LIC Jeevan Tarun Plan: Securing Your Child’s Financial Future

LIC’s Jeevan Tarun is a distinctive participating non-linked limited premium plan designed to provide a balanced combination of protection and savings for your child. This plan is crafted to meet your child’s educational and financial needs, ensuring a secure future. It offers annual survival benefits from ages 20 to 24 years and a Maturity Benefit at the age of 25 years. What sets Jeevan Tarun apart is its flexibility, allowing policyholders to choose how they want to receive survival benefits.

Survival Benefit Options

This plan offers several options for survival benefits, allowing you to customize the plan based on your preferences:

Option	Survival Benefit	Maturity Benefit
Option 1	No survival benefit	100% of Sum Assured
Option 2	5% of Sum Assured yearly for 5 years	75% of Sum Assured
Option 3	10% of Sum Assured yearly for 5 years	50% of Sum Assured
Option 4	15% of Sum Assured yearly for 5 years	25% of Sum Assured

It’s important to note that this plan should be taken in the name of the child, and the life cover is provided to the child, not the parent.

LIC Jeevan Tarun Plan – Key Features

1. Limited Premium Payment: Premiums need to be paid until your child reaches 20 years of age, and the policy remains active until your child turns 25.
2. Early Risk Cover: The child becomes eligible for risk cover at 8 years of age or two years from the policy’s commencement, whichever is earlier.
3. No Premium Payment After 20: You only need to pay premiums until your child turns 20. However, the policy remains active for the next five years.
4. Maturity Benefit: The remaining sum assured, along with vested bonuses, is paid to your child as a maturity benefit.

LIC Jeevan Tarun Plan – Benefits

1. Death Benefit (Before Commencement of Risk)

In the unfortunate event of the insured’s death during the policy’s tenure, the return of premiums paid (excluding taxes, extra premium, and rider premium), without interest, shall be payable.

2. Death Benefit (After Commencement of Risk)

In case of death during the policy term, provided all due premiums have been paid, the Death Benefit, defined as the sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus (if any), shall be payable. The sum assured on death is defined as the higher of ten times the annualized premium or 125% of the Sum Assured. The death benefit will not be less than 105% of the total premiums paid as of the date of death.

3. Survival Benefit

If the insured survives till maturity, a fixed sum assured will be paid every year from ages 20 to 24. The percentage of the sum assured depends on the chosen option at the proposal stage.

4. Maturity Benefit

Upon surviving the policy’s tenure, a fixed percentage of the Sum Assured is payable as the Maturity Benefit. Additionally, vested Simple Reversionary Bonuses and Final Additional Bonus (if any) will also be paid.

5. Participation in Profits

The policy participates in the profits of the Corporation and is entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in force.

LIC Jeevan Tarun Plan – Eligibility Criteria

• Age of Entry: 90 days to 12 years
• Premium Paying Mode: Yearly, Half Yearly, Quarterly, Monthly (ECS Only)
• Policy Term: 25 – Age at Entry (20 years in the case of a 5-year-old child)
• Premium Paying Term: 20 – Age at Entry (15 years in the case of a 5-year-old child)
• Sum Assured: ₹75,000 and above (in multiples of ₹10,000)
• Premium Mode Rebate: 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly
• High Sum Assured Rebate (per Thousand of SA): ₹0 on ₹75,000 to ₹1,90,000, ₹2 on ₹2,00,000 to ₹4,90,000, ₹3 on SA on ₹5,00,000 and above
• Loan Facility: After 2 years for a term less than 10 years, and after 3 years for a term more than 10 years
• Surrender: After 2 years for a term less than 10 years, and after 3 years for a term more than 10 years
• Revival: Within 2 years of lapse

How Does the LIC Jeevan Tarun Policy Work

When investing in the LIC Jeevan Tarun Plan, you must consider the following terms:

• Sum Assured: This is the amount payable at the end of the policy term, with a minimum of ₹75,000 and no upper limit.
• Policy Term: The policy term ends when the child reaches the age of 25.
• Premium Payment Term: Premiums are to be paid until the child reaches the age of 20.

You can choose one of the following options to determine how you receive the benefits based on your preferences:

• Option 1: No money back during the policy term, 100% of Sum Assured.
• Option 2: 5% of Sum Assured for 5 years, and 100% of Sum Assured after the child reaches the age of 20.
• Option 3: 10% of Sum Assured for 5 years, and 50% of Sum Assured after the child reaches the age of 20.
• Option 4: 15% of Sum Assured for 5 years, and 25% of Sum Assured after the child reaches the age of 20.

The annual premium is determined based on factors such as the coverage amount, your child’s age, and the chosen benefit options. As a participating plan, you will also receive Simple Reversionary Bonuses and Final Additions when declared by LIC.

LIC Jeevan Tarun – Riders

Policyholders can opt for the Accidental Death and Disability Benefit Rider at an additional cost. This rider provides added protection along with the standard policy coverage.

Product Specification

Death Benefit: Provided in case of the policyholder’s death.

• Before the Date of Commencement of Risk: In this scenario, the single premium is refunded to the nominee without interest.
• After the Date of Commencement of Risk: The Death Benefit is calculated based on the Sum Assured on Death, vested Simple Reversionary Bonuses, and Final Additional Bonus (if any).

 

Maturity Benefit: Paid to the policyholder upon completing the policy’s term, provided that all premiums have been paid. The Maturity Benefit is calculated as a percentage of the Sum Assured on maturity, plus vested bonuses and a final additional bonus.

LIC Jeevan Tarun Plan – Additional Benefits

• Tax Benefit: Similar to other policy schemes, the LIC Jeevan Tarun Policy (Plan No: 934) provides benefits in tax. The premiums are tax exempted Under the Section 80 C of Income Tax Act. The maturity amount provided at the end of Policy tenure is also tax-free. So you need not pay any tax on that amount. The maturity sum decided at the end will be given as it is. It is assured under the section 10 D.
• Loan Facility: You can take a loan against the Jeevan Tarun policy in need. But for this, the policy should be more than 3 months old or over the free look period. The amount of the loan is decided based on the age of the policyholder when the policy was started.
• Policy Surrender: There is provision to surrender the policy in need. If the policy is surrendered within one year of policy opening, then the policyholder will get up to 70% of single premium paid. After completing one year, if the holder surrenders the policy, then he will get up to 90% returns on the single premium paid. There are many calculators available online to calculate the estimate of surrender policy. If the policy is surrendered after completing five years, the holder is also eligible for Loyalty Bonus along with the premium returns. This can be calculated using online calculators.

This policy can be brought by the parents or grandparents of the child. It will be beneficial for your child for their education or you can also take the benefit for their marriages.

Last updated on July, 2020

FAQs

Q1: What are the key features of LIC’s Jeevan Tarun Plan?
A1: LIC’s Jeevan Tarun is a limited premium payment plan designed to provide protection and savings for your child. It offers various options for survival and maturity benefits, along with tax benefits and loan facilities.

Q2: How can I customize the survival and maturity benefits in this plan?
A2: You can choose from four options that determine how you receive the benefits. These options vary in terms of survival benefits and maturity benefits, allowing you to select the one that best suits your needs.

Q3: Is the policyholder’s age a factor in determining the premium?
A3: Yes, the annual premium depends on factors like the coverage amount, your child’s age, and how you choose to receive benefits.

Q4: Are there any tax benefits associated with this plan?
A4: Yes, the premiums paid are tax-exempt under Section 80C of the Income Tax Act, and the maturity amount is tax-free under Section 10D.

Q5: Can I surrender the policy if needed?
A5: Yes, you can surrender the policy, but the surrender value depends on when you surrender it. You may receive up to 70% of the single premium if surrendered within one year of opening, up to 90% after the first year, and additional bonuses after five years.

Q6: Can I add an Accidental Death and Disability Benefit Rider to this plan?
A6: Yes, you can opt for the Accidental Death and Disability Benefit Rider at an additional cost, providing enhanced protection.

Conclusion

LIC’s Jeevan Tarun Plan is an excellent choice for parents and grandparents who want to secure their child’s financial future. With multiple customization options and a range of benefits, this plan offers both protection and savings. Additionally, the tax benefits and loan facilities make it a comprehensive solution for your child’s needs. Invest in LIC’s Jeevan Tarun Plan today and ensure a bright future for your loved ones.