Buy LIC Children’s education Plans
The rising costs of education and the increasing uncertainty of future financial stability make it essential for parents to plan for their children’s education. Life Insurance Corporation of India (LIC) offers various plans tailored to secure your child’s educational future. These plans are designed to provide financial support at crucial stages of your child’s education, from school to college and beyond. Among the popular plans are the LIC Children Money Back Plan, LIC Jeevan Tarun Plan, and LIC Amritbaal Plan. Each plan comes with unique benefits and features, including premium waiver benefits, ensuring comprehensive coverage and financial security for your child’s future.
LIC Children’s Money Back Plan
The LIC Children Money Back Plan is a non-linked, participating money-back plan designed to cater to the educational and financial needs of children. This plan provides survival benefits at regular intervals, which can be used to cover educational expenses, and a lump sum at maturity.
Key Features
- Survival Benefits: The plan offers survival benefits at the ages of 18, 20, and 22, ensuring that funds are available at critical stages of the child’s education.
- Maturity Benefits: The maturity benefit, which includes the sum assured and bonuses, is paid at the age of 25.
- Premium Waiver Benefit: In case of the unfortunate demise of the policyholder, all future premiums are waived, ensuring the policy continues without financial strain.
- Bonus Participation: The plan participates in the corporation’s profit and is eligible for bonuses, enhancing the overall benefits.
Example
Mr. Rajan invests in the LIC Children Money Back Plan for his son. When his son turns 18, he receives a portion of the sum assured to cover college admission fees. At 20 and 22, further payouts help with tuition fees and other expenses. At 25, the maturity benefit provides a substantial lump sum that can be used for higher studies or starting a career.
LIC Jeevan Tarun Plan
LIC Jeevan Tarun is a non-linked, with-profit plan that provides financial support for a child’s education and future needs through a combination of survival benefits and maturity benefits. The plan offers flexibility in choosing the survival benefits, making it adaptable to various financial needs.
Key Features
- Flexible Survival Benefits: Policyholders can choose from four options for survival benefits, payable from ages 20 to 24.
- Maturity Benefits: The maturity benefit is paid at the age of 25, which includes the sum assured and bonuses.
- Premium Waiver Benefit: In case of the policyholder’s demise, future premiums are waived, ensuring uninterrupted policy benefits.
- Bonus Participation: The plan is eligible for bonuses, which add to the maturity amount.
Example
Mrs. Sharma invests in the LIC Jeevan Tarun Plan for her daughter. She opts for survival benefits at ages 20 to 24. These payouts help cover college tuition and other educational expenses. At 25, the maturity benefit provides a significant sum, ensuring financial support for her daughter’s higher education or career start.
LIC Amritbaal Plan
The LIC Amritbaal Plan is specifically designed to meet the educational needs of children, providing financial support at different stages of education. The plan ensures that funds are available when needed the most, and also offers premium waiver benefits to safeguard the child’s future.
Key Features
- Survival Benefits: The plan offers periodic payouts at critical educational stages, such as school admission, college admission, and graduation.
- Maturity Benefits: The maturity benefit, including the sum assured and bonuses, is paid at the end of the policy term.
- Premium Waiver Benefit: Future premiums are waived in the event of the policyholder’s demise, ensuring the policy continues without financial burden.
- Bonus Participation: The plan is eligible for bonuses, enhancing the total benefits received.
Example
Mr. Kumar invests in the LIC Amritbaal Plan for his daughter. The survival benefits help cover school fees, college admission, and tuition fees. The maturity benefit at the end of the policy term provides a lump sum amount that can be used for her further education or starting a business.
Benefits of LIC Children’s Education Plans
School Education
The early years of education are crucial for building a strong foundation. LIC’s children’s education plans ensure that funds are available to cover school fees, extracurricular activities, and other related expenses without financial strain.
College Education
Higher education involves substantial financial commitments. LIC’s plans provide periodic payouts or lump sum amounts at the right time, ensuring that college tuition, accommodation, and other expenses are covered.
Graduation
Graduation is a significant milestone that often comes with additional financial needs. LIC’s plans ensure that there are adequate funds available to support higher studies, professional courses, or starting a career.
Future Planning
LIC’s children’s education plans are designed for long-term financial security, ensuring that your child’s future needs are met. The premium waiver benefit is particularly valuable, as it guarantees that the policy continues to provide benefits even if the policyholder is no longer around.
Premium Waiver Benefits
One of the standout features of LIC’s children’s education plans is the premium waiver benefit. In case of the policyholder’s untimely demise, all future premiums are waived, and the policy continues to provide the promised benefits. This ensures that the child’s education and future are not compromised.
Frequently Asked Questions (FAQs)
Q1: Who can buy LIC children’s education plans?
A1: Parents, grandparents, or legal guardians can purchase LIC children’s education plans for their children, grandchildren, or wards.
Q2: What is the entry age for these plans?
A2: The entry age for LIC children’s education plans varies, but generally, children between the ages of 0 and 12 years are eligible.
Q3: How do survival benefits work?
A3: Survival benefits are periodic payouts made during the policy term at specified intervals, helping cover educational expenses at different stages of the child’s life.
Q4: What is the premium waiver benefit?
A4: The premium waiver benefit ensures that in the event of the policyholder’s demise, future premiums are waived, and the policy continues to provide the assured benefits.
Q5: Are the maturity proceeds taxable?
A5: The maturity proceeds of LIC children’s education plans are tax-free under Section 10(10D) of the Income Tax Act, provided the premium does not exceed 10% of the sum assured.
Q6: Can I avail of loans against these policies?
A6: Yes, policyholders can avail of loans against LIC children’s education plans once the policy acquires a surrender value.
Q7: What happens if I miss a premium payment?
A7: LIC provides a grace period for premium payments. If the premium is not paid within the grace period, the policy may lapse, but it can be revived within a specified period.
Q8: How can I check the status of my policy?
A8: Policyholders can check the status of their LIC children’s education plans online through the LIC website or mobile app by logging into their account.
Q9: Can I change the nominee for the policy?
A9: Yes, the policyholder can change the nominee at any time during the policy term by submitting a written request to LIC.
Q10: Are there any additional riders available with these plans?
A10: Yes, LIC offers additional riders such as accidental death and disability riders that can be attached to the policy for enhanced coverage.
Investing in LIC children’s education plans is a prudent decision for parents looking to secure their child’s educational and financial future. Plans like LIC Children Money Back Plan, LIC Jeevan Tarun Plan, and LIC Amritbaal Plan offer comprehensive benefits, including guaranteed payouts, bonus participation, tax advantages, and the critical premium waiver benefit. By opting for these plans, parents can ensure that their child’s education is financially secured, providing them with the foundation they need to achieve their dreams. For personalized advice and to understand how these plans can be tailored to your specific needs, it is advisable to consult with an experienced LIC agent.