How LIC’s Jeevan Tarun Policy provides Financial Security to Children?

The Buyt Desk 

LIC’s Jeevan Tarun Policy is a participating non-linked limited premium payment plan that provides a combination of saving features and complete protection for your children. This plan is primarily designed to provide financial support. It can easily satisfy the educational, sports coaching, and many other needs of your growing child with yearly survival benefit payments and maturity benefits till the child completes 25 years of his/her age. As per this plan, you can also get a loan facility on accrued surrender value.

Eligibility Criteria for LIC’s Jeevan Tarun Policy

The minimum entry age for this plan is 90 days (last birthday), while the maximum age is 19 years (last birthday). To gain the maturity benefits, a candidate needs to be 25 years (last birthday) old. The value of the minimum sum assured is INR 75,000, while there is no limit for the maximum sum assured. The premium paying term or PPT is 20 years at entry.

Salient Features of LIC’s Jeevan Tarun Plan

As mentioned above, this is a participating non-linked limited premium pay policy that combines children’s protection with savings to secure their future. The plan is designed to help parents save funds for a child’s growth by meeting the needs of sports coaching fees, higher education, and others. A specific percentage of the sum assured will be given on maturity. You need to pay the premiums until your child turns 20 years. However, the plan remains active until your child gets 25 years old.

There are 4 survival benefit options to be selected in the policy –

1. No Survival Benefit

2. 5% of the Sum Assured is paid yearly for the last five policy years.

3. 10% of the Sum Assured is paid yearly for the last five policy years.

4. 15% of the Sum Assured is paid yearly for the last five policy years.

A parent or grandparent of a child (0-12 years) can purchase this policy. 2 years is the date of risk commencement for a child (less than 8 years of age). The risk will start immediately for children who are 8 years old. The premium payment can be done monthly, annually, quarterly, or half-yearly. The remaining sum assured plus the vested bonus will be given to your child in the form of a maturity benefit.

How LIC’s Jeevan Tarun Plan Benefits?

Some benefits of LIC’s Jeevan Tarun Plan are highlighted below –

1. A policyholder receives Simple Reversionary Bonuses as well as Final Additional Bonus.

2. When the insured person dies suddenly during the tenure, the return of premium paid except for rider premium, taxes, and extra rider, if any, with no interest is paid to the nominee. It is not based on the amount paid in the form of survival benefits.

3. There is a loan facility for a policyholder through this plan once they obtain the surrender value.

4. A policyholder can choose between 4 options, each offering a different maturity and survival benefit.

5. If you opt for a high sum assured, you’ll be eligible for rebates on your premium.

6. Survival benefits (a certain percentage of the Sum Assured) are provided in the last 5 years when the insured individual survives till the maturity age.

7. When a policyholder survives the stipulated maturity date, a pre-defined percentage of the Sum Assured will be given as maturity benefit at maturity and the plan gets terminated.

8. You can choose to customize your policy based on how you want to get the survival and maturity benefits.

9. Policyholders can get the eligibility to participate in the profits gained by LIC. These profits will be paid as bonuses.

How does LIC’s Jeevan Tarun Policy Work?

While purchasing the LIC’s Jeevan Tarun Policy, a candidate has agreed on various terms including –

• Sum assured

The amount that insured will receive in the last of the policy tenure. The minimum amount is INR 75,000, while you’ve no upper limit.

• Premium payment term

The premiums need to be paid by an insured till their child becomes 20 years old.

• Policy term

It refers to the duration for which you would like to have the cover. The policy term will end when the child becomes 25 years old.

You need to choose one of the four options (as given above) to determine how you would like to receive the benefits. The annual premium will be based on the cover amount, the age of the child, and how an insured wish to get benefits. Based on these things, the insurance company will calculate the premium.

Riders Available

LIC provides an Optional Rider to provide huge benefits to policyholders. Under Premium Waiver Benefit Rider, future premium payouts are waived off in case of the death of subscriber (a person who pays premium).