LIC Jeevan Tarun is a non-linked, with-profit, limited premium payment policy designed specifically for children. The policy can be purchased for a child between the ages of 90 days to 12 years, with the policy benefits payable at various stages of the child’s life, such as the ages of 20 to 25 years. The policy also offers loan facility to meet the child’s financial requirements at various stages of life.
The LIC Jeevan Tarun plan provides a favorable blend of protection and savings for a child’s future requirements. The policy has been designed to secure a child’s future by saving money for their significant expenses such as higher education, sports coaching fees, etc.
four different options for survival benefits, providing flexibility to policyholders.
The key features of LIC Jeevan Tarun policy are:
- Premium Payment Term: The premium payment term is limited, and it varies according to the child’s age at the time of policy purchase.
- Policy Term: The policy term is based on the child’s age at the time of policy commencement and ranges from 25 to 30 years.
- Survival Benefits: The policy provides for survival benefits, which are payable to the policyholder at various stages of the child’s life. The plan provides the option to choose from four different survival benefits.
- Maturity Benefit: The policy also offers a maturity benefit, which is payable to the policyholder on completion of the policy term.
- Death Benefit: In case of the policyholder’s untimely demise, the death benefit is payable to the nominee.
- Surrender Value: The policy provides a surrender value after the completion of the premium payment term, subject to certain conditions.
- Parents or grandparents can buy the plan for a child aged between 0 to 12 years.
- For children below the age of 8 years, the date of risk commencement is after 2 years from the policy commencement date. However, for children aged 8 years or above, the risk will commence immediately from the policy commencement date.
- Loan Facility: The policy also offers a loan facility, which is available after the policy acquires a surrender value.
- Tax Benefits: The policy offers tax benefits under section 80C and section 10(10D) of the Income Tax Act, 1961.
Benefits of LIC Jeevan Tarun
Death Benefit:
In case of the policyholder’s demise during the policy term
If the demise of the policyholder occurs before the commencement of risk, the death benefit will be the sum of premiums paid, excluding taxes and extra/rider premiums. No interest will be payable on this amount.
If the demise of the policyholder occurs after the commencement of risk, the death benefit will be payable by the insurance company provided all premiums have been paid regularly, and the policy is in force. The death benefit amount will be the sum assured on death plus any vested Simple Reversionary Bonuses and Final Additional Bonus. The sum assured is calculated as the higher of either 10 times the annualized premiums or the absolute amount assured to be paid on death, which comes to 125% of the sum assured. The death benefit payable cannot be less than 105% of all premiums paid as of the date of death. Any taxes, extra or rider premiums will be deducted from the premiums paid to calculate the death benefit amount.
Survival benefit :
The survival benefit provides a fixed percentage of the sum assured, which can be chosen during the proposal stage. This amount will be paid on completion of 20 years and subsequently on each of the next four policy anniversaries.
POLICY ANNIVERSARY COINCIDING/ FOLLOWING COMPLETION OF AGES – Age 20 to 24 years:
OPTION 1 — NIL
OPTION 2 — 5% each year
OPTION 3 — 10% each year
OPTION 4 — 15% each year
Maturity benefit :
If the life assured survives the policy term, a fixed percentage of the sum assured will be paid as maturity benefit. The percentage for each option is listed in the table below.
| MATURITY AGE | OPTION 1 | OPTION 2 | OPTION 3 | OPTION 4 |
| 25 Years | 100% | 75% | 50% | 25% |
Eligibility Criteria
| Minimum Sum Assured | INR. 75 Thousand |
| Maximum Sum Assured | No upper Limit |
| Minimum Age at entry | 90 days (age last birthday) |
| Maximum Age at entry | 12 years (age last birthday) |
| Minimum/ Maximum Maturity Age | 25 years (age last birthday) |
| Policy Term or maturity | 25 Age at entry years |
LIC Jeevan Tarun Plan with an Example
Amogh Joshi, who is 35 years old, intends to purchase this plan for his 1 6 month old daughter and proceeds with the following steps:
Sum Assured – Rs. 4,00,000
Term – 25 years. Premium payment term 20 years
Based on these parameters, his annual premium is Rs. 17938 + PWB Rider Premium Rs 650 + GST 836 Total Rs. 19724. Here we have assumed the current GST rate of 4.5%.
Scenario 1 :
In this example , Mr Amogh is the proposer and his daughter is a insured person. Commencement of risk in this case will be 2 years after the date of policy commencement. In case of death of his daughter before the commencement of risk. Proposal will get back the premium paid excluding rider and taxes. E.g. In case of death of his daughter in the second year, He will get Rs 35876
Scenario 2 :
If the proposer MR Amogh dies after three years. All future premiums will be waived off as he has opted premium waiver benefit rider.
Total premium paid Rs. 59,172
Sum Assured : Rs 4,00,000
His daughter will get Rs. 60,000 per year from her age 20 to 24 i.e.
60,000 X 5 years = Rs. 3,00,000
On maturity -> Balance Sum assured plus bonuses Rs. 7,30,000 (Approx)
Total she will get Rs. 10,30,000 without paying premium after the death of proposer.
( it is important to note that this is merely an estimation and the actual bonus declared may vary, either higher or lower than this amount.)
Scenario 3 :
If Amogh and his daughter survives till the end of policy term. His daughter will receive the amount as follows.
Total premium paid Rs. 3,80,538
Sum Assured Rs. 4 Lakh
Survival Benefit from her age 20 to 24 Rs. 60,000 per year.
i.e. Total Rs. 3,00,000
and Maturity Amount inclusive of sum assured and bonus Rs. 7,30,000
In this scenario , Mr Amogh’s daughter will get Rs. 60,000 + 60,000 + 60,000 + 60,000 + 60,000 + 7,30,000 = Rs. 10,30,000
( it is important to note that this is merely an estimation and the actual bonus declared may vary, either higher or lower than this amount.)
Frequently Asked Questions
LIC Jeevan Tarun offers an optional rider for additional protection, which can be availed by paying an extra premium. In the event of the policy proposers death (i.e., the parent or grandparent paying the premium), all future premiums will be waived off, and the policy will remain active until the end of the chosen policy term.
Premiums paid for the plan are eligible for tax exemption under Section 80C of the Income Tax Act. The maturity amount is also exempt from tax under Section 10(10D) of the Income Tax Act. Additionally, death claims received under the plan are also tax free under Section 10(10D) of the Income Tax Act.
A loan can be obtained under the policy, provided that the policy has acquired a surrender value and is subject to the terms and conditions specified by the Corporation from time to time.
If premiums are not paid within the grace period, the policy will lapse. However, a lapsed policy can be revived within two consecutive years from the date of the first unpaid premium by paying all the arrears of premium along with interest (compounded half-yearly) at a rate determined by the Corporation from time to time, subject to satisfactory evidence of continued insurability.
The Corporation reserves the right to accept the revival of a discontinued policy at original or revised terms, or decline it altogether. The revival of a discontinued policy will only take effect after it has been approved by the Corporation and specifically communicated to the policyholder.
In case a rider has been opted for, the revival of the rider will be considered along with the revival of the basic policy and shall be subject to underwriting.
The policyholders of LIC Jeevan Tarun are eligible to receive Simple Reversionary Bonuses, which are declared based on the Corporation’s experience, provided the policy is in force. Additionally, as per the plan, a Final Additional Bonus may also be declared under the policy in the year when the policy results in a claim due to death or maturity.
