February 2007

LIC has launched two Children’s Plans – LIC’s Child Career Plan and Child Future Plan.

The Plans aim at providing funds at regular annual intervals for professional education and start-in-life in the form of 6 money back installments commencing from minimum age of 18 years.

Under Child’s Career Plan vested bonus is payable along with first survival benefit of 30% of sum assured followed by subsequent 5 annual survival benefits @15% of sum assured. Thus total returns being 105% of basic sum assured + vested bonus and terminal bonus, if any.

Under Child’s Future Plan first money back installment amounts to 25% of sum assured followed by 4 annual installments @ 10% of sum assured and 50% of sum assured + vested bonus, and terminal bonus, if any is payable on maturity. Thus total returns being 115% of the sum assured + vested bonus & terminal bonus, if any.

The unique features of the twin plans are commencement of risk from the age of 5 years of the child subject to deferment period of 2 years, auto risk cover in case of non-payment of premiums for 2 years and free risk cover equal to the sum assured during extended term of 7 years from the date of maturity.

In addition, Premium Waiver Benefit rider, can be availed of which waives the payment of future premiums falling due in the event of unfortunate death of the proposer during premium paying term. Premium Waiver Benefit is also available during 2 years’ auto cover period.

Children upto 12 years of age are eligible for insurance under the Plan. The minimum sum assured is Rs.1 lakh. The maximum sum assured is Rs.1 crore. Choice of premium paying term is available, which is six years or policy term minus 5 years. The Policy Term ranges from 11 to 27 years.