LIC CDA Endowment Vesting At 21

LIC CDA Endowment Vesting At 21 Plan 41 was a distinctive child insurance product offered by the Life Insurance Corporation of India (LIC), focused on securing a child’s financial future by vesting the policy at age 21.

Introduction

LIC CDA Endowment Vesting At 21 Plan 41 was specifically designed to help parents or guardians provide financial security for their children by the time they turn 21. Its unique structure ensured life insurance protection and lump sum maturity benefits, making it one of the preferred children’s policies among Indian families before its withdrawal on November 16, 2013.​

Key Features and Plan Structure

What is It?

This is an endowment assurance plan sold under the Children’s Deferred Endowment Assurance umbrella. The main objective is to facilitate savings and insurance cover for a child, with benefits vesting at age 21.

Who Can Take This Policy?

• Parents, legal guardians, or near relatives of a child (proposer) can purchase this policy.
• The plan begins with the child as the “life assured,” but the insurance cover starts only at vesting age (21 years).​

Policy Stages

There are two main stages:

1. Deferment Period: From policy commencement until the child reaches age 21. Premiums are paid in this period; the child is not insured until the vesting age.
2. Post-vesting Period: Begins when the child turns 21. The child becomes the owner of the policy, and insurance coverage begins, continuing till maturity.​

Plan Details: Eligibility, Terms, Premiums

• No loans are allowed under this policy
• Premiums can be paid in various frequencies for convenience.​

Launch Date and Withdrawal Date

Launch Date: While the specific launch date of Plan 41 is not widely documented, it was available well before its withdrawal and actively sold during the 2000s and early 2010s.​

Withdrawal Date: LIC officially withdrew the LIC CDA Endowment Vesting At 21 Plan 41 on 16th November 2013. This means new policies are no longer issued under this code, but existing policyholders still retain their contractual rights.​

For further verification, see LIC’s withdrawn plans page.​

Benefits and Payout Scenarios

Maturity Benefit

• Upon the child surviving till the maturity date, the sum assured plus accrued bonuses will be paid out.​
• Bonuses: Simple reversionary bonuses are regularly declared based on LIC’s yearly profits. Once declared, they become guaranteed benefits.​

Death Benefit

• During Deferment Period: If the child dies before vesting age, only the premiums paid (sometimes with interest/bonuses) are refunded to the proposer.​
• After Vesting: Full insurance coverage applies; sum assured plus any declared bonuses are paid out. This ensures financial protection in case of early demise.​

Premium Waiver Option

• If the proposer dies during the deferment phase, the policy continues with premiums waived off (if the waiver rider was chosen). The child receives full benefits at vesting or maturity.​

Surrender Benefit

• Allowed after paying premiums for three years.
• Shows guaranteed surrender value or special surrender value, depending on timing and clause.​

LIC CDA Endowment Vesting At 21 Calculator: How Does It Work?

A calculator for this plan helps estimate:

• Yearly or total premium payable
• Expected maturity amount (sum assured + projected bonus)
• Death benefit scenarios
• Surrender value calculation
• Rider impacts (e.g., premium waiver, accidental benefit)

Required Inputs

• Child’s current age
• Sum assured required
• Premium payment frequency (yearly, half-yearly, quarterly, monthly)
• Term (years desired/policy term)
• Optional: Rider selection

Output Provided

• Premium per payment mode
• Projected maturity amount considering bonus rates
• Surrender value after three years
• Death benefit at different stages
• Rider effect

Such calculators are based on formulae found in LIC brochures and official documentation. See official brochure for more technical details.​

External Calculator Example

Visit LIC’s legacy plan pages or sites like BankBazaar and PolicyBazaar for calculators and guides on child endowment plans.​

Step-by-Step Calculation: Sample Scenario

Let’s walk through a simple case:

• Child’s age: 5 years
• Sum assured: ₹1,00,000
• Premium frequency: Yearly
• Term: 16 years

Steps:

1. Use LIC’s premium chart for Plan 41, enter age and sum assured.
2. The calculator outputs yearly premium, lump-sum maturity amount (projected with bonus), surrender values, and death benefits applicable at each policy stage.

This transparent process gives parents clarity about financial returns and protection offered by the plan.

Advantages and Unique Aspects

• Secures child’s future financial needs (education, marriage) by vesting at age 21
• Offers savings and an insurance package.​
• Simple reversionary bonus structure ensures growing maturity corpus
• Riders (premium waiver, accidental) provide extra safety for family.​

Limitations and Points to Consider

• Withdrawn plan: Not available for fresh purchase after 16 November 2013.​
• No loan facility
• Surrender value not equal to full sum assured; only a percentage returned
• Bonus rates are not guaranteed and depend on LIC’s profitability (though historically stable).​

FAQs: LIC CDA Endowment Vesting At 21 Plan 41​

Conclusion

LIC CDA Endowment Vesting At 21 Plan 41 was an exemplary child insurance solution, ensuring a combination of disciplined savings and life cover for Indian families.

While the policy is now withdrawn, understanding its features, calculation method, and benefits continues to help existing policyholders and those seeking similar offerings from LIC’s active product catalogue. Refer to official sources and calculators for detailed benefit projections, and always consult a qualified financial advisor or LIC agent for personalized advice.

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