IDEAL PLAN TO TAKE CARE OF YOUR CHILD'S CAREER

FAQs ANSWERED

`Whose life is covered for insurance under this plan ?’

• Your child’s life.

`Is life risk coverage immediate like other LIC plans or deferred ?’

• If your child’s age is upto 10 years, risk coverage commences either after 2 years from the date of commencement of the plan or child’s attaining 12 years, whichever is higher.
• In other cases, risk coverage is from child’s attaining 12 years.

`How long I need to pay premium under the plan ?'

• Under option 1, you need to pay only for 6 years, irrespective of the policy term. Under option 2, you need to pay for (Policy Term-5) years.
• In either of the options, premium payment to stop in case of child’s death whenever it occurs after the date of commencement of risk.
  

What does my child get on survival upto completion of the policy term chosen'?

• 15% of the sum insured + Final (Additional) Bonus, if any.

What are the policy terms available ?'

• 11 to 27 years

`What are the minimum and maximum ages at maturity ?'

• 23 and 27 Years (age last birthday)

`What is payable under the Plan in case of my child’s death before completion of the policy term chosen ?'

• Insured amount + Reversionary Bonus +Final Additional Bonus (if any), if it occurs after commencement of risk, but, before 5 years of the policy expiry term.
• Insured amount, if it occurs within 5 years from the expiry of the policy term.All premiums paid without any deduction whatsoever +3% per year compounding Yearly, in case of child’s death before commencement of risk.

`Are there funds available in between during currency of the plan ?'

• Yes. 30 % and 15% each of the sum insured respectively 5,4,3,2,1 years before the date of expiry of the policy term. '

`What are the Premium payment Options available to me under the plan ?'

• Yearly, Half-yearly or Quarterly.
  

`What, if, during minority of my child, there is risk on my life and nobody is in a position to pay remaining premium '?

• No dout, the policy lapses. However, by payment of a little extra, you can avail Premium waiver benefit.

'Can I claim I.T Rebate on the premium paid ?'

• Yes, under section 80C of the I.T Act within the overall limit of Rs 1,00,000 per annum along with other investments allowed under the same section.
  

`Is there any Income-tax liability on the policy proceeds received on maturity/death under the plan ?

• In case of policies issued prior to 01/04/2003, Policy proceeds received by way of maturity or death are free from income-tax under Section 10(10D) of the Income-Tax Act, whatever be the accumulated bonus.
• In case of policies issued after 01/04/2003, if the premium paid in any year exceeds 20% of the capital sum insured, all amounts received less of the total premiums paid are subject to Income-tax in the year of receipt.

What is so special about Child Career Plan '?

• The plan provides for free life insurance coverage for another 7 years on completion of the policy term . During this period, in case of death of the life assured, nominee is to receive full insured amount.

'Is my Child eligible to enter Child Career Plan ? '

• Yes, provided it is in the age group of 0 to 12 years (Last birthday).