If anyone wishes to have long-term financial security for his/her family, then purchasing life insurance is a must. The Life Insurance Corporation of India (LIC), a well-renowned player in the life insurance sector, has a wide selection of life insurance plans according to the customers’ needs and financial capabilities.
Two such significant plans are LIC Jeevan Shiromami and LIC Jeevan Tarun, which were created especially to provide policyholders with the ideal combination of savings and protection. Despite the fact that both plans have the same fundamental aspects, there are many things that set them apart from one another. Both plans will be thoroughly compared in this post so that readers can choose the one that best meets their needs.
What Is LIC Jeevan Shiromami?
The Jeevan Shiromani plan from LIC is specifically created for high-net-worth individuals and it combines savings and protection. In the terrible event that the policyholders pass away during the period of the policy, this plan offers financial help to the family. Periodic payments are provided on policyholder survival at predetermined intervals throughout the policy term, and a lump sum payment must be given to the surviving policyholder at policy maturity.
What Is LIC Jeevan Tarun?
LIC Jeevan Tarun is a non-linked, participatory, individual life assurance savings plan for children that offers a desirable combination of safety and savings characteristics. Through annual survival benefit payments from the ages of 20 to 24 and maturity benefit payments at the age of 25, this plan is specially made to meet the educational and other demands of developing youngsters. There are four different versions of the plan: Option 1, Option 2, Option 3, and Option 4.
Eligibility Criteria Of LIC Jeevan Shiromami & LIC Jeevan Tarun
|Parameters||LIC Jeevan Shiromami||LIC Jeevan Tarun|
|Minimum Entry Age||18 Years||90 Days|
|Maximum Entry Age||12 Years|
|Policy Term||14, 16, 18 & 20 Years||[25 – Age At Entry] Years|
|Minimum Basic Sum Assured||Rs. 1,00,00,000||Rs. 75,000|
|Maximum Basic Sum Assured||No Limit||No Limit|
|Premium Paying Term (PPT)||(Policy Term Minus 4) Years||(20 Minus Age At Entry) Years|
Comparison Of Features & Benefits Of LIC Jeevan Shiromami & LIC Jeevan Tarun Policy
After knowing about the eligibility criteria of both plans, let’s compare their features and benefits in brief:
Both plans offer death benefits to the nominee in case the policyholder dies during the policy term.
Under the LIC Jeevan Shiromami, death benefit, defined as the sum of the “Sum Assured on Death” and “Accrued Guaranteed Addition”, shall be payable upon death during the first five years. The “Sum Assured on Death”, “Accrued Guaranteed Addition” and “Loyalty Addition”, if any, shall be payable upon the death of an insured after the completion of five policy years but before the date of maturity.
Under the LIC Jeevan Tarun plan, all premium payments made will be returned to the nominee if the policyholder passes away prior to the date on which the risk first arises. Whereas, the nominee will receive the “Sum Assured on Death” plus any declared Simple Reversionary Bonuses and Final Addition Bonuses, if any, if the policyholder passes away after the date on which the risk began.
The ‘Sum Assured on Death’ for both the plans will be higher of 7 X ‘Annualized Premium’ OR 125% of ‘Sum Assured’.
The “Sum Assured on Maturity” will be paid to the nominee if the life assured survives the policy period. This benefit is applicable to both plans. The ‘Sum Assured on Maturity’ for the plans is mentioned in the tables below:
- LIC Jeevan Shiromami
|Policy Term||Maturity Benefit|
|14 Years||40% Of Basic Sum Assured (BSA)|
|16 Years||30% Of BSA|
|18 Years||20% Of BSA|
|20 Years||10% Of BSA|
- LIC Jeevan Tarun
|Maturity Age||Option 1||Option 2||Option 3||Option 4|
For the LIC Jeevan Shiromami plan, a defined percentage of the ‘Basic Sum Assured’ shall be payable upon the life assured surviving to each of the specified durations during the policy period, provided all due premiums have been paid. The fixed percentage for the policy is listed below:
|Policy Term (In Years)||Survival Benefit|
|14||30% of the Basic Sum Assured on each of 10 and 12 policy anniversaries.|
|16||35% of the Basic Sum Assured on each of 12 and 14 policy anniversaries.|
|18||40% of the Basic Sum Assured on each of 14 and 16 policy anniversaries.|
|20||45% of the Basic Sum Assured on each of 16 and 18 policy anniversaries.|
Whereas, for Jeevan Tarun, a specified percentage of the sum assured shall be paid on each policy anniversary that coincides with or immediately follows the completion of 20 years of age, as well as on each of the following four policy anniversaries. The option chosen during the proposal stage will determine these set percentages, and the percentages for the various options are as follows:
|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|
Critical Illness Benefit:
This benefit is inbuilt with LIC Jeevan Shiromami and not present with the LIC Jeevan Tarun plan. The following benefits/facilities shall be accessible upon first diagnosis of any one of the 15 critical illnesses listed below, provided the insurance is in force on the date of diagnosis by payment of all premiums due under the policy.
- Lump sum benefit
- Option to defer the payment of premiums
- Medical second opinion
The list of critical illnesses covered under the benefit is as follows:
- CANCER OF SPECIFIED SEVERITY
- OPEN CHEST CABG
- MYOCARDIAL INFARCTION
- KIDNEY FAILURE REQUIRING REGULAR DIALYSIS
- MAJOR ORGAN/BONE MARROW TRANSPLANT
- STROKE RESULTING IN PERMANENT SYMPTOMS
- PERMANENT PARALYSIS OF LIMBS
- MULTIPLE SCLEROSIS WITH PERSISTING SYMPTOMS
- AORTIC SURGERY
- PRIMARY (IDIOPATHIC) PULMONARY HYPERTENSION
- ALZHEIMER’S DISEASE/DEMENTIA
- THIRD DEGREE BURNS
- OPEN HEART REPLACEMENT OR REPAIR OF HEART VALVES
- BENIGN BRAIN TUMOR
The following riders can be chosen under the plans by paying an extra premium amount:
LIC Jeevan Shiromami
- LIC’s Accidental Death & Disability Benefit Rider
- LIC’s Accident Benefit Rider
- LIC’s New Term Assurance Rider
- LIC’s New Critical Illness Benefit Rider
LIC Jeevan Tarun
- LIC’s Premium Waiver Benefit Rider
Options To Take Death & Maturity Benefits In Instalments:
Both policies’ death and maturity benefits can be obtained over a time frame of 5, 10, 0r 15 years as opposed to all at once. The life assured may exercise this option at any moment during his or her lifetime to receive all or a portion of the death and maturity benefits provided by the policies.
LIC Jeevan Shiromami and LIC Jeevan Tarun plan also offer rebates for higher sum assured rates. They are as follows:
|Sum Assured (SA) (In Rs.)||Rebate (In Rs.)|
|For LIC Jeevan Tarun|
|75,000 To 1,90,000||Nil|
|2,00,000 To 4,90,000||2 Per Thousand SA|
|5,00,000 And Above||3 Per Thousand SA|
|For LIC Jeevan Shiromami|
|100,00,000 To 195,00,000||Nil|
|200,00,000 To 495,00,000||0.030% Of BSA|
|500,00,000 & Above||0.050% Of BSA|
For a detailed comparison, kindly refer to the policy brochures of both plans.
Benefit Illustration Of LIC Jeevan Shiromami & LIC Jeevan Tarun
For having a clearer understanding of how both plans work, it’s important to take a look at their benefit illustrations. Therefore, this section will display the benefits received by the policyholders in case they choose either of the plans!
LIC Jeevan Shiromami
Suppose Mr. Kumar, a 30-year-old male, buys the plan for a 14 years policy term. The rest of the details of the plan are as follows:
- Premium Paying Term: 10 Years
- Premium Payment Mode: Yearly
- Basic Sum Assured: Rs. 1,00,00,000
- Premium: Rs. 10,75,550
Let’s take a look at what benefits the plan will give to Mr. Kumar!
|End Of Year||Total Premiums Paid Till The End Of The Year (In Rs.)|
|Survival Beneﬁt||Sum Assured On Maturity||Sum Assured On Death||Inbuilt Critical Illness Beneﬁt|
|Non-Guaranteed Beneﬁts (Loyalty Addition)||Total Maturity Beneﬁt||Total Death Beneﬁt|
|@4% PA||@8% PA||@4% PA||@8% PA||@4% PA||@8% PA|
LIC Jeevan Tarun
Let’s assume that 35-year-old Mr. Muhammad wants to purchase the plan for his 5-year-old son. The plan’s specifics are as follows:
|Age Of Life Assured||5 Years|
|Policy Term||20 Years|
|Premium Payment Term||15 Years|
|Premium Payment Mode||Yearly|
|Sum Assured||Rs. 1,00,000|
|Premium Amount (Excluding Taxes)||Rs. 6,375|
The plan will offer the following benefits to the policyholder!
|End Of Year||Total Premium Paid Till The End Of The Year (In Rs.)||Guaranteed Benefit||Non-Guaranteed Benefit||Total Maturity Benefit||Total Death Benefit|
|Sum Assured On Maturity||Sum Assured On Death||(Simple Reversionary Bonus)|
|@4% PA||@8% PA||@4% PA||@8% PA||@4% PA||@8% PA|
Which One Is Better: LIC Jeevan Shiromami OR LIC Jeevan Tarun?
Both policies have unique characteristics and advantages. While LIC Jeevan Shiromami offers protection, savings, medical cover, and attractive returns, Jeevan Tarun offers coverage designed especially for kids.
In case you wish to get higher coverage at affordable rates along with critical illness benefits, then LIC Jeevan Shiromami is a perfect choice for you. However, LIC Jeevan Tarun is an ideal option for parents who want to invest their money while keeping in mind the needs of their children’s education and other demands.
The choice between LIC Jeevan Shiromami and LIC Jeevan Tarun depends on the customer’s personal preferences, financial objectives, and insurance requirements. You will surely benefit from this thorough comparison as you can choose the insurance that best meets your needs. Both the Jeevan Tarun and Jeevan Shiromami LIC plans have benefits and drawbacks and are made to accommodate a variety of demands.
So, the choice is ultimately up to you!