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Nath Balakrishnan

LIC's Jeevan Kishore is a deferred endowment plan for children.

Under child plans, the parent is usually the policyholder; in the case of this particular plan, the life insured is that of the child and the parent or the guardian is the proposer.

Plan features: A child between the ages of one and 12 is entitled to take up this plan. Risk cover, however, commences either after the completion of two policy years or when the child completes seven, whichever is later.

Thus, if one chooses to go in for this plan when the child is four, risk cover would commence only three years later, when the child completes seven.

This criterion would be applicable when the plan is taken for children between the ages of one and 10.

If the child is 11 at the time of taking the plan, risk cover would commence on the completion of the first policy anniversary.

Death benefit: If the child were to die during the waiting period, which is the period between signing up for the policy and the commencement of the risk cover, all the premiums paid would be refunded.

Should the child's death occur after risk cover has commenced, the sum assured along with the vested bonuses and final bonus, if any, would be paid out.

The bonus for the waiting period will vest immediately on the policy anniversary at which risk cover commences, or five years from the commencement of the policy, whichever is later.

On survival of the child till maturity, the sum assured, the accrued bonuses and the final bonus (if any) would be paid out to him.

What if the proposer dies? To keep the policy in force, premiums will have to be paid.

However, premiums need to be paid after the proposer's death if the waiver of premium rider has been chosen, and the policy will continue to remain in force.

Loans: No loan can be taken against this policy.

Other features: The child becomes the policy owner on completion of the age of 18.

The child is also eligible to an accident benefit commencing from the policy anniversary following the completion of the age 18; the premium outgo to avail of this benefit would be Re 1 per thousand of the sum assured.

Suitability: The duration of such plans should be chosen in such a manner that the maturity coincides with a milestone in the child's life, such as commencement of college education or marriage.

Going in for such a plan when the child is young also makes sense, as the premiums to be paid would be lower.

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