It has been decided to introduce LIC’s NEW CHILDREN’S MONEY BACK PLAN (Plan No.832), which would be open for sale from 4th March, 2015.
The Unique Identification Number (UIN) for LIC’s New Children’s Money Back Plan is 512N296V01. This number has to be quoted in all relevant documents furnished to the Policyholders and other users (public, distribution channels, etc.).
LIC’s New Children’s Money Back Plan is a non-linked, with-profits, regular premium payment money back plan specially designed to meet various financial needs of children through Survival Benefits. It provides for the risk cover on the life of child during the policy term and number of survival benefits on surviving to the end of the specified durations. The benefits and other details of the plan are given below.
The benefits payable under an inforce policy are as under:
a) Death Benefit:
On death Before the Date of Commencement of Risk:
An amount equal to the total amount of premium/s paid excluding taxes, extra premium and rider premium, if any shall be payable.
On death After the Date of Commencement of Risk:
Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Death” is defined as higher of 10 times of annualized premium or Absolute amount assured to be paid on death i.e. Basic Sum assured. This death benefit shall not be less than 105% of the total premiums paid as on date of death.
The premiums mentioned above exclude tax, extra premium and rider premium, if any.
b) Survival Benefit : On the Life Assured surviving on each policy anniversary coinciding with or immediately following the completion of ages 18 years, 20 years and 22 years of Life Assured, 20% of the Basic Sum Assured on each occasion shall be payable provided the policy is in full force.
c) Maturity Benefit: On the Life assured surviving the stipulated date of maturity, Sum Assured on Maturity (which is 40% of the Basic Sum Assured) along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.
d) Participation in profits:
Depending upon the Corporation’s experience the policies shall participate in the profits and shall be eligible for Simple Reversionary Bonus at such rate and on such terms as may be declared by the Corporation.
Final Additional Bonus may also be declared under the policy which will be payable on the expiry of the policy term or on earlier death, provided the policy has run for certain minimum term.
3. Option to defer the Survival Benefit(s):
The policyholder will have the option to take the survival benefit (s) at any time on or after its due date but during the currency of the policy. In case of deferment of a due survival benefit(s) opted by the policyholder, the Corporation will pay increased survival benefit (s) equal to
Survival Benefits % * Sum Assured * Factor applicable to Survival Benefit (s)
These factors are enclosed as Annexure - I
This option shall be required to be intimated by the policyholder six months before the due date of the Survival Benefit (s) in writing.
4. LIC’s Premium Waiver Benefit Rider (UIN: 512B204V01)
LIC’s Premium Waiver Benefit Rider is available on payment of additional premium. This rider can be opted for along with the basic plan at the inception or at any time during the policy term provided the outstanding policy term of the basic plan is at least 5 years.
a) If this rider is opted for, in case of death of the proposer, the payment of the premiums falling due after the date of death shall be waived;
b) The Premium Waiver Benefit shall be granted on the basis of the proposer's age, personal declaration and other related documents. In case it is found that any untrue or incorrect statement is contained therein or any material information is withheld, then and in every such case but subject to the provisions of Section 45 of the Insurance Act, 1938, as amended from time to time, all claim to the benefit shall cease and determine;
c) The Premium Waiver Benefit shall not operate if the proposer (whether sane or insane) commits suicide within 12 months from the date of issuance of First Premium Receipt or within 12 months from the date of revival;
d) The additional premium shall not be taken into account in arriving at the amount to be refunded in the event of death of the Life Assured before the date of commencement of risk and in calculating the surrender value of the policy;
e) The medical report and special reports, if required, at proposal stage or on revival, shall be at the proposer’s own expense from the Corporation's appointed Medical Examiner;
f) The revival of the rider will be considered along with the revival of the basic policy. The rider can be revived at any time but within a period of two consecutive years from the due date of the said unpaid premium or before the date of expiry of policy term, whichever is earlier subject to evidence of health and habits of the proposer to the satisfaction of the Corporation
g) The Premium Waiver Benefit shall cease to apply if policy is in lapsed condition;
5. Eligibility Conditions and Restrictions:
For Basic Plan
(a) Minimum Age at entry for Life Assured :  years (last birthday)
(b) Maximum Age at entry for Life Assured : years (last birthday)
(c) Policy Term : [25 – Age at entry] years
(d) Minimum/Maximum Maturity Age :  years
(e) Minimum Basic Sum Assured : Rs.  in ‘000’s
(f) Maximum Basic Sum Assured : No Limit
The Basic Sum Assured shall be in multiples of Rs. 10,000/-
Date of commencement of risk under the plan:
In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.
Date of vesting under the plan:
The policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.
For LIC’s Premium Waiver Benefit (PWB) Rider – optional:
(a) Minimum Entry Age :  years (completed)
(b) Maximum Entry Age :  years (Nearer Birthday)
(c) Premium paying term : Same as basic plan
(d) Maximum cover ceasing age :  years (Nearest Birthday)
6. Mode of Premium Payment :
The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, and Monthly [ECS only or through salary deductions (SSS)].
7. Premium Rates:
8. Grace Period for Payment of Premium:
A grace period of one month but not less than 30 days will be allowed for yearly, half-yearly, quarterly modes and 15 days for monthly mode of premium payment.
If death of the Life Assured occurs within the grace period but before the payment of premium then due, the policy will be treated as inforce and the benefits will be paid after deductions of the said unpaid premium as also the unpaid premium/s falling due before the next anniversary of the policy.
If the premium is not paid before the expiry of the days of grace, the policy lapses.
If the policy has not lapsed and the claim is admitted in case of death under the policy where the mode of payment of premium is other than yearly, unpaid premium(s), if any, falling due before the next policy anniversary shall be deducted from the claim amount.
The above grace period will also apply to rider premium as the rider premium is to be paid along with Basic Premium.
Yearly mode : 2% of tabular premium
Half-yearly mode : 1% of tabular premium
Quarterly and monthly : NIL
High Sum Assured Rebate:
Basic Sum Assured Rebate (Rs.)
1,00,000 to 1,90,000 Nil
2,00,000 to 4,90,000 2 per thousand Basic Sum Assured
5,00,000 and above 3 per thousand Basic Sum Assured
10. CEIS Rebate:
If an employee of the Corporation has taken the plan for the benefit of his/her child/children then he/she shall be eligible for a rebate on tabular premium under Corporation’s Employee Insurance Scheme (CEIS) provided policy is not taken through any Agent/ Corporate Agent/ Broker/ Direct Sales Executives etc and are as under:
Policy Term CEIS Rebate
13 and 14 years 5%
15 years & above 10%
This rebate shall be applicable for both basic plan as well as on rider premium if opted for.