LIC Child Career Plan is a Money Back Endowment Plan for the benefit of a child such that Sum Assured plus Bonus is paid immediately to the nominee on death of the Life Insured after commencement of risk. However, if the child outlives the entire tenure, then he actually received 105% of the Sum Assured. He would receive 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term. Then he would receive 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy. Also, when the policy matures, he would receive the remaining 15% of the Sum Assured along with Final Addition Bonus, if any.
Compare this plan with other Investment Plans
Key Features
This plan provides the risk cover on the life of child not only during the policy term but also during the extended term of 7 years post maturity.
The Survival Benefit is 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy.
Maturity Benefit is 15% of the Sum Assured along with Final Addition Bonus, if any declared.
There is an additional rider of Premium Waiver Benefit.
Benefits
Death Benefit
In case of death of the Life Insured, i.e. child after risk commencement, the nominee would receive the Sum Assured plus Bonus.
However, if the Life Insured, i.e. the child dies before risk commencement, then the nominee would receive all basic premiums paid till date + 3% p.a. interest compounded annually.
Survival Benefit
On Survival of the Life Insured, i.e. child, he receives 30% of the Sum Assured along with vested Simple Reversionary Bonuses 5 years before the date of expiry of policy term and 15% of the Sum Assured in the last 4 years, 3 years, 2 years and 1 year before Maturity of the policy
Maturity Benefit
On maturity, the Life Insured, i.e. the child gets the remaining 15% of the Sum Assured plus the final addition Bonus.
Income Tax Benefit
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
Riders
There is 1 additional rider available in this policy
Eligibility
| Minimum | Maximum | |
| Sum Assured (in Rs.) | 1 lakh | 1 crore |
Policy Term (in years) | 11 | 27 |
| Premium Payment Term (in years) | 6 | Policy Term- 5 |
| Entry Age of Life Insured (in years) | 0 | 12 |
| Age at Maturity (in years) | 23 | 27 |
| Single Premium (in Rs.) | - | - |
| Payment modes | Yearly, Half-Yearly, Quarterly & SSS | |
Sample illustration of LIC Child Career Plan
Premium = Rs.4513/- , Age of Life Insured, i.e. Child = 0 year
Policy Term = 25 years, Payment Mode = Yearly
Premium Paying Term = 20 years, Sum Assured = Rs 1,00,000
Total Investment = Rs 4513 X 20 = Rs 90260/-
Guaranteed Return is
Year 20 = Rs 30000/- + Bonus (Variable)
Year 21 = Rs 15000/-
Year 22 = Rs 15000/-
Year 23 = Rs 15000/-
Year 24 = Rs 15000/-
Maturity Benefit at the End of Year 25 = Rs 15000/- + Bonus (Variable)
LIC Child Career Plan Sample Benefits & Returns
FAQs
What happens if you stop paying the premium
The policy will lapse if the premium stops. However if at least 3 years’ premium shave been paid then the policy acquires a Paid Up Value and the risk cover continues at the reduced Sum Assured. The reduced Sum Assured and the accrued Bonus would be payable on Maturity or on earlier death. It can also be revived within 5 years from the due date of first unpaid premium.
What happens if you want to surrender the policy
Surrender Value is paid if premiums for 3 years have been paid up. Before commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid – 1st year premium. After commencement of risk, the Guaranteed Surrender Value is 90% of the total amount of premiums paid before commencement of risk – 1st year premium + 30% of premiums paid on and after the commencement of risk.
What happens if you want a loan against your policy
Loan is not available under this policy.
