You’ll be quite surprised to know about the recent hikes in the education fees of some of the premier institutes in India – be it Indian Institute of Management (IIM) or Indian Institute of Technology (IIT). The latest course fee structure released by IIM-Ahmedabad shows that it will cost Rs 19.5 lakhs for the 2-year management course in 2018, which is approximately 400% higher than what it used to be in the year 2007. Hence, if we calculate the fees considering this average hike of 20% every year, it will cost around 95 lakhs for this 2-year course in 2025 (which is indeed a huge amount). Similarly, the tuition fee for IIT has been increased to Rs 2 lakhs from the earlier fees of Rs 90,000 per year. At this rate, this fee can go up to as high as Rs 17 lakhs in the next 8 years.
Parents, who haven’t planned well in advance and hence, are not prepared for the huge costs associated with education, can fall worryingly short of the required amount when the time comes. Educating your kids is going to be an expensive affair in India and hence, it’s high time you start planning for the future. The sooner, the better.
LIC's Jeevan Tarun (table - 834) is one plan that can help you secure your kid’s future with a limited pay option. It is an ideal investment plan for securing your child's future against the hardships of life. LIC Jeevan Tarun offers several options for money back and maturity benefits. Be it education, marriage or for any other purpose, LIC’s Jeevan Tarun ensures that your next generation doesn’t have to face any financial problems. The plan offers extensive risk coverage, with a partial-pay option, in which the premium payment term range is shorter than the policy's maturity term.
Some of LIC Jeevan Tarun 's Best Features are :
- Limited premium payment
It states that the premium amounts will be required to be paid only till the child reaches the age of 20 years; the policy will be considered to have matured once your child has reached the age of 25 years. This is a perfect alternative for people, who are concerned about their term investment plans and want an economic yet proficient risk coverage.
- Survival Benefits
The policyholder gets an option to avail special survival benefits for the last five years of his policy's maturity term. The benefit amount depends on the type of benefits chosen at the time of inception of the policy.
- Maturity benefits
LIC JEEVAN TARUN plan offers simple reversionary (long term) bonuses throughout its policy maturity term and a final acquired bonus at the time of its maturity. It also offers death benefits, under which the nominee is awarded with a basic sum assured along with the bonuses.
LIC'S Jeevan Tarun offers 4 options for securing maturity benefits :
- With no survival benefits - the entire sum assured along with vested bonuses is granted to the insured at maturity.
- 5% of basic sum assured for the last five years - 75% of the sum assured along with vested bonuses would be given to the insured.
- 10% of assured sum for the last 5 years - 50% of the assured sum along with vested bonuses returned at maturity.
- 15% of sum assured for the last five years - 25% of the basic sum along with vested bonuses is returned at maturity.
After maturity of the plan, the basic amount along with bonuses is given to the policyholder and the policy ceases to exist thereafter.
- Bonus and rewards - The plan offers long term reversionary bonuses along with survival benefit and maturity benefits.
- In case of death of the premium payer - No more premiums need to be paid for the remaining term of the policy's maturity. The policy will continue to cover the nominee till its maturity, post which the insured will get the basic sum assured and the various bonuses vested to the plan.
- The risk coverage linked to LIC Jeevan Tarun starts from 8 years of age, or 2 years from the plan's inception.
- Sum assured on Death - In case of death of the insured, the sum assured should be at least 10 times the premium amount to be paid, or a maximum of 125% of the sum assured. It should however amount to be a minimum of 105% of the total premium that has been paid till the date
- Additional Riders Benefit Plans - It secures extra risk protection against accidental death /disability of the insured.
Benefits linked with LIC Jeevan Tarun plan :-
- Maturity Benefits - At the time of maturity, the plan will return the basic sum assured along with the vested long term reversionary bonuses and final acquired bonus. The bonus rates will be declared and set by LIC of India in every financial year.
- Survival Benefits - This plan offers a unique facility, which is to collect a certain amount of money as survival benefits in each of the last 5 policy covering years, under the condition that the insured survives the policy tenure. The rates to be awarded can be decided at the time of setting up the policy.
- Death benefits - In case of the death of the insured, the basic assured amount along with the vested simple reversionary and final acquired bonuses would be granted to the nominee. The assured sum should be at least ten times the premium paid, per month, quarter or year.
- Rider Benefits Plan - LIC's Premium Waiver Benefit Rider plan can be merged with this plan, in order to secure extra risk coverage against accidental death / disabilities of the insured.
- Grace period - A standard grace period of 30 days is granted in case of nonpayment of premium(s), post which the policy will lapse.
LIC Jeevan Tarun plan gives you the chance to protect your kids if something unpleasant happens and you are not there to look after them. Remember the old proverb, a stitch in time saves nine? Well, this stitch in time can help you make your child’s dreams come true.
- Most Read
- Why Should Everyone Have At least Two Term Insurance Plans?
Date: 19 June 2018
- Who Should be Your Nominee for Your Term Insurance?
Date: 19 June 2018
- 10 Risky Cities in India Where One Must Have Life Insurance
Date: 19 June 2018
- Life Insurance is for Poor, Middle Class or Rich People?
Date: 18 June 2018
- Claim Settlement Ratio of Term Insurance Plans Providers
Date: 12 June 2018
- Best 5 LIC Policies To Invest in 2018
Views : 1449336
- How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Views : 1386805
- A Quick Guide To Post Office Monthly Income Scheme
Views : 561172
- Best Term Insurance Plans in India with Claim Settlement Ratio
Views : 558518
- National Pension Scheme (NPS) – Govt Approved Pension Scheme
Views : 413721