LIC Child CAREER Plan (Table 184) and Child FUTURE Plan (Table 185): The features of both the plans remain similar except for Survival Benefit & Death Benefit even though these are two different plans (T-184 & T185). Proposer can choose either plans to suit the needs, such as education / marriage/Career/ Risk Coverage depending upon Male/Female child’s Age at entry and Maturity Age. W.e.f. 08-02-2007 Two plans have been introduced for children.
(a) Child Career Plan.
(b) Child Future Plan.
- Min. age at entry: 0 year (lbd).
- Max. age at entry: 12 years (lbd).
- Min. S.A.: Rs. 1 lakh.
- Max. SA.: Rs 1 crore.
- SA in multiples: Rs. 5,000
- Min. Maturity age: 23 years.
- Max. Maturity age: 27 years.
- Modes Allowed: Yly/Hly/Qly/SSS
- Min Term: 11 years.
- Max Term: 27 years.
- Max. Age end of PPT: 70 years (nbd).
- Premium paying Term: 6 years OR Term minus 5years.
- PWB Prop. Age Min: 18 years completed.
- PWB Prop. Age Max: 55 years (nbd).
Requirements in writing:
- Female lives category: I/II (Proposer).
- Risk Coverage: SA + Bonus
- Age proof (proposer): Std. if PWB opted.
- Age proof – 0 to 4 years : Birth Certificate.
- 5 yrs & above : School certificate.
- Form Number: 340/360
- Dating Back @ 8%: Allowed
- Actual Sum assured: Basic SA.
- SUC : As per existing rules.
- Extended Risk Cover : Maturity Age + 7 years
- Term Rider Option: No.
- Critical Illness Rider: No.
- Policy Loan @ 9%: No.
- Revival: Yes.
- Surrender of Policy: Yes.
- Housing Loan: No.
- Assignment: No**.
- Survival Benefits: Yes.
- P.W.B.: Yes
**Assignment can be done after policy vests in the LA. Plans allowed to Standard / Sub-Standard children attracting EMR class III for over weight only.
|1 Lac to 299999||Nil|
|3 Lac to 499999||1.5|
|5 Lac & Above||2|
Survival Benefit payable under plan 184 & 185.
|Survival Benefit||Table 184||Table 185|
|5 years before Expiry of policy Term||30% SA + Bonus||25% SA|
|Every year thereafter for 4 years||15% SA||10% SA|
|On the date of Expiry of the Policy Term||15% SA + Fab, if any||50% SA+Bonus +FAB, if any|
|Total SA payable||105%||115%|
Note: Survival benefits are payable 5th, 4th, 3rd, 2nd & 1 year before the date of expiry of Term & on the date of expiry of Term coinciding with the Policy Anniversary.
Death Benefit payable under plan 184 & 185.
|Death Benefit||Table 184||Table 185|
|On Death Before DOC of Risk||All premiums paid (excl. Prm for extra & PWB) +3% pa int. compounded annually is payable.||All premiums paid (excl. Prm for extra & PWB) +3% pa int. compounded annually is payable.|
|On Death after DOC of Risk: a. 5 yrs before the date of expiry of policy term||SA + Vested Bonus + FAB, if any||SA + Vested Bonus + FAB, if any|
|b. Within 5 yrs before the date of expiry of policy term||SA + FAB, if any|
|C. During Extended Term||SA||SA|
- To meet educational and other needs of growing child these two plans are designed. Not only during the policy term but also during the Extended Term, it provides risk cover on the life of the child. Maturity Age minus Age at entry is equal to Policy term. For any maturity age between 23 & 27 years this policy can be taken.
- From the date of expiry of Policy Term extended term will be 7 years, i.e. 7 years from Maturity Age. Till start of Survival benefits premiums are to be paid or for 6 years from DOC. Hence, during extended period, no premiums are payable.
Example: Age at entry of child: 5 yrs.; Maturity Age chosen: 24 years. Policy Term = 24 minus 5(age at entry) = 19 years. PPT=19 minus 5 = 14 years. In case, PPT is chosen as 6 years, the premium has to be paid for 6 years from the DOC and policy will be like Limited Payment Policy. Proposer: The proposer must be the father of the child. Mother can also proper if she has her own income (Female Cat. I & II). With child’s parent consent, Grand parent can propose. Legal guardian can propose if both parents are not alive. Financial Underwriting: Based on parent’s income eligibility. (their income should be adequate for both insurance on their own lives and on the lives of their children). Date of Vesting: On LA attaining majority, policy will vest automatically. Matching Insurance: Insurance on the lives of parents will not be insisted: 1. Up to 5 lakh if PWB is opted for and allowed. 2. Up to 2 lakh if PWB is not opted for. Auto Cover: Full death cover shall continue for a period of 2 years from the date of first unpaid premium if atleast two full years premiums have been paid but any subsequent premiums not duly paid. Premium Waiver Benefit (PWB): On production of proposer’s std. age proof and during PPT, PWB is available on payment of extra premium. Under Non-Medical (special) and Non-medical (Gen) to professionals, PWB on the lives of the parents is allowed. Pregnant ladies are not covered under PWB. Allowed to std./Non-std. (including physically handicapped) proposers. Date of Commencement of Risk (DOC): 1. For those aged 12 years or more risk will commence immediately. 2. If the age at entry is more than 10 years but less than 12 years, the risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the LA. 3. If age at entry is less than pr equal to 10 years, the risk will commence either after 2 years from the DOC or from policy anniversary coinciding with or immediately following completion of 5 years age of LA, whichever is later. Example Table 184: Mr. Derick (proposer: 35 years) takes a policy on his son Master Ben aged 5 years fo 5 Lakhs SA (MA: 23, PPT: 13) and opts for PWB. 1. All future premiums are waived if proposer dies at the age of 9 of the Master Ben (during PPT). Master Ben will get survival Benefit etc. 2. Master Ben’s nominee will get one more SA of Rs 5 lakhs if he dies at the age of 28 during the extended term of 7 years. 3. All the premiums paid (excluding premiums for PWB & Extra) along with interest @ 3 % compounded annually will be returned if at the age of 6 years before commencement of the risk Master Ben dies. 4. SA of Rs. 5 lakhs alongwith vested Bonus + FAB, if any, is payable if at the age of 15 (before age 18 and after commencement of risk) master Ben dies. 5. SA of Rs. 5 lakhs + FAB, if any, only will be payable if at the age of 21 (between age of 18 & 23) Master Ben dies. Since, at the age of 18 years, he’d have already received Bonus. The survival benefits of Rs 150000 paid at the age of 18 & Rs 150000 (Rs 75000 each paid at the age of 19 & 20) totalling to Rs 3 lakhs will not be deducted from the SA of Rs 5 lakhs payable. 6. On Master Ben surviving till the end of the policy term, he will get Rs 150000 (30% of SA) + bonus at his 18th year of age. Further he will get Rs. 75000 (15% of SA) every year at his age of 19, 20, 21, 22, & 23. He will also get FAB, if any, alongwith the last payment of Survival benefit. Totally, he will receive Rs 525000 + Bonus 247000 @ 38 + FAB 55000 @ 110 827000. Examples Table 185: Ms. Lexi’s (3 years) father Mr. Dirk takes a policy for his daughter for SA of Rs 5 lakhs (MA 23 years, PPT 15 years). Ms. Lexi will get Rs 125000 (25% of SA) at her age of 18. At her age 19, 20, 21 & 22, she will get Rs 50000 (10% SA). At the age of 23, i.e. at the end of Policy Term, she will receive Rs 250000 (50% of SA) alongwith Bonus + FAB, if any. Totally she will receive of Rs. 575000 + Bonus 4 lakhs @ 40 + 11000 FAB @ 220 = 1085000. All other examples/illustration will remain the same as given in the example of Table 184 except in the event of Lexi’s death ( see point number 5 above) between her age of 18 & 23, SA + Vested Bonus + FAB, if any, is payable.