- 1 Lic Money back children assurance Policy Review
- 2 plan no -113
- 3 Lic Money back children assurance policy Conditions
- 4 Lic Money back children assurance Policy Rebates
- 5 Lic Money back children assurance Policy Survival Benefits
- 6 Lic Money back – children assurance Policy Maturity Benefits
- 7 Lic Money back children assurance Policy Death Claims
- 8 Lic Money back children assurance Policy Additional Benefits
- 9 Riders Available in Money back children assurance Policy
- 10 Additional Information about Lic Money back children assurance Policy
Lic Money back children assurance Policy Review
plan no -113
Money back children assurance policy was INTRODUCED ON – 2/1/1995 and WITHDRAWN ON – 31/3/2002. Money back children assurance plan is a policy for children’s need i.e., it is mainly developed to facilitate provisions for educational expenses of children.
Premiums come to an end on policy anniversary or immediately after the child attains the age of 18 years. Apart from risk cover money back children assurance policy also offers payment of sum assured in instalment at age 18, 20, 22, 24 and at age 26, guaranteed addition and loyalty addition if any.
Risk will commences either after 2 years from the date of commencement of policy or on policy anniversary after completion of 7 years by the child, whichever is later. After commencement of risk, guaranteed addition will vest in policy from Date Of Commencement.
Lic Money back children assurance policy Conditions
AGE AT ENTRY: Minimum: 0 years
Maximum: 10 years
POLICY TERM: 26 years – age at entry
MODE OF PAYMENTS: Yearly, Half-yearly, quarterly,SSS, single premium
MAXIMUM MATURITY AGE: 26 years of Life assured’s last birthday.
PREMIUM PAYING TERM(PPT): 18 years – age at entry
PREMIUM CEASING AGE: 18 years of Life assured’s last birthday
SUM ASSURED: Minimum: Rs. 25,000 upto 25/6/2000
Rs. 50,000 from 26/6/2000
Maximum: Rs. 5,00,000 sum assured in multiple of Rs. 25,000
Lic Money back children assurance Policy Rebates
There are 2 types of Rebates,
- Sum assured rebate
- Mode rebate
Sum assured rebate:
|25,000 to 49,999||Rs 1 /- per 1000 Sum assured|
|50,000 & above||Rs 2/- per 1000 Sum assured|
|Yearly mode||3% of tabular premium|
|Half-yearly mode||1.5% of tabular premium|
|Quarterly, SSS and single premium||Nil|
Lic Money back children assurance Policy Survival Benefits
In Money back children assurance policy sum assured will be paid in installments as shown below,
|% of sum assured||On the policy anniversary or immediately after completion of years by life assured.|
|Maturity claim||26 years|
Survival benefits are not payable, if policy becomes paid up before PPT. After completion of 26 years by life assured, Paid up value + vested guaranteed addition will be paid on policy anniversary.
Lic Money back – children assurance Policy Maturity Benefits
If policy is in paid up condition before the date of commencement of risk and at least 3 years
premiums have been paid, then
Maturity claim = GSV ( Guaranteed Surrendered Value )
Guaranteed addition is not payable.
If all premiums have been paid during PPT and sum assured have been paid in 4 installments, then on policy anniversary i.e., after completion of 26 years by life assured,
Maturity claim = Guaranteed addition for full policy term + loyalty addition (if any)
Sum assured or any % of sum assured is not payable
If premiums have been paid upto risk commencement date and if further premiums have not
been paid, then
Maturity claim = Paid up value + guaranteed addition
Loyalty addition is not payable.
Lic Money back children assurance Policy Death Claims
If death of life assured occurs before the risk commencement date, the policy may get cancelled and in such case,
Death claim = sum of money equal to all premiums paid – extra premium
If policy is in lapsed condition, then nothing is payable. But if 3 years premiums have been paid, then GSV is payable.
If death of life assured occurs on or after the risk commencement date, then
Death claim = full sum assured + guaranteed addition + loyalty addition (if any)
If policy have become paid up during premium paying term (PPT), then
Death claim = paid up value + guaranteed addition
Lic Money back children assurance Policy Additional Benefits
If the policy is in force, a guaranteed addition of Rs. 80/- per 1000 sum assured will be added to the policy at the end of each policy year.
Guaranteed addition is payable starting with the commencement date of the policy and payable on date of maturity or death or surrender.
In Money back children assurance policy, after risk commencement on the life assured surviving specified maturity date or death date, this policy may be eligible for loyalty addition payment at rates declared from time to time.
If policy is being surrendered or made paid up, loyalty addition will not be payable.
Accident benefit is not available under money back children assurance policy, because PPT under this plan ends on 18 years of life assured.
Riders Available in Money back children assurance Policy
Two riders are available in Money back children assurance policy,
- Term rider benefit
- Premium waiver benefit
Term rider benefit:
Term rider benefit is family benefit where risk is covered on the life of proposer to the extent of 20% of basic sum assured but not exceeding Rs. 50,000.
The Term rider benefit is payable only if the proposer dies before the policy anniversary following the completion of age 18 years of child or life assured.
Proposer’s age at entry should be 50 years NDB (near birthday) and maximum maturity age will be 60 years NDB.
Premium waiver benefit:
Premium waiver benefit is available by payment of additional premium during the deferment period or till the death of the proposer. PWB is allowed subject to adequate medical examination of proposer’s life at his cost only.
GUARANTEED SURRENDER VALUE:
If 3 full year premiums are paid, then
GSV = 90% of premiums paid – 1st year premium and additional premiums paid for PWB
In case of single premium policy,
GSV = 90% of single premium paid – all extra premiums (if any)
GSV for single premium policy will be available after expiry of 3 policy years.
If premiums have been paid fully and GSV is being calculated on or after risk commencement date , then
GSV = 90% of the premiums paid before risk commencement – 1st year and any other premium + 30% of the premiums paid after the risk commencement date + all extra premium + additional premium paid for accident benefit.
PAID UP VALUE:
If premiums are discontinued before risk commencement, there will be no paid up value to the sum assured.
If premiums have been fully paid upto risk commencement date and risk is commenced, then at least 3 full years premiums have been paid from commencement date ( not risk) , then paid up value will be calculated as,
Paid up value = sum assured x no of years premiums paid
No of years premiums payable(PPT)
In case of single premium policies,
Paid up value = sum assured.
SPECIAL SURRENDER VALUE:
If premiums have been fully paid upto risk commencement date and SSV is being calculated on or after risk commencement date, then
SSV = ( paid up value + guaranteed addition ) x SSV factor.
Additional Information about Lic Money back children assurance Policy
Under Lic Money back- children assurance policy, Loan was not available.
Revival of policy is available under Lic Money back- children assurance policy.
Revival of policies to children up to age 25 years(NBD) is allowed up to sum to be revived of Rs. 8 lakh under Non-medical(general).
Age at entry of life assured – 5 yrs LBD
Sum assured – 25,000
Age of proposer – 30 years
Deferment period – 18 years
Mode of payment – half-yearly,
Tabular premium for plan 113-21 for age 5 years rs. 84.15
Mode rebate 1.5% – 1.262
Sum assured rebate – 1.00
Sum assured in thousands x 25
PREMIUM WAIVER BENEFIT,
Tabular premium rate for PWB for age group of proposer upto 30 yrs
and deferment period of 18 yrs will be ——————————– Rs. 2.95
Mode rebate @ 1.5% – 0.044
PWB premium for waiver of net annual premium of Rs. 2047.20 x 2.906 = 59.49
MAXIMUM TERM RIDER SUM ASSURED WILL BE 20% OF SA OR RS. 50,000.
Here term rider sum assured is 5000.
Tabular premium rate for TERM RIDER for age group of proposer up to 30 yrs
And deferment period of 18 yrs will be ——————————– Rs. 2.70
Mode rebate @ 1.5% – 0.040
Sum assured in thousands x 5
Net instalment premium = 2047.20 + 59.49 + 13.30 = 2119.99
Half- yearly premium will be =1060/-