JeevanTarang is a Whole Life Plan from LIC of India that yields regular returns,post its maturity. Policyholder under this plan can choose an Accumulation Period of 10, 15 or 20 years, which is the tenure after which your policy matures. This policy expires when the insured turns 100 and the Sum Assured along with the Loyalty Bonus is paid to the policyholder. It is a with-profits plan that offers 5.5 % of the Sum Assured as Survival Benefit every year after the decided Accumulation Period is over.
The Survival Benefit is paid to the proposer till the 100th year of his age. This policy will keep you covered for your entire life, but the maximum age limit to be covered under this policy is 100.
Benefits of LIC JeevanTarang Policy
Survival Benefits- If the insured person survives till the end of the decided Accumulation Period, an amount equal to 5.5% of the Sum Assured will be paid as Survival Benefit at the end of every year following the year in which Accumulation Period ends. Additionally, a Simple Reversionary Bonus is also payable by the end of the Accumulation Period.
Maturity Benefit - On survival of the policyholder till the age of 100 years, the total Sum Assured in addition with Loyalty Bonus (if any) will be payable.
Death Benefit - The total Sum Assured plus the Vested Reversionary Bonus is payable to the nominee in case of death of the insured life during the Accumulation Period. The nominee becomes eligible for getting the Sum Assured plus the Loyalty Additions(if any) on the death of insured any time after the Accumulation Period.
Highlights of LIC JeevanTarang Policy
It is a with-profits plan that keeps you covered for your entire life and gives regular returns after maturity
The period for which the premium is to be paid is known as Accumulation Period; and the same can be chosen amongst 10, 15 or 20 years by the policyholder
Post Accumulation Period, 5.5% of the Sum Assured is paid annually as Survival Benefit
Optional riders like Term Rider, Critical Illness Rider Premium Waiver Benefit Rider and Accident Death Benefit Rider can be availed with this policy by paying an extra amount
Death Benefit of this policy is equal to Sum Assured + Accrued Bonus + Loyalty Additions (if any)
Surrendering the LIC JeevanTarang Policy
If you are unable to pay the premiums and want to surrender the policy after three years, you would have to select one of the following options:
Make the Policy Paid up - In this scenario, you will get eligible for the Sum Assured as per the ratio between premiums paid and those that are yet to be paid. This value is received either on maturity of the policy or on death of the insured. For instance, you decide to surrender your policy after 6 years for which the Accumulation Period is 15 years and the Sum Assured is 10 lacs. In this case, you would get 4 lacs as the Sum Assured (i.e. 40% of the actual Sum Assured), because premiums are paid for 6 years (i.e. 40% of the total Accumulation Period). Formula for calculating the Paid-Up Value is:Paid-Up Value = (Number of premiums paid / Total number of premiums payable) * Original Sum Assured
Take the Surrender Value – Surrender Value is the amount you receive at time of surrendering the policy. You may get the surrender value in case you have paid the premium for three years.It is equal to 30% of the sum of premiums paid excluding the first year’s premiums, any extra premiums, or premiums paid for optional benefits. The formula to calculate Surrender Value is: Surrender Value = (30% of all premiums paid – 1st year’s premium)
Along with an array of beneficial features, LIC JeevanTarang Policy also offers a loan facility. The rate of interest for this loan is determined by LIC of India and is revised at regular intervals. Presently, the rate of interest for the loan against is 9 % p.a. and is payable half-yearly.
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