LIC's Jeevan Tarun Policy Archives -

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

Tue, 16 May 2023 17:21:52 +0000

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 –

No Survival Benefit
5% of the Sum Assured is paid yearly for the last five policy years.
10% of the Sum Assured is paid yearly for the last five policy years.
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 –

A policyholder receives Simple Reversionary Bonuses as well as Final Additional Bonus.
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.
There is a loan facility for a policyholder through this plan once they obtain the surrender value.
A policyholder can choose between 4 options, each offering a different maturity and survival benefit.
If you opt for a high sum assured, you’ll be eligible for rebates on your premium.
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.
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.
You can choose to customize your policy based on how you want to get the survival and maturity benefits.
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).

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How is LIC’s Jeevan Tarun Policy for Children?

Sun, 13 Nov 2022 06:10:21 +0000

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?

The Minimum Sum Assured is Rs. 75000.
No limit on the Maximum Basic Sum Assured
The Sum Assured is always in multiples of Rs. 5000 when in Rs. 75000 to Rs. 100000 range
The Sum Assured is always in multiples of Rs. 10000 when above Rs. 100,000
The Minimum Age of the child at entry is 90 days and the maximum is 12 years
The maximum Maturity Age of the plan is 25 years
Policy Term will be 25 years
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.

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.
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

LIC Jeevan Tarun policy is a participating, non-linked, limited premium payment plan for children
Offers a combination of protection and saving features
Maturity benefits at the child’s age of 25 years
Offers 4 survival benefits options
Either parent or grandparent of a child of age between 0 to 12 years can buy this plan

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