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

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Nifty F&O

  1. What is a straddle? A strategy using Nifty options usually before a major event or when one is uncertain of market direction. Comprises purchase of a Nifty call and put option of the same strike price. Usually strikes are purchased closer to the level of the underlying index. 2. What is better ­ buying or selling a straddle? It depends.Implied volatili ty of options, or near-term expectations of price swings in an un derlier like Nifty , usually peaks before an event and falls when the outcome plays out ­ like Infy re sults in past years. However, once the event plays out, a sharp rise or fall in Nifty could result in price of the straddle rising ­ benefiting buy ers. But, normally , those who sell or write options charge hefty premiums from buyers in the hope that fall in volatility would ensure the options end out-of-the-money, hurting buyers. 3. So, do straddle sellers end up winning most of the time? Yes. That's invariably the case when market volatility is trending on the...

JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund    The new fund offer opens for subscription on 16 th June and closes on 30 th June. JP Morgan Mutual Fund today announced the launch of its open end fund of fund called Emerging Markets Opportunities Equity Offshore Fund. The fund will invest in an aggressively managed portfolio of emerging market companies in the underlying fund - JPMorgan Funds - Emerging Markets Opportunities Fund, says a JP Morgan press release. Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team (Singapore), JPMAM said, "Emerging markets have been out of favour for several years, as growth decelerated and earnings struggled. However, in a world of globalisation, we believe that EM will eventually re-couple with DM, leading to the long-aw...

Good time to invest in Infrastructure Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...

Systematic withdrawal plan

  Start Systematic withdrawal plan Online Although an SWP gives you regular income and saves on taxes in the long term, you cannot open an SWP on a scheme where you have an ongoing SIP   iStockPhoto If you are planning to take a sabbatical from work or are retiring soon, you may be looking at different investment options that give a regular income. Usually, a lump sum is invested to get regular fixed amounts later. Popular products include post office monthly income scheme, Senior Citizens' Savings Scheme and monthly income plans (MIPs). A lesser known option is the systematic withdrawal plan (SWP) in mutual funds. Recently, some funds have even removed the exit load on SWPs if you were to withdraw up to 15-20% in the first year, to encourage people who want to start investing in this instrument. Here is a look at what an SWP is. WHAT IS SWP? Many of us would be familiar with a systematic investment plan (SIP ), where a corpus ...
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