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About New Children Money Back Plan

LIC’s New Children’s Money Back Plan is a participating non-linked money back plan. This plan is specially designed to meet the educational, marriage and other needs of growing children through Survival Benefits. In addition, it provides for the risk cover on the life of child during the policy term and for number of survival benefits on surviving to the end of the specified durations.

The plan can be purchased by any of the parent or grand parent for a child aged 0 to 12 years.

Eligibility Conditions

Minimum Basic Sum Assured Rs. 100,000
Maximum Basic Sum AssuredNo Limit
(The Basic Sum Assured shall be in multiples of Rs. 10,000/-)
Minimum Age at entry for Life Assured[0] years (last birthday)
Maximum Age at entry for Life Assured[12] years (last birthday)
Minimum/ Maximum Maturity Age for Life Assured [25] years (last birthday)
Policy Term[25 – Age at entry] years

Benefits of New Children Money Back Plan

DEATH BENEFIT: On death of the Life Assured before the stipulated Date of Maturity provided the policy is in full force, then On death of the Life Assured before the date of commencement of risk: Return of premium/s excluding taxes, extra premium and rider premium, if any.

On death after the date of commencement of risk: 
Death benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Death” is defined as Higher of 10 times of annualized premium or Absolute amount Assured to be paid on Death i.e. Basic Sum Assured.
This death benefit shall not be less than 105% of the total premiums paid as on date of death. 
The premiums mentioned above exclude taxes, extra premium and rider premium, if any.

SURVIVAL BENEFIT: On the Life Assured surviving the policy anniversary coinciding with or immediately following the completion of ages 18 years, 20 years and 22 years, 20% of the Basic Sum Assured  on each occasion shall be payable, provided the policy is in full force.

MATURITY BENEFIT: On the Life assured surviving the stipulated date of maturity, provided the policy is in full force, Sum Assured on Maturity ( which is 40% of the Basic Sum Assured) along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.

PARTICIPATION IN PROFITS: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity. 

OPTIONAL BENEFITS: 

  • Option to defer the Survival Benefit(s): The policyholder will have option to take the survival benefit at any time on or after its due date but during the currency of the policy. In case of deferment of a due survival benefit (s) opted by the policyholder, the Corporation will pay increased survival benefit (s) equal to  Survival Benefits % * Sum Assured * (Factor applicable to Survival Benefit (s))
  • LIC’s Premium Waiver Benefit Rider (UIN: 512B204V01):  LIC’s Premium Waiver Benefit Rider is available as an optional rider on the life of proposer aged between ages 18 to 55 years by payment of additional premium. In case of death of the proposer, the premiums under the basic plan falling due after the date of death shall be waived. The cost of medical and special reports shall be borne by the proposer. This rider shall not operate in the event of death of the proposer by his own hands whether sane or insane within 12 months from the date of issuance of First Premium receipt or within 12 months from the date of revival. 

Other Important Information

PAYMENT OF PREMIUMS: Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through SSS mode over the term of policy However, a grace period of one month but not less than 30 days will be allowed for yearly, half-yearly, quarterly modes and 15 days for monthly mode of premium payment. 

REVIVAL: If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium but before the date of maturity, as the case may be by paying all the arrears of premium together with interest (compounding half-yearly) at such rate as fixed by the Corporation from time to time subject to submission of satisfactory evidence of continued insurability. 

The Corporation reserves the right to accept at original terms, accept at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the Policyholder

Revival of rider, if opted for, will be considered along with revival of the Basic Policy and not in isolation and shall be subject to underwriting.

 PAID UP VALUE: If at least three full years’ premiums have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall continue as a paid-up policy. 

The Sum Assured on Death under paid–up policy shall be reduced to such a sum called “Death Paid-up Sum Assured” and shall be equal to [(Number of premiums paid/Total Number of premiums payable) x Sum Assured on Death] 

The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity Paid-up Sum Assured” and shall be equal to [(Number of premiums paid/Total Number of premiums payable) x (Sum Assured on Maturity plus Total Survival Benefits payable under the policy)] less Total amount of Survival Benefits already paid.

The policy so reduced shall thereafter be free from all liabilities for payment of the premiums, but shall not be entitled to participate in future profits. However, the vested Simple Reversionary Bonuses shall remain attached to the reduced paid up policy.

In case of a paid up policy, no future survival benefits shall be payable. However, if the option to defer the Survival Benefit(s) has been exercised and payment of such Survival Benefit(s) have not yet been made, these increased Survival Benefit(s) shall also be paid as  specified in para 2a above.

Rider shall not acquire any paid-up value and the rider benefits cease to apply, if policy is in    lapsed condition.

SURRENDER VALUE: The policy can be surrendered provided atleast three full years’ premiums have been paid. The Guaranteed Surrender value shall be percentage of total premiums paid (net of service tax) excluding extra premiums and premium for rider, if opted for, less any survival benefits already due and payable.

POLICY LOAN: Loan can be availed under the policy provided the policy has acquired a surrender value and subject to the terms and conditions as the Corporation may specify from time to time.

TAXES: Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time. 

The amount of tax as per the prevailing rates shall be payable by the Policyholder on premiums including extra premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan. 

COOLING-OFF PERIOD: If the Policyholder is not satisfied with the “Terms and Conditions”, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy  bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for basic plan and rider, if any) for the period on cover, expenses incurred on medical examination and special reports , if any, and stamp duty charges.



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