Rest 75% of Sum Assured will be disbursed as yearly 15% of the sum assured for next 5 Yrs. I suggest choosing Option No.1, where you get the full sum assured.
LIC soon launching one more child plan called Jeevan Tarun (Table No.834) from the month of May 2015.
It is typical non-linked, with-profit and limited premium payment option.
LIC claims that this plan is suitable to meet the educational or other needs of growing children.
In case the age of entry Life Assured is less than 8 Yrs, then risk under this plan commence either one day before the completion of 2 years from the date of commencement of the policy or completion of 8 years of age, whichever is earlier.
For those aged 8 years or more, the risk will commence immediately.
If the proposer (in this plan, parent) opts for PWB then in case of death of the proposer, future premiums will be waived off. This benefit will be offered based on the proposer’s age, personal declaration and other related documents.If proposer commits suicide within 12 months of policy commencement, then this benefit will not be available.In addition, this benefit ceases in case of lapsed/paid up condition.As I said in my review of New Children’s Money Back Plan (Table No.832), here also the life risk is on your kid. Life Insurance coverage required on the earning member who has financial depends. Strange but few falls to trap as this is called children plan.So think twice whether Life Insurance required for your kid or not. If death occurs to parents then kid’s future education or marriage goals affect.However, if death occurs of the kid then parents will not suffer any financial loss.