LIC’s New Children’s Money back Table No. 832 is a plan with a premium paying terms equal to policy term, non-linked Endowment, Child Money Back, Assurance Plan with Profit.
In this plan, money back (20 % of Basic Sum Assured) will take place at the age of 18th Year, 20th Year and 22nd Year of Child.
Sum Assured: Minimum limit for the sum assured is Rs. 1 lakh and there is no maximum limit.
Policy Term: up to Age 25 Year
Premium Paying Term: up to Age 25 Year.
Entry Age: 0 to 12 Year (this is Child Money back Plan for Children only)
Maturity Age: 25 Years.
Premium Payment Mode: Premium can be paid Monthly, Quarterly, Half Yearly or Yearly.
Money Back: Money back will be transferred to the account of Insurer at the age of 18 Year, 20 Year and 22 Year. The Cash back value will be 20 % of Basic Sum Assured.
Maturity Benefits: on maturity, Remaining 40 % of basic sum assured along with vested simple reversionary bonus and the final additional bonus is paid to the policy holder.
If the Death happens before the commencement of risk, the nominee will get an amount equal to total amount of paid premium’s excluding taxes and rider premium, if any.
If the Death happens after the commencement of risk, the nominee will get:
Base Sum Assured + Simple Reversionary Bonus (every year) + Final Additional Bonus (applicable in the year of death)
Rider benefits: Premium Waiver benefit is available during the policy term; if the person paying a premium of the child gets death remaining premium will be waived off if Premium Waiver Benefit rider is taken. There is approximately Rs 1,200/- extra premium to be paid for this benefit for BSA Rs. 10,00,000/-
Income Tax Benefit: Premium paid in this policy is tax exempted under section 80C. The maturity benefits are also exempted from tax under section 10(10D).
Liquidity Benefit: Policy holder can take a loan under this policy after completion of 3 full years of the Policy.
For simplicity study following table
|Plan||Child Money Back|
|Min Age||0 Year|
|Max Age||12 Year|
|Max Maturity Age||25 Year|
|Policy Term||Upto Age 25 Year|
|Premium Paying Term||Upto Age 25 Year|
|Min Sum Assured||Rs. 1,00,000/-|
|Max Sum Assured||Any|
An example of LIC’s New Children’s Money back Table No. 832
This plan is available for 0 to a 12-year-old child, but Here we have taken an example for Rs. 10,00,000/ Basic Sum Assured for a child of 1 Year, 2 Year, 3 Year, 4 Year and 5 Year.
From this, it can be concluded the effect of child age on premium amount and returns.
Here calculated premium is excluded PWB.
“New Children’s Money Back” Table 832
Basic Sum Assured: Rs. 1000000/-
|Plan||Child Money back||Child Money back||Child Money back||Child Money back||Child Money back|
|Age||1 Year||2 Year||3 Year||4 Year||5 Year|
|Premium Paying Term||24 Year||23 Year||22 Year||21 Year||20 Year|
|Policy Term||24 Year||23 Year||22 Year||21 Year||20 Year|
|Sum Assured||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-||Rs. 10,00,000/-|
|Premium First Year||Rs. 44,127/-||Rs. 46,380/-||Rs. 48,992/-||Rs. 51,962/-||Rs. 55,239/-|
|Premium second Year Onwards||Rs. 43,177/-||Rs. 45,382/-||Rs. 47,937/-||Rs. 50,843/-||Rs. 54,049/-|
|Total Premium Paid||Rs. 10,37,198/-||Rs. 10,44,784/-||Rs. 10,55,669/-||Rs. 10,68,822/-||Rs. 10,82,170/-|
|Money Back At the Year||18,20,22||18,20,22||18,20,22||18,20,22||18,20,22|
|Money back %||20% of Basic Sum Assured||20% of Basic Sum Assured||20% of Basic Sum Assured||20% of Basic Sum Assured||20% of Basic Sum Assured|
|Total Money Back||Rs. 2,00,000/- X 3 Year||Rs. 2,00,000/- X 3 Year||Rs. 2,00,000/- X 3 Year||Rs. 2,00,000/- X 3 Year||Rs. 2,00,000/- X 3 Year|
|Maturity Return||Rs. 19,02,000/-||Rs. 17,54,000/-||Rs. 16,06,000/-||Rs. 15,08,000/-||Rs. 13,10,000/-|
|Total Return||Rs. 25,02,000/-||Rs. 23,54,000/-||Rs. 22,06,000/-||Rs. 21,08,000/-||Rs. 19,10,000/-|
|Life Time Cover||NA||NA||NA||NA||NA|
Above Calculations are approximate and according to current bonus rate. It may vary according to the rate of bonus and taxes.