LIC New Children's Plan: Securing Your Child's Future
An Overview of LIC New Children's Plan
Life Insurance Corporation of India (LIC) is a well-known name in the Indian insurance market. LIC offers a range of life insurance products to cater to the different needs of its customers. One such product is the LIC New Children's Plan, which is designed to provide financial security for your child's future. This plan is an excellent investment option for parents who want to ensure that their children's education and other expenses are taken care of, even in their absence.
What is LIC New Children's Plan?
LIC New Children's Plan is a non-participating, non-linked, individual, limited premium payment policy designed to meet the educational, marriage, and other needs of a child. The plan offers financial protection to the child even in the absence of the parent. The policy comes with a maturity benefit, death benefit, and optional rider benefits.
Benefits of LIC New Children's Plan
The LIC New Children's Plan offers several benefits to the policyholder and the child. Some of the benefits of the plan are as follows:
Eligibility Criteria for LIC New Children's Plan
- 1. Maturity Benefit: The policy offers a maturity benefit to the child when he/she attains the age of 18 years. The maturity benefit is paid as a lump sum, which can be used for the child's higher education, marriage, or other expenses.
- 2. Death Benefit: In case of the unfortunate demise of the parent during the policy term, the sum assured is paid to the nominee, and the policy continues. The death benefit is paid irrespective of the maturity benefit already paid.
- 3. Optional Rider Benefits: The policy offers two optional rider benefits: LIC's Accidental Death and Disability Benefit Rider and LIC's Premium Waiver Benefit Rider. The rider benefits can be added to the base policy by paying an additional premium.
- 4. Tax Benefits: The policy offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
The LIC New Children's Plan comes with certain eligibility criteria that need to be fulfilled to purchase the policy. The eligibility criteria for the plan are as follows:
How to Apply for LIC New Children's Plan?
- Minimum Entry Age: The minimum entry age for the child is 0 years.
- Maximum Entry Age: The maximum entry age for the child is 12 years.
- Policy Term: The policy term is a fixed period of 25 years.
- Premium Payment Term: The premium payment term is limited to 7 years.
- Minimum Sum Assured: The minimum sum assured is Rs. 1,00,000.
- Maximum Sum Assured: The maximum sum assured is Rs. 1 crore.
Applying for LIC New Children's Plan is a simple process. The applicant needs to follow the steps given below to purchase the policy:
- Step 1: Visit the nearest LIC branch or log on to the LIC website.
- Step 2: Fill in the application form with all the necessary details and attach the required documents.
- Step 3: Pay the premium amount either online or offline.
- Step 4: Once the premium is paid, the policy will be issued, and the policy document will be sent to the policyholder's registered address.
LIC New Children's Plan is an excellent investment option for parents who want to secure their child's future. The plan offers financial protection to the child even in the absence of the parent. The policy comes with a maturity benefit, death benefit, and optional rider benefits. The eligibility criteria for the plan are simple, and the application process is hassle-free. So, if you are a parent.