
• Pay off in 5 years (Limited Term option)
• Only pay one premium (One-Time option) 

The annualized premiums can be paid in yearly, half-yearly, quarterly or monthly modes, whichever suits you best.

Discontinuation of Premium 

If you are unable to pay the premiums after 2 years due to any change in your circumstances, on a limited premium plan the policy's sum assured is reduced. You will be given a grace period, within which if you fail to make payment the policy will be converted into a reduced paid-up policy.

Date of Commencement of Risk 

This is a unique plan operating like a life insurance policy from the policy anniversary after the child turns 7 years old or after 2 years from the start of the policy, whichever is later. Coverage of risk on the proposer’s life will continue if the premium waiver benefit rider is availed.

Underwriting Requirements 

The underwriting and its aspects will be according to the company’s policy.  

Basic Product Features, Restrictions and Applicability

Servicing Aspects

Grace Period

A grace period, considered to be one calendar month but not less than 30 days will be allowed for payment of yearly or half yearly or quarterly premiums and 15 days in case of monthly premiums.

Surrender Options 

A regular or limited premium paying policy will acquire a surrender value after the payment of premiums for two full policy years.

Policy Loan

After the policy has acquired a surrender value, post payment of premiums for at least 2 years from the date of commencement of the policy, a loan on its security can be raised.

Paid Up Value  

If premiums are paid for 2 years after which due to unforeseen circumstances, the following payments cannot be made, the policy will automatically be converted into a paid-up policy. In this case, the sum assured will be reduced, payable on the date of policy maturity or in event of unfortunate death, if earlier. 

Special Provisions 

Premium Sealing 

Policyholders can choose to pay the premiums in advance up to a period of 5 years in a lump sum and a discounted rate is provided for the same. Any unutilized portion of the lump sum amount will be refunded.

Why you should consider opting for the New Professional Education (Plan – 257)

This plan is ideal for children between 1 month to 10 years, it offers numerous benefits and it is an ideal hedge against market risks and inflation. The returns on this plan are expected to be good and it makes it easier for parents to plan for their children's education.