LIC International Professional Education Plan Review

LIC International Professional Education Plan Review

LIC International is the life insurance company promoted by LIC India for NRIs living in Gulf Countries.

Key Features

Minimum Sum Assured:US $ 5,000

Maximum Sum Assured:US $ 100,000

Minimum age at entry:0 years (Last Birthday)

Maximum age at entry:13 years (Last Birthday)

Maximum Maturity Age:23 Years (Last Birthday)

Terms allowed:23 – Age of Child

Premium Paying Term:Full term(18 Yrs – age of child), Limited Term of 5 Years and Single

Mode of payment:Monthly, Quarterly, Half-Yearly, Yearly and Single

Minimum premium:US$100 per year, half-year or quarter

The Premium Payment

It is a unique plan and is open to children up to the age of 13. However, a child aged above five years will be granted the plan if he/she is school going and if certified school certificate is provided.
The premium payment shall cease on the policy anniversary falling after child attains the age of 18 years. Alternatively, premium can be paid off in five years term also. It is a unique plan which operates as a life insurance policy on the life of the child from the policy anniversary after the child attains the age of seven or two years from the date of commencement of the policy, whichever is later.
The premium can be paid in yearly, half-yearly and quarterly installments. You can also opt for making the payment by a single premium or within a limited period of five years. You can select a policy for your children ranging from US$ 5000 to US$ 100,000 keeping in view the money required at the given point of time.

My Opinion

In my opinion, rather than going for Insurance cum investment financial product, it is advisable to go for pure term life insurance with equity mutual funds.

The amount that you are going to invest in this child education plan can be invested in some good equity diversified mutual fund via SIP route after buying a pure term life insurance from LIC will be more beneficial in the long run and build much more corpus on the 18th birthday of your child rather than this plan.

Term Insurance + Equity mutual funds is the best combination for the long term wealth building in my opinion.