LIC Jeevan Tarun offers a good combination of protection and savings component for a child’s future needs through this plan. The plan has been made keeping in mind the need to ensure a child’s bright future and saving money to fund their expenses like higher education, sports coaching fees etc.
It offers flexibility in survival benefit with four different options.
The plan pays survival benefit payments from ages 20 to 24 years and maturity benefit at age 25 years. The plan also offers loan facility on accrued surrender value.
Death Benefit
On death during the policy term
Before commencement of risk: In this case the death benefit will be only the sum of premiums paid excluding taxes and extra or rider premium. No interest will be payable on this amount.
After commencement of risk : In this case, the death benefit will be payable by the company provided all premiums have been regularly paid and the policy is active. The death benefit amount will be sum assured on death plus vested Simple Reversionary Bonuses and Final Additional Bonus. The sum assured is mentioned as higher of 10 times of annualized premiums or absolute amount assured to be paid on death which comes to 125% of the sum assured. Death benefit payable shall not be less than 105% of all premiums paid as on date of death. The premiums are minus any taxes, extra or rider premium.
Survival benefit : Survival benefit offers a fixed percentage of sum assured which can be selected during proposal stage. This amount will be payable on completion of 20 years and thereafter on each of next four policy anniversaries.
| 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 |
Source - www.licindia.in/Products/Insurance-Plan/jeevan-tarun
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% | 75% | 50% | 25% |
Source - www.licindia.in/Products/Insurance-Plan/jeevan-tarun
Participation in Profits benefit : This plan is eligible to participate in corporation’s profits and receive Simple Reversionary Bonuses or any final additional bonus when a claim is made either by death or maturity provided the policy is active.
LIC Premium Waiver Benefit rider : LIC Jeevan Tarun is offering an optional rider for added protection for an extra premium. If the subscriber of the policy meaning the parent or grandparent who is paying the premium on the policy dies then all the future premiums will be waived off and the policy will continue to be active till the policy term chosen.
Revival period : The policy can be revived if lapsed. The revival period is less than 2 consecutive years since the last date of premium.
Free Look period : Free look period of 15 days is offered in this plan from the date of receipt of the policy bond. The policy can be returned to the corporation stating the reasons of objection. On receipt of the same, the policy will be cancelled and amount of premium paid will be returned minus the expenses incurred.
Surrender Value : To build the surrender value the policy needs to be active for at least two consecutive years if policy term is less than 10 years and 3 consecutive years if policy term is greater than 10 years. Guaranteed surrender value will be percentage of total premiums paid excluding extra premiums and premiums for riders.
Loan on Policy : A loan can be availed on policy as per the accumulated surrender value and the company’s terms and condition which may be subject to change from time to time.
Suicide : If the policyholder commits suicide within 12 months from the date of start of policy then no death benefit amount mentioned in the policy is payable. The company will only return 80% of the premiums paid excluding any taxes, extra premium and rider premium other than Term Assurance Rider, only if the policy is in force.
LIC Jeevan Tarun is an endowment plan by LIC of India which is aimed to secure children's future for higher education and other needs. The plan offers flexibility with regards to payment disbursement options with different percentage of payouts. The plan has been well customized with eligibility for bonus additions to help the fund grow and waiver of premium benefit rider to give protection for child's future if the proposer of the policy dies during payment paying term. Overall, it is a good and well-designed child benefit endowment plan.
How can I revive my policy?
You can revive your LIC Jeevan Tarun Policy within 2 years from the date of unpaid premium. All you need to do as a policyholder is pay all the due premiums along with interest (compounding half-yearly), if any. However, it is important to note that if you have any riders attached to your base plan, the same shall also be revived and there shall be no change in treatment for them, unless specified otherwise.
Can I get a loan against this policy?
Yes, it is possible to get a loan against the policy only if your plan has acquired a surrender value.
What are the bonuses offered by this plan?
LIC Jeevan Tarun participates in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses, which is declared as per the experience of the Corporation only if the policy is inforce. According to the Plan, final additional bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.
