To financially safeguard the future of your child, investing in child plans can be a good step. LIC child plans, a type of life insurance plan, help provide financial support to manage children’s future needs like higher education and wedding. These plans also take care of other expenses on the sudden demise of the insured.
What is LIC Child Plan?
A child plan or insurance plan for children is a policy in which expenses for child’s needs are taken care of. Expenses like school fees, higher education expenses, etc. are covered under LIC child plans. They also take care of your child’s future, in case of your untimely demise.
Types of LIC Child Plans
Policyholders can secure their child’s future needs through some of the below mentioned LIC child plans:
- LIC Jeevan Tarun Plan
- LIC Child Career Plan
- LIC New Children’s Money Back Plan
- LIC Child Future Plan
Documents Required to Buy LIC Child Plans
Policyholders need to submit below mentioned documents to purchase any of the LIC Child Plans:
- Address Proof (PAN, Voter ID, Electricity Bill, Driving License)
- Age Proof (Birth Certificate, Voter ID, Aadhaar, Passport, Driving License, PAN)
- Photo Identity Proof (Aadhaar, Passport, Voter ID, Driving License)
- Passport size Photograph
- Bank Proof (NEFT Details, Cancelled Cheque)
- Income Proof (Salary Slip, Form 16, Employer’s Certificate)
LIC Child Plans
LIC Jeevan Tarun Plan
It is a non-linked participating plan created to provide insurance and a means for savings. By non-linked participating plan, we mean this plan is not linked to the stock market but it does provide you with the benefit of sharing LIC’s profits in the form of bonus. Thus, there is very low risk involved in this policy.
|Entry Age||90 days-12 years|
|Sum Assured||Rs. 75,000-No limit|
|Policy Term||25 minus entry age|
|Maturity Age||25 years|
LIC Child Career Plan
The plan safeguards the career goals of your children along with meeting their other needs in their growing period. It’s a highly flexible plan and allows you to choose your preferred mode of payment, premium amount, sum assured, etc.
|Entry Age||0 days-12 years|
|Sum Assured||Rs.1 lakh-Rs. 1 crore|
|Policy Term||11 years-27 years|
|Maturity Age||27 years|
LIC New Children’s Moneyback Plan
Like other child plans by LIC, this one also aids in backing up your child financially in future. This plan is insurance as well as investment. Additionally, if you enrol your child for this plan, you’ll be provided with bonus (LIC profit sharing), i.e. this child plan by LIC is a participating one.
|Entry Age||0 days-12 years|
|Sum Assured||Rs.1 lakh-No limit|
|Policy Term||25 years minus age at entry|
|Maturity Age||25 years-|
LIC Child Future Plan
This plan is designed for children to help them meet their educational, marriage and other related expenses. Under this plan, risk cover is availed on the life of child during its policy term as well as extended term.
|Entry Age||0 years-12 years|
|Policy Term||11 years-27 years
Claim Process for LIC Child Plans
- Policyholders of LIC Child Plans can file claims by the nearest LIC branch or calling on the helpline number available on the company’s official website
- After informing branch office about the demise, individual is required to submit the documents required for claim process
- After successful verification by the authority, claims will be settled as early as possible by LIC
Documents Required for Claim Process
- Claim form completed by the claimant
- Discharge card with details of treatment received and time of admission
- Copy or Summary of surgeon’s operation
- Death summary in case of death of the patient
- Certificate from physician
- Medical bills
- Proof of age
Time Taken to Settle Claims
Claims for LIC Child plans can be settled within 30 days or sometimes 7-15 days until and unless no fraudulent activity is involved.
Riders (Add-on Coverage)
Life Insurance Corporation provides certain riders for the policyholders to have comprehensive coverage. These riders are the additional benefits enjoyed on extra amount on the base policy. LIC offers different types of riders as mentioned below:
- Accidental Death Benefit Rider: Under this rider, the beneficiary receives the benefits if policyholder dies due to accident.
- Accidental Death And Disability Benefit Rider: Here the beneficiary receives the benefits if death occurs due to accident or policyholder is afflicted with disability.
- Accident Benefit Rider: Here the insured receives the benefits if any injury is caused due to accident.
- Critical Illness Benefit Rider: Under this rider, life insured will receive benefits if diagnosed with any of the pre-specified critical illness under the policy.
- Term Assurance Rider: Here life cover is provided in case of death of the insured during the policy term to the beneficiary.
Exclusions under LIC Child Plans
- LIC child plan excludes suicide clause from premium waiver benefit for first year
- Death or disability due to alcohol consumption or drug abuse is not covered
- War-like situation, invasions, etc.
- Taking part in any flying act (except for travelling in a commercially licensed aircraft)
- If the policyholder takes part in any of the criminal activities and suffers injuries or succumbs to the same.
Application Process for LIC Child Plans
Applying for LIC child plans is not a difficult process, be it child career plan or any LIC child education plan. LIC child plans can be bought online and offline. Here are the steps to purchase LIC child plans online from LIC.
For those who don’t wish to physically visit the office and get involved in paperwork, opt for the online way.
- Visit the official website
- click on the option ‘Apply Now’ to provide the necessary details like your name, date of birth, correspondence address, contact number, annual income, etc.
- Once you submit this online form, one of the LIC representatives will reach you and assist you further
Some of the important aspects that one should consider while purchasing a LIC child plan are:
- Buying child insurance plan at an early stages helps in paying lower premium amount
- Before buying any child plan, go through the policy terms and conditions carefully
- Opt riders that offer suitable benefits and coverage
- Consider premium rates as it may hamper in long-run
Advantages of LIC Child Plans
- Security: Financially protected future for your child even if you’re not around. School & higher education fees, money for extra-curricular activities and wedding expenses are covered under child insurance plans
- Liquidity: Unlike some insurance plans, investing in a LIC child future plan will give you the liquidity of availing partial withdrawals in times of need
- Tax Benefit: Premium paid are tax exempt under Section 80C of IT Act, 1961
- Riders: Along with other riders, most of the child insurance plans come with in-built Waiver of Premium (WoP) rider that allow the plans to function in the absence of the insured
Q1. What are the documents required to apply?
You will need KYC (Know Your Customer) documents, documents to support your medical history along with address and ID proofs (passport, ration card, etc.).
Q2. How do I check the status of my LIC child education plan?
For any LIC insurance policy you buy, the process for status checking is same. Either you can check online at the official website of LIC using credentials like customer ID, mobile number, etc. or you can opt for offline path by visiting your nearest branch.
Q3. I do not have online registration. Can I still check for my policy status online?
Yes, you can. If you are not registered online but wish to know the policy status online, you can do the same with either the call or SMS option (LIC customer care).
Q4. What are the different ways to pay premium?
There are multiple ways by which you can pay the premium. Some of these are:
- Via cash, cheque or Demand Draft (DD) payment at the branch
- Via credit/debit card
- Via net banking
- Via NEFT (National Electronic Payment Transfer)
- Via phone banking
Q5. Do I need a special plan for my girl child?
No. You don’t need any special LIC plan for girl child. All the LIC child insurance plans already cover both the girl and the boy child, likewise.
Q6. When should I buy a child plan?
A child plan must be taken as early as possible. This is because it helps the proposer build a larger corpus which means enough freedom to take financial decisions. The rule is simple; the overall benefit would depend on how long the policy term is. Longer term would ensure greater maturity benefit.
Q7. Do I need to appoint an appointee?
You only need this if nominee in your plan is a minor, i.e. below the age of 18 years.
Q8. Who should I assign as the appointee?
Guardianship is a heavy responsibility to take and it should only be shared with the one whom you trust completely. In case of early demise of the proposer, the sum assured in the policy will be rested in care of the appointee till the nominee attains the age of 18 years. Thus it becomes imperative that the care-taker you appoint in your absence must a trustworthy one only.