LIC Child Future Plan 185 Calculator
Plan No. 185 (UIN: 512N242V01)
Plan Name: LIC's Child Future Plan (Table No. 185)
UIN: 512N242V01
Launch Date: February 8, 2007
Withdrawal Date: January 1, 2014
Plan Type: With Profits - Child Insurance Plan
Premium Details
Survival Benefits Schedule
| Year | Description | Amount |
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The LIC Child Future Plan 185 was a popular life insurance product by the Life Insurance Corporation of India specially designed to help parents financially secure their child’s future. It aimed to meet critical expenses like higher education, marriage, and other vital milestones by offering a combination of insurance protection and savings.
Though this plan was withdrawn on 1st January 2014 and is no longer available for new policies, understanding its details and how its calculator worked can give insight into LIC’s children’s plans.
Launch and Withdrawal Dates
- Launch Date: LIC introduced the Child Future Plan 185 for sale in the early 2000s (exact launch date not clearly documented but confirmed before 2007).
- Withdrawal Date: This plan was withdrawn from sale on 01 January 2014, as LIC periodically updates its product portfolio to introduce newer products with enhanced features.
What is the LIC Child Future Plan?
The LIC Child Future Plan 185 was a with-profits insurance plan designed for children from newborns up to 12 years old. It allowed parents or guardians to insure the child’s life and accumulate corpus to fund life events like education and marriage.
Key characteristics of the plan were:
- Long policy term ranging from 11 years to 27 years.
- Premium Paying Term (PPT) was shorter, typically 6 years.
- Life coverage for the child during the policy term and an extended cover for 7 years after policy expiry.
- Risk cover for the child’s life along with maturity, survival, and death benefits.
- The option to choose premium payment modes: yearly, half-yearly, quarterly, or salary deduction.
- Guaranteed benefits as well as potential bonuses as declared by LIC.
Eligibility Criteria
- Entry Age of Child: 0 to 12 years (last birthday)
- Maturity Age: 23 to 27 years (last birthday)
- Policy Term: 11 to 27 years as per the customer’s choice
- Sum Assured: Minimum Rs. 1,00,000 and maximum Rs. 1 crore (Rs. 10,000,000)
- Premium paying term usually 6 years or less depending on policy term.
Features and Benefits
Comprehensive Financial Protection
The plan provides risk cover on the life of the child throughout the policy term and extends for 7 years beyond the policy term, safeguarding the child and the family during the extended period.
Survival Benefits
The plan offers survival benefits, which means that certain percentages of the sum assured are paid at milestones before maturity to assist with expenses during the child’s growing years. For example, 25% of the sum assured paid 5 years before expiry and another 25% on expiry of the policy term.
Maturity Benefits
On maturity, the remaining sum assured plus bonuses (if any) are paid out to the policyholder, providing a lump sum amount that can be used for higher education, marriage, or other significant expenses.
Death Benefits
In the unfortunate event of death of the child during the policy term:
- The sum assured, along with bonuses, is paid.
- If the death occurs during the premium-paying term, future premiums are waived off, yet benefits remain intact.
Premium Waiver Benefit
If the proposer (main premium payer, usually a parent) dies during the premium payment term, the plan waives all future premiums, but the policy continues to provide coverage and benefits.
Bonus
Since the plan is a participating plan, the policy would earn bonuses declared by LIC annually during the policy term, which would add to the maturity benefits.
Flexibility in Premium Payment
Premiums could be paid annually, half-yearly, quarterly, or through salary deduction with a comfortable payment period of usually 6 years.
Surrender Value
If needed, the policy could be surrendered after the completion of 3 policy years with the guaranteed surrender value paid back.
How Does the LIC Child Future Plan Calculator Work?
A calculator for LIC Child Future Plan 185 helps users estimate premiums and benefits based on desired inputs such as sum assured, policy term, premium payment term, and age of the child at entry.
Inputs Required:
- Age of the child at the time of policy commencement.
- Policy term (between 11 to 27 years).
- Sum assured (minimum Rs. 1,00,000).
- Premium payment mode (annual, half-yearly, quarterly).
- Premium paying term (usually 6 years or less depending on policy term).
Calculations Done by the Calculator:
- Annual/periodic premium amount based on sum assured and term.
- Total premiums payable during the premium paying term.
- Expected maturity amount including guaranteed sum assured and estimated bonuses.
- Survival benefit payouts at relevant intervals.
- Death benefit and waiver of premium details.
Benefits of Using the Calculator:
- Helps parents plan finances based on the estimated premium outflow.
- Provides clarity on maturity and survival benefits, aiding decision-making.
- Compares different term and sum assured combinations for best fit.
- Demonstrates the benefit of premium waiver in case of proposer’s demise.
Example Calculation (Hypothetical)
Assume:
- Child’s Age: 2 years
- Policy Term: 25 years
- Sum Assured: Rs. 1,00,000
- Premium Paying Term: 6 years
- Premium Mode: Yearly
Estimated yearly premium may be around Rs. 10,158. Total premiums paid = Rs. 10,158 * 6 = Rs. 60,948.
Survival benefits of 25% of sum assured may be paid 5 years before maturity (age 20) and another 25% at maturity (age 25) along with bonuses. Death benefits will be sum assured plus accrued bonuses.
Why Use LIC Child Future Plan 185 Calculator?
Using such a calculator allows parents and guardians to forecast the financial commitments and benefits of the Child Future Plan, removing guesswork. It also educates the user about:
- How premiums can vary with sum assured and policy term.
- When survival benefits are paid.
- The role of bonuses in increasing maturity benefits.
- Benefits in case of unforeseen circumstances like the death of child or proposer.
Importance of Child Insurance Plans
Child-centric insurance plans like LIC Child Future Plan 185 ensure financial security of the child irrespective of uncertain life events. They:
- Aid in building a corpus for future needs through disciplined savings.
- Provide life cover on the child during vulnerable years.
- Offer peace of mind to parents by securing their child’s future education and marriage funding.
- Protect against financial disruptions caused by loss of the child or parent.
- Encourage early financial planning.
Alternatives After Withdrawal of LIC Child Future Plan 185
Since Plan 185 has been withdrawn, LIC offers other child plans like
These plans continue the legacy of supporting children’s future needs with updated benefits. Interested users should consult LIC agents or the official LIC website for current plans .
Frequently Asked Questions
What is the LIC Child Future Plan 185?
It was a child endowment insurance plan that provided life cover and financial savings for future education and marriage needs of a child.
Is the LIC Child Future Plan still available to buy?
No, this plan was withdrawn from sale on 1st January 2014 and is no longer available for new policyholders.
What were the entry age limits for the child under this plan?
The child had to be between 0 and 12 years (last birthday) at the time of entry.
What was the policy term for LIC Child Future Plan?
The policy term ranged from 11 years to 27 years as chosen by the policyholder.
How long was the premium paying term?
The premium paying term was usually 6 years or less, depending on the total policy term.
What benefits did the plan provide?
It offered survival benefits, maturity benefits with bonuses, death benefits, and premium waiver in case of death of the proposer.
Conclusion
LIC Child Future Plan 185 was a thoughtful insurance solution providing protection and savings to meet a child’s future milestones like education and marriage. Though withdrawn since January 2014, its structure and calculator remain a useful reference for parents exploring child endowment plans.
Understanding its features, premium calculations, benefits, and survival payments enables better financial planning. Parents should now focus on the latest child plans available from LIC for optimal protection and corpus building.