LIC Komal Jeevan Life Insurance Policy is a child plan which comes with a guaranteed money back facility. The premium in this policy is returned to the beneficiary when he turns 18 years, on a periodic basis after every two years. In the case of an unfortunate event like the death of the children, the sum assured along with guaranteed additions are paid out and the policy terminates. The plan can be bought by any parent or grandparent of the child and the premium in this plan needs to be paid only till the child attains the age of 18 years.
Key Features of LIC Komal Jeevan Insurance Policy
- No medical examination required to buy this plan
- Option of adding a premium waiver rider with this plan
- Benefit of terminal or loyalty bonus on maturity or death
- Policy can be bought for children aged 0 to 10 years
- Guaranteed addition of Rs.75 per thousand sum assured on completion of each policy year
- Risk coverage commences after 2 policy years or after the child has turned 7 years, whichever is later
- Availability of term rider with this plan
Benefits of LIC Komal Jeevan Insurance Policy
Maturity Benefit: On maturity of the policy, both guaranteed additions and along additions is paid in a lumpsum.
Death Benefit: In the event of unfortunate death of the policyholder, the sum assured in the form of death benefit along with accrued additional bonuses is paid by the insurer. But if death occurs before the commencement of risk, then only the sum of basic premiums are paid back.
Survival Benefit: As your child attains 18 years, he/she starts receiving survival benefit on a periodic basis from the insurer.
- -20% of sum assured at 18 years of age
- -20% of sum assured at 20 years of age
- -30% of sum assured at 22 years of age
- -30% of sum assured at 24 years of age
Income Tax Benefit: Under section 80C of Income Tax Act, you get tax benefit on the paid premiums and under section 10 (10D), you get tax benefit on the maturity proceeds.
Eligibility criteria for LIC Komal Jeevan Insurance Policy
|Features of the Policy||Minimum||Maximum|
|Child’s age at entry||0 years||10 years|
|Child’s age at maturity||–||26 years|
|Premium Payment Term||8 years||18 years|
|Premium Payment Frequency||Single pay, Monthly, Quarterly, Half Yearly, Yearly|
|Policy Term||18 years minus child’s age at entry|
Surrendering the Policy
You can also surrender the policy after keeping the policy in force for 3 years or more. The guaranteed surrender value before the date of commencement of risk is 90% of the premium paid excluding the premiums paid during the first year and any extra premium paid. After the date of commencement of risk, the guaranteed surrender value is 90% of the premiums paid before the date of commencement of risk excluding the premiums paid during the first year and any extra premiums paid plus 30% of the premiums paid after the date of commencement of risk.
Lastly, the plan is an appropriate plan to take care of the financial requirement of your child at various stages of life and enable you to live worry free. Investing early in this plan will give you an edge and will prove to be a cost effective proposition.