LIC Jeevan Tarun Plan

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LIC Jeevan Tarun Plan is a participating Endowment Plan with limited pay option which can be an option for a child up to 12 years of age. There are 4 options of maturity benefit in this child plan and can be opted for money back options as well. This is a Life Insurance Plan for the benefit of a child’s higher education.

LIC Jeevan Tarun - Key Features

  • This is a Participating Limited Pay Traditional Plan
  • Premium needs to be paid till the child is 20 years old while the policy continues till the child completes 25 years of age
  • The risk cover on the child starts after he completes 8 years of age or 2 years from date of policy commencement, whichever is earlier
  • There are 4 options for choosing maturity benefit:

Options

Survival Benefit

Maturity Benefit

Option 1

No Survival Benefit

100% of Sum Assured + vested Bonuses

Option 2

5% of Sum Assured paid every year for the last 5 policy years

The remaining 75% of the Sum Assured is paid + vested Bonuses

Option 3

10% of Sum Assured paid every year for the last 5 policy years

The remaining 50% of the Sum Assured is paid + vested Bonuses

Option 4

15% of Sum Assured paid every year for the last 5 policy years

The remaining 25% of the Sum Assured is paid + vested Bonuses

 

  • In this plan, the premium needs to be paid till the child is 20 years old, but the policy continues till he is 25 years old. Thus the last 5 years, when the payout can be taken, the premium does not need to be paid, but the policy continues till its maturity, i.e. the child is 25 years old. Thus, this plan is a Limited Payment Policy.
  • The remaining Sum Assured along with vested Bonus, if any would be payable to him on the maturity of the policy as Maturity Benefit and the policy would terminate
  • The Sum Assured on Death has been defined as the higher of 10 times the Annualized Premium or 125% of the Sum Assured, whichever is higher, subject to a minimum of 105% of total premium paid till date.

LIC Jeevan Tarun Plan Benefits

Bonus: This is a participating policy as the policyholder gets Final Additional Bonus and Simple Reversionary Bonuses.

Survival Benefit:If the policyholder survives till the maturity age, then a certain % of the Sum Assured is given to the policyholder as Survival Benefit in the last 5 years, and the policy remains active as per the schedule was chosen at the policy inception.

Maturity Benefit:If the policyholder survives the complete tenure of the policy, then the amount left over of the Basic SA plus the bonuses acquired are paid to the policyholder as per Maturity Benefit, and thus the policy gets terminated.

Death Benefit:In case of sudden demise of the policyholder during the tenure of the policy, the Sum Assured at the time of Death along with the acquired Bonuses are paid to the person nominated by the policyholder. This does not depend on the amount paid as a survival benefit. Sum Assured is the higher of:

  • 125% of the Sum Assured chosen while taking the policy .
  • 10 times of annualised premium as being paid.
  • Subject to a minimum of 105% of the total premiums paid as on date of death. 

Rider Available With Jeevan Tarun Policy:

LIC’s Premium Waiver Benefit Rider: Under the LIC’s Premium Waiver Benefit Rider, future payments of the premiums are waived off in case of an unforeseen demise of the subscriber (the one who makes payments of the premiums).

Policyholder gets to leverage on mode of payment for yearly and half-yearly premium payments.

Income tax benefit on the premium paid to the policyholder under Income Tax Act since the basic Sum Assured is 10 times the Annualized Premium.

LIC Jeevan Tarun - Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday) of Child

90 days

12 years

Maturity Age (Last Birthday) of Child

-

25 years

Maturity Age (Last Birthday) of Proposer

-

No Limit unless Premium Waiver Benefit rider has been opted for

Policy Term (PT) in years

25 – Age at entry of the child

Premium Paying Term (PPT) in years

8

20

Premium Paying Frequency

Annual, half-yearly, quarterly and monthly

Sum Assured

Rs 75000

No Limit

       

 

Policy Details of LIC Jeevan Tarun Plan

Grace Period:

To pay the premium, the policyholders have the leverage of 30 days to pay the premium. Now, if the policyholder does not make the payment within these 30 days, then the policy lapses.

Free Look Period:

This plan gives the policyholder a period of 15 days to think about whether they wish to continue the plan or not. This gives you an option to cancel the policy within this time period if the policyholder has made no claim.

Exclusions

If the policyholder commits suicide within 12 months of the taking up the policy, then the nominee receives around 80% of the premium. If the policyholder commits suicide within 12 months of the revival period, then the Surrender Value or 80% of the premiums paid by the policyholder is received.

Documents Required

In order to take the policy, you need proper documents supporting your application.  Following are the documents you require:

  • Medical history
  • Address proof
  • Know your customer documents
  • Medical examination (depending on your age or the sum assured) 

You may also like to read: LIC India Child Insurance Plans

Frequently Asked Questions:

Q: How can I revive my policy?

Answer: The policy can be revived within 2 years from the date of first unpaid premium.

  • Make sure to pay all the premiums.
  • LIC also provides the right to reinstate the policy on the same terms or on revise terms at the time of revival.
  • The riders can also be revived along with the base policy and there is no other treatment for it. 

Q: Can I get a loan against this policy?

Answer: Yes, you can get a loan if your policy has acquired a Surrender Value.

Q: What are the bonuses offered by this plan?

Answer: The policyholder shares the profits of LIC as this is a participating plan so as to receive Simple Reversionary Bonuses which are declared according to the experience of LIC.