LIC’s Jeevan Tarun is a participating, non linked endowment plan. This conventional plan comes with the option of limited pay for children who are up to the age group of 12 years. LIC’s Jeevan Tarun not only offers protection but also provides a saving component for the child’s future financial needs.
In today’s time when education costs are at an all-time high, planning the children’s higher education, professional training and their wedding may often seem like a herculean task. The aim of building this plan is to help parents save money in order to provide a bright future to their child. The growing financial requirements of a child can be met as LIC’s Jeevan Tarun Plan provides yearly survival benefits between the age of 20 to 24 of the insured child. The maturity benefit at the age of 25 can also really help the family.
|Entry Age||90 days||12 years|
|Maturity Age of Child||-||25 years|
|Maturity Age of Proposer||-||No limit. Except in case of Premium Waiver Benefit.|
|Policy Term||25-entry age of child|
|Premium Paying Term||8||20|
|Sum Assured||INR 75,000||No Limit|
Here are the details of the premium amount.
|Age at Entry||5 years|
|Mode of Premium payment||Yearly|
|Premium Paying Term||20 years|
|Basic Sum Assured||INR 1 lakh|
|Policy Term||20 years|
|Amount of Annualised Premium||INR 6375/-|
Death Benefit = Sum Assured on Death + accrued Simple Reversionary Bonus + Final Additional Bonus if any.
Where Sum Assured on Death is the higher of
Subject to a minimum of 105% of the premiums that have been paid.
If the insured lives until the policy term, then a pre-defined schedule of payment would be received on every policy anniversary after the child is 20 years of age. This policy has been designed to meet the financial requirements of the child’s higher education expenses.
The policyholder can select any of the 4 options, given below, at the time of purchasing the policy. Thereafter, the option will be made a part of the plan contract and making any changes will not be allowed.
|Option 1||No Survival Benefit|
|Option 2||5% of Sum Assured every year for 5 years|
|Option 3||10% of Sum Assured every year for 5 years|
|Option 4||15% of Sum Assured every year for 5 years|
Depending on the Survival Option chosen, the Maturity Benefit is given.
When the insured individual outlives the specified age of maturity, he receives a pre-decided percentage of sum assured, if the policy is active. Along with the maturity benefit, vested Reversionary Bonus and Final Additional Bonus is also paid at the time of policy maturity.
|Option 1||100% of Sum Assured|
|Option 2||75% of Sum Assured|
|Option 3||50% of Sum Assured|
|Option 4||25% of Sum Assured|
Survival and Maturity Benefit Schedule
|Survival Option Selected||Survival Benefit paid||Maturity Benefit received|
|Option 1||No Survival Benefit||100% of the Sum Assured + accrued Simple Reversionary Bonus + Final Additional Bonus|
|Age 20 = 5% of the Sum Assured|
|Age 21 = 5% of the Sum Assured|
|Option 2||Age 22 = 5% of the Sum Assured||Age 25 = Remaining 75% of the Sum Assured + accrued Simple Reversionary Bonus + Final Additional Bonus|
|Age 23 = 5% of the Sum Assured|
|Age 24 = 5% of the Sum Assured|
|Age 20 = 10% of the Sum Assured|
|Age 21 = 10% of the Sum Assured|
|Option 3||Age 22 = 10% of the Sum Assured||Age 25= Remaining 50% of the Sum Assured + accrued Simple Reversionary Bonus + Final Additional Bonus|
|Age 23 = 10% of the Sum Assured|
|Age 24 = 10% of the Sum Assured|
|Age 20 = 15% of the Sum Assured|
|Age 21 = 15% of the Sum Assured|
|Option 4||Age 22 = 15% of the Sum Assured||Age 25 = Remaining 25% of the Sum Assured + accrued Simple Reversionary Bonus + Final Additional Bonus|
|Age 23 = 15% of the Sum Assured|
|Age 24 = 15% of the Sum Assured|
Participation in Profits
LIC’s Jeevan Tarun participates in the profits of the Corporation, therefore the policy holder receives the Simple Reversionary Bonus and may also receive a final additional bonus. This amount is received when the claim for death benefit or maturity benefit is made and the policy is active.
LIC’s Premium Waiver Benefit Rider
LIC’s Jeevan Tarun Plan also offers LIC’s Premier Waiver Benefit Rider. The Rider is available for the proposer.
Under the Premium Waiver benefit Rider, if the proposer dies within the policy tenure, the premiums due after the date of death till the end of the policy tenure would be waived off but the policy would continue to pay the benefits as per schedule.
The premiums that are paid, irrespective of the payment frequency, are tax-free, under Section 80C of the Income Tax Act. Also, for the Death Benefit as well as the Maturity Benefit that is received, the policyholder does not have to pay any taxes as they are tax-free under Section 10 (10 D).
Here are the details of the premium amount for the following particulars :
Sample premium rates
|Age at Entry||Option 1||Option 2||Option 3||Option 4|
|0 years||44.80/INR 1000 Sum Assured||45.80/INR 1000 Sum Assured||46.80/INR 1000 Sum Assured||47.80/INR 1000 Sum Assured|
|4 years||55.95/INR 1000 Sum Assured||57.50/INR 1000 Sum Assured||59.00/INR 1000 Sum Assured||60.55/INR 1000 Sum Assured|
|8 years||75.65/INR 1000 Sum Assured||78.00/INR 1000 Sum Assured||80.40/INR 1000 Sum Assured||82.75/INR 1000 Sum Assured|
|12 years||112.70/INR 1000 Sum Assured||116.65/INR 1000 Sum Assured||120.60/INR 1000 Sum Assured||124.60/INR 1000 Sum Assured|
Rebates and Discounts : This policy offers a rebate in premium for Annual and Semi-Annual modes and a discount in premium for high sum assured.
|Annual Mode||2% of Tabular premium|
|Half-yearly Mode||1% of Tabular premium|
|Quarterly and Monthly||NIL|
High Sum Assured Discount
|INR 75,000 to INR 1,90,000||NIL|
|INR 2,00,000 to INR 4,90,000||2/1000 of Basic Sum Assured|
|INR 5,00,000 and above||3/1000 of Basic Sum Assured|
So, the premium for a 4-year-old child can be calculated as:
|Age at Entry||4 years|
|Option Selected||2, i.e. 5% of Survival Benefit|
|Mode of Premium payment||Yearly|
|Policy Tenure||21 years (25 - Age at entry of the child)|
|Premium Paying Term||16 years (20 - Age at entry of the child)|
|Basic Sum Assured||INR 1 lakh|
|Premium calculation||57.5/1000*100000= 5750|
|Amount of Annualised Premium||INR 5635.00 (after all the discounts and rebates) + taxes|
The policy has a Guaranteed Surrender Value when at least 3 years’ annual premium has been duly paid and the policy gets a paid-up value.
Guaranteed Surrender Value = % of Total Premium Paid till the date of Surrender
Revival Of Lapsed Policy
Non-payment of premium can lead to a lapsed insurance policy. If the due payment is not paid even during the grace period then the policy will lapse. However, LIC provides the policyholder with an option to receive the policy during its lifetime but within 2 subsequent years from the first unpaid premium date. The right to accept the original terms of the policy remain with LIC.
Free Look Period
The free-look period helps the new customers a period of 15 days to decide if the plan suits their requirements. Stating the reason of objection the policy may be returned within 15 days of buying the policy. Once the request is received, LIC will cancel the policy and the Premium Amount minus the Expenses Incurred will be returned.
Once the policy reaches its third anniversary a loan can be availed. The loan however, has to be as per the surrender value that has been accumulated. The rate of interest, as well as other terms and conditions, are declared by LIC itself.
The plans that have a premium paying tenure of fewer than 10 years, and the policyholder has paid less than 2 years’ due premium, the policy will be terminated. In case of plans with more than 10 years of premium paying tenure, if less than 3 years premium is paid, then after the grace period is over the plan would be terminated. No amount will be payable to the policyholder after this.
LIC’s Jeevan Tarun is an endowment plan aimed at securing the future of a child by saving for his education and career needs. The flexibility the plan offers makes it very convenient for different customers who have different plans for their children. The bonuses, as well as the Waiver Benefit rider, make the plan an excellent choice when planning to invest in a child benefit plan.
In case the insured individual is below 8 years of age, the risk under LIC’s New Children’s Money Back Plan will start a day before the plan completes 2 years or a day before the plan anniversary that follows the 8th birthday of the insured, whichever date is earlier.
Yes, if your plan is active and you have paid all your premiums regularly, you are eligible for a loan. The loan will be in accordance with the surrender value that has been accumulated.
You must revive your plan within two years of the first unpaid premium date. LIC reserves its rights to reinstate the same terms and conditions at the time of revival.
At the time of buying the policy, the policy holder can select a frequency that is convenient to him. It can be on a monthly, quarterly, half yearly or yearly basis.
Yes, you can purchase the plan. However, you will have to submit an Ancestral Proof, when buying the plan.
Yes. The premiums that you pay, irrespective of the payment frequency, are tax-free, under Section 80C of the Income Tax Act. Also, for the Death Benefit as well as the Maturity Benefit that you receive, you do not have to pay any taxes as they are tax-free under Section 10 (10 D).
Generally, maternal relatives cannot be the proposer. Also, the maximum age for availing Premium Waiver Benefit is 55 years.
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