Lic Child Plans Review
Lic of India is providing child plans with many features. It will be beneficial for your children if you take the Lic policy for child. Lic child plans are specially designed for your children’s bright future. There are many Lic child plans offered by Life Insurance Corporation of India. Some Lic Child Plans are designed for Child Marriage, some are designed for children education, few are for setting up their business in future and other Lic Child Plans are designed to give guaranteed amount of pension life time with whole life insurance.
Lic Child Plan Features
- Lic Child plans help parents to save for their Children’s Future Financial needs such as education, marriage etc.
- Lic of India Child plans offer the dual benefit of savings along with insurance.
- It is important to note that the child does not have any income of their own. They are entirely financially dependent on their Parents. The parent pays the premium to the Lic company towards accumulating money for the child’s future financial needs.
- The child is the beneficiary who entitles to receive the benefit on the maturity of the policy.
- In these Lic child plans, risk on the life of the insured child will begin only when the child reaches a specified age as stated in the policy.
- The time gap between the policy start date and the date of commencement of risk is called as deferment period.
- The date on which the risk will commence at the end of the deferment period is known as the deferred date. The deferred date will be a policy anniversary.
- There is no insurance cover during the deferment period.
- When the child reaches the age of majority (18 years old) the title of the policy will be automatically passed on to the insured child. This process is known as Vesting. The date on which the policy title passes to the child is known as the vesting date.
- After vesting the policy becomes a contract between the insurer and the insured person (the child in this case).
- Some child insurance plans come with a built-in ‘waiver of premium’ rider, whereas in the case of other child insurance plans the parent can opt for the waiver of premium rider for a small additional premium.
- In this case if the parent dies during the policy term the insurance company will continue to pay the premium on behalf of the parent (until the child reaches the age of majority) and the policy is left intact.
- Child insurance plans can be taken out in the form of Endowment Plans, Money-back Plans or ULIPS.
Types of Lic Child Plans
- Insurance plan where parent life is insured and claim settled to child when he/she becomes major.
- Insurance plan where child life is insured.
Lic of India Child Plans