The Jeevan Tarun Plan from Life Insurance Corporation of India (LIC) is a non-linked, participating, limited premium payment policy that offers customers the combined benefits of a risk cover and a savings option. This plan is designed to cater to the financial needs of growing children by way of providing pre-defined survival and maturity benefits.
The proposer is given the option to pick the proportion of Survival Benefits that the child will receive in later years. The proposer can also purchase LIC’s Premium Waiver Benefit Rider, which will be applicable on the life of the proposer, by paying an extra premium. Individuals are also eligible to claim tax benefits as per Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Before this policy can be purchased, the proposer will have to ensure that the child meets the eligibility criteria that’s set by the insurer.
|Parameters||Criteria for eligibility|
|Minimum age at entry||90 Days|
|Maximum age at entry||12 Years|
|Maximum age at maturity||25 Years|
*Ages mentioned above are as on the child’s last birthday.
The sum assured is that amount of money which will be paid to the policyholder/nominee by the insurer before the addition of any bonuses.
|Minimum Sum Assured||Rs.75,000|
|Maximum Sum Assured||No limit|
The premium is a certain sum of money that the life assured/proposer will have to pay to the insurer to keep the policy running. For the Jeevan Tarun Plan, the premium will vary based on the life assured’s age at entry, policy tenure, etc. Certain details related to your policy are mentioned in the below.
|Policy Tenure||(25 – Life Assured’s Age at Entry) years|
|Premium Payment Term (PPT)||(20 – Life Assured’s Age at Entry) years|
|Premium Payment Mode||
* Premiums vary based on age, location, plan term, GST, and other factors
|Death Benefit||If the life assured passes away during the policy tenure, the Sum Assured upon Death, the Final Additional Bonus, and the Simple Reversionary Bonus will be paid as the death benefit.|
|Survival Benefit||The proposer can choose the percentage of Survival Benefits, which the life assured will receive as per schedule. The life assured will receive these benefits after completing 20 years, and on the next four policy anniversaries.|
|Maturity Benefit||A percentage of the Sum Assured, the Simple Reversionary Bonus, and the Final Additional Bonus will be paid as the maturity benefit.|
The proposer can purchase LIC’s Premium Waiver Benefit Rider on their own life, by paying an extra premium.
|Free-Look Period||LIC gives policyholders the option to return their policy within 15 days of purchasing it if they find it unsatisfactory.|
|Loan||One has the option of availing a loan against the policy once it has acquired a surrender value.|
|Surrender Value||If the premium payment term is lesser than 10 years, the policy can be surrendered if premiums are paid for 2 full policy years. If the premium payment term is 10 years or greater, the policy can be surrendered if premiums are paid for 3 full policy years. The Guaranteed Surrender Value or the Special Surrender Value will be paid, based on which is the higher of the two. The Surrender Value of the Simple Reversionary Bonus will also be paid.|
|Revival||Lapsed policies can be revived within 2 years.|
|Rebates||Life assured can claim a rebate upon opting for the yearly or half-yearly mode and for opting for a sum assured over Rs.2 lakh.|
Another benefit of purchasing the Jeevan Tarun Plan is that policyholders can claim tax deductions under Section 80C of the Income Tax Act for premiums paid during the policy year and under Section 10(10D) of the same act for any benefits they receive.
The Jeevan Tarun Plan from LIC is a smart way to secure your child’s future. Since your little one’s financial needs might keep varying as he/she grows up, the Survival Benefits provided by this plan can accordingly help them fulfil their goals. In addition, this policy also guarantees a maturity/death benefit and payment of bonuses, which can increase the level of financial security for both the life assured and his/her family.
LIC, one of the best life insurance firms in India, was founded in the year 1956. The insurer has decades of experience in delivering life insurance solution to the masses. The company with their range of insurance products aims to meet the needs of the diverse Indian population. The insurer also has a high claim settlement ratio of 98.33% for FY15-16, which is a true testament to their efficiency.