New Children’s Money Back Plan
New Children’s Money Back Plan was specially designed to fulfill the financial needs of children, like higher education or marriage. It is a regular premium payment plan which gives dual benefit of covering the risk of children’s life during policy term along with survival and maturity benefits.
This policy works as non-linked with profits money back plan, children start getting survival benefits from the age of 18 years.
Eligibility Age of Children
|Min Age at Entry||0 years|
|Max Age at Entry||12 years|
Eligibility Age of Proposer
|Min Age at Entry||18 years|
|Max Age at Entry||55 years|
|Min/Max Policy Term||13 years – 25 years|
|Maximum Maturity Age||25 Years|
|Min/Max Sum Assured||1 Lac to No Limit (Incremental Sum Assured in multiples of 10,000)|
|Tax Rebate||Yes, both premium payments & death/maturity under section 80(c) and 10(10d) of I.T Act|
|Loan Facility||Yes, after 3 years from date of policy inception.|
|Premium Payment||Monthly ECS*, Quarterly*, Half Yearly & Yearly|
*There are no rebates in these payment modes since a 1% & 2% rebate is provided in half-yearly & yearly modes respectively.
Benefits of New Children’s Money Back Plan
- Survival Benefits – At the age of 18, 20 & 22 respectively the policyholder will start getting money back in this format
|At age 18 years||20% of Sum Assured|
|At age 20 years||20% of Sum Assured|
|At age 22 years||20% of Sum Assured|
- Maturity Benefit – The maturity benefits can be claimed by the policyholder at the age of 25.
|Includes 40% of the Basic Sum Assured + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any)|
- Death Benefits – In case of unfortunate demise of the child before completion of the policy term the proposer becomes eligible to receive the death benefits. However the death benefits paid would be different depending, if the death of the child was before or after the date of commencement of risk.
The actual risk cover of the child starts after he/she completes 8 years or after 2 years of commencement of the policy, whichever comes first.
- Death before commencement of risk – If the policyholder dies before the date of commencement of risk then the proposer would be given back the entire amount of the premiums paid till date of death excluding taxes and extra premiums.
- Death after commencement of risk – If the policyholder dies after the date of commencement of risk then the proposer would be paid death benefits.
|Includes Basic Sum Assured or 10 times Annualized Premium* (whichever is higher) + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any)|
Premium Waiver Benefit (PWB) Rider
- This is an optional benefit which can be added to the policy by paying additional premium.
- In case of death of the proposer, all further premium is waived off in case if this rider has been taken.
- It can be availed at the time of policy inception or at any time during the policy term provided at least 5 years of policy term is still outstanding.
- It is only available up to the age of 70 years (proposer).
Grace period & Revival Policy
For the Monthly mode of premium payment a grace period of 15 days is given to make the payment. For Yearly, Half-yearly and Quarterly mode of payment a grace period of 30 days is allowed in case the policyholder has been unable to pay the premium on the due date.
If the premium is not paid on time and the grace period expires as well without the payment being made, then the policy lapses. However, the policy can be revived at any time during the policy term within a period of 2 years from the last premium paid.
- Plan Application form along with a photograph
- Residential proof
- Identity proof along with age proof
- Medical reports if necessary.
Disclaimer – Though we try our best but we do not guarantee correctness of information hence you are advised to be cautious & do thorough research before reaching to a conclusion. If you find any discrepancies you’re welcome to contact us.