LIC Jeevan Tarun
LIC Jeevan Tarun (Plan No. 934, UIN No. 512N299V02) is a Non-linked, Participating, Individual, Life Assurance savings plan that is specially designed for the children to safeguard their health as well as future events in your absence. This plan has come up with protection benefits coupled with the savings features so that it can cater to the educational, marriage, and other needs of a growing child with the help of survival and maturity benefits.
The plan can be purchased by any parent or grandparent for a child aged 0 to 12 years. This plan is flexible enough to offer you the opportunity to choose from the four options wherein at the proposal stage the proposer can choose the proportion of Survival Benefits to be availed during the term of the policy as per the following four options:
|Options||Survival benefit||Maturity benefit|
|Option 1||No survival benefit||100% of Sum Assured|
|Option 2||5% of Sum Assured every year for 5 years||75% of Sum Assured|
|Option 3||10% of Sum Assured every year for 5 years||50% of Sum Assured|
|Option 4||15% of Sum Assured every year for 5 years||25% of Sum Assured|
Eligibility Criteria of LIC Jeevan Tarun
|Age at entry||Minimum – 90 days Maximum – 12 years|
|Age at maturity||Minimum/maximum – 25 years|
|Policy term||25 years minus age at entry|
|Premium paying term||20 years minus age at entry|
|Sum assured||Minimum – Rs. 75,000 Maximum – No upper limit (The Sum Assured shall be in multiples of ` 5,000 from Sum Assured ` 75,000 to ` 100,000 and ` 10,000/- for Sum Assured above ` 100,000)|
What Are The Benefits Offered By LIC Jeevan Tarun Policy?
LIC Jeevan Tarun Policy has come up with a sack full of benefits to cater to the needs of the children. Have a look at the advantages of the plan below.
In case of the untimely and unfortunate demise of the life assured during the policy term while the policy is active, the beneficiary or nominee is eligible to avail of the death benefit. This Death Benefit shall not be less than 105% of the total premiums paid up to date of death. What the death benefit will be under the following criteria is given in the below table.
|On death before the date of commencement of risk||On death after the date of commencement of risk|
|Under this circumstance, the Corporation will pay back the premiums that have been paid to date to the policy. But this excludes the taxes, extra premium, and rider premium, if any, without the interests.||In this scenario, the death benefit will be 7 times of annualized premium or 125% of Sum Assured, whichever is higher. And also, along with that, you are entitled to receive the vested Simple Reversionary Bonuses and Final Additional Bonus.|
In case of the Life Assured survives the policy term while the policy is active, you are entitled to receive the maturity benefit. Maturity benefit includes “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. This Sum Assured on Maturity refers to a fixed percentage of Sum Assured and this varies for various Options. That percentage is mentioned below:
|Maturity age||Option 1||Option 2||Option 3||Option 4|
In case of the Life Assured survives the entire policy period, a fixed percentage of Sum Assured shall be payable as survival benefit. It is paid on each policy anniversary coinciding with or immediately following the completion of 20 years of age and thereafter on each of the next four policy anniversaries. These percentages are calculated on the basis of the Option chosen while the policy is taken and for various Options, the percentages are as mentioned below:
|Policy Anniversary coinciding with/ 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|
Participation in Profits:
If the policy is active, it will take part in profits of the Corporation and from this the Life Assured will receive simple reversionary bonuses. But this bonus amount totally depends on the experience of the Corporation. Not only that, but you can also enjoy the Final Additional Bonus. This bonus will only be available in that year when either maturity claim or death claim will be filed by you. However, in the case of paid-up policies, Final Additional Bonus will not be payable.
Optional Rider Benefit:
Under this policy, to enhance the security of your child, you can also opt for the Rider benefit, LIC’s Premium Waiver Benefit Rider. This rider plan has to be taken on the life of the Proposer only.
Option To Take Death Benefit in Installments:
Instead of receiving the death benefit as a lump sum amount, you can also receive it in installment to generate a regular flow of income, over the chosen period of 5 or 10 or 15 years. This facility can be availed of both in case of an active policy as well as paid-up policy.
According to your chosen intervals, the installments shall be paid in advance by the Corporation. This installment is subject to minimum installment amount for different modes of payments and that is mentioned below:
|Mode of Instalment payment||Minimum installment amount|
Settlement Option For Maturity Benefit:
Like the death benefit, you can also choose to receive the maturity benefit in installments, instead of a lump sum amount, over the chosen period of 5 or 10 or 15 years.
The Corporation will pay the installments in advance as per your chosen intervals. For opting different modes of payments, certain minimum installment amount is fixed, as per your chosen intervals and that is mentioned below:
|Mode of Instalment payment||Minimum installment amount|
How Does LIC Jeevan Tarun Policy work?
For your better understanding of how the LIC Jeevan Tarun Plan works, here is a sample example. Suppose, Mr. Bose, a 36-year-old businessman has purchased LIC Jeevan Tarun Policy for his daughter of 4 years. His sum assured amount is Rs. 15 lakhs and the premium paying term is 16 years. Let us find out how much premium he has to pay for that annually and what will be the benefits of his chosen plan.
|Age||The policy bought (year)||Sum assured||Premium paying term (20 years minus age at entry = 20-4)||Policy term (25 years minus age at entry = 25-4)||Option chosen||PWB (Premium Waiver Benefit) Benefit||Yearly premium amount (Premium + PWB premium + GST 4.5%)|
Proposer’s age – 36 years
Daughter’s age – 4 years
|2022||Rs. 15 lakhs||16 years||21 years||Option 1 (100%)||Yes||77746.5 + 3086.54 + 3637.49 = 84470.53|
Life Insurance Cover:
|Benefits for the child||Amount (in Rupees)|
Policy maturity: Returns when a child turns 25 years:
100% of sum assured
+ Bonus + Final Additional Bonus: 2145000 + 15000
Benefit 1: Total TAX FREE RETURNS from this plan on 22nd year Policy Maturity =
Benefit 2: Approximate maximum loan available
Benefits of nominee or parent in case of child’s demise:
|On Life Assured’s death before 22nd year of plan maturity||Amount (in Rupees)|
|Total payable to nominee = 1 + 2 (tax free)||4170000|
Additional Information About LIC Jeevan Tarun
Here is some more information about LIC Jeevan Tarun Policy that will help you to understand this plan better.
In the case of yearly or half-yearly or quarterly premium payment option, the grace period is of 30 days, whereas a grace period of 15 days will be allowed for monthly premiums from the date of the first unpaid premium. Within this grace period, the policy will still remain active. But, if the premium is not paid within this stipulated period, the policy will lapse.
Sample Illustrative Premium
The sample illustrative annual premiums, in rupees, under different Options for Sum Assured of Rs. 1 lakh for standard lives are mentioned in the below table:
Under this policy, the life assured can avail of the loan facility only if he/she has paid at least 2 years premiums and that is subject to the terms and conditions of the insurer, which the Corporation may specify from time to time. The maximum loan as a percentage of Surrender Value shall be as under:
- For in-force policies – up to 90%
- For paid-up policies – up to 80%
How the rebate for the LIC Jeevan Tarun Policy is calculated, is mentioned below.
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly & Monthly Mode – NIL
High Sum Assured Rebate (on Premium):
|Sum Assured (In Rupees)||Rebate (In Rupees)|
|75,000 to 1,90,000||Nil|
|2,00,000 to 4,90,000||2 per thousand Sum Assured|
|5,00,000 and above||3 per thousand Sum Assured|
Free Look Period:
If the insured person feels unsatisfied with the terms and conditions of the policy, he/she can return the policy within 15 days from the date of receipt of the policy bond, and additionally, he has to state the reasons for objections. Once the Corporation receives it, it will cancel the policy and also will return the deposited premium amount after deducting a certain amount.
If you want to, you can surrender this policy at any time only if you have paid premiums for the full 2 years. Once you surrender this policy, the Corporation shall pay the Surrender Value that is equal to Guaranteed Surrender Value or Special Surrender Value, whichever is higher.
Special Surrender Value:
It is reviewable and is calculated and determined by the Corporation itself from time to time and this is subject to prior approval of IRDAI.
The Guaranteed Surrender Value – It payable during the policy term shall be equal to the total premiums paid (excluding taxes, extra premiums, and rider premium, if opted for) multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid and then reduced by any Survival Benefits already paid under the policy. For your better understanding, here is the illustration.
General Exclusions of LIC Jeevan Tarun
While LIC Jeevan Tarun Policy has come up with a sack full of benefits, it has certain exclusions too. While you are buying a policy, it is important to know exclusions to avoid future hazards while filing a claim. So, here are the general exclusions of the LIC Jeevan Tarun Policy.
- In case of the Life assured commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim under the policy except for 80% of the total premiums paid, while the policy is active. However, this clause will not be applicable in case the age at entry of the Life Assured is below 8 years.
- On the other hand, If the Life Assured commits suicide within 12 months from the date of revival, an amount of 80% of the total premiums paid till the date of death or the surrender value available as on the date of death, whichever is higher, will be payable. Other than this, the Corporation will not entertain any other claim under the policy.
How To Apply For LIC Jeevan Tarun Policy?
As the policy is not available online, you need to purchase the policy offline only by visiting the nearest office of the Life Insurance Corporation of India (LIC). Their experts will guide you throughout the process smoothly. You can also contact one of their registered and licensed agents and they are experienced enough to offer you the right guidance for the buying process. Apart from these, you can also call on their provided contact number to seek help for the same.
How can you revive LIC Jeevan Tarun Policy?
If you do not pay the due premiums within the grace period, the policy will expire. This expired policy can also be revived within a period of 5 consecutive years from the date of the first unpaid premium. This revival will only be effective on the payment of all the arrears of premium(s) together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time and on the satisfaction of Continued Insurability of the Life Assured and/or Proposer that is calculated on the basis of provided data, details, documents, etc.
Revival of rider, if opted for, will be considered along with the revival of the Base Policy and not in isolation. The Corporation can decline the revival of the expired policy on certain grounds. The revival will be effective only if the Corporation accepts, approves, and issues the revival receipt.
Frequently Asked Questions
Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.
If you have paid at least 2 full years’ premiums but have not paid any subsequent premium, the policy will not be completely revoked, rather it will be regarded as a paid-up policy till the end of the policy term.
If the policy is issued on the life of a minor, the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.
Yes, for this policy you can pay the premiums either in monthly, quarterly, half-yearly, or yearly mode over the premium paying term of the policy.
In case of death of the proposer, no premiums have to be paid for remaining future periods and the policy will keep on continuing till maturity. Additionally, the child will still be eligible to get all the returns on time.
You can buy online up to Policy Value Rs. 15 lakhs only. However, if you want to avail of more cover, you can do that offline by going through certain medical tests.
In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately from the date of issuance of the policy.