LIC Jeevan Tarun Plan

LIC Jeevan Tarun is a non-linked, participating, individual, life insurance saving plan that offers a dual feature of life protection and savings. The death benefit is provided in case of a casualty of the life assured. This plan provides survival benefits from the age of 20-24 years that works as a financial backup to plan the quality education of your child. Also, an attractive maturity benefit is provided at the age of 25 years with simple reversionary bonuses and a final additional bonus. The proposer (parent or someone who’s buying the policy for the child) gets the flexibility to choose the proportion of Survival Benefit during the definite policy years.

Below mentioned are the key highlights of the Jeevan Tarun Plan from LIC of India.

• Policy Type

  Child Plan

• Proposer

  Parents or Grandparents

• Revival

  Within 5 Years of Lapsed Policy

• Entry Age

  90 Days - 12 Years

• Free-Look Period

  15 Days

• Premium Payments

  Yearly/ Half-Yearly/ Quarterly/ Monthly

To buy LIC Jeevan Tarun for your child, you need to consider the following eligibility criteria

• Maturity Age

  25 Years

• Sum Assured

  Rs. 75,000 - No Limit

• Policy Term

  [25 - Age at Entry] Years

• Policy Paying Term

  [20 - Age at Entry] Years

LIC Jeevan Tarun is specially designed to fulfil your saving needs so that you can provide a bright future for your child and protect your child from any uncertainties of life. It offers significant benefits during the crucial years of your child’s life. Jeevan Tarun 934 provides the following benefits

Death Benefit

The risk cover is provided on the life of your child, not on the proposer. If the life assured dies during the policy term and all the premiums are duly paid, then the death benefit under LIC Jeevan Tarun is payable as follows

On Death Before the Date of Commencement of Risk: The total premium amount paid without any interest is refunded after deducting taxes, extra premium, and rider premium.

On Death After the Date of Commencement of Risk: The Death Benefit defined as Sum Assured on Death is paid along with Simple Reversionary Bonuses and a Final Additional Bonus (if any). Where the Sum Assured on Death is higher of

• 7 times of Annualised Premium, or
• 125% of Sum Assured

Provided, the Death Benefit is not less than 105% of total premium paid upto date of death.

Survival Benefit

The beneficiary gets a fixed percentage of the Sum Assured on each policy anniversary on or after the completion of 20 years of age and thereafter upto 24 years. This survival benefit is the fixed percentage as per one of the four options selected by the proposer at the time of issuance of the policy. The four various options are given as

This selected option is included in the policy document, and no changes are allowed thereafter.

Maturity Benefit

Say, the life assured survives the whole policy term, i.e., outlives the Maturity Age of 25 years; a Sum Assured on Maturity is provided along with vested Simple Reversionary Bonuses and a Final Additional Bonus (if any). The Maturity Benefit is provided as a fixed percentage of the Sum Assured as per the option selected by the proposer at the time of issuance of the policy.

Participation in Profits

The policy participates in the profits of LIC of India and receives Simple Reversionary Bonuses as per the experience of the corporation. A Final Additional Bonus is declared on the claim of the policy either by death or maturity, provided the policy should not be a paid-up policy.

After going through the benefits available, you must want to know how the plan work, how much of premium you need to pay, and what benefits you can acquire under the plan. Let’s understand this with an example.

Say, Krunal wants to buy Jeevan Tarun Plan for his child from the Life Insurance Corporation of India. He buys the policy for a Sum Assured of Rs. 1 lakh for standard life.

LIC Jeevan Tarun Plan Premium Chart

The premiums under the plan vary as per the option selected by the proposer and are payable as under

* All the premiums mentioned above are exclusive of taxes. You can use the LIC Jeevan Tarun calculator online, available on LIC of India official website, to calculate premiums for your individual plan needs.

** All the data mentioned above are provided from official LIC sources.

LIC Jeevan Tarun Benefits Chart

Consider the following scenario to understand the benefits secured by Karthik clearly

• Age of Child

  5 years

• Option Selected

  Option IV

• Policy Term

  20 years

• Premium Paying Term

  15 years

• Premium Paying Mode

  Yearly

• Sum Assured

  Rs. 1 Lakh

• Premium (Excluding Taxes)

  Rs. 6,375

The Life Insurance Corporation of India offers the following benefits under different scenarios (the rider is not opted)

* All the data mentioned above are provided from official LIC sources.

To extend the policy benefits, the proposer can avail of the following optional benefits under LIC Jeevan Tarun.

Rider Benefits

The proposer can purchase LIC’s Premium Waiver Benefit Rider on his/her own life at any policy anniversary during the policy term. The rider purchase is only allowed if the outstanding premium paying term of the base policy and the rider is of at least 5 years. If the rider is selected, in case of the unexpected death of the proposer, the payment of the base policy premiums due on or after the death till the expiry of the rider term is waived.

Receive Death Benefit in Instalments

If the proposer selects this option, the nominee receives the death benefit in instalments rather than a lump sum amount for 5 to 10 years. Once the option is selected, the nominee cannot make any changes. The minimum instalment amount for different modes of payment is applicable as

Settlement Option for Maturity Benefit

If the proposer or the Life Assured (aged 18 and above) selects the option, the Life Assured can receive the full or part of the maturity benefit in instalments rather than in a lump sum amount. The instalments are paid through the chosen period of 5 or 10 or 15 years in advance at yearly, half-yearly, quarterly, or monthly intervals, as selected by the proposer mentioned below

The LIC Jeevan Tarun Plan offers underlying additional benefits that make the plan flexible and preferable to invest in. Let’s have a look at them.

Flexibility of Premium Payment

The proposer can select the premium payments option at yearly, half-yearly, quarterly, and monthly (through NACH or salary deductions) modes over the premium paying term.

Grace Period

The plan offers a grace period to make the missed premium payments from the date of first unpaid premium. In case, the premium is not paid within the grace period, the policy lapses. The grace period is mentioned as

Revival

You can revive a lapsed policy within a period of 5 following years from the date of the first unpaid premium. The policy shall be revived after paying all the outstanding premiums with interest. The revival of the riders (if any) is only considered along with the revival of the base policy and not in isolation.

Rebates

The Life Insurance Corporation of India bids Rebates under Jeevan Tarun to enhance the policy benefits in the following manner.

1. Rebates on Premium Payment Mode

2. Rebates on High Sum Assured

Paid-up Policy

If at least two full years’ premium is duly paid and subsequent premiums are not paid, the policy continues as a paid-up policy till the end of the policy term. Under a paid-up policy, the Sum Assured on Death reduces to a sum called Death Paid-up Sum Assured and Sum Assured on Maturity reduces to a sum called Maturity Paid-up Sum Assured.

Policy Surrender

If two years of premiums are duly paid, the policy can be surrendered anytime and acquires the surrender value. On surrender of the policy, the corporation is entitled to pay a surrender value equal to the higher Guaranteed Surrender Value or Special Surrender Value.

Policy Loan

If the proposer has duly paid the premiums for at least two years, the policy is eligible to avail of the loan under the following conditions

For in-force policies: Up to 90% of Surrender Value

For paid-up policies: Up to 80% of Surrender Value

Free-Look Period

Suppose the policyholder is not satisfied with the policy’s terms and conditions. In that case, they can return the policy to the corporation within 15 days from the date of receipt of the policy document. The policyholder needs to state the reasons for objections to receiving the policy. The corporation shall cancel the policy and return the amount of the premium deposited after deducting applicable charges.

Tax Benefit

The LIC Jeevan Tarun provides tax exemption for the premium paid under Section 80C and on benefits received under Section 10D of the Income Tax Act, 1961.

Suicide is excluded from receiving any benefits under Jeevan Tarun as per the conditions specified

• If the life assured commits suicide within 12 months from the date of commencement of risk, the corporation provides a claim amount of 80% of the total premium paid. Applicable only if the entry age of the life assured is above 8 years.
• If the life assured commits suicide within 12 months from the revival date, an amount higher of 80% of the total premium paid till the date of death or Surrender Value available as of the date of death. Applicable only if the age of life assured is above 8 years at the time of revival. Nothing is payable under a lapsed policy.

By now, you must have gained a fair understanding of the working process and benefits available under the LIC’s Jeevan Tarun Plan. Being the life protection plan, Jeevan Tarun keeps your child financially protected against any unfortunate event. Moreover, your child gets survival benefits from 20 to 24 years of age as per the option selected by you (proposer/parent). When the policy matures after the completion of the policy term (when the life assured turns 25), they are eligible to get the maturity benefit that can secure their education, career, and even business plans.

With the triple benefits available under the policy, the Jeevan Tarun Plan from LIC of India becomes a preferable option to invest for parents who want to see their children financially secure in future. Still, facing difficulty in making a decision? Life Insurance Corporation of India offers 24X7 customer support, or you can visit the nearest LIC branch directly. Why not connect with one of the experts at RenewBuy and make buying a child insurance plan easy?