The Buyt Desk
LIC’s Jeevan Tarun Policy is designed to cater to Children’s Education and other Financial Securities. It offers four different options for survival benefits.
LIC Jeevan Tarun Policy is a good combination of insurance and saving components for a child’s future financial needs. The plan is designed to ensure a child’s bright future as parents or guardians could save money to fund their future expenses like higher education, coaching fees, etc. This policy facilitates survival benefit payments from ages 20 to 24 years of the child and maturity benefits at age of 25 years. It can be used to avail loan on accrued surrender value.
LIC’s Jeevan Tarun Policy for children is a non-linked, individual, participating, life assurance Policy that offers a striking combination of protection and saving features. This plan caters to the educational and other financial needs of a child through annual Survival Benefit payments and Maturity Benefits.
What are its eligibility criteria, Premium Paying Term, and Policy Term?
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The Minimum Sum Assured is Rs. 75000.
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No limit on the Maximum Basic Sum Assured
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The Sum Assured is always in multiples of Rs. 5000 when in Rs. 75000 to Rs. 100000 range
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The Sum Assured is always in multiples of Rs. 10000 when above Rs. 100,000
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The Minimum Age of the child at entry is 90 days and the maximum is 12 years
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The maximum Maturity Age of the plan is 25 years
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Policy Term will be 25 years
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The Premium Paying Term (PPT) will be 20 years.
Survival Benefits and Maturity Benefits
Survival Benefit is the annual payment amount which is a fixed percentage of the Sum Assured. In this plan, it can be availed every year starting from the policy anniversary or 4 policy anniversaries after the child completes 20 years of age. Maturity benefit is the amount paid to the insured at the policy maturity.
LIC Jeevan Tarun Policy is a very flexible plan where the proposer has the option to decide the proportion of Survival Benefits at the proposal stage that can be availed during the term of the policy. There are 4 options to receive the Survival Benefits –
Option 1 – Zero survival benefit, but 100% of the Sum Assured as Maturity Benefit.
Option 2 – 5% of the Sum Assured for 5 consecutive years, and 75% of the Sum Assured as Maturity Benefit.
Option 3 – 10% of the Sum Assured for 5 consecutive years, and 50% of the Sum Assured as Maturity Benefit.
Option 4 – 15% of the Sum Assured for 5 consecutive years, and 25% of the Sum Assured as Maturity Benefit.
Death Benefit
It is an amount paid to the nominee on the death of the insured during the policy term. The date of risk commencement for children of age less than 8 years is 2 years and for others, the risk will commence immediately.
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Before commencement of risk – Death benefit is the sum of premiums paid but taxes and rider premium are not included. Also, no interest will be paid.
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After commencement of risk – The death benefit is paid only if the policy is active and all premiums were paid regularly. The death benefit amount = sum assured on death + vested Simple Reversionary Bonuses + Final Additional Bonus. The mentioned sum assured is more than 10 times of annualized premiums or is a fixed amount assured to be paid on death which is 125% of the sum assured. In either case, it will be more than 105% of all premiums paid (excluding any taxes, extra, or rider premium) as of the date of death.
Participation in Profits benefit
LIC Jeevan Tarun policy is eligible to participate in the corporation’s profits. Hence, when a claim is made either by death or maturity one can receive Simple Reversionary Bonuses or any final additional bonus if the policy is active.
LIC Jeevan Tarun policy Riders
LIC Premium Waiver Benefit rider – This policy offers an optional rider for extra protection at a higher premium. One who is paying the premium is known as a subscriber, which is usually parents or grandparents. If the subscriber of the policy dies, then all the premiums yet to be paid will be waived off while the policy will be active till the chosen policy term.
Summing up
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LIC Jeevan Tarun policy is a participating, non-linked, limited premium payment plan for children
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Offers a combination of protection and saving features
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Maturity benefits at the child’s age of 25 years
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Offers 4 survival benefits options
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Either parent or grandparent of a child of age between 0 to 12 years can buy this plan
