The LIC 920 Plan, also known as the Jeevan Lakshya Plan, is a unique insurance policy offered by Life Insurance Corporation of India (LIC) specifically designed to address the financial needs of parents for their child's education. This plan not only provides life insurance coverage but also serves as an effective tool for building savings to support your child's educational aspirations. Let's explore the comprehensive details of the LIC 920 Plan for child education:
Key Features of LIC 920 Plan:
Maturity Benefit: The plan provides a lump sum amount as a maturity benefit upon survival of the policyholder until the end of the policy term. This amount can be used to fund your child's higher education expenses.
Death Benefit: In the unfortunate event of the policyholder's demise during the policy term, the LIC 920 Plan offers a death benefit. The nominee receives a lump sum amount, which includes the sum assured, any bonuses accrued, and the final additional bonus (if applicable). This ensures that your child's education goals are not compromised, even in your absence.
Premium Waiver Benefit: The plan includes an optional Premium Waiver Benefit rider, which can be added by paying an additional premium. In the event of the policyholder's death, all future premiums are waived, ensuring that the policy continues to provide financial security and benefits for the child's education.
Limited Premium Payment: The LIC 920 Plan requires the policyholder to pay premiums for a limited period. This feature allows you to conveniently plan your finances and ensures that the policy remains in force until maturity.
Participating Plan: The LIC 920 Plan is a participating plan, which means policyholders are eligible to receive bonuses declared by LIC. These bonuses enhance the maturity and death benefits, providing additional financial support for your child's education.
Flexible Policy Term: The plan offers flexibility in choosing the policy term, allowing you to align it with your child's educational milestones. You can select a term between 13 and 25 years, depending on your child's age and education goals.
Tax Benefits: As per prevailing tax laws, premiums paid towards the LIC 920 Plan are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the maturity amount and death benefit are tax-exempt under Section 10(10D) of the Income Tax Act, subject to conditions.
Planning for Your Child's Education:
Assess Your Financial Goals: Evaluate your child's education needs, including tuition fees, living expenses, and other related costs. Determine the corpus required to fulfill these goals.
Calculate the Required Sum Assured: Consider inflation and the increasing costs of education while determining the sum assured. It is advisable to consult a financial advisor for an accurate assessment.
Choose the Policy Term: Select a suitable policy term that aligns with your child's expected educational timeline. Keep in mind the period when funds will be required and plan accordingly.
Premium Payment: Decide on the premium payment frequency, whether monthly, quarterly, half-yearly, or yearly, based on your convenience and financial capability.
Understand the Policy Riders: Familiarize yourself with the available riders, such as premium waiver benefit, and consider adding them to enhance the coverage and benefits of the policy.
Seek Professional Advice: Consult with a qualified insurance advisor or LIC representative to understand the policy in detail, clarify any queries, and ensure that the LIC 920 Plan meets your specific requirements.
Conclusion:
The LIC 920 Plan is a comprehensive insurance policy tailored to secure your child's education and provide financial protection for their future. By combining life insurance coverage with savings components, this plan ensures that your child's educational aspirations