LIC New Children's Money Back Plan (Plan No. 732)
The LIC Children Money Back Plan 732 (earlier called 932) is a life insurance plan for children that also helps you save money. It gives money at important times in the child's life, like for education or marriage, through regular survival benefits. The plan also provides life insurance for the child during the policy period, and at the end, it pays a lump sum maturity amount. With bonuses, this plan helps build a strong financial future for the child while giving protection throughout the policy.
Eligibility Criteria of LIC New Children's Money Back Plan
| Parameter | Criteria |
|---|---|
| Sum Assured | Min: Rs. 2,00,000Max: No Limit |
| Entry Age (Last Birthday) | Min: 0 yearsMax: 12 years |
| Maturity Age (Last Birthday) | 25 years |
| Policy Term (PT) in years | 25 - Entry Age |
| Premium Paying Term (PPT) | Same as Policy Term |
| Premium Paying Frequency | Annual, Half-yearly, Quarterly, Monthly |
Key Features of LIC New Children's Money Back Plan
- This plan is for one child at a time and is a non-linked money-back plan that helps children as they grow up.
- The plan gives survival benefits, maturity benefits, and death benefits.
- The policy period depends on the child's age. It is 25 minus the child's age. For example, if the child is 9 years old, the policy will last 16 years.
- You can add a Premium Waiver Benefit Rider. This means if the person paying the premium dies, the remaining premiums do not have to be paid, and the policy continues.
- You can get a discount (rebate) on the premium based on how you pay:Yearly payment: 2% discountHalf-yearly payment: 1% discountMonthly or quarterly payments: No discount
Benefits of LIC New Children's Money Back Plan
Here are some benefits that you can get with this LIC plan:
Survival Benefit
If the child is alive at certain important ages, 18, 20, and 22 years, the plan pays 20% of the sum assured each time. This money is paid while the policy is active and can be used to meet expenses like education, skill development, or other important needs.
Maturity Benefit:
If the child survives the entire policy term, the plan pays a lump sum at maturity. This includes 40% of the basic sum assured plus any bonuses declared by LIC. This money can help the child start a career, continue higher studies, or even for marriage expenses.
Death Benefit
If the child dies during the policy period, the nominee (the person chosen in the policy) will get financial support. The payment will be the higher of the basic sum assured or 7 times the yearly premium. In addition, any bonuses that have already been added to the policy will also be paid. This ensures the child’s family is protected financially even if something unexpected happens.
Participation in Profits:
When the policy is active, it can earn bonuses from LIC's profits. These are called simple reversionary bonuses and are added to the policy over time. A final additional bonus may also be given at the end of the policy, but it is not given if the policy becomes paid-up. This final bonus is only added if the policy continues till maturity or a claim is made.
Extra Protection with Riders:
You can add a Premium Waiver Benefit Rider to this plan. If the person who pays the premium (parent or guardian) dies, then no more premiums need to be paid, but the policy will continue as normal.
Premium Discounts (Rebates):
LIC gives discounts on premiums if you choose certain payment modes:Yearly payment: 2% discountHalf-yearly payment: 1% discountThere is also an extra discount for a higher sum assured, starting from Rs. 2,00,000 and above.
Premium Chart of LIC New Children's Money Back Plan
Here is an example of how much yearly premium you may need to pay for a sum assured of Rs. 2,00,000:
| Child's Age | Yearly Premium (Rs) |
|---|---|
| 0 years | 9,006 |
| 5 years | 11,682 |
| 10 years | 16,395 |
| 12 years | 19,002 |
Important Details of LIC New Children's Money Back Plan
Grace Period
You get some extra time to pay your premium after the due date.15 days extra time for monthly payments30 days of extra time for all other payment modesIf you do not pay within this time, the policy will stop working (lapse).
Surrender (Closing the Policy)
You can close the policy after paying at least 3 years premiums. When you surrender, you will get a surrender value. This amount will be the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value.Guaranteed Surrender Value (GSV):It is calculated like this:A percentage of the premiums you have paidMinus any survival benefits already receivedPlus a percentage of the bonuses added
Free Look Period
After you receive the policy, you get 30 days to check everything. If you are not happy and have not made any claim, you can cancel the policy and get your money back (as per the rules).
Loan Facility
You can take a loan from the policy after paying at least 1 full year's premium. If the policy is active, you can usually get 50% to 75% of the surrender value as a loan.
Exclusions of LIC New Children's Money Back Policy
If the child (life assured) dies by suicide within 12 months of starting the policy, only 80% of the premiums paid will be returned to the nominee. This rule applies if the child is older than 8 years.If suicide happens within 12 months after restarting (reviving) the policy, then the nominee will get either 80% of the premiums paid or the surrender value, whichever is higher. This also applies only if the child is older than 8 years and the policy has some value.
Disclaimer: Squareinsurance.in does not endorse or recommend any specific insurance company or insurance plan. For more details about this plan, please check the plan brochure or the policy document for exact details.
FAQs
It is a life insurance plan for children. It helps you save money for your child's future, like education or marriage. The plan gives money at different times, provides life cover during the policy, and also pays a final amount if the child completes the policy term.
Both plans are different and made for different needs. If you want high life cover, term insurance is better. If you want savings + insurance together, then the LIC Children Money Back Plan is a better choice.
LIC New Children's Money Back Plan (Plan 732) is a good option for newborns. It gives both savings and life cover. It also gives money at important times in the child's life, like for education or marriage.
It is the money you get during the policy at certain ages of the child.