LIC New Children money Back plan – The LIC New Kids’ Cash Back Plan is a customary cash back plan basically intended to address the issues and necessities of the developing youngsters by means of endurance benefits. These prerequisites could fluctuate from one youngster to the next, for example, instructive necessities, concentrating abroad, marriage, etc. The LIC New Youngsters’ Cash Back Plan likewise offers the endanger cover upon the existence of the kid inside the strategy period and furthermore for the quantity of endurance benefits after getting by till the finish of a specific span.
LIC has announced a new children money back plan, which will start from September 2024. The plan offers children aged between 0-18 years a chance to get up to Rs 10,000 back, with a cap of Rs 1 crore per child. The scheme will be applicable to all LIC policies, including endowment, annuity, and assured policies. The move is part of LIC’s efforts to promote financial inclusion for its customers.
LIC New Children money Back plan 2024
Arranging a safe monetary future for your kid is fundamental with the goal that your kid has the ability to seek after his/her fantasies. For that reason you ought to make a monetary corpus for your kid’s future. Nonetheless, in the event of sudden passing, you probably won’t have the option to make the ideal monetary corpus for your kid’s future. This is where kid protection plans come into the image. These plans guarantee that a monetary corpus is made whether the parent is alive. LIC’s New Youngsters’ Cash Back Plan is one such kid protection plan which helps in getting your kid’s monetary future. We should figure out the arrangement.
Are you worried about the future of LIC? If so, you’re not alone. The LIC New Children money back plan is a good way to hedge your bets and protect yourself in case LIC’s future doesn’t turn out as you had hoped. This plan offers customers a 2024 chance to have their money back, no questions asked. So if you’re concerned about LIC’s future and want to protect yourself, this is the plan for you.
Details LIC New Children money Back plan 2024
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Overview of LIC’s New Children’s Money Back Plan
LIC has announced a new children’s money back plan, which will allow parents to send up to P5,000 worth of children’s educational expenses per year without any interest or fees. This new plan is part of LIC’s ongoing effort to help families save for their children’s education. The money back plan is available to full-time students enrolled in school and is applicable to both private and public schools. Parents will also be able to use the money back plan to pay for Tutoring, Homework help, and other related services.
LIC’s New Youngsters’ Cash Back Plan is a customary cash back strategy which takes part in the benefits proclaimed by the insurance agency. The arrangement takes care of cash benefits at significant periods of the kid guaranteeing that the kid gets the funds required for seeking after advanced education or marriage.
Key features of LIC’s New Children’s Money Back Plan
LIC has just announced the launch of its new Children’s Money Back Plan, which offers parents peace of mind when it comes to saving for their children’s future. The plan offers a variety of benefits, including access to an online account, 24/7 customer care, and flexible loan terms. Plus, there are no fees whatsoever for withdrawing money or making payments – making it a great option for parents who want to save on the go. If you’re looking for a way to help your children save for the future, this plan is definitely worth considering.
- Since the arrangement takes part in the organization’s benefits, it acquires basic reversionary rewards all through the approach residency
- A last extra reward could likewise be added to the arrangement’s advantages on development or demise
- The youngster’s life is guaranteed under the strategy and a kid’s parent or grandparent can purchase the arrangement and become the policyholder
- There is a discretionary rider under the arrangement which can be added to the inclusion by paying an extra premium
- You can decide to delay getting the endurance benefit in which case the advantage payable would be expanded
- Cash back benefits are paid at ages when the youngster needs monetary help the most
Benefits payable under LIC’s New Children’s Money Back Plan
you are a parent who is concerned about the safety of your children? Are you worried about the amount of time you’ll have to spend looking for a safe place for them to play? Are you tired of worrying about their security all the time? If you answered yes to any of these questions, then you should consider enrolling your children in the LIC Children’s Money Back Plan. This plan offers a number of benefits that will make your life much easier. Here are four of the most important ones.
Here are the advantages which are guaranteed under LIC’s New Kids’ Cash Back Plan –
Since this is a cash back strategy, endurance benefits are paid over the length of the arrangement. The advantages are paid when the youngster achieves 18 years, 20 years and 22 years old. The advantages are paid @ 20% of the aggregate guaranteed.
At the point when the term of the arrangement reaches a conclusion 40% of the aggregate guaranteed, gathered reversionary rewards and a last extra reward is paid to the policyholder.
In the event that the kid kicks the bucket during the term of the strategy, a demise benefit is paid. The advantage would rely upon the age at which the youngster passes on. In the event that the kid bites the dust before risk inclusion has begun under the arrangement, the charges paid would be discounted as the demise benefit. Be that as it may, assuming that the gamble cover has begun and the youngster kicks the bucket from there on, a total guaranteed on death would be paid alongside gathered reversionary rewards and a last extra reward. The aggregate guaranteed on death would be viewed as the most noteworthy of the accompanying –
- multiple times the yearly premium
105% of absolute charges paid on death
Irrefutably the guaranteed sum payable on death which is the fundamental aggregate guaranteed
The arrangement permits two kinds of premium limits which help you in setting aside your cash. The primary markdown is known as the modular rebate which is permitted on the off chance that you pay the expenses every year or half-yearly. The rebate is 2% of the plain premium on the off chance that you pay yearly expenses and 1% assuming you pay half-yearly charges. The subsequent rebate is considered picking a total guaranteed level which is INR 2 lakhs or above. The rebate offered is as per the following –
Sum assured chosen
Premium discount allowed
2 lakhs to INR 4.9 lakhs
2 per INR 1000 sum assured
5 lakhs and above
3 per INR 1000 sum assured
Deferment of survival benefits
You can decide to defer getting the endurance benefit. The deferral is permitted on the off chance that the advantages are gotten inside the approach span itself. On the off chance that you delay getting the endurance benefits, the advantage payable would increment by a component still up in the air by LIC.
The policy becomes paid-up if you have paid the premiums for the first three policy years but do not pay any more. The benefits payable would decrease in a paid-up policy. The endurance benefits are not paid in that frame of mind up approach. However, if the survival benefits were postponed, they would be paid after the total amount of premiums due was subtracted from the number of premiums paid.
If you need money, you can get a policy loan. Loans are not permitted until the plan has a surrender value. You can get a loan for a portion of the surrender value of your policy, which will determine the loan’s value. LIC will decide how much of the surrender value you can borrow as a loan.
Entry Age (Last Birthday)
Maturity Age (Last Birthday)
Policy Term (PT) in years
25 – entry age
Premium Paying Term (PPT) in years
7 pay, 10 pay or (term-5)
Premium Paying Frequency
Annual, half-yearly, quarterly, monthly
Rider benefits under LIC’s New Children’s Money Back Plan
If you are a parent with a child aged between 0 and 18 years, you are eligible to claim the benefits under LIC’s new children’s money back plan. This plan allows parents to get their kids back money that they have lent to them, without having to go through the hassle of a legal case. To avail of this scheme, parents just need to send LIC an application form and supporting documents. As long as the money is repaid in full and on time, there is no need to involve the courts or face any other legal proceedings.
The Premium Waiver Benefit Rider from LIC is included in the plan. You can select the rider for more protection. The premium would be paid by LIC, and there would be no change to the policy.
Eligibility parameters of LIC’s New Children’s Money Back Plan
The limits to which LIC can help children are being progressively increased with the launch of their new Children’s Money Back Plan. LIC has now extended the eligibility parameters of its child protection plan to include children who are not living with their parents and who are not in any form of foster care. This move comes as LIC expands its reach to cover more children in need and further strengthens the safety net that it has built for them. Here’s a look at the eligibility requirements and benefits of the plan.
Only parents or grandparents of children are eligible to purchase coverage through LIC’s New Children’s Money Back Plan. The following are additional criteria for eligibility:
0 years to 12 years
Maximum maturity age
Term of the plan
25- entry age of the child
Minimum – INR 1 lakh
Maximum – no limit
Depends on age, term and sum assured chosen
- One day before the approach commemoration after the kid accomplishes 8 years
- On one occasion before the approach commemoration when two years of the arrangement are finished
At the point when the kid finishes 18 years old, on the accompanying approach commemoration, the strategy would vest for the sake of the youngster. This indicates that once the child reaches adulthood, they will hold the policy.
Premium payment under LIC’s New Children’s Money Back Plan
You can pay your premiums on a monthly, quarterly, or annual basis depending on the policy. A Salary Savings Plan is another option for purchasing the policy and making premium payments. You would have a grace period to pay the outstanding premiums if you do not pay them by the due date. For monthly premiums, the grace period would be 15 days, and for all other forms of premium payment, it would be 30 days.
The premiums do not include the applicable GST.
Age of the child
Sum Assured INR 2 lakhs
Sum Assured INR 5 lakhs
Assured INR 10 lakhs
How does LIC’s New Children’s Money Back Plan work?
Let’s look at an example to better understand how LIC’s New Children’s Money Back Plan works. Let’s say a parent purchases this policy for his or her 5-year-old child with a sum assured of INR 5 lakhs. According to the rates that were just calculated, the premium that would need to be paid would be INR 26,460, which does not include any taxes. The plan would operate as follows: After 13 years of policy duration, 20% of the sum assured would be paid as the first money-back benefit. Coverage would be available for up to 25 years if the child did not die before the age of 18, i.e. when the child was 5 years old. In this manner, the parent would get INR 1 lakh as endurance benefit. If the child passes away, the risk cover would begin on the second policy anniversary.
Tax benefits of LIC’s New Children’s Money Back Plan
The New Children’s Money Back Plan from LIC provides you with two tax benefits: a tax benefit under Section 80C: The premium you pay for the policy can be deducted tax-free under Section 80C, lowering your taxable liability and saving you money. Under this section, you can get a maximum deduction of INR 1.5 lakhs.
Benefit from Section 10D of the tax code The income from the plan’s survival, maturity, and death benefits are all exempt from tax. The benefit you receive from the plan is exempt from taxation. Under Section 10(10D) of the Income Tax Act of 1961, the benefit as a whole is regarded as income exempt from tax.
How to buy LIC’s New Children’s Money Back Plan?
If you are one of the parents who are worried about what to do with your children’s money, you may be wondering if LIC offers a children’s money back plan. LIC does offer a plan that allows parents to withdraw money from their children’s accounts without any fees or penalties.
You can arrange a meeting with an LIC agent to purchase a policy. You can also apply for LIC’s New Children’s Money Back Plan from the company’s office by going to the LIC branch closest to you.
Documents required for buying LIC’s New Children’s Money Back Plan
To purchase the arrangement, you would need to present the underneath referenced records –
- Character verification of the kid and the parent/grandparent proposing protection
- Age verification of the kid and the proposer
- Address verification of the parent
- Photos of the youngster and the proposer
- Pay verification of the parent
- Proposition structure, filled and endorsed by the proposer