The Life Insurance Corporation (LIC) of India was established by the Government of India. It is one of the most trusted insurance providers in India and has a large customer base in India. It is one of the oldest insurance companies of India which has expanded exponentially by improving its services and by providing customer-oriented insurance plans. LIC offers a variant range of insurance plans to cater to different insurance needs of its customers. LIC offers two plans that can be brought by you for your children in which all the benefits will be paid to the insured child as a beneficiary of the insurance policy.
Best LIC Policy for Child
If you want to buy the best LIC policy for a child, there are two plan options which you can consider. Both these policies are offered by LIC and they offer some of the best coverage benefits. The policies are as follows –
1. LIC Children Money Back Plan
LIC Child Money Back Plan is a traditional, participating money-back insurance policy which pays the benefit in important times/ages of the child to ensure the child receives the required finance for higher education and marriage. It is a child insurance policy that helps the policyholder to secure the future of the child.
Features of LIC Child Money Back Policy
- The policy offers additional benefits in the form reversionary bonus declared by the company during the tenure of the policy and also an additional bonus which is paid along with maturity benefit or death benefit.
- The policy can be purchased by the grandparents or parents of a child in order to insure the life of their child. All the benefits will be paid to the insured child.
- The plan offers optional riders which can be added by paying additional premiums to extend the coverage of the plan.
- The insurance policy offers the policyholder to choose to postpone the benefit to be received on maturity of the plan
- The insurance policy pays the benefits to the child under the policy at different ages when he/she requires financial support which is for their higher education and on their marriage.
Benefits of LIC Children Money Back Policy
- 20% of the sum assured is paid as survival benefits to the child under the plan when he/she attains 18 years, 20 years and 22 years of age.
- 40% of the sum assured is paid as maturity benefit along with additional and reversionary bonus.
- The death benefit will be paid to the policyholder which depends on the age of the child at the time of death and only if the child dies during the term of the policy.
- Discounts on premiums are offered to the policyholder which is 2% on payment of premiums yearly and 1% on payments of premiums half-yearly.
- The plan also provides the facility of loan when the policyholder is in need of funds. However, the loan can be taken after asserting plan surrender value as determined by the insurance company.
2. LIC Jeevan Tarun
Jeevan Tarun offered by LIC non-linked insurance policy. This policy is designed especially for meeting the educational needs and requirements of children. The plan also offers participating benefit in the profits of the company and provides both protection as well as saving feature. It requires limited payment of premium and pays survival benefit to the child from 20 to 24 years of age. The Maturity Benefit is paid when the child is 25 years old.
Features of LIC Jeevan Tarun
LIC Jeevan Tarun is a child plan. It has the following key features:
- It is a participating plan which offers the policyholder participation in the profits of the company in the form of bonus.
- It is a limited premium payment policy in which the premium is to be paid for a limited period.
- The plan provides maturity benefit when the child is 25 years old.
- The plan is a non- linked plan which provides the dual benefit of protection as well as saving for the benefit of children.
- The plan provides the policyholder to choose from four options for survival benefits.
- The policy can be brought by grandparent or parent of a child of age 0 to 12 years
- Date of commencement of risk for children who are less than 8 years old is 2 years and children who are 8 years old or more the risk coverage commence immediately
Benefits of LIC Jeevan Tarun
- The plan pays survival benefit which is a fixed percentage of the sum assured as selected during the stage of the proposal of the policy. The benefit is paid after the completion of 20 years and then every four years thereafter.
- Maturity benefit which is a fixed percent of the sum assured is paid if the insured child services the term of the plan.
- The plan offers participation benefit in the profits of the company. When the claim is made the plan pays accrued simple reversionary bonus and additional bonus if any along with death or maturity benefit
LIC offers two Insurance plans for children and each has a unique feature and benefit. If you want a money-back plan and also want to receive a benefit in important age of your child then you should buy LIC Children Money Back Plan and if you want dual benefit plan in limited premium payment then you should buy LIC Jeevan Tarun Plan. Hence, the Best LIC Policy for Chid is the one which best suits your need and requirement.