LIC’s Jeevan Tarun Plan

LIC’s Jeevan Tarun Plan

LIC’s Jeevan Tarun is a participating, non linked endowment plan. This conventional plan comes with the option of limited pay for children who are up to the age group of 12 years. LIC’s Jeevan Tarun not only offers protection but also provides a saving component for the child’s future financial needs.

In today’s time when education costs are at an all-time high, planning the children’s higher education, professional training and their wedding may often seem like a herculean task. The aim of building this plan is to help parents save money in order to provide a bright future to their child. The growing financial requirements of a child can be met as LIC’s Jeevan Tarun Plan provides yearly survival benefits between the age of 20 to 24 of the insured child. The maturity benefit at the age of 25 can also really help the family.

Features of LIC’s Jeevan Tarun Plan

• LIC’s Jeevan Tarun is a children’s plan that offers dual benefits of protection as well as savings
• The plan matures when the child reaches the age of 25 years
• There is an option to choose from 4 survival benefits
• For a child up to 12 years age his parents, as well as his grandparents can purchase the plan
• Risk commencement:
  • For children under 8 years of age, the risk of commencement begins after the plan completes two years
  • For children above 8 years of age, the risk cover begins as soon as the plan is bought

LIC’s Jeevan Tarun Plan – Product Description

LIC’s Jeevan Tarun Plan – Premium Details

Here are the details of the premium amount.

Benefits of LIC’s Jeevan Tarun Plan

• Death Benefit
  If the insured individual dies within the policy tenure, the nominee would receive
  • Before the commencement of risk on the life of the insured
    All premiums paid till the date of death, excluding additional premiums and taxes, would be paid as Death Benefit and the policy would be terminated. The Basic Sum Assured would not be payable since the risk on the life of the assured had not yet commenced!
  • After the commencement of risk on the life of the insured
    The death benefit and the policy would be terminated.

Death Benefit = Sum Assured on Death + accrued Simple Reversionary Bonus + Final Additional Bonus if any.

Where Sum Assured on Death is the higher of

• 10 X the Annualised Premium
• 125% of the Sum Assured which is chosen at the commencement of the policy

Subject to a minimum of 105% of the premiums that have been paid.

• Survival Benefit
  If the insured lives until the policy term, then a pre-defined schedule of payment would be received on every policy anniversary after the child is 20 years of age. This policy has been designed to meet the financial requirements of the child’s higher education expenses.
  
  The policyholder can select any of the 4 options, given below, at the time of purchasing the policy. Thereafter, the option will be made a part of the plan contract and making any changes will not be allowed.

Depending on the Survival Option chosen, the Maturity Benefit is given.

• Maturity Benefit
  When the insured individual outlives the specified age of maturity, he receives a pre-decided percentage of sum assured, if the policy is active. Along with the maturity benefit, vested Reversionary Bonus and Final Additional Bonus is also paid at the time of policy maturity.

Survival and Maturity Benefit Schedule

• Participation in Profits
  LIC’s Jeevan Tarun participates in the profits of the Corporation, therefore the policy holder receives the Simple Reversionary Bonus and may also receive a final additional bonus. This amount is received when the claim for death benefit or maturity benefit is made and the policy is active.

• LIC’s Premium Waiver Benefit Rider
  LIC’s Jeevan Tarun Plan also offers LIC’s Premier Waiver Benefit Rider. The Rider is available for the proposer.

• Rider Benefits
  Under the Premium Waiver benefit Rider, if the proposer dies within the policy tenure, the premiums due after the date of death till the end of the policy tenure would be waived off but the policy would continue to pay the benefits as per schedule.

• Tax Benefits
  The premiums that are paid, irrespective of the payment frequency, are tax-free, under Section 80C of the Income Tax Act. Also, for the Death Benefit as well as the Maturity Benefit that is received, the policyholder does not have to pay any taxes as they are tax-free under Section 10 (10 D).

Sample Premium LIC Jeevan Tarun Plan :

Here are the details of the premium amount for the following particulars :

Sample premium rates

Rebates and Discounts : This policy offers a rebate in premium for Annual and Semi-Annual modes and a discount in premium for high sum assured.

Mode Rebate

High Sum Assured Discount

Premium Calculation
So, the premium for a 4-year-old child can be calculated as:

Other Important Features of LIC’s Jeevan Tarun Plan

Surrender Benefit
The policy has a Guaranteed Surrender Value when at least 3 years’ annual premium has been duly paid and the policy gets a paid-up value.
Guaranteed Surrender Value = % of Total Premium Paid till the date of Surrender

Revival Of Lapsed Policy
Non-payment of premium can lead to a lapsed insurance policy. If the due payment is not paid even during the grace period then the policy will lapse. However, LIC provides the policyholder with an option to receive the policy during its lifetime but within 2 subsequent years from the first unpaid premium date. The right to accept the original terms of the policy remain with LIC.

Free Look Period
The free-look period helps the new customers a period of 15 days to decide if the plan suits their requirements. Stating the reason of objection the policy may be returned within 15 days of buying the policy. Once the request is received, LIC will cancel the policy and the Premium Amount minus the Expenses Incurred will be returned.

Loan
Once the policy reaches its third anniversary a loan can be availed. The loan however, has to be as per the surrender value that has been accumulated. The rate of interest, as well as other terms and conditions, are declared by LIC itself.

Non-Forfeiture
The plans that have a premium paying tenure of fewer than 10 years, and the policyholder has paid less than 2 years’ due premium, the policy will be terminated. In case of plans with more than 10 years of premium paying tenure, if less than 3 years premium is paid, then after the grace period is over the plan would be terminated. No amount will be payable to the policyholder after this.