Best LIC Policy for Child: How to Select the Best Policy?

Best LIC Policy for Child: How to Select the Best Policy?
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Best LIC Policy for Child: An Overview

LIC (Life Insurance Corporation) is the oldest and most trusted insurance company in India. Investing in LIC schemes is considered safe among the Indian population as it is 100 percent owned by the government of India. The company has over 28 crore policyholders. It has a wide range of policies that suit and meet the requirements of different individuals. LIC offers special policies for children to secure their financial needs in the future along with life insurance protection to your child. In this article, we are going to learn about which LIC child plan is best for child, the LIC child education plan, the best LIC policy for girl child 2022and their benefits. 

Best LIC Policy for Child

Type of LIC children planEntry ageMaturity ageInsurance sum assuredPremium payment tenureTerm of the policy
LIC Jeevan Tarun90 days to 60 years 18 years to 75 years1 lakh to no upper limit5 years15 years to 20 years
LIC SIIP Plan90 days to 65 years18 years to 85 yearsTen times the annual premiumTill the end of the policy10 years to 25 years
LIC Jeevan Tarun90 days to 12 yearsMaximum up to 25 yearsINR 75,000 to no upper limit20 years - entry age25 years - entry age
LIC New Children’s Money Back plan0 to 12 yearsMaximum up to 25 years1 lakh to no upper limitSame as policy tenure25 years - entry age

LIC SIIP Plan

The LIC plan allows you to get insurance protection with investment returns from financial markets. It offers returns based on some percentage of annualized premiums. One can buy the plan either directly from the LIC website or offline by visiting the LIC office or via a LIC agent. 

  • The nominee receives death benefits in case of the demise of the policyholder and the payable death benefit should be 105 percent of the total premium paid. 
  • The policyholder is provided maturity benefits which will be the same as fund value if he or she survives till the end of the policy tenure. 
  • The plan allows you to withdraw a fixed partial amount from the plan after completing the fifth year of the plan. The partial withdrawal benefit is available for 18 years of age or above. 
  • The policyholders are allowed to switch their plan among 4 types of fund options. 
  • If you can surrender the plan in case of urgency before the lock-in period, a discontinuance charge will be levied on you. 
  • You are provided a free look period ranging from 15 days to 30 days and during this period, you can cancel the plan anytime you want in case you are not satisfied with its features. 

LIC Bima Jyoti Plan Details

It is an endowment insurance plan that provides death benefits in case of the demise of the policyholder along with an assured lump sum amount at maturity. You can get an assured maturity amount with guaranteed additions if there is no due premium payment. It can be bought directly from the LIC website or via a LIC agent. 

  • You can avail loan facility during the tenure of the policy. 
  • It gives you both benefits of insurance cover and savings. 
  • The policyholders can pay the premium monthly, quarterly, half-yearly, or annually. 
  • The nominee can claim 125 percent of the insurance sum assured if the insured died after 5 or 15 policy years. 
  • The LIC Bima Jyoti plan offers additional rider benefits such as Accidental Death and Disability benefit rider, New term insurance rider, Premium waiver benefits rider, Accidental Benefit rider, and New critical illness benefit rider if you pay an extra premium amount. 

LIC New Children's Money Back Plan 

The LIC New Children’s Money Back Plan is specially designed to cater to the financial requirements of the children and these requirements can be education in a foreign country, higher education, marriage, etc. the plan also offers insurance cover for the child within the tenure of the policy and get survival benefits if the policyholder survives till the end of the policy. 

  • The maturity benefit is based on the insurance sum insured at the time of buying the plan with applicable bonuses.
  • You can return the policy within 15 days if you are not satisfied with the features of the plan. 
  • The policyholder can pay the premium at their convenience on a monthly, quarterly, half-yearly, or annual basis. 
  • After three years of payment of the premium, you can surrender your plan. The surrender value is determined by the total premium paid to date. 
  • The plan offers a 15 days grace period on the payment of premium monthly. However, grace days are based on premium payment tenure.
     

LIC Jeevan Tarun Plan

LIC Jeevan Tarun's plan is particularly for children to provide both insurance protection and savings to meet their financial needs such as education and marriage. 

  • The policyholders have to pay the premium amount till the child is 20 years old but the policy matures when the policyholder is 25 years old. 
  • The insurance cover gets activated after two years from the date of buying the plan or when the child is 8 years old. 
  • The plan offers survival benefits if the insured survives till the maturity age. 
  • The company provides death benefits or the sum assured in case of the demise of the policyholder. The sum assured will be 10 times the total annual premium paid. 
     

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To conclude, Investing in a LIC child policy supports your children's school fees, higher education or education in a foreign country, and marriage. LIC plan for child has been an option for the Indian population for decades. Assess your requirements, and investment goals, understand the plan and its benefits, cost involved, claim settlement ratio, and look for premium waiver benefits, and then opt for a Child plan LIC that is suitable for your needs. Also, always compare all the benefits offered by the LIC child plan before buying any plan. 

  • Which is the best children's plan investment in LIC?

  • What are Children's LIC policy plans?

  • Which is the best LIC policy for girl child 2022?

  • How can I check the status of my LIC children's plan?

  • What is the process for claim settlement for the LIC children plan?

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