Skip to main content

LIC launched New Children’s Money Back Plan

 

LIC has launched a New Children's Money Back Plan (Table No. 832) which is a non-linked, with profits and regular premium payment money back plan. The plan aims to meet various financial needs like education, marriage etc. of the child through Survival Benefits.

LICs-New-Childrens-Money-Back-Plan-832

The plan will be open for sale for a maximum period of 90 days from the date of launch i.e. 4thMarch, 2015.

Let's delve into the benefits and other details of LICs  New Children's Money Back Plan (No.832)


Minimum and Maximum Age for Children (Life Insured): 0 to 12 years

Proposer's age: Minimum – 18 years, Maximum – 55 years

Minimum Sum Assured: Rs.1 Lakh

Maximum Sum Assured: No limit

 

Sum Assured Rebate:

  • Up to Rs.1.90 lakhs = Nil
  • Rs.2 lakhs to Rs.4.90 lakhs = Rs 2/- per thousand of Basic Sum Assured
  • Rs.5 lakhs & above = Rs 3/- per thousand of Basic Sum Assured
  • Modes of Premium Payment: All modes i.e. Yearly, Half-yearly, Quarterly and Monthly.

Mode rebate:

  • Yearly Mode – 2% of Tabular Premium
  • Half-Yearly Mode- 1% of Tabular Premium
  • Quarterly and Monthly Mode- NIL

Policy Term: 25 minus age at entry (Let's say child's age is 5 years then term will be 20 years)

Premium Term: 18 minus age at entry (Let's say child's age is 5 years then term will be 13 years)

Minimum/Maximum Maturity Age: 25 years

Premium Waiver Benefit (PWB) Rider: Yes, Available

Death Benefits:

1. In case the death of the child occurs before the commencement of risk i.e. before the child turns 8, then an amount equal to the total amount of premium paid excluding taxes shall be payable.

2. In case the death of the child occurs after the commencement of risk i.e. after the child turns 8, then the amount shall be equivalent to

Basic Sum Assured + Simple Reversionary Bonus + Final Additional Bonus

In no case, the death benefit shall be less than 105% of the total premiums paid up to the death.

Survival Benefits:

On the Life Assured Survival, the amount payable shall be:

  • Completion of age of 18 years of Child : 20% of Basic Sum Assured
  • Completion of age of 20 years of Child : 20% of Basic Sum Assured
  • Completion of age of 22 years of Child : 20% of Basic Sum Assured
  • At Maturity : 40% of Basic Sum Assured + Bonus + Final Additional Bonus

Loan: Loan facility is available after the full payment of premium is made for 3 years and loan should be for the benefit of the Life Assured.

LIC Childern's Money Back Plan (Table 832) – Should I buy?

As per my opinion, this plan will not suffice the purpose of buying it i.e. securing your child's future. With the return of 5% to 6%  (maximum of 7%), this plan does not even beat the inflation. Although there is a benefit of insurance coverage but these types of plan are not bought considering the child may die in policy term.

Instead of buying this Children's Money Back Plan, you should invest in other debt instruments like Mutual Funds, Bank Fixed Deposits, Public Provident Fund, Sukanya Samriddhi Account etc. which gives better return of 9%, higher than this plan and also gives a tax-free return with 80C deduction on the contribution.

Details of LICs New Children's Money Back Plan in Hindi

New-Children-Money-Back-Plan-832-Hindi

LIC-Children-Money-Back-Example

Ready-Reckoner-for-plan-832


 

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

How Tax Deducted at Source (TDS) works?

    THE tax season is here. And if you are an employee you can't blame your employer for deducting large chunks of money from your salary towards tax deducted at source ( TDS ), which he is legally obliged to do. Your bank will also deduct some percentage from your FD interest of Rs 10,000 or more towards TDS! So what is this TDS all about? How is it computed? Are there any changes this year? Read on... What is TDS? TDS reduces your taxable income and could even provide tax relief! The TDS collections account for 40 percent of the total taxes collected in the country. As the name suggests TDS is the amount of tax that is deducted at source in certain types of income . The TDS thus collected is deposited in the Government treasury within a specified time. How is it computed? Some of the types of income where TDS is applicable include salary, interest, rental fee, interest on securities, insurance commission, dividends from shares and UTI/Mutual Funds, commission and brokerage

Modern day balanced mutual fund approach

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   In reality, most balanced funds have a strong tilt towards equity instead of a mix of equity and debt THERE are various types of mutual funds available to investors with specific features. Often investors have a particular idea about a specific type of funds in terms of their features and risks, but that is not what is actually available. Therefore, it is necessary for an investor to understand the actual position before picking up a fund. This requires some work on the part of the investor. One example can be the situation with balanced funds. Name is not representative: One of the first things that an investor has to understand is that the name of the fund is often not representative of its investment pattern. The name often represents only the aim of the fund, and not what it actually is.

ELSS Tax Saver

ELSS Stands for Equity Linked Savings Scheme.   ELSS Fund are mutual funds with 3 years of lock in period and offer income tax benefit under section 80C. They are open ended to purchase. Not all Mutual fund Investments are eligible for tax exception. List of Tax Saving Mutual Funds   Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.   Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   These Application Forms can be used for buying regular mutual funds also   Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) HDFC TaxSaver ICICI Prudential Tax Plan DSP BlackRock Tax Saver Fund Birla Sun Life Tax Relief '96 Reliance Tax Saver (ELSS) Fund IDF

Should you invest in tax-free infra bonds?

THOSE looking to save tax should take note of the latest buzz in the debt markets. Power Finance Corporation ( PFC ) and Housing Urban Development Corporation (Hudco) have launched bonds that will help you save more tax than your regular infrastructure bonds. Soon, IRFC and NHAI are likely to follow suit with similar bonds. KP Jeewan, general manager, debt markets, Karvy Stock Broking, says: "The coupon in these bonds are completely tax-free and those in the highest tax bracket can expect an effective yield of 10.75 per cent, compared to the 9.5 per cent a 10-year public sector bond would offer." The PFC and Hudco offerings are of 10- and 15-year tenures, with coupon rates of 7.5 and 7.75 per cent, respectively. Unlike other regular tax-free infra bonds, the tax benefits in these bonds are not capped at ` 20,000. Even besides these tax free bonds, those in the highest tax bracket have had plenty of opportunities to invest in tax saving infrastructure bonds under 80 CCF i
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now