LIC Children’s Defered Endowment Assurance (CDA)- Table 41 & Table 50

This plan is designed in such a way that the parent or legal guardian or any other near relative of the child to provide for the child’s future by payment of a very low premium. Under this policy, the risk commences at a selected age.

(1) The period for the date of commencement of the policy to the deferred date (i.e. the date of commencement of risk on the child’s life) which is also called Deferrement period.

(2) The period for Deferred date to the on which the policy emerges as a claim by the death of the child or its survival to a stipulated date.

A combined policy is issued covering both the periods mentioned at (1) & (2) above. Police is issued on the lives of the children (Male/Female) who have not completed 18 yrs. commencement of the risk on the child’s life which may be 18 years (completed) for Table 50 & 21 yrs in the case of Table41. This is also called the “Vesting Age”.

No Medical Examination would be required where the deferrement period is 10 years & more.

Policies under this scheme will not be issued for deferrement period less than 4 years nor for maturity Age other than 30/35/40/45/50.

The main advantage of this scheme is that an assurance for a relatively large amount can be secured to a child on reaching the selected age for a premium substantially smaller than what would be required if the assurance were to be effected at that age and this irrespective of the state of the child’s health then.

This policy has (i) proposer (parent/Guardian/Nearest relative) & (ii) Life Assured (child).

The proposer can opt for a “Cash option” requesting for cancellation of the policy before the deferred date for policies with a deferrement period of 10 years or more if the premium are paid up to date.

No cash option for deferrement period less than 10 years is allowed.

In the event of proposer not exercising the “cash option” the Life Assured i.e. child will become the absolute owner of the policy of the deferrement date. Therefore the policies will be issued only if the deferrement date falls after the date on which the L.A. would attain majority so that the policy will automatically vest on the L.A. Bonus will commence from the deferrement date.

Maturity Benefit: S.A. + Accrued Bonus + FAB. If any.

Death Benefit: (I) if the L.A. dies after the Deferrement Date: S.A. +Assured Bonus + F.A.B. if any payable to nominee. (II) If the L.A. dies before the Deferrement Date: The policy shall stand cancelled and the premium paid (excluding extras like PWB) will be refunded to the proposer provided the policy is in full force or in force for a reduced cash option. (III) If proposer dies during the deferrement period: payment of premium does not case and must be continued to be paid during the currency of the policy. However if PWB is opted and if the policy is in force, on death of the proposer the premium payment is waived from the date of the proposer’s death to the end of the deferrement period.

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