Premium Estimate
This premium is an illustrative scaling of the brochure’s single published example. The supplied PDF does not contain a complete age/term premium-rate table, so this cannot be treated as an official LIC premium quotation.
Benefits at Vesting / Maturity
Death Benefit
The brochure states that after the deferment period, Sum Assured plus vested bonuses is payable on death. Before the deferment period, all premiums paid are refunded.
Surrender Estimate
Guaranteed surrender value before the Deferred Date is 90% of premiums paid excluding the first year’s premium. LIC may pay a Special Surrender Value equal to or greater than the guaranteed value.
The LIC CDA Endowment Vesting At 21 Plan 41 was a distinctive child insurance policy offered by the Life Insurance Corporation of India (LIC). The plan was designed to help secure a child’s financial future by transferring the policy benefits to the child when they reached the age of 21.
Introduction
The LIC CDA Endowment Vesting At 21 Plan 41 was specially created to help parents and guardians build financial security for their children until they reached adulthood. Its structure combined savings with insurance-related benefits and provided a lump-sum amount at maturity.
The policy was among the child-oriented insurance products available to Indian families before LIC withdrew it on November 16, 2013.
Key Features and Plan Structure
What is LIC CDA Endowment Vesting At 21 Plan 41?
This plan was an endowment assurance policy offered under the Children’s Deferred Endowment Assurance category. Its primary purpose was to encourage savings and provide insurance protection for a child, with the policy vesting when the child reached 21 years of age.
Who Can Take This Policy?
The policy could be purchased by a parent, legal guardian, or close relative of the child, who acted as the proposer.
The child was treated as the life assured under the policy. However, the life insurance protection on the child’s life began only after the policy vested at age 21.
Policy Stages
The plan was divided into two major stages:
Deferment Period
This period began when the policy was taken and continued until the child reached 21. Premiums were paid during this period, but insurance coverage on the child did not begin until the vesting age.
Post-Vesting Period
The second stage started once the child reached 21 years of age. At this point, the child became the owner of the policy and the applicable insurance protection continued until the maturity date.
Plan Details: Eligibility, Terms and Premiums
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age (Child) | 0 years | 17 years |
| Age at Maturity | 30 years | 60 years |
| Policy Term | 13 years | 50 years |
| Sum Assured | ₹50,000 | ₹1 Crore |
| Premium Payment Modes | Yearly / Quarterly / Half-yearly / Monthly | — |
Additional points include:
- No loan facility was available under this policy.
- Premiums could be paid at different frequencies, providing flexibility to policyholders.
Launch Date and Withdrawal Date
Launch Date
A specific launch date for Plan 41 is not widely documented. However, the policy was available well before its withdrawal and was actively sold during the 2000s and early 2010s.
Withdrawal Date
LIC officially withdrew the CDA Endowment Vesting At 21 Plan 41 on 16th November 2013.
Therefore, new policies can no longer be purchased under this plan code. However, existing policyholders continue to have the contractual rights associated with their policies.
For further verification, refer to LIC’s withdrawn plans information.
Benefits and Payout Scenarios
Maturity Benefit
- If the child survives until the maturity date, the Sum Assured along with accumulated bonuses is paid.
- Simple reversionary bonuses are declared periodically based on LIC’s annual profits. Once declared, these bonuses become guaranteed benefits.
Death Benefit
During the Deferment Period
If the child dies before reaching the vesting age of 21, the premiums paid are refunded to the proposer, sometimes along with applicable interest or bonuses.
After Vesting
Once the policy has vested, full insurance protection becomes applicable. In the event of death, the Sum Assured plus declared bonuses are payable.
This arrangement provides financial protection after the child enters the post-vesting stage.
Premium Waiver Option
If the proposer dies during the deferment period, the policy can continue with future premiums waived, provided the Premium Waiver rider was selected.
Under this option, the child can continue to receive the policy benefits at vesting or maturity without the remaining premiums having to be paid.
Surrender Benefit
The policy could be surrendered after premiums had been paid for three years.
Depending on the timing and applicable policy provisions, the surrender payment could be based on either the Guaranteed Surrender Value or Special Surrender Value.
| Stage | Surrender Value Calculation |
|---|---|
| Stage I (before vesting) | 90% of premiums paid, excluding the first-year premium |
| Stage II (after vesting) | Based on additional premiums paid and the applicable policy tenure |
LIC CDA Endowment Vesting At 21 Calculator: How Does It Work?
A calculator designed for this plan can help estimate several important policy values, including:
- Yearly or total premium payable.
- Expected maturity amount, consisting of the Sum Assured and projected bonus.
- Possible death benefit scenarios.
- Surrender value.
- Effect of selected riders, such as premium waiver or accidental benefits.
Required Inputs
To calculate the estimated benefits, the following information may be required:
- Child’s current age.
- Required Sum Assured.
- Premium payment frequency: yearly, half-yearly, quarterly, or monthly.
- Desired policy term.
- Optional rider selection.
Output Provided
Depending on the calculator, the results may include:
- Premium amount according to the selected payment mode.
- Estimated maturity amount based on applicable bonus rates.
- Surrender value after three years.
- Death benefit at different stages of the policy.
- Impact of selected riders.
These calculators use formulas based on information provided in LIC brochures and related official documentation. The official brochure can be referred to for more detailed technical information.
External Calculator Example
Legacy LIC plan resources and websites such as BankBazaar and PolicyBazaar may provide calculators and guides related to child endowment insurance plans.
Step-by-Step Calculation: Sample Scenario
Consider the following example:
- Child’s age: 5 years
- Sum Assured: ₹1,00,000
- Premium frequency: Yearly
- Policy term: 16 years
Steps
- Refer to the LIC premium chart for Plan 41 and enter the child’s age and selected Sum Assured.
- The calculator provides the estimated yearly premium, projected lump-sum maturity amount including bonus, surrender values, and death benefits applicable at different stages of the policy.
This calculation process helps parents understand the potential financial returns and protection provided by the plan.
Advantages and Unique Aspects
The LIC CDA Endowment Vesting At 21 Plan 41 offered several notable features:
- Helped secure funds for important future requirements such as education and marriage by vesting the policy at age 21.
- Combined savings and insurance protection in a single plan.
- The simple reversionary bonus structure could help increase the maturity corpus over time.
- Optional riders, including Premium Waiver and Accidental Benefit, provided additional protection for the family.
Limitations and Points to Consider
There are several important points to remember:
- Withdrawn plan: The policy has not been available for new purchases since 16 November 2013.
- No loan facility: Policyholders could not take loans against the policy.
- Surrender value: The surrender amount was not equal to the full Sum Assured and represented only the applicable percentage based on policy conditions.
- Bonus rates: Bonuses were not guaranteed in advance and depended on LIC’s profitability, although the source notes that they had historically been stable.
FAQs: LIC CDA Endowment Vesting At 21 Plan 41
What is LIC CDA Endowment Vesting At 21 Plan 41?
It was a children’s endowment insurance plan in which a parent or guardian purchased the policy in the child’s name. The policy vested or transferred to the child when they reached 21 years of age, helping provide financial support for major future milestones such as higher education or marriage.
Who can purchase this plan?
The policy could be purchased by a parent, grandparent, or close relative of a child aged between 0 and 17 years. The child became the policy owner after reaching the vesting age of 21.
When does the life insurance cover start?
The life insurance protection on the child began after the child turned 21. Before that age, the policy primarily functioned as a savings-oriented arrangement.
What happens if the child dies before vesting age (21)?
If the child, who was the life assured, died before reaching 21, LIC refunded the premiums paid, sometimes with applicable bonuses. The Sum Assured was not payable before vesting.
What is the maturity benefit at the end of the policy?
At maturity, the child receives the Sum Assured together with accumulated bonuses as a lump-sum benefit. This can provide funds for important future financial requirements.
Are there any additional benefits or riders?
Yes. The plan offered optional riders such as the Premium Waiver Benefit (PWB) and Accidental Benefit Rider.
The Premium Waiver Benefit could ensure that if the proposer died before the child reached 21, the remaining premiums would be paid under the rider provisions so that the policy could continue toward vesting and maturity.
Conclusion
The LIC CDA Endowment Vesting At 21 Plan 41 was a distinctive child insurance product that combined disciplined savings with insurance-related protection for Indian families.
Although LIC has withdrawn the plan and it is no longer available for new purchases, understanding its structure, benefits, calculation process, surrender provisions, and vesting mechanism remains useful for existing policyholders.
It can also help individuals researching similar child-focused insurance products understand how older LIC plans were structured and compare their features with products available in LIC’s current portfolio.
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