Investment Plans 585 views July 30, 2020

LIC Jeevan Tarun Plan

There many individuals who are worried about their child’s future. The educational expenses are quite high these days so taking a speculative approach many parents start saving from today. So, if you want to accumulate funds for your child’s further education then 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 the survival benefits 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 25th the company will give you the maturity benefits. So, let’s explore this plan in detail.

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LIC Jeevan Tarun Plan Eligibility Criteria

ParticularsDetails
Minimum Age of Entry90 Days
Maximum Age of Entry12 Years
Maximum Age of Maturity25 Years
Premium Paying Term20 Years minus Age of Entry
Minimum Amount of the Sum AssuredRs.75000
Maximum Amount of the Sum AssuredNo Limit
Policy Term25 Years minus Age of Entry

Key Features of Jeevan Tarun Plan

  1. Your child will get survival payments from the age of 20 years to 24 years.
  2. The company will give the maturity benefit once your child reaches the age of 25 years.
  3. 90 Days is the minimum age entry in this policy.
  4. 12 years is the maximum age of entry in this insurance plan.
  5. There are four options available in this plan.
  6. Flexibility of Choosing the Sum Assured and the Policy Term.
  7. The company gives you a grace period of 30 days if you fail to pay the premium on time.
  8. Enjoy tax benefits in this plan.

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.

OptionsSurvival BenefitsMaturity Benefits
Option 1No Survival Benefits100% of the Sum Assured
Option 25% of the Sum Assured every year for 5 years75% of the Sum Assured
Option 310% of the Sum Assured every year for 5 years50% of the Sum Assured
Option 415% of the Sum Assured every year for 5 years25% of the Sum Assured

Benefits of Jeevan Tarun Plan

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.

Rebates on Premium

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 FrequencyRebates
Yearly Payment of Premium2% of Tabular Premium
Half-Yearly Payment of Premium1% of Tabular Premium
Sum Assured is Between Rs.200000 to Rs.4900002 per thousand of the Sum Assured
Sum Assured for Life is Rs.500000 and above3 per thousand of the Sum Assured

Death Benefits

If the insured dies an unfortunate death then the nominee is entitled to receive the death benefits and they depend on the following conditions.

  1. If the insured dies before the risk commencement date then the company will return the premium amount.
  2. If the insured dies after the risk commencement date then the company will pay the Sum Assured on death, Simple Revisionary Bonuses, and Final Additional Bonus to the nominee.

The value of the Death Benefit will be the highest of the following:-

  1. 125% of the Sum Assured
  2. 7 times of the annualized premium

The death benefit will never be less than 105% of the total premiums paid up to the time of death.

Option to Take Death Benefits in Instalments

The company 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.

  1. Monthly Rs.5000
  2. Quarterly Rs.15000
  3. Half-Yearly Rs.25000
  4. Yearly Rs.50000

Maturity Benefits

If the insured successfully survives the policy term then he is entitled to receive the following:-

  1. Sum Assured on Maturity
  2. Simple Revisionary Bonuses and Final Additional Bonus

Option for the Maturity benefit when your child has acquired the age of 25 years.

  1. 100% of the Sum Assured is given in Option 1.
  2. 75% of the Sum Assured is given in Option 2.
  3. 50% of the Sum Assured is given in Option 3.
  4. 25% of the Sum Assured is given in Option 4.

Survival Benefits

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.

  1. 5% of the Sum Assured for 5 years.
  2. 10% of the Sum Assured for 5 years.
  3. 15% of the Sum Assured for 5 years.

Various Modes for Paying the Premium

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:-

  1. Yearly
  2. Half-Yearly
  3. Quarterly
  4. Monthly

Use the NACH facility to deduct the payment of premium automatically from your account.

Grace Period

You will also get a grace period for paying the premium if you miss any premium on the due date.

  1. 30 Days of the grace period is given if you are paying the premium yearly, monthly, and quarterly.
  2. 15 Days of the grace period is given if you are paying the premium monthly.

Revival Benefit

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:-

  1. You will have to pay all the premiums due.
  2. Interest will be also payable to revive the lapsed policy.

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.

Surrender 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:-

  1. Guaranteed Surrender Value
  2. Special Surrender Value

Loan Against Policy

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.

Free-Look Period

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.

Add-on Benefits

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.

  1. Premium Waiver Benefit Rider

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