LIC's Komal Jeevan: Review

LICs Komal Jeevan is Child Insurance money back plan with the features like Guaranteed Addition and limited premium paying term. Money Back plan With periodic money back it helps parent to makes provision for higher education and marriage of their child. Money Back amount increases with increase in the age of child, this is very helpful as cost of education increases with increase in age. Entire sum assured is paid as a Survival benefit between the term and accumulated GA along with Loyalty addition is paid at the end of term, this can be used for marriage. Following table shows percentage o Sum Assured paid at regular interval. Age of child % of S.A 18 20% 20 20% 22 30% 24 30% 26 G.A + L.A

Limited Premium Paying term and maturity age Policy matures when child attains age of 26 years. Policy also has one more interesting feature, one needs to pay premium only till child completes 17 years and not for entire term. However G.A is added for entire term. This means if childs age is 2 years, Premium needs to be paid only for 16 years. Guaranteed addition This plan provides GA of 75/1000(Rs. 7500 per 1,00,000) each year irrespective of financial performance of insurer.Hovewer this comes with a high premium. For 1 Lac S.A policy with entry age of child is 0 year, G.A comes to

(7500 x 26 ) Rs. 1,95,000 for this one needs to pay premium for 18 years which is (7474 x 18) Rs. 1,34,532. Riders: Premium Waiver Benefit (PWB) and Death Benefit One can opt for PWB which ensure that even if he dies his child will continue to receive all the maturity and survival benefit of policy that too without paying premium. Risk cover on the childs life starts only after he/she attain age of 7 year, or policy completes two anniversaries, This means if child dies before Risk cover starts nominee will gets only premium paid back (Deducting extra rider premiums). If child dies after Risk starts, nominee would receive S.A + G.A + F.A.B(if any). Proposer if opts for PWB, needs to clear medical exam and proposer above 50 years age are not allowed to opt for PWB. However no medical exam is required for child. Other Conditions and features. Min. Entry age is 0 years (With PPT 18 years). Max. Entry age is 10 years (With PPT 8 years). Maturity age is 26 years. Min. S.A is Rs. 1 lakh and Max. is Rs. 25 lakh. Premium can be paid Yly/Hly/Qly/Mthly. Single Premium Mode is also allowed. No Loan benefit. Eg: Following table illustrate benefit for a person of age 30 taking policy for his child with age nearer birth day 0 years, with PWB benefit.

S.A

2,00,000

5,00,000

Yearly prm 14,743 Total Prm 2,65,374 Maturity Benefit On 18th Year 40,000 On 20th year 40,000 On 22nd year 60,000 On 24th Year 60,000 On 26h Year 3,90,000 Total amount 5,90,000 + LA

36,857 6,63,426 1,00,000 1,00,000 1,50,000 1,50,000 9,75,000 13,75,000 + LA