It has been decided to introduce a new with profits plan for children, LICs Child Career Plan (Plan No. 184) w.e.f 8th February 2007. This plan is designed to meet the increasing educational and other needs of growing children, which provides the risk cover on the life of child not only during the policy term but also during the extended term (i.e. 7 years after the expiry of policy term). On surviving to the end of the specified durations, a number of Survival benefits are also payable.
Premiums:
The policy is available for terms 11 to 27 years. Premiums are payable regularly during the policy term with yearly, half-yearly, quarterly or through salary deductions. Premiums may be paid either for 6 years or upto 5 years before the policy term.
Premiums:
The policy is available for terms 11 to 27 years. Premiums are payable regularly during the policy term with yearly, half-yearly, quarterly or through salary deductions. Premiums may be paid either for 6 years or upto 5 years before the policy term.
Extended Term:
The Extended term will be 7 years from the date of expiry of policy term. No premiums are payable during the Extended term of plan.
Benefits:
a) Survival Benefit:
On life assured surviving to the end of the specified durations an amount as specified below is payable:
-5 years before the date of expiry of policy term - 30% of the Sum Assured along with vested Simple Reversionary Bonuses
-4 years before the date of expiry of policy term - 15% of the Sum Assured
-3 years before the date of expiry of policy term - 15% of the Sum Assured
-2 years before the date of expiry of policy term - 15% of the Sum Assured
-1 years before the date of expiry of policy term - 15% of the Sum Assured On the date of expiry of policy term - 15% of the Sum Assured along with Final (Additional) Bonus, if any will be paid.
b) Death Benefit:
On death after the Date of Commencement of Risk -
(i) If death occurs within the period from date of commencement of risk to 5
years before the date of expiry of policy term: Sum Assured along with Vested Simple Reversionary Bonuses and Final (Additional) bonus (if any) is payable.
(ii) If death occurs within 5 years before the date of expiry of policy term: Sum
Assured along with Final (Additional) bonus (if any) is payable.
On death during the Extended Term - Sum Assured is payable.
On death before the Date of Commencement of Risk - All the premiums paid (excluding premium for extra and premium waiver benefit, if any,) along with interest of 3% p.a compounding yearly shall be payable.
Auto Cover:
If after at least two full years premiums have been paid, and any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the due date of the First Unpaid Premium (FUP). This period of 2 years from FUP shall be called Auto Cover Period. During this Auto Cover Period, the Proposer/ Life Assured can pay one or more installments premiums with interest without submission of evidence of health. On payment of one or more of the arrears of instalment premiums with interest, the Auto Cover Period of 2 years shall be extended from the due date of new FUP.
If death of Life Assured occurs during the Auto Cover period, then death benefit after deducting unpaid premiums, with interest, as also premiums falling due before the next anniversary of the policy, is payable along with the vested bonus, if any.
Premium Waiver Benefit, if any, shall remain in force during the Auto Cover period.
Premium Waiver Benefit:
The proposer can avail the premium waiver benefit, on the payment of an additional premium during the premium paying term or till death of the proposer, whichever occurs earlier.
On availing this benefit:
(a) The payment of the premiums falling due after the date of death of the proposer shall be waived;
(b) The Premium Waiver Benefit shall remain in force during the Auto cover period. Any premiums that have fallen due and not paid during the Auto
Cover period shall also be waived.
(c) The Premium Waiver Benefit as stated in (a) shall be granted on the basis of the proposers age, personal declaration of health and other requirements. In case it is found that any untrue or incorrect statement is contained therein or any material information is withheld, all claim to the benefit shall cease and determine;
(d) The Premium Waiver Benefit described in (a) and (b) shall not operate in the event of the death of the proposer by his own hands, whether sane or insane within one year from the date of issuance of First Premium Receipt;
The premium rates and extra premium rates for Premium waiver Benefit are given in Annexure 3 & 4 respectively.
Proposer:
The proposer can be childs father or mother who has income of her own i.e. female category I and II. If both parents are not alive, then legal guardian can propose under the plan.
The grand parents can propose even if the parents are alive provided the consent of parent is obtained. Existing rules of parents income eligibility and total insurance in force on their lives for deciding maximum sum assured allowable are to be adhered to strictly.
If after at least two full years premiums have been paid, and any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the due date of the First Unpaid Premium (FUP). This period of 2 years from FUP shall be called Auto Cover Period. During this Auto Cover Period, the Proposer/ Life Assured can pay one or more installments premiums with interest without submission of evidence of health. On payment of one or more of the arrears of instalment premiums with interest, the Auto Cover Period of 2 years shall be extended from the due date of new FUP.
If death of Life Assured occurs during the Auto Cover period, then death benefit after deducting unpaid premiums, with interest, as also premiums falling due before the next anniversary of the policy, is payable along with the vested bonus, if any.
Premium Waiver Benefit, if any, shall remain in force during the Auto Cover period.
Premium Waiver Benefit:
The proposer can avail the premium waiver benefit, on the payment of an additional premium during the premium paying term or till death of the proposer, whichever occurs earlier.
On availing this benefit:
(a) The payment of the premiums falling due after the date of death of the proposer shall be waived;
(b) The Premium Waiver Benefit shall remain in force during the Auto cover period. Any premiums that have fallen due and not paid during the Auto
Cover period shall also be waived.
(c) The Premium Waiver Benefit as stated in (a) shall be granted on the basis of the proposers age, personal declaration of health and other requirements. In case it is found that any untrue or incorrect statement is contained therein or any material information is withheld, all claim to the benefit shall cease and determine;
(d) The Premium Waiver Benefit described in (a) and (b) shall not operate in the event of the death of the proposer by his own hands, whether sane or insane within one year from the date of issuance of First Premium Receipt;
The premium rates and extra premium rates for Premium waiver Benefit are given in Annexure 3 & 4 respectively.
Proposer:
The proposer can be childs father or mother who has income of her own i.e. female category I and II. If both parents are not alive, then legal guardian can propose under the plan.
The grand parents can propose even if the parents are alive provided the consent of parent is obtained. Existing rules of parents income eligibility and total insurance in force on their lives for deciding maximum sum assured allowable are to be adhered to strictly.
Sum Assured shall be in multiples of Rs. 5000.
For Proposer (if PWB is opted for)
(a) Minimum Entry Age: 18 years (completed)
(b) Maximum Entry Age: 55 years (Nearer birthday)
(c) Maximum Age at the end of premium paying term: 70 years (Nearer birthday)
(b) Maximum Entry Age: 55 years (Nearer birthday)
(c) Maximum Age at the end of premium paying term: 70 years (Nearer birthday)
Special Features:
a) Date of commencement of risk: In case the age of Life Assured at entry is less than or equal to 10 years, risk under this plan shall commence either after 2 years from the date commencement of the policy or from the policy anniversary coinciding with or immediately following the completion of 5 years of age of Life assured, whichever is later. Where the age at entry is more than 10 years but less than 12 years, the risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the Life Assured. For those aged 12 years or more risk will commence immediately.
b) Date of Vesting: 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.
Paid-up value:
If at least three full years premiums have been paid, any subsequent premiums be not duly paid, this policy shall not be wholly void but shall become paid-up.
Lapse:
If less than 2 years premiums have been paid and the policy lapses then on death or at expiry of policy term nothing shall be payable.
If more than 2 but less than 3 years premiums have been paid and the policy lapses then
- If death occurs during the Auto Cover period, then death benefit as described in Auto Cover shall be payable.
- If death occurs after the auto Cover period, then nothing shall be payable.
- On expiry of policy term nothing shall be payable.
Guaranteed Surrender Value:
The policy can be surrendered for cash provided at least three full years premiums have been paid.
Special Surrender Values:
The special surrender value will be the discounted value of the Paid-up value and the existing vested bonuses (if not paid earlier). The discounted factor shall be the surrender factors used for our Endowment Assurance plan, which will depend on the policy term and the duration elapsed since commencement of the policy.
a) Date of commencement of risk: In case the age of Life Assured at entry is less than or equal to 10 years, risk under this plan shall commence either after 2 years from the date commencement of the policy or from the policy anniversary coinciding with or immediately following the completion of 5 years of age of Life assured, whichever is later. Where the age at entry is more than 10 years but less than 12 years, the risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the Life Assured. For those aged 12 years or more risk will commence immediately.
b) Date of Vesting: 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.
Paid-up value:
If at least three full years premiums have been paid, any subsequent premiums be not duly paid, this policy shall not be wholly void but shall become paid-up.
Lapse:
If less than 2 years premiums have been paid and the policy lapses then on death or at expiry of policy term nothing shall be payable.
If more than 2 but less than 3 years premiums have been paid and the policy lapses then
- If death occurs during the Auto Cover period, then death benefit as described in Auto Cover shall be payable.
- If death occurs after the auto Cover period, then nothing shall be payable.
- On expiry of policy term nothing shall be payable.
Guaranteed Surrender Value:
The policy can be surrendered for cash provided at least three full years premiums have been paid.
Special Surrender Values:
The special surrender value will be the discounted value of the Paid-up value and the existing vested bonuses (if not paid earlier). The discounted factor shall be the surrender factors used for our Endowment Assurance plan, which will depend on the policy term and the duration elapsed since commencement of the policy.
Grace period for payment of premium:
A grace period of one calendar month but not less than 30 days shall be allowed for payment of yearly or half yearly or quarterly premium.
A grace period of one calendar month but not less than 30 days shall be allowed for payment of yearly or half yearly or quarterly premium.
Revivals or Reinstatements of lapsed policy:
If the Policy has lapsed, and the period of Auto Cover, if applicable is over, it may be revived during the lifetime of the life assured, but within a period of 5 years from the due date of first unpaid premium or before the date of expiry of policy term, whichever is earlier, on submission of proof of continued insurability of the life assured and/or proposer (if Premium Waiver Benefit is opted for), to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time
If the Policy has lapsed, and the period of Auto Cover, if applicable is over, it may be revived during the lifetime of the life assured, but within a period of 5 years from the due date of first unpaid premium or before the date of expiry of policy term, whichever is earlier, on submission of proof of continued insurability of the life assured and/or proposer (if Premium Waiver Benefit is opted for), to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time
Loans:
No loans will be available to the policyholders under this plan.
Suicide Clause:
Not applicable for the basic plan but applicable for optional Premium Waiver Benefit
No loans will be available to the policyholders under this plan.
Suicide Clause:
Not applicable for the basic plan but applicable for optional Premium Waiver Benefit
Normal requirements for claim:
The normal documents which the claimant shall submit while lodging the claim in case of death of the Life Assured / Policyholder shall be the claim forms accompanied with original policy document, proof of title, proof of death, proof of
accident/disability, medical treatment prior to death, school / college / employers certificate, whichever is applicable, to the satisfaction of the Corporation. If the age is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.
Where the policy results into a survival benefit claim or in case of surrender of the policy, the Life Assured shall submit the discharge form along with the original policy document besides proof of age, if the age is not admitted earlier.
Cooling-off period:
If a policyholder is not satisfied with the Terms and Conditions; of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy.
If a policyholder is not satisfied with the Terms and Conditions; of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy.
Back-dating interest:
The Policy can be dated back within the financial year as usual. Back-dating interest will be charged at the rate of 8% p.a. for dating back in excess of one month. This rate is subject to revision from time to time. The interest shall be charged even where the policy is backdated to a lean month.
Assignments / Nominations:
This policy is in no event assignable by the Proposer, but after the Policy has vested in the Life Assured he may appoint a nominee or nominees or create an Assignment thereof.
Proposal Form:
Proposal Form No. 340 and 360 may be used for this plan.
The Policy can be dated back within the financial year as usual. Back-dating interest will be charged at the rate of 8% p.a. for dating back in excess of one month. This rate is subject to revision from time to time. The interest shall be charged even where the policy is backdated to a lean month.
Assignments / Nominations:
This policy is in no event assignable by the Proposer, but after the Policy has vested in the Life Assured he may appoint a nominee or nominees or create an Assignment thereof.
Proposal Form:
Proposal Form No. 340 and 360 may be used for this plan.
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