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Friday, October 9, 2020

LIC Jeevan Tarun, Features, Benefits & Review 2020

LIC’s Jeevan Tarun is a participating non-linked limited premium child plan that offers a different combination of protection along with savings for your children. This plan designed in such a way that one can easily meet the educational and several other needs of your growing child with annual survival benefit payments from ages 20 to 24 years and maturity benefit at the age of 25 years.  

LIC Jeevan Tarun Key Features 

  • LIC Jeevan Tarun is a participating limited pay traditional plan 
  • In this policy, the premium is needed to be paid until the child is 20 years old while the policy continues until the child completes their 25 years of age. 
  • Under this plan, the premium has to be paid until the age of the child is 20 years after that no premium needs to be paid but the plan will remain active for the next five years. 
  • The child would be able to get the risk cover once the child becomes 8 years old or 2 years from the date of commencement whichever is earlier. 
  • It is a flexible plan wherein at proposal stage the proposer can choose the proportion of Survival Benefits to be availed during the term of the policy as per the options stated below: 
Options Survival Benefit Maturity Benefit 
Option 1 No Survival Benefit 100% Sum Assured 
Option 2 5% of Sum Assured every year for 5 years 75% Sum Assured 
Option 3 10% of Sum Assured every year for 5 years 50% Sum Assured 
Option 4 15% of Sum Assured every year for 5 years 25% Sum Assured 

LIC Jeevan Tarun Eligibility Criteria 

Minimum age at entry 90 days (last birthday) 
Maximum age at entry 12 years (last birthday) 
Minimum Sum Assured Rs. 75,000 
Maximum Sum Assured No Limit 
Minimum/Maximum Maturity Age 25 years (last birthday) 
Premium Paying Term(PPT) 20 – Age at Entry (15 years in case of a 5-year-old child 
Policy Term 25 Age at entry years 

Note:- The Sum Assured shall be in multiples of Rs. 5,000 from Sum Assured Rs.    75,000 to Rs. 100,000 and Rs. 10,000/- for Sum Assured above Rs 100,000 

LIC Jeevan Tarun Benefits 

  • Death Benefit (Before Commencement of risk) 

In case of death of the insured during the policy’s tenure, the return of premium’s paid excluding taxes, extra premium, and rider premium, if any, without interest shall be payable 

  • On death during the policy tenure (after the commencement of risk): 

In the case of death during the policy term and after the payment of all the premiums then Death Benefit defined by the sum of “Sum Assured on Death” and vested simple reversionary bonuses and Final Additional Bonus, if any, shall be payable.  

Where “Sum Assured on Death” defined as a higher of 125% of sum assured or 7 times of Annualized Premium. 

  • Under this plan, the death benefit shall not be less than 105% of the total premiums paid (excluding taxes, Extra Premium, and Rider Premium, if any), until the date of death. 
  • Survival Benefit 

This benefit is invoked when the insured person survives until the maturity. After this, a fixed percentage of Sum Assured will be payable every year coinciding with or following the completion of 20 years of age and thereafter on each of the next four policy anniversaries. 

These fixed percentages will depend on the option the customer chose during the proposal stage and for various options, the percentages are given below:  

Policy Anniversary coinciding/ following completion of ages Percentage of Sum Assured to be paid as Survival Benefit 
Option 1 Option 2 Option 3 Option 4 
20 to 24 years Nil 5% each year 10% each year 15% each year 

Note: – Once an Option is chosen at the proposal stage, it cannot be altered at the later stage.    

  • Maturity Benefit 

If the life assured survives, the policy term a fixed percentage of sum assured will be paid on maturity. The fixed percentage of different options are explained in the table below. 

MATURITY AGE OPTION 1 OPTION 2 OPTION 3 OPTION 4 
25 year 100% of the sum assured 75% of the sum assured 50% of the sum assured 25% of the sum assured 
  • Participation in Profits 

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in force.

LIC Jeevan Tarun Riders 

LIC’s Premium Waiver Benefit RiderUnder this, future payment of the premiums are waived off due to unexpected demise of the subscriber (the person who make payments of the premiums) 

LIC Jeevan Tarun Additional Benefits 

  • Tax Benefit: The LIC Jeevan Tarun Policy (Plan No: 934) provides benefits in tax. The premiums are tax exempted Under Section 80 C of Income Tax Act. The maturity amount provided at the end of Policy tenure is also tax-free. So no tax on the amount needs to be paid. The maturity sum decided at the end will be given as it is 
  • Grace Period: To pay the premium, the policyholders have the advantage of 30 days to pay the premium. If the policyholder does not make the payment within these 30 days, then the policy will lapse. 
  • Free Look Period: This plan also gives the policyholder 15 days to think about whether they wish to continue the plan or not. This gives you an option to cancel the policy within this time if the policyholder has made no claim. 
  • Loan Facility: A loan can be taken against the Jeevan Tarun policy if needed. The condition for this is that the policy should be more than 3 months old or over the free look period. The amount of the loan is decided based on the age of the policyholder when the policy was started. 
  • Policy Surrender: LIC gives a provision to surrender the policy if needed. If the policy is surrendered within one year of policy opening, then the policyholder will get up to 70% of the single premium paid. After the completion of one year, if the holder surrenders the policy, then he will get up to 90% returns on the single premium paid. If the policy is surrendered after completing five years, the holder is also eligible for Loyalty Bonus along with the premium returns.
Investment Plans

Invest Rs. 5.1 K/month & Get Dual Benefits Rs. 18.17* Lac Return + 6*Lac Life Cover

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