LIC Jeevan Tarun Policy Key Features

1. LIC Jeevan Tarun Plan: The Jeevan Tarun Plan is a participating, non-linked plan that offers a good combination of insurance plus savings for children. The plan is specifically designed to meet the financial needs of growing children. The plan offers an annual survival benefit from the ages of 20 to 24 years and also offers a maturity benefit as the end of 25 years. These years are generally the formative years in an individual’s life when he/she is pursuing higher education and as such needs money for various purposes. The survival benefit can be chosen by the policyholder and is a certain percentage of the sum assured. This survival benefit is paid annually to the policyholder starting from the anniversary year of policy. An optional rider which helps to raise the total sum assured can be availed by policyholders.This plan can be availed by the parent or grandparent of any child between 0 and 12 years of age.

LIC Jeevan Tarun - Key Features

·         This is a Participating Limited Pay Traditional Plan

·         Premium needs to be paid till the child is 20 years old, while the policy continues till the child completes 25 years of age

·         The risk cover on the child starts after he completes 8 years of age or 2 years from the date of policy commencement, whichever is earlier

·         There are 4 options for choosing maturity benefit:

Options	Survival Benefit	Maturity Benefit
1	No Survival Benefit	100% of Sum Assured + vested Bonuses
2	5% of Sum Assured paid every year for the last 5 policy years	The remaining 75% of the Sum Assured is paid + vested Bonuses
3	10% of Sum Assured paid every year for the last 5 policy years	The remaining 50% of the Sum Assured is paid + vested Bonuses
4	15% of Sum Assured paid every year for the last 5 policy years	The remaining 25% of the Sum Assured is paid + vested Bonuses

·         In this plan, the premium needs to be paid till the child is 20 years old, but the policy continues till he is 25 years old. Thus the last 5 years, when the payout can be taken, the premium does not need to be paid, but the policy continues till its maturity, i.e. the child is 25 years old. Thus, this plan is a Limited Payment Policy.

·         The remaining Sum Assured along with vested Bonus if any, would be payable to him on the maturity of the policy as Maturity Benefit, and the policy would terminate

·         The Sum Assured on Death has been defined as the higher of 10 times the Annualized Premium or 125% of the Sum Assured, whichever is higher, subject to a minimum of 105% of the total premium paid to date.

Eligibility Conditions and Other Restrictions

Minimum Sum Assured	Rs. 75,000
Maximum Sum Assured	No 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)
Minimum Age at entry	[90] days (last birthday)
Maximum Age at entry	[12] years (last birthday)
Minimum/ Maximum Maturity Age	[25] years (last birthday)
Policy Term	[25 – Age at entry] years
Premium Paying Term (PPT)	[20 – Age at entry] years

LIC Jeevan Tarun Plan Benefits

1.  Bonus

This is a participating policy as the policyholder gets Final Additional Bonus and Simple Reversionary Bonuses.

2.  Survival Benefit

If the policyholder survives till the maturity age, then a certain % of the Sum Assured is given to the policyholder as Survival Benefit in the last 5 years, and the policy remains active as per the schedule was chosen at the policy inception.

3.  Maturity Benefit

If the policyholder survives the complete tenure of the policy, then the amount leftover of the Basic SA plus the bonuses acquired are paid to the policyholder as per Maturity Benefit, and thus the policy gets terminated.

4.  Death Benefit

In case of the policyholder's sudden demise during the policy's tenure, the Sum Assured at the time of Death along with the acquired Bonuses are paid to the person nominated by the policyholder. This does not depend on the amount paid as a survival benefit. Sum Assured is the higher of:

o    125% of the Sum Assured was chosen while taking the policy.

o    10 times of annualized premium as being paid.

o    Subject to a minimum of 105% of the total premiums paid as on date of death.

Here is a benefit illustration that will help you understand LIC money back policy much easily

Age of Life Assured (nearer birthday)	5
Option	4
Policy Term (years)	20
Premium payment term (years)	15
Premium payment mode	yearly
Sum Assured (Rs.)	1,00,000
Premium (excluding Taxes) (Rs.)	6,375

Rider Available With Jeevan Tarun Policy

LIC’s Premium Waiver Benefit Rider: Under the LIC’s Premium Waiver Benefit Rider, future payments of the premiums are waived off in case of unforeseen demise of the subscriber (the one who makes payments of the premiums).

The policyholder gets to leverage the mode of payment for yearly and half-yearly premium payments.

Income tax benefit on the premium paid to the policyholder under Income Tax Act since the basic Sum Assured is 10 times the Annualized Premium.

LIC Jeevan Tarun - Product Specification

Minimum	Maximum
Entry Age (Last Birthday) of Child	90 days	12 years
Maturity Age (Last Birthday) of Child	-	25 years
Maturity Age (Last Birthday) of Proposer	-	No Limit unless Premium Waiver Benefit rider has been opted for
Policy Term (PT) in years	25 – Age at the entry of the child
Premium Paying Term (PPT) in years	8	20
Premium Paying Frequency	Annual, half-yearly, quarterly, and monthly
Sum Assured	Rs 75000	No Limit

Policy Details of LIC Jeevan Tarun Plan

1.  Grace Period

To pay the premium, the policyholders have the leverage of 30 days to pay the premium. Now, if the policyholder does not make the payment within these 30 days, then the policy lapses.

2.  Free Look Period

This plan gives the policyholder a period of 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 period if the policyholder has made no claim.

 

 Rebates

Mode Rebate
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 (SA)	Rebate (Rs.)
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

 

 

Exclusions

If the policyholder commits suicide within 12 months of taking up the policy, then the nominee receives around 80% of the premium. If the policyholder commits suicide within 12 months of the revival period, then the Surrender Value or 80% of the premiums paid by the policyholder is received.

Documents Required

To take the policy, you need proper documents supporting your application.  Following are the documents you require:

·         Medical history

·         Address proof

·         Know your customer documents

·         Medical examination (depending on your age or the sum assured)