Child Money Back Plan  

A child money back plan is a type of life insurance plan that offers insurance and savings benefits for a child’s future needs. Nowadays, education inflation poses a silent risk to every parent. Hence, starting investing in a child’s money back is the right decision while your child’s still growing. 

It helps you save for your child’s future goals, such as education, marriage, or starting a business. These plans offer life cover as well as another benefit that helps you secure the future of your offspring. Keep reading to know more about what exactly is a child money-back plan.

What is a Child Money Back Plan

A child money-back plan helps you to save money for your child’s future needs. It also protects the kid’s future if something unfortunate happens to their parents, such as death or serious medical illness. The plan comes with a flexible policy term or premium payment that helps you to customize the plan as per your objectives. 

After the deferment period, you’ll start receiving guaranteed money-back payments as per the payout chosen, such as monthly, lump-sum, or yearly basis. Apart from regular payouts, if you opt into a participating child money-back plan, the additional bonuses will be added to the maturity value.

How Does a Children’s Money Back Policy Work?

• Anuv is a 30-year-old male who bought a child money-back plan for his 5-year-old daughter.

• He chooses to pay premiums for 10 years, with the policy lasting for 20 years.

• There’s a 3-year waiting period before payouts start, with an income payout period of 10 years, and plans to invest Rs. 10,000 each month.

On Survival

1. At the end of the premium payment, he serves a deferment period of 3 years.

2. After the 3-year waiting period, he’ll start receiving guaranteed money-back payments in monthly installments for over 10 years.

3. He can use a guaranteed payout to pay for his daughter’s higher education.

Upon Anuv’s Unfortunate Death During Policy Term

1. If Anuv, unfortunately, passes away during the policy term, the life cover amount as a death benefit (10 times the premium paid) shall be payable to his nominee.

Plan to Secure Child Future

LIC’s New Children’s Money Back Plan

Eligibility Criteria 

Short Overview 

LIC’s New Children’s Money Back Plan is a non-linked, participating money-back plan designed to help parents meet the needs of growing children through Survival Benefits. In addition to guaranteed benefits, you can earn yearly bonuses every year until maturity or death, whichever is earlier.

Key Features 

• The plan offers non-guaranteed cash bonuses (if any) at the end of each policy year, such as simple reversionary bonuses or final additional bonuses.
• At the end of the policy term, you’ll receive the maturity benefit and vested simple reversionary bonuses or final additional bonuses.
• The plan offers you the flexibility to take survival benefits at any time on or after its due date.
• You can choose to receive the death benefit payout in installments over a period of 10 or 15 years instead of a lump sum.
• The plan comes with an optional premium waiver benefit rider. Under this benefit, your future premiums will waive, and the policy will continue till maturity in case of the policyholder’s untimely demise.

Benefits of Child Money-Back Plans

Here are some of the benefits of child money-back plans.

Conclusion 

Kids are the most important part of every parent’s life, so why not prepare for their future in advance? Yes, you heard it right: by investing in a child money-back plan, you can save money to fulfill your child’s future needs. 

To clear your further doubts about the children’s money-back policy, you can talk to our insurance experts and get free personalized assistance. Call us today at 1800-4200-269 or visit our official website, PolicyX.com.