Expenditure such as higher education and marriage of children for middle class families is one of the biggest economic challenges. Today’s rising inflation and huge fees of private institutions have increased the concern of parents even more. In such a situation, if a scheme gives a strong financial security for these future requirements, then nothing better. One of the most trusted insurance companies in the country, the new child of Life Insurance Corporation of India (LIC) has been prepared for this purpose.
What is this plan?
LIC’s New Children’s Money Back Plan is a non-linked and participating plan, the aim is to create a safe future for children. In this, a policy can be purchased for children from 0 to 12 years. This scheme provides lump sum amount on money back and maturity at certain intervals along with life insurance protection.
How will a fund of 19 lakh rupees be made?
If you start this scheme at the birth of a child and invest about ₹ 150 per day, then an investment of about ₹ 4,500 and about ₹ 55,000 annually every month. If you continue this investment for 25 years, then your total contribution is around 14 lakh rupees.
But LIC also adds bonus and interest to this scheme. You can get a fund of up to ₹ 19 lakh on maturity, including these benefits, which can prove to be extremely helpful in big expenses like your child’s higher education or marriage.
Premium payment options
In this scheme you get flexibility for premium payment:
Monthly
Quarterly
Half-yearly
Annual (yearly)
You can choose any of these options at your income and convenience.
When and how to have money back facility?
The most special aspect of this scheme is its money back structure. Under the policy, the child gets 20-20% of the sum assured at the age of 18, 20, 22 and 25 years.
When the child is 25 years old, the amount of bonus is also given with the remaining 40% of the sum assord. That is, during the policy period you keep getting funds in between, which makes it easier to manage expenses like higher education on time.
Investment limit and policy duration
Minimum Sums Assured: ₹ 1 Lakh
Maximum limit: no fixed limit
Policy period: 25 years
You can invest as much as you want according to your economic ability and need.
Benefits in case of death
If the policyholder dies before the policy is completed, a certain amount is given to the nominee. This amount is at least 105% of the total paid premiums (after some deductions), as well as the amount of insurance and bonus.
Loan facility is also available
In this scheme of LIC, two years after taking the policy, you can also take a loan with certain conditions. This loan can be used for your child’s education, marriage or other important expenses. This gives you financial support without breaking the policy in emergency.
conclusion
LIC’s New Children’s Money Back Plan is a trusted and convenient plan that not only makes your child’s future safe, but also reduces your financial challenges by giving big funds on money back and maturity from time to time. If you also want to make a strong financial planning for your child’s education and marriage, then this scheme can definitely be a great option.
Save a little, and make a big future of your child-with LIC.
