Children’s Money Back Plan

New children’s Money back plan is a non-linked money back plan. This plan is designed to meet the educational, marriage and other needs of growing children through various benefits. In addition, it also provides risk cover on the life of a child during the policy term for other benefits. The plan can be purchased by any of the parent or grandparents for children aged between 0 to 12.

Benefits
  Death benefit: - on the death of the life assured before the fixed date of maturity provided by the policy is in full force then on death benefit of the life assured before the date of the beginning of risk.

On the death of the Life Assured before the date of commencement of risk-return of premium or excluding taxes, extra premium and rider premium if any.

On death after the date of fix risk:-  Death benefit define as sum assured on death, in other words, bonus and additional bonus, if any shall be payable.

 Survival benefit:-  the policy conducting immediately following the completion of the ages 18 years, 20 years and 22 years, 20% of the basic sum assured on each occasion shall be payable, provided the policy is in full force.

Maturity benefit:- surviving to the date of maturity, provided the policy is in full force, sum assured maturity which is 40% of the basic sum insured with vested simple bonuses and final additional bonus, if any shall be payable.

Participation in profits: - the policy shall participate in profits or it should corporation entitled to receive simple or additional bonus declared as per the experience of the corporation provided by the policy is in full force.

LIC children’s plan is an investment plan which can be used for securing your child’s future and financial needs of a child as the child turns 25 years old. This plan is eligible for bonus and it depends upon the performance of LIC. It is the non-linked money back plan eligible for bonus benefit. It’s designed for educational, marriage and other needs of growing children’s. During the time of policy, it covers the entire risk of the child.

Tax benefits

v  Tax benefits on premiums under section 80 C

v  Tax benefits on death benefit amount under section 10 (10D)

v  Tax benefit on maturity benefit amount under section 10 (10D)

Tax benefits for children education

The government of India allows all tax benefits for children’s and exemptions on the sum of few items like tuition fees paid by the individual for their children. The deduction is only given on tuition fees which is the part of total fees paid by higher education children within India. There are many tax benefits which the person can take and get an advantage for reducing their tax expenditure.

Exemption for hostel expenditure and children’s education

·    Children education allowance is allowed Rs. 100 per month per child up to a maximum of 2 children.

·       Hostel expenditure allowed is Rs. 300 per month per child up to 2 children.

The deduction is available to maximum 2 children for each individual. The maximum limit is available 1.50 lakhs for each financial year and agreement amount of deduction under section 80 C, 80CCC and 80CCD shall not exceed Rs. 1, 50,000 for individual parents. 

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