LIC Child Fortune Plus Plan Highlights:
- Freedom to choose premium.
- Provides for CHILD’S education/other needs.
- Life risk cover with returns on investment.
- Premium Waiver Benefit available.
- Unlimited Switches from one Fund to other (4 free Switches from in a year)
- Top-up & partial withdrawal facilities.
- No Surrender Change.
- Settlement Option on Maturity.
LIC Child Fortune Plus Details
1) Risk cover will be on the life of the parent (Life Assured).
2) Child will not have any Insurance Coverage.
3) the Policyholder can choose the level of life cover within the limit (Life cover depends on the amount of premium payable).
4) Foe regular premium policies, on death of the L.A. during the term of policy, provides for waiver of all future premiums.
On L.A. or the CHILD nominee, surviving the date of maturity an amount equal to the policyholder’s Fund value is payable. Benefit payable on death when the cover is in full force:
A) On death of L.A., if the CHILD is alive:
(1) S.A. shall be payable to the nominee.
(2) In case of regular premium policy, payment of all future premium due shall be waived.(3) units equivalent to an amount equal to all future premium including outstanding premiums, if any (i.e. sum total of all premiums payable minus total premium paid) shall be credited to the policyholder’s fund. (4) The units shall be allocated at the unit price applicable for the fund type opted for under the LIC Child Fortune Plus policy on the date of notification of death. The policy shall continue.
If less than 3 years’ premium have been paid and the policy is in lapsed condition, then the policyholder’s Fund Value shall become payable to the nominee and the policy will terminate.
B) ON death of L.A., after the death of CHILD: S.A. plus policyholder’s fund value together with an amount equal to all future premium including outstanding premiums ,if any, (i.e. sum total of all premiums minus total premium paid) shall be payable to the nominee/legal heir, at that time and the policy shall terminate. This shall also be applicable in case of simultaneous death of L.A. and the child nominee.
C) On death of CHILD before L.A.’s death: The policy will continue till maturity or till the L.A. survives, whichever is earlier.
D) On death of CHILD after L.A.’s death: An amount equal to the fund value of units shall be payable to the legal heir of L.A. and the policy shall terminate
LIC Child Fortune Plus Charges:
A) Premium Allocation Charge: This is the percentage of premium appropriated towards charges from premium received. The balance knows as allocation rate constitutes that part of the premium which is utilized to purchase units of the opted Fund Type under the policy.
|LIC Child Fortune Plus Single Premium:|
|Premium Band||Allocation Charge|
|UP to 10 lacks10,00,001 & above||4.25%4.00%|
|Premium Band (p.a.)||Allocation Charge|
|1st year||2& 3rd year||Thereafter|
|10,000 to1 Lac1,00,001 to 1.5 Lac
1,50,001 to 2 Lac
2,00,001 & above
For Top Up 1.25%
LIC Child Fortune Plus Mortality Charges:
A) Life Cover Charge is the cost of life insurance cover to the L.A.
B) Premium Waiver Benefit Charge (for regular premium policies only): It is the charge to cover cost of waiver of all future premium including outstanding premium, if any, on death of L.A.
The above charge (A&B) will be taken every month by canceling the policyholder’s Fund Value appropriately. These charges will be deducted till the L.A. is alive. Mortality Charges (as per chart), during a policy year, will be based on Age (nbd) of L.A. as at the policy Anniversary coinciding with the due date of cancellation of units. Hence may increase on each policy Anniversary.
The Life Cover charge shall depend up on the S.A. chose and the PWB charge shall depend upon the total amount of all future premiums.
|Min. S.A. Regular:Single:||5 times the A.P. A.P. = Annualized prem.1.25 times the S.P. S.P.=Single prem.|
|Max. S.A. Regular:Single:||25 times the A.P. Age up to 45 nbd15 times the A.P Age 46 up to nbd & Above
5 times the S.P Age up to 35 nbd
2.5 times the S.P. Age 36 to 45 nbd
1.25 times the S.P. Age 46 nbd & above
|Min. prem. Regular:Single:
|Rs.10,000 thereafter in multiples of 1,000Rs.1,000 for ECS thereafter in multiples of 250
|Age of EntryMin.:
|For Life Assured For child (who is also a nominee)18 yrs (ibd) 0 yrs (ibd)
55 yrs (nbd) 17 yrs (ibd)
|Policy Term||L.A. 75 (nbd) minus Age at Entry or Child 25 (ibd) minus Age at Entry whichever is lower.|
|PPT||Single premium or same as policy term.|
|Max. Maturity Age||L.A. 75 (nbd) or child 25 (ibd) whichever is earlier|
|Modes Allowed||YLy/Hly/Qly/Mly(ECS) single|
|Mode/S.A. Rebate||Not Allowed|
Including outstanding premiums, if any, (i.e. total premium payable minus total premium paid) as on the date of deduction of charge.
Class I extra charge for Life Cover will be 25% of Mortality Charge for Std. Lives. Charge for higher EMR shall be multiples of class I extra charge as applicable in other plan. This extra chare will be included in the Mortality Charges.
LIC Child Fortune Plus Other Charges:
A) Policy Administration Charge: Rs.60 p.m. during 1st policy year & Rs.20 p.m. during 2nd year. From 3rd year onwards till the end of policy term Rs.20 per month escalating at 3% p.a.
B) Fund Management Charge (FMC) p.a. for: Bond Fund 0.06%; Secured Fund 0.08%; Balance Fund 1.00%; Growth Fund 1.20%. NAV, thus declared will be net of FMC.
C) Switching Charge: During the policy term switches will be allowed between one Fund to the other Fund. 4 free switches shall be allowed within a given policy year between any Fund. Subsequent switches shall be sub. To Rs.100 per switch. On switching, entire amount is switched to the Fund opted for.
D) Bid/Offer Spread charges: Nil
E) Surrender Charges: Nil
F) Service Tax Charges: At present Service tax @ 12.36% on risk premium shall be levied on Mortality, Policy Administration charges, Premium Allocation charges, FMC, Switching & Alteration. This will be deducted monthly by cancelling appropriate units.
G) Miscellaneous Charge: Levied for alteration within the contract, such as reduction in S.A., premium mode change to higher frequency may be allowed subject to a charge of Rs.50.
H) Right to revise charges: LIC reserves the right to revise all or any of the above charges except premium Allocation charge and Mortality Charge.
I) Policyholder’s Fund Value will be subject to deduction of charges: The units will be allotted and cancelled based on the NAV of the respective Fund as on the date of allotment/cancellation.
J) NAV (Net Asset Value): Bid price and Offer price of units will be equal to the NAV. It will be computed on daily basis and is based on the investment performance, FMC and whether fund is expanding or contracting under each Fund.
- FOR: 1) premium payment, 2) Surrender, 3) partial Withdrawal, 4) Death Claim, 5) Switches etc. NAV will be based on the time, the request received by LIC. If received unto 3:00pm, closing NAV of the day will be applicable. If received after 3:00pm, nest business day’s closing NAV will be applicable. Outstation cheque/DD accepted.
Partial Withdrawals: Is allowed anytime after 3rd policy Anniversary subject to the following:
- Partial withdrawals may be in the from of fixed amount or in the from of fixed number on units.
- Under regular prem. Policy where less than 3 yrs. Premium been paid & further premiums are not paid, partial withdrawals not allowed.
- Where At least 3 years premium have been paid, partial withdrawal will be allowed sub. To a min. balance of 2 annualized premium in the policyholder’s Fund Value.
Under Single Premium policy partial withdrawal will be allowed sub. To a min. bal. of Rs.5, 000 in the policyholder’s Fund or 10% of single premium whichever is higher.
Partial withdrawal pertaining to Top-up premiums shall be allowed only after completion of 3 yrs from the date of allocation on that top-up premium. This condition will not apply if it is paid during the last 3 yrs of policy term.
After the death of L.A. during policy term, partial withdrawal may be made by the CHILD if he/she is major or by the appointee if the child is a minor.
Revival/Discontinuance of premium:
Lapsed policy can be revived during the period of 2 yrs. From the due date of First Unpaid premium (FUP) or before date of maturity whichever is earlier. Period during which policy can be revived will be called “Revival Period”.
1. If premium not been paid for at least 3 full yes policy may be revived within 2 yrs from the due date of FUP. Revival shall be made on .Submission of proof of continued insurability.
2. If alt least 3 yrs premium have been paid and subsequent premium are not paid , The policy may be revived within two yrs from the due date of FUP, but before the date of maturity, if earlier. For Revival No proof of continued insurability required.
In both the above cases of 1 & 2, all arrears of premium without interest can be paid.
During this period Mortality charge shall be taken, as usual in addition to other charges, by cancelling an appropriate no. of units out of the policyholder’s Fund Value every month. This will continue to provide relevant risk cover for: (i) Two years from the date of FUP or (ii) till the date of maturity or (iii) till such period that the policyholder’s Fund Value reduces to one annualized premium whichever is earlier.
The benefit payable under the policy in different contingencies during the above said period when cover for charge is deducted shall be as per conditions applicable.
Top-Up (Additional premium):
Top-up in multiples of Rs.1, 000 allowed without any limit at anytime during the term without increase in S.A… At any point of time, the total of Top-up premium cannot exceed 25% of the total regular premium paid till date or 25% of the Single premium paid.
Increase/Decrease in Benefits:
No increase in benefit will be allowed. However one can decrease the risk cover once in a year during the policy term, provided all due premium have been paid. Further, once reduction in risk cover is allowed, the same cannot be subsequently increased/restored.
Surrender Value (SV):
If any, is payable only after the completion of the 3rd policy anniversary. S.A. will be the value of units help in the policyholder’s Fund at the date of surrender. There will be no surrender charge.
L.A. if alive or child nominee may exercise Settlement Option 1 month prior to maturity date.
On death of the policyholder after the commencement of Settlement Option period, the value of outstanding units help in policyholder’s Fund shall become payable to the nominee/legal heir of L.A. in lump sum. (For other conditions of settlement Option you may after article under Fortune plus Table 187.)