Planning of big expenses like high education and marriage of children is a challenge in middle class families. In such a situation, if there is a financial tool that helps to meet these needs on time, then it can prove to be a big relief. Keeping this need in mind, the country’s most trusted insurance company Indian Life Insurance Corporation of India (LIC) has introduced the New Children’s Money Back Plan.
What is LIC’s New Children’s Money Back Plan?
It is a non-linked, participating policy, that is, it has nothing to do with the stock market and also gives the benefit of bonus. This scheme is designed keeping in mind the future needs of children – especially education and marriage. Investment in this plan can be started between the age of 0 to 12 years.
How will the fund of ₹ 19 lakh be made?
Suppose, you start investing in this scheme at the birth of a child and deposit ₹ 150 every day i.e. about ₹ 4,500 a month. Its annual contribution will be around ₹ 55,000. If you make this investment for 25 consecutive years, then your total contribution will be around ₹ 14 lakh.
This amount can reach about ₹ 19 lakh on maturity on adding bonus and fixed returns in this policy. This amount can be sufficient for important expenses like child education, higher education or marriage.
Premium payment facility
LIC has also given flexibility in this scheme. You can pay the premium as per your convenience:
Monthly
Quarterly (quarter)
Half -yearly
Annual (annual)
This makes it easier to pay according to your income and budget.
When and how to get money back?
This scheme is a money back plan, in which the share of the amount invested at certain intervals is returned:
At the age of 18: 20% of Samadord
At the age of 20: 20%
At the age of 22: 20%
At the age of 25 years: the remaining 40% + bonus
In this way, money is arranged on time for the child’s college education and marriage.
Investment limit
Minimum Sums Assured: ₹ 1 Lakh
Maximum limit: no fixed limit; You can invest more according to your income and needs.
Policy period: 25 years
Security on death of policyholder
If the policyholder dies during the policy period, a certain amount is given to the nominee. This amount is at least 105% of the total premium accumulated (subject to certain conditions), which may be even greater together with bonuses.
Can a loan be found on this scheme?
Yes, two years after the policy starts, LIC also provides loan facility with certain conditions. This loan can be used for a child’s education, marriage or other important expenses – without breaking the policy.
