Tuesday, August 2, 2011

CHILD CAREER PLAN (TABLE 184) & CHILD FUTURE PLAN (TABLE 185)



When it comes to your child career and future, you don’t want to take risk. Every parent want to give their child finest education and future. If you want to secure your child’s future then this is the best LIC plan for your child. LIC has two best Children’s Plans – LIC’s Child’s Career Plan and Child Future Plan. Both child plans are available for age group of 0 to 12 years.
Features:
The unique features of the twin plans are commencement of risk from the age of 5 years of the child subject to deferment period of 2 years, auto risk cover in case of non-payment of premiums for 2 years and free risk cover equal to the sum assured during extended term of 7 years from the date of maturity.
The features of both the plans remain similar except for Survival Benefit & Death Benefit even though these are two different plans (T-184 & T185). Proposer can choose either plans to suit the needs, such as education / marriage/career/ risk coverage; depending upon male/female child’s Age at entry and Maturity Age.

  • These 2 plans are designed to meet educational and other needs of growing child. It provides risk cover on the life of the child not only during the policy term but also during the Extended Term. (Maturity Age - Age at entry = Policy term). For any maturity age between 23 & 27 years this policy can be taken.
  • From the date of expiry of Policy Term extended term will be 7 years, i.e. 7 years from Maturity Age.  Till start of Survival benefits premiums are to be paid or for 6 years from DOC. Hence, during extended period, no premiums are payable.

Child’s Career Plan (Table no. 184, with profits)
Under Child’s Career Plan vested bonus is payable along with first survival benefit of 30% of sum assured followed by subsequent 5 annual survival benefits @15% of sum assured. Thus total returns being 105% of basic sum assured + vested bonus and terminal bonus, if any.

Premium Waiver Benefit:
Child Career plan (PWB) is available on payment of an additional premium during the premium payable term or till death of the proposer, whichever occurs earlier.
i) after the date of death of the proposer the premium falling due shall be waived.
ii) during the auto cover period the premium waiver benefit shall remain in force.
iii) the premium waiver benefit as stated in (i) shall be granted on the basic of proposer age personal health declaration and other requirements. In case any given information is found to be untrue and incorrect, all clime to the benefit shall cease.
iv) in the event of the proposer by his own hands whether sane or insane within one yearly from the issuance of FPR the PWB described in (i) and (ii) shall not operate.

105% Survival Benefit:
5 yrs. Before maturity : 30% of the SA+ Vested simple reversionary bonuses
4 yrs. Before maturity : 15% of the SA
3 yrs. Before maturity : 15% of the SA
2 yrs. before maturity : 15% of the SA
1 yrs. Before maturity : 15% of the SA
On maturity date:           15% of the S.A + final additional bonus (FAB), if any.

ELIGIBILITY CONDITION FOR CHILD CAREER PLAN:
Min. age at entry:           0 year
Max. age at entry:         12 years
Min. S.A.:                       Rs. 1 lakh.
Max. SA.:                       Rs 1 crore.
SA in multiples:              Rs.5,000
Min. Maturity age:        23 years.
Max. Maturity age:       27 years.
Modes Allowed:             Yly/Hly/Qly/SSS
Policy term:                    11 to 27 years
Max. Age end of PPT:   70 years
Premium paying Term:  6 years OR Term minus 5years.
PWB Prop. Age Min:     18 years completed.
PWB Prop. Age Max:    55 years

GENERAL CONDITIONS:
Min. age at entry:          0 year (lbd).
Max. age at entry:         12 years (lbd).
Min. S.A.:                        Rs. 1 lakh.
Max. SA.:                        Rs 1 crore.
SA in multiples:               Rs. 5,000
Min. Maturity age:         23 years.
Max. Maturity age:        27 years.
Modes Allowed:              Yly/Hly/Qly/SSS
Min Term:                       11 years.
Max Term:                      27 years.
Max. Age end of PPT:    70 years (nbd).
Premium paying Term: 6 years OR Term minus 5years.
PWB Prop. Age Min:      18 years completed.
PWB Prop. Age Max:     55 years (nbd).

REQUIREMENTS IN WRITING:
Female lives category:       I/II (Proposer).
Risk Coverage:                  SA + Bonus
Age proof (proposer):        Std. if PWB opted.
Age proof – 0 to 4 years :  Birth Certificate.
5 yrs & above :                  School certificate.
Form Number:                   340/360
Dating Back @ 8%:         Allowed
Actual Sum assured:         Basic SA.
SUC :                                 As per existing rules.
Extended Risk Cover :    Maturity Age + 7 years

POLICY SERVICING:
Term Rider Option: No.
Critical Illness Rider: No.
Policy Loan @ 9%: No.
Revival: Yes.
Surrender of Policy: Yes.
Housing Loan: No.
Assignment: No**.
Survival Benefits: Yes.
P.W.B.: Yes
**Assignment can be done after policy vests in the LA.
Plans allowed to Std./ Sub-Standard children attracting EMR class III for over weight only.

REBATES:
Mode                    Rebate
Yly                          2%
Hly                         1%
Qly/SSS                Nil

SA                                      Rebate
1 Lac to 299999                  Nil
3 Lac to 499999                  1.5
5 Lac & Above                    2

Survival Benefit payable under plan 184 & 185:
Survival Benefit
5 years before Expiry of policy Term
30% SA + Bonus
25% SA
Every year thereafter for 4 years
15% SA
10% SA
On the date of Expiry of the Policy Term
15% SA + Fab, if any
50% SA+Bonus
+FAB, if any
Total SA payable
105%
115%
. Note: Survival benefits are payable 5th, 4th, 3rd, 2nd & 1 year before the date of expiry of Term & on the date of expiry of Term coinciding with the Policy Anniversary.

Death Benefit payable under plan 184 & 185:
Death Benefit
On Death Before DOC of Risk
All premiums paid (excl.
Prm for extra & PWB) +3%
pa int. compounded
annually is payable.
All premiums paid (excl.
Prm for extra & PWB) +3%
pa int. compounded
annually is payable.



On Death after DOC of Risk:
- 5 yrs before the date of expiry of policy term
SA + Vested Bonus
+ FAB, if any
SA + Vested Bonus
+ FAB, if any
      - Within 5 yrs before the
date of expiry of policy term
SA + FAB, if any
     - During Extended Term
SA
SA

Example: 
Age at entry of child: 5 yrs.; Maturity Age chosen: 24 years. Policy Term = 24 minus 5(age at entry) = 19 years. PPT=19 minus 5 = 14 years.  In case, PPT is chosen as 6 years, the premium has to be paid for 6 years from the DOC and policy will belike Limited Payment Policy.
Proposer: The proposer must be the father of the child. Mother can also proper if she has her own income (Female Cat. I & II). With child’s parent consent, Grand parent can propose. Legal guardian can propose if both parents are not alive.

Financial Underwriting: Based on parent’s income eligibility. (their income should be adequate for both insurance on their own lives and on the lives of their children).

Date of Vesting: On LA attaining majority, policy will vest automatically.

Matching Insurance: Insurance on the lives of parents will not be insisted:
1. Up to 5 lakh if PWB is opted for and allowed.
2. Up to 2 lakh if PWB is not opted for.

Auto Cover:  Full death cover shall continue for a period of 2 years from the date of first unpaid premium if atleast two full years premiums have been paid but any subsequent premiums not duly paid.

Premium Waiver Benefit (PWB): On production of proposer’s std. age proof and during PPT,  PWB is available on payment of extra premium. Under Non-Medical (special) and Non-medical (Gen)  to professionals, PWB on the lives of the parents is allowed. Pregnant ladies are not covered under PWB. Allowed to std./Non-std. (including physically handicapped) proposers.

Date of Commencement of Risk (DOC):
1. For those aged 12 years or more risk will commence immediately.
2. If the age at entry is more  than 10 years but less than 12 years, the risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the LA.
3. If age at entry is less than pr equal to 10 years, the risk will commence either after 2 years from the DOC or from policy anniversary coinciding with or immediately following completion of 5 years age of LA, whichever is later.

Example Table 184:
Mr. Deb (Proposer- 35 years) takes a policy on his son Master Sunny aged 5 years fo 5 Lakhs SA (MA: 23, PPT: 13) and opts for PWB.
1. All future premiums are waived if proposer dies at the age of 9 of the Master Sunny (during PPT). Master Sunny will get survival Benefit etc.
2. Master Sunny ’s nominee will get one more SA of Rs 5 lakhs if he dies at the age of 28 during the extended term of 7 years.
3. All the premiums paid (excluding premiums for PWB & Extra) along with interest @ 3 % compounded annually will be returned if at the age of 6 years before commencement of the risk Master Sunny dies.
4.  SA of Rs. 5 lakhs alongwith vested Bonus + FAB, if any, is payable if at the age of 15 (before age 18 and after commencement of risk) Master Sunny dies.
5. SA of Rs. 5 lakhs + FAB, if any, only will be payable if at the age of 21 (between age of 18 & 23) Master Sunny dies. Since, at the age of 18 years, he’d have already received Bonus.  The survival benefits  of Rs 150000 paid at the age of 18 & Rs 150000 (Rs 75000  each paid at the age of 19 & 20) totalling to Rs 3 lakhs will not be deducted from the SA of Rs 5 lakhs payable.
6. On Master Sunny surviving till the end of the policy term, he will get Rs 150000 (30% of SA) + bonus at his 18th year of age. Further he will get Rs. 75000 (15% of SA) every year at his age of 19, 20, 21, 22, & 23. He will also get FAB, if any, alongwith the last payment of Survival benefit. Totally, he will receive Rs 525000 + Bonus 247000 @ 38 + FAB 55000 @ 110  827000.

Examples Table 185:
Ms. Nita’s (3 years) father Mr. Sen takes a policy for his daughter for SA of Rs 5 lakhs (MA 23 years, PPT 15 years). Ms. Nita will get Rs 125000 (25% of SA) at her age of 18. At her age 19, 20, 21 & 22, she will get Rs 50000 (10% SA). At the age of 23, i.e. at the end of Policy Term, she will receive Rs 250000 (50% of SA) alongwith Bonus + FAB, if any. Totally she will receive of Rs. 575000 + Bonus 4 lakhs @ 40 + 11000 FAB @ 220 = 1085000.
All other examples/illustration will remain the same as given in the example of Table 184 except in the event of Nita’s death ( see point number 5 above) between her age of 18 & 23, SA + Vested Bonus + FAB, if any, is payable.

1 comment:

  1. With the best LIC Child Plan i make my child future secure. An effective child plan of LIC helps me against the constraints such as today's rising cost of education. Now I save enough money for my child so that their dream future comes true.

    ReplyDelete