All of us wish to ensure the best possible future for our children. With the cost of education skyrocketing, it is all the more important that an early provision is made to ensure that your sweet child gets a good head start in this competitive life. LIC’s Child Fortune Plus is a total solution to your child’s education and other needs. A plan is a unit-linked (ULIP) one offering the prospects of long-term capital appreciation.
Who is Eligible?
Child Fortune Plus Plan No.194 is a unit-linked plan (ULIP) that will be allowed to the parents who have a child up to the age of 17 years last birthday. The risk cover under the plan will be on the life of the parent who will be the life assured. There will be no insurance coverage for the life of the child, but the policy will be allowed based on the age of the child. The policy will continue till the child attains the age of 25 years last birthday or till the life assured attains the age of 75 years nearest birthday, whichever is earlier. The purpose of the plan is to meet the educational and other needs of the child named as a nominee in the policy.
Switching of funds:
The policyholder can switch between any fund type during the policy term. On switching the entire amount is switched to the Fund opted for. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be subject to a switching charge of Rs.100 per switch.
The policyholder can partially withdraw the units at any time after the third policy anniversary subject to the following:
- Partial withdrawals may be in the form of a fixed amount or in the form of a fixed number of units.
- Under regular premium policies where premiums have been paid for less than 3 years and further premiums are not paid, the partial withdrawal shall not be allowed.
- Under regular premium policies where at least 3 years’ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value.
- Under Single Premium policies, partial withdrawal will be allowed subject to a minimum balance of Rs. 5000/-in the Policyholder’s Fund or 10% of a single premium, whichever is higher.
- Partial withdrawal from Policyholder’s Fund pertaining to top-up premiums shall be allowed only after the completion of three years from the date of allocation of that top-up premium. This condition will not apply if the top-up premiums are paid during the last three years of the policy term.
- After the death of the life assured during the policy term, partial withdrawal may be made by the child named in the policy if he/she is major i.e. after completion of 18 years of age, or by the appointee if the child is a minor subject to an undertaking by the appointee that the partial withdrawal is solely for the benefit of the named child.
Payment of Premiums:
The regular premium can be paid either in yearly, half-yearly, quarterly, or monthly (ECS) installments. The minimum Annualized Premium (other than monthly through ECS) will be Rs. 10,000/-increasing thereafter in multiples of Rs. 1,000/-. In the case of monthly (ECS), the minimum premium will be Rs. 1,000 p.m. increasing thereafter in multiples of Rs. 250/-.
The single premium can be paid subject to a minimum of Rs. 25,000 and after that in multiples of Rs.1,000.
The plan offers a choice of four investment options: Bond Fund, Secured Fund, Balanced Fund, and Growth Fund; each tailored to different levels of risk and return. The Policyholder will have the option to choose any ONE of the above 4 Funds.
a) Benefits payable on death:
On the death of Life Assured, if the child is alive. In case of death of the Life Assured within the policy term, when the cover is in full force and the child is alive, Sum Assured shall be payable to the nominee. Also, in the case of a regular premium policy, when the cover is in full force, payment of all future premiums due under the policy shall be waived. Units equivalent to an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be credited to the policyholder’s fund. The units shall be allocated at the unit price applicable for the fund type opted for under the policy on the date of notification of death. The policy shall continue. If less than 3 years’ premiums have been paid and the policy is in lapsed condition, then the Policyholder’s Fund Value shall become payable to the nominee and the policy will terminate.
On the death of the Life Assured, after the death of the child:
In case of death of the Life Assured during the policy term, after the death of the child, Sum Assured plus policyholder’s fund value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be payable to the nominee/ legal heir, as the case may be, at that time and the policy shall terminate. This shall also be applicable in case of simultaneous death of the life assured and the child nominee.
On the death of a child before the life assured’s death: The policy will continue till maturity or till the life assured survives, whichever is earlier.
On the death of a child, afterlife assured’s death: An amount equal to the Fund Value of units shall be payable to the legal heir of the life assured, and the policy shall terminate.
b) Benefits payable on maturity: On the life assured or the child nominee surviving the date of maturity an amount equal to the Policyholder’s Fund Value is payable.
Eligibility Conditions And Restrictions for Child Fortune Plus:
- Minimum Age at the entry for the child: 0 (age last birthday)
- Maximum Age at entry for the child: 17 years (last birthday)
- Minimum Age at the entry for Life Assured: 18 years (last birthday)
- Maximum Age at entry for Life Assured: 55 years (nearest birthday)
- Policy Term: (25 – age last birthday at the entry of life assured’s a child) or (75 -age nearest birthday at the entry of life assured), whichever is lower Maximum Policy Term: 30 years
- Maximum Maturity Age:  last birthday of a child or  nearest birthday of the life assured, whichever is earlier.
Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to LIC of India within 15 days.
The Unique Identification Number (UIN) for LICs Child Fortune Plus plan is 512L251V01.
Update: Child Fortune Plus Table No.194 Has Been Discontinued.
The above is the product summary giving the key features of the plan. This is for illustrative purposes only. This does not represent a contract and for details please refer to your policy document.