LIC's Child Fortune Plus: Review

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LIC has recently (On 1st Nov 2008) introduced its first child ULIP plan “Child Fortune Plus”

ICICI Prudential’s Smart kid ULIP plans are a great success and with this plan LIC is also trying to target those parents who are looking for higher return on their money which they are investing for their child’s future.

Like all ULIP plan this provides double benefit of insurance as well as Investment.




Min/Max entry age

18/55 years for Life Assured.0/17 years for Child.

Policy term

Date at which child attains 25 years or Life Assured attain 75 years.

Min. Sum Assured

1.25 times Single premium

5 times annual premium

Max. Sum Assured

5 times Single premium if entry age less then 35, 2.5 times if between 36 and 45 else 1.5 times.

25 times annual premium if entry age less then 45 else 15 times

Min. Premium

Rs. 25,000

Rs. 10,000 P/A

A parent with the child of age 17 years or less is eligible to take this policy. Parents entry age is 18 year and maximum age is 55 years.

Minimum Sum Assured: Five times the annualized premium.

For eg if Annual Premium is Rs. 10,000 then S.A should be at least Rs. 50,000.

Maximum Sum Assured: It can be equal to 25 times the annual premium

For eg. if Annual Premium is Rs. 10,000. Then S.A can be Rs. 2,50,000.

Premium Payment mode: yearly/H-yly/Q-ly/ESC (Mthly)/Single/top-up.

Top up should be in multiple of Rs. 1000 and should not exceed 25% of premium paid till date.

Minimum Annual Premium: Rs. 10,000/-

Fund type and Switches: Four types of funds Bond Fund, Secured Fund, Balanced Fund, and Growth Fund depending on your risk taking capacity and four free switches in a year is allowed.

Maturity benefit: An amount equal to the policy holder’s fund value is payable on maturity. Child attaining 25 year or life assured attaining 75 years of age (whichever is earlier) is counted as maturity.

Death Benefit: On death of parent (Life assured) child will receive the S.A, No future premium is required to be paid and unit equivalent thereof shall be credited to the policy fund account at the applicable unit price.

This is the main highlight of the policy as on death nominee not only gets Sum Assured but also future premium are waived with unit credited to your account.

Partial withdrawal facility: Partial withdrawal is allowed after 3rd policy anniversary.

Min. balance to be kept for

1) Regular policy is 2 annualized premiums.

2) Single premium policy is higher of Rs. 5000 or 10 % of Single Premium.

Revival: In case the policy is lapsed, If the premiums have been paid for a minimum period of three years it can be revived within a period of 2 years (Revival Period) from the date of First Unpaid Premium the Life cover will continue during the Revival Period.

Settlement Option:

Under this maturity amount can be paid in Yly/Hly for a period not more than 5 years from maturity date.


Policy can be surrendered after completion of 3 years without any charge.

Allocation charge:

Regular Premium


1st year

2nd and 3rd

4th onward

10,000 to 1,00,000




1,00,001 to 1,50,000




1,50,001 to 2,00,000




2,00,001 & above




Single Premium

Up to Rs. 10 Lac


Above 10Lac


Top Up is charged with 1.25%.

Switch charges:

4 switches are free in a year, thereafter Rs. 100 per switch.


With over 4 fund types and no surrender charges, LIC’s First Child ULIP plan is for those parents who want higher return on their investment along with insurance.

Allocation charges however for Regular premium are quite high in the first year, but in single premium mode it is bit competitive with other insurers.

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