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Investment Plans 1604 views July 30, 2020
There many individuals who are worried about their child’s future. The educational expenses are quite high these days, so many parents start saving from today. So, if you want to accumulate funds for your child’s further education, here is the best plan for you known as the LIC Jeevan Tarun Plan. In this plan, you will enjoy survival benefits and maturity benefits as well. There are four options available in this plan according to which you can decide the percentage of survival and death benefits. You can enjoy the benefit once your child reaches the age of 20 years and it will continue until the age of 24 years. Once your child acquires the age of 25, the company will give you maturity benefits. So, let’s explore this plan in detail.
Table of Contents
|Minimum Age of Entry||90 Days|
|Maximum Age of Entry||12 Years|
|Maximum Age of Maturity||25 Years|
|Premium Paying Term||20 Years minus Age of Entry|
|Minimum Amount of the Sum Assured||Rs.75000|
|Maximum Amount of the Sum Assured||No Limit|
|Policy Term||25 Years minus Age of Entry|
Options Available in the Jeevan Tarun Plan
There are four options available in this insurance policy in which you have to decide the percentage of survival benefits and maturity benefits that you want to receive once your child is 20 years old.
|Options||Survival Benefits||Maturity Benefits|
|Option 1||No Survival Benefits||100% of the Sum Assured|
|Option 2||5% of the Sum Assured every year for 5 years||75% of the Sum Assured|
|Option 3||10% of the Sum Assured every year for 5 years||50% of the Sum Assured|
|Option 4||15% of the Sum Assured every year for 5 years||25% of the Sum Assured|
Now it is time to explore some of the exclusive benefits of this plan and see how it will help you to accumulate funds for your child.
You can save some extra bucks on the amount of premium if you choose a high Sum Assured or pay the yearly and half-yearly premiums. Check the rate of rebates available in the table given below.
|Sum Assured and Payment Frequency||Rebates|
|Yearly Payment of Premium||2% of Tabular Premium|
|Half-Yearly Payment of Premium||1% of Tabular Premium|
|Sum Assured is Between Rs.200000 to Rs.490000||2 per thousand of the Sum Assured|
|Sum Assured for Life is Rs.500000 and above||3 per thousand of the Sum Assured|
If the insured dies an unfortunate death then the nominee is entitled to receive the death benefits and they depend on the following conditions.
The value of the Death Benefit will be the highest of the following:-
The death benefit will never be less than 105% of the total premiums paid up to the time of death.
The Life Insurance Corporation of India gives the option to take the death benefits in installments and you are free to choose the time span of 5 years, 10 years, and 15 years. It is not mandatory that you should take the death benefits as a lump sum. Here are the different minimum amounts for different payment modes.
If the insured successfully survives the policy term then he is entitled to receive the following:-
Option for the Maturity benefit when your child has acquired the age of 25 years.
The company gives you the option to receive the survival benefits once your child reaches the age of 20 years. There is a certain percentage of the survival benefit that you will have to decide at the time of inception of the policy. The survival benefits will be given for 5 years from the age of 20 years.
The company gives you the freedom to decide the premium paying frequency at the time of inception of the policy. The options available are as follows:-
Use the NACH facility to deduct the payment of premium automatically from your account.
You will also get a grace period for paying the premium if you miss any premium on the due date.
If you haven’t paid the premium of the LIC Jeevan Tarun Plan within the grace period then your policy will lapse. You can revive the policy within 5 consecutive years from the date of the unpaid premium but only on the following conditions:-
After paying the premium for 2 years regularly, if you discontinue paying it then you are entitled to take the paid-up benefits. In the paid-up benefits your death benefits and the maturity benefits will be reduced and at the time of death or maturity, you will receive reduced benefits.
You can surrender this policy in case of an emergency and take the surrender value. But you’ll only get the surrender benefits if you have paid all the premiums for 2 years without skipping any premium. You will get the highest of the following:-
You can take a loan against the LIC Jeevan Tarun Plan from the company if you don’t want to surrender it. But you are allowed to take a loan against the policy only if your policy has acquired a surrender value the company will charge the applicable interest on the loan borrowed against the policy.
You will get a free-look period of 15 days in this plan and it means that you can return the policy within 15 days if you don’t find it interesting. If in case, you have purchased the policy online then you will get a grace period of 30 days.
You can cover some extra risks related to your life by adding riders to this plan. The only rider that can be added to this plan is given below.
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