LIC Jeevan Tarang policy is a participating policy offered by the LIC that goes in the direction of acting as a savings option. It is essentially a money-back policy that offers cover for the insured up to a hundred years of age. The policy's premium payment term is limited, i.e., even when the policy would offer its benefits until the policyholder is a hundred years old, the policyholder need not pay premiums until then.Read more
This period of time where the customer has to pay their premiums is called the phase of accumulation (Accumulation Phase).
Once the phase of accumulation or amassing is completed, the policyholder or the nominees of the policy would be receiving money-back benefits, which would be paid annually until the death of the policyholder or the maturity period. The policy also offersadditional rider benefits. Further details regarding the policy are discussed in brief in the following sections.
Eligibility Criteria of LIC Jeevan Tarang
To qualify for a life insurance plan, one has to satisfy specific qualifications and requirements of the plan. Every plan has its own conditions and required terms that are necessary for admissibility. The eligibility criteria for the LIC Jeevan Tarang plan, along with the eligibility conditions for availing an accident benefit rider, is listed below-
Minimum age required of the policyholder at the time of entry-
18 years old (age near to birthday)
Maximum age of the policyholder at the time of entry- 60 years old (age near to birthday)
Maximum age of the policyholder required at the time of maturity-100 years old
Maximum age required for when the payment of the premium ends-70 years old (age near birthday)
Duration untilthe life plan is available- 100 years old
Minimum age required at the end of the amassing period-18 years old (completed)
Eligibility criteria for availing an accident benefit rider is noted below-
Minimum age at the time of entry-18 years old (age near birthday)
Maximum age at the time of entry- 60 years old (age near birthday)
Maximum age required for when the payment of the premium ends- 70 years old (age near birthday)
Duration until the life plan is available- 70 years old
Minimum age required at the end of the amassing period- 18 years old (completed)
Benefits of LIC Jeevan Tarang Plan
The benefits offered by the LIC Jeevan Tarang policy are discussed in brief below-
Under Section 80C of the Indian Income Tax Act, the premiums paid for a life insurance cover are written off. The benefits that the LIC Jeevan Tarang policyprovides are also exempted from tax under Section 10 (10D).
*Tax benefit is subject to changes in tax laws. Standard T&C Apply.
When the policyholder survives their hundredth birthday, the policy will offer a maturity benefit, which is an accumulation of the amount that has been assured and applicable loyalty additions.
The vested bonuses, once the phase of accumulation is completed and the premiums have been paid, are payable to the concerned. A year after the amassing period, the money-back feature begins to accumulate. The money-back benefits are calculated to be 5.5% of the sum of money that has been assured in every year of the policy tenure. These accumulated benefits are payable until the policy is matured or until the policyholder passes away, whichever event occurs first.
The customer can avail of additional riders by making additional premium payments. One feature of the rider is the availability of additional coverage that can be exercised when there is a case of unexpected death or injury resulting in disability. If the policyholder passes away due to an accident, the nominees of the policy would be receiving an additional rider amount that has been assured. If the policyholder suffers an injury that results in disability, the nominees would be receiving the amount that has been assured on an installment basis for a period of over ten years. Additionally, the premiums will also be written off
If the policyholder passes away before they reach their hundredth year, the policy calls for a death benefit, payable to the nominees of the plan. The period of death decides the final benefits. If the policyholder passes away during the amassing period, the nominees would be receiving the amount that has been assured along with the simple vested reversionary bonuses. If the policyholder passes away after the amassing period, the nominees would be receiving the amount assured along with loyalty additions, if any.
The Premium Structure of the Plan
The premiums for the LIC Jeevan Tarang plancan be paid monthly, quarterly, half-yearly, annually, or by SSS or the Salary Saving Scheme (the premium would be directly deducted from the policyholder's salary account) and single premium payment mode. This is similar to the other plans offered by LIC. The premium quotes are usually dependent on specific criteria like age, phase of accumulation, selected policy term, amount to be assured, and income.
The following are certain documentation records necessary for availing of theLIC Jeevan Tarang policy-
The following are few general documentation records necessary for raising a claim-
The Process to Buy Online
Customers can now enjoy the services offered by the insurance providers at their comfort. This is possible with the rising developments introduced to their respective digital platforms. Constant effort is being put into making the websites more user-friendly and beginner-friendly. Customers can check their policy status, make their payments, and even purchase a life insurance cover online. The rudimentary steps involved in purchasing a policy online are listed below-
Step 1:From the website of the insurance provider, select a plan that is suitable.
Step 2:Then, select the option that allows for buying the plan.
Step 3:Details regarding personal information (date of birth, name, age, contact details, etc.) and lifestyle (smoking/ drinking habits).
Step 4:Make the payment through one of the secured gateways made available by the insurer.
Key Exclusions of LIC Jeevan Tarang
The LIC Jeevan Tarang policy has its exclusions. If the policyholder passes away by committing suicide, whether they are mentally sane or not, the policy would not be providing the nominees with any of the death benefits except for a partial payment out of the premiums that have been paid.
A1. The minimum amount to be assured for this plan is one lakh rupees, and after that, it has to be in the multiples of five thousand rupees.
A2. This plan allows for a grace period of thirty days for premium payments that go through annually, half-yearly, and quarterly. The grace period available for premiums paid monthly is fifteen days.
A3. Yes, the customer or the policyholder can avail of a loan based on this plan. It is to be noted by the customer that the interest rate can be revised from period to period by the insurance provider.
A4. The customer can revive this policy provided that the Corporation finds evidence regarding the continuation of the policy. The policy can be revived before the expiry of the phase of accumulation and within the first five years from the deadline of the first premium that has been left unpaid. The Corporation has the right to revise the applicable interest rate from period to period.
A5. The customer can return the policy, when found the terms and conditions to be unsatisfactory, to the Corporation within the first fifteen days of the policy tenure. The Corporation also has the right to ask for appropriate reasons from the customer.
A6. The loyalty additions provided by this plan are subject to the Corporation’s experience of the profit and are not pledged.
A7. This policy offers four kinds of riders that can be availed by the customer during the phase of accumulation. They are listed as follows-
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Standard T&C apply.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ