LIC fixed deposit scheme for senior citizens is a unique term deposit policy tailored to provide individuals aged 60 and above with a financial safety net.
Life Insurance Corporation (LIC) has made its mark as the provider of some of the best policies for Indians and the diaspora. Based in Bahrain, LIC International provides a variety of plans for children’s education and marriage as well as your retirement. One of the exclusive services for NRIs is that they can get their policies serviced at any LIC branch in India.
This article, in particular, sheds light on the LIC policies for NRI child. Such LIC plans are designed to financially secure the NRI children’s professional development in the UAE. Read further to know more about the policies.
A child’s personality development and career growth are the primary concerns that most NRI parents have. However, to create a strong future for their children, parents need to design a solid financial plan that ensures the availability of funds for their children when required.
To cater to these needs, LIC International offers Professional Education Plan. This LIC policy for NRI children is a cashback plan, where the sum assured is payable in instalments once the child attains the ages as mentioned below:
|Attribute||Minimum Limit||Maximum Limit|
|Sum Assured||USD 5,000||USD 250,000|
|Age of Entry||0 years||13 Years|
|Age of Maturity||-||23 Years|
|Mode of Premium Payment||Lumpsum, annually, quarterly, half-yearly, and monthly|
If one purchases a policy of USD 100,000, there is a guaranteed addition of USD 2,500 for every policy year. This is paid to the child along with the sum assured once they reach the age of 23 or earlier in case of the untimely death of the parent/guardian.
The life assured will also get a loyalty bonus once the LIC policy for an NRI child matures or in case of untimely demise. The rate changes from time to time, given that the policy has been effective for at least 15 years.
Parents or legal guardians up to the age of 50 can avail of the premium waiver benefit. This proves beneficial in case of an untimely demise of the proposer during the premium payment tenure, as the premiums to be paid thereon are waived.
The proposer can pay the premium in 3 ways –
The premium can be paid either monthly, quarterly, half-yearly, or annually at the proposer’s convenience
If the proposer does not pay the premium during the grace period, the policy lapses. However, if they have paid the premium for at least 3 complete years before the discontinuation, the sum assured is reduced. The rate of sum assured disbursement, however, will remain the same.
The family can seek financial benefit by insuring the proposer for 20% of the sum assured during the deferment period.
It must be noted that this is possible only when the child is below the age of 18 and is subjected to the additional premium payment.
If the proposer avails of PWB or FPB, they would be required to provide a medical report.
The JeevanTarun plan is a non-linked, restricted premium payment plan. It is simply a money-back plan that provides a mix of protection and investment feature. This LIC policy for an NRI child is framed to meet the educational and other requirements of children through yearly survival benefits from the age of 20 to 24 years and maturity benefits at the age of 25 years. The policy is flexible in that the policyholder can decide the portion of survival benefits they want during the policy tenure.
There are four options from which the proposer can select the proportion of survival benefits -
|Options||Survival Benefit||Maturity Benefit|
|Option 1||There is no survival benefit||Payment of 100% sum assured and vested bonuses|
|Option 2||Only 5% of the sum assured is paid consecutively for last 5 policy years||75% of the sum assured and vested bonuses are paid|
|Option 3||10% of the sum assured is payable every year for the last 5 years of the policy||50% of the sum assured and the vested bonuses are paid|
|Option 4||15% of the sum assured is payable every year for the last 5 years of the policy||The remaining 25% of the sum insured is paid along with the vested bonus|
Given below are the key features of the LIC Jeevan Tarun plan –
The following are the benefits of this LIC policy for an NRI child –
In case of the untimely death of the life assured during the policy tenure, the assured sum along with the vested bonus (if any) is paid to the beneficiary. This amount is usually –
If the life assured survives the maturity age (18 years), a certain portion of the sum assured is paid to the policyholder in the form of survival benefit consecutively for five years.
If the life assured survives the policy tenure, the remaining sum assured, along with the vested bonuses, is paid to them as maturity benefit.
The following are the eligibility criteria of this LIC policy for an NRI child –
This LIC policy for NRI children is a non-linked, single, life assurance, traditional cash back policy. It is customised to help the life assured fulfil their educational and other career-related needs as they grow up with the survival benefits. Additionally, it provides risk cover to the child during the policy tenure.
Here are the major features of New Children’s Money Back Policy –
The following are the benefits of the LIC policy for an NRI child –
Upon the demise of the life assured during the policy tenure, the death benefit is paid in the following manner –
If the life assured survives the policy term, 20% of the sum assured is payable.
If the life assured survives till the maturity of the policy, the sum assured, along with the final additional bonus and the simple reversionary bonus is payable.
Listed below are the eligibility criteria for this LIC policy for NRI children –
Ans: LIC's new children’s money-back policy provides survival, death, and maturity benefits to the life assured and the nominee. The tenure of this plan is the maturity age (25 years) – the age of entry.
Ans: Here are the special provisions under this LIC policy for NRI children –
Ans: Under this benefit, the policyholder can participate in the profits of the corporation and receive simple reversionary bonuses as per the Corporation’s experience.
Ans: The premium payment stops on the policy anniversary after the life assured turns 18.