LIC’s CHILD CAREER (Table No.
184)
Benefit Illustration:
1. Introduction:
This plan is specially designed to meet the increasing educational and other needs of
growing children. It 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). A number of Survival benefits are payable on surviving by the life assured to the
end of the specified durations.
2. Options:
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium
payment and Premium Waiver Benefit.
3. Payment of Premiums:
You may pay the premiums regularly at yearly, half-yearly, quarterly or through Salary
deductions over the term of policy. Premiums may be paid either for 6 years or upto 5
years before the policy term.
4. Sample Premium Rates:
Following are some of the sample premium rates per Rs. 1000/- S.A.:
For 6 years’ Premium paying term
Age Maturity Age
160.20 23 24 25 26 27
0 111.25 107.25 103.35 99.60 95.95
4 128.35 123.80 119.35 115.05 110.90
8 148.15 143.05 138.05 133.20 128.50
12 170.20 164.55 159.05 153.65 148.40
For Premium paying term = Policy Term less 5 years
Age Maturity Age
#REF! 23 24 25 26 27
0 52.50 49.10 46.05 43.30 40.80
4 69.65 65.25 60.40 56.15 52.35
8 102.25 91.90 83.30 76.00 69.75
12 170.20 144.60 125.45 110.55 102.50
5. Mode and High S.A. Rebates:
Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - 1% of the tabular premium
Quarterly & Salary deduction - NIL
Sum Assured Rebate:
Sum Assured Rebate (Rs.)
1,00,000 to 2,99,999 Nil
3,00,000 to 4,99,999 1.5 %o S.A.
5,00,000 and above 2 %o S.A.
6. Benefits:
A) Survival Benefit: On life assured surviving to the end of the specified durations an
amount 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.
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 extra premium and premium for premium waiver benefit, if any,) along
with interest of 3% p.a compounding yearly shall be payable.
7. 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). During this Auto Cover Period, one or more
instalments of premiums with interest can be paid 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.
Premium Waiver Benefit shall remain inforce during the Auto Cover period.
8. Premium Waiver Benefit:
The proposer can opt for this benefit if aged between 18 and 55 and is medically fit. It
provides waiver of premiums on death of proposer. Further the 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. This benefit shall not be available in
case of suicide by the proposer within one year of policy. Further, revival of the policy
shall be subject to medical fitness of the proposer.
9. Eligibility Conditions and Other Restrictions:
(a) Minimum Entry Age : 0 years (last birthday)
(b) Maximum Entry Age : 12 years (last birthday)
(c) Minimum Maturity Age : 23 years (last birthday)
(d) Maximum Maturity Age : 27 years (last birthday)
(e) Minimum Sum Assured : Rs. 1,00,000
(f) Maximum Sum Assured : Rs. 100,00,000
(g) Policy term : 11 to 27 years
(h) Premium Paying term : 6 years and Policy term less 5 years
10. Participation in Profits of the Corporation:
Simple Reversionary Bonuses shall be declared per thousand Sum Assured annually at
the end of each financial year depending upon the Corporation’s experience, provided
the policy is in full force. In case of a paid up policy, bonuses shall be payable only if,
at least, 3 full years’ premiums have been paid. On surrender, the discounted value of
vested bonuses, if any, (if not paid earlier) will be payable. Final (Additional) Bonus
may also be declared in addition.
11. Paid-up Value:
Not withstanding the death benefit provided under the Auto Cover period, if at least
three full years’ premiums have been paid and any subsequent premium be not duly
paid, this policy shall not be wholly void but shall become paid-up.
If policy becomes paid-up before the commencement of risk, then the policy shall be
entitled to receive the Guaranteed Surrender Value. If the policy is not surrendered, this
Guaranteed Surrender Value shall be payable on the expiry of policy term or on death
of Life Assured, if earlier.
If policy becomes paid-up after the commencement of risk, then the sum assured of
policy shall be reduced to such a sum, called paid-up value, as shall bear the same
proportion to the full Sum Assured as the number of premiums actually paid bears to
the total number of premiums stipulated for in the policy. This reduced value (called
paid up value) along with vested bonuses, if any, shall be payable on the date of expiry
of policy term or at Life Assured’s prior death. No survival benefit shall be payable
under a reduced paid-up policy. Extended Term cover shall cease to apply if the policy
is in lapsed/ Paid-up condition
12. Surrender Value:
You may surrender the policy for cash after at least three full years’ premiums have
been paid. The Guaranteed Surrender Value will be as under:
i.) Before commencement of risk: 90% of the total amount of premiums (excluding
premiums for the first year ) paid.
ii.) After commencement of risk: 90% of the total amount of premiums (excluding
premium for the first year) paid before commencement of risk and 30% of
premiums paid on and after the commencement of risk.
The Guaranteed Surrender value calculated above will be subject to the deduction of
the total amount of survival benefits that might have become due on or before the date
of surrender. Further all extra premiums and/or any other premium including premium
for Premium Waiver Benefit shall not be considered in the premiums refunded.
The cash value of any existing vested bonuses, if any, will also be paid if not paid
earlier.
Corporation may, however, pay Special Surrender value as the discounted value of Paid
up value and existing vested bonus, if not paid earlier, as applicable on date of
surrender. The Special Surrender value will be subject to the deduction of the survival
benefits which have become due on or before the date of surrender.
The Special Surrender value will be payable provided the same is higher than
Guaranteed Surrender value.
13. Grace Period:
A grace period of one calendar month but not less than 30 days will be allowed for
payment of premiums.
14. Revival:
If the policy is lapsed it can be revived by paying arrears of premium together with
interest within a period of five years, subject to production of satisfactory evidence of
continued insurability. The rate of interest applicable will be as fixed by the
Corporation from time to time.
15. Cooling-off period:
If you are not satisfied with the “Terms and Conditions” of the policy you may return
the policy to us within 15 days.
16. Exclusions:
Suicide is excluded for Premium Waiver Benefit for first year. No other exclusions.
17. Miscellaneous Provisions:
Date of commencement of risk : If age of Life Assured is upto 10 years, risk shall
commence either after 2 years from the date commencement of policy or from the
policy anniversary coinciding with or immediately following the completion of 5 years
of age of Life assured, whichever is later. In other cases, risk shall commence from the
policy anniversary coinciding with or next following 12th birthday of the Life Assured.
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.
BENEFIT ILLUSTRATION :
Statutory warning :
“Some benefits are guaranteed and some benefits are variable with returns based on the future
performance of your Insurer carrying on life insurance business. If your policy offers guaranteed returns
then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers
variable returns then the illustrations on this page will show two different rates of assumed future
investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower
limits of what you might get back, as the value of your policy is dependent on a number of factors including
future investment performance.”
Benefit LIC's Child Career
Illustration Plan
Extd
Age of LA (Yrs.) 0 Term(Yrs.) 25 Term(Yrs.) 7
Age At Maturity
(Yrs.) 25 PPT(Yrs.) 20
Sum Assured(Rs.) 100000 Premium 4513 4513
END
OF TOTAL
PREMS
YEAR PAID BENEFIT ON DEATH DURING THE YEAR BENEFIT ON SURVIVAL / MATURITY AT THE END OF YEAR
GUARANTEED VARIABLE TOTAL VARIABLE TOTAL
SCENARIO SCENARIO SCENARIO SCENARIO SCENARIO SCENARIO SCENARIO SCENARIO
1 2 1 2 GUARANTEED 1 2 1 2
1 4513 4648 0 0 4648 4648 0 0 0 0 0
2 9026 9436 0 0 9436 9436 0 0 0 0 0
3 13539 14368 0 0 14368 14368 0 0 0 0 0
4 18052 19447 0 0 19447 19447 0 0 0 0 0
5 22565 24679 0 0 24679 24679 0 0 0 0 0
6 27078 100000 12000 33000 112000 133000 0 0 0 0 0
7 31591 100000 14000 38500 114000 138500 0 0 0 0 0
8 36104 100000 16000 44000 116000 144000 0 0 0 0 0
9 40617 100000 18000 49500 118000 149500 0 0 0 0 0
10 45130 100000 20000 55000 120000 155000 0 0 0 0 0
11 49643 100000 22000 60500 122000 160500 0 0 0 0 0
12 54156 100000 24000 66000 124000 166000 0 0 0 0 0
13 58669 100000 26000 71500 126000 171500 0 0 0 0 0
14 63182 100000 28000 77000 128000 177000 0 0 0 0 0
15 67695 100000 39000 105000 139000 205000 0 0 0 0 0
16 72208 100000 41600 112000 141600 212000 0 0 0 0 0
17 76721 100000 44200 119000 144200 219000 0 0 0 0 0
18 81234 100000 46800 126000 146800 226000 0 0 0 0 0
19 85747 100000 49400 133000 149400 233000 0 0 0 0 0
20 90260 100000 52000 140000 152000 240000 30000 40000 110000 70000 140000
21 90260 100000 12600 31500 112600 131500 15000 0 0 15000 15000
22 90260 100000 13200 33000 113200 133000 15000 0 0 15000 15000
23 90260 100000 13800 34500 113800 134500 15000 0 0 15000 15000
24 90260 100000 14400 36000 114400 136000 15000 0 0 15000 15000
25 90260 100000 15000 37500 115000 137500 15000 15000 37500 30000 52500
26 100000 0 0 100000 100000
27 100000 0 0 100000 100000
28 100000 0 0 100000 100000
29 100000 0 0 100000 100000
30 100000 0 0 100000 100000
31 100000 0 0 100000 100000
32 100000 0 0 100000 100000
Benefit LIC's Child
Illustration Career Plan
Extd
Age of LA (Yrs.) 0 Term(Yrs.) 25 Term(Yrs.) 7
Age At Maturity (Yrs.) 25 PPT(Yrs.) 6
Sum Assured(Rs.) 100000 Premium 10128 10128
END
OF TOTAL
PREMS
YEAR PAID BENEFIT ON DEATH DURING THE YEAR BENEFIT ON SURVIVAL / MATURITY AT THE END OF YEAR
GUARANTEED VARIABLE TOTAL VARIABLE TOTAL
SCENAR
SCENARIO SCENARIO SCENARIO SCENARIO SCENARIO SCENARIO SCENARIO IO
1 2 1 2 GUARANTEED 1 2 1 2
1 10128 10432 0 0 10432 10432 0 0 0 0 0
2 20256 21177 0 0 21177 21177 0 0 0 0 0
3 30384 32244 0 0 32244 32244 0 0 0 0 0
4 40512 43643 0 0 43643 43643 0 0 0 0 0
5 50640 55384 0 0 55384 55384 0 0 0 0 0
6 60768 100000 13200 45000 113200 145000 0 0 0 0 0
7 60768 100000 15400 52500 115400 152500 0 0 0 0 0
8 60768 100000 17600 60000 117600 160000 0 0 0 0 0
9 60768 100000 19800 67500 119800 167500 0 0 0 0 0
10 60768 100000 22000 75000 122000 175000 0 0 0 0 0
11 60768 100000 24200 82500 124200 182500 0 0 0 0 0
12 60768 100000 26400 90000 126400 190000 0 0 0 0 0
13 60768 100000 28600 97500 128600 197500 0 0 0 0 0
14 60768 100000 30800 105000 130800 205000 0 0 0 0 0
15 60768 100000 42000 150000 142000 250000 0 0 0 0 0
16 60768 100000 44800 160000 144800 260000 0 0 0 0 0
17 60768 100000 47600 170000 147600 270000 0 0 0 0 0
18 60768 100000 50400 180000 150400 280000 0 0 0 0 0
19 60768 100000 53200 190000 153200 290000 0 0 0 0 0
20 60768 100000 56000 200000 156000 300000 30000 44000 150000 74000 180000
21 60768 100000 12600 52500 112600 152500 15000 0 0 15000 15000
22 60768 100000 13200 55000 113200 155000 15000 0 0 15000 15000
23 60768 100000 13800 57500 113800 157500 15000 0 0 15000 15000
24 60768 100000 14400 60000 114400 160000 15000 0 0 15000 15000
25 60768 100000 15000 62500 115000 162500 15000 15000 62500 30000 77500
26 100000 0 0 100000 100000
27 100000 0 0 100000 100000
28 100000 0 0 100000 100000
29 100000 0 0 100000 100000
30 100000 0 0 100000 100000
31 100000 0 0 100000 100000
32 100000 0 0 100000 100000
Notes :
(i) This illustration is applicable to a standard (from medical, life style and occupation point of
view) life.
(ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are
consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a.
(Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the
Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will
be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.
(iii) The main objective of the illustration is that the client is able to appreciate the features of the
product and the flow of benefits in different circumstances with some level of quantification.
EXTRACT from Section 41 of the Insurance Act :
No person shall allow or offer to allow, either directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance in respect of any kind of risk relating to
lives or property in India, any rebate of the whole or part of the commission payable or any
rebate of the premium shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebate as may be allowed in accordance
with the published prospectuses or tables of the insurer : provided that acceptance by an
insurance agent of commission in connection with a policy of life insurance taken out by
himself on his own life shall not be deemed to be acceptance of a rebate of premium within the
meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the
prescribed conditions establishing that he is a bonafide insurance agent employed by the
insurer.
Any person making default in complying with the provisions of this Section shall be
punishable with a fine which may extend to Rs.500 / -
Note : “Conditions apply” for which please refer to the Policy document or contact our nearest
Branch Office.
