LIC Jeevan Tarang Policy

LIC Jeevan Tarang Plan is a Whole Life Plan with Bonus facility.

In this plan, the premium is paid for the Accumulation Period that is chosen by the policyholder of 10, 15 or 20 years. When the Accumulation Period ends, i.e. the Premium Paying Term is over, the vested Bonus is paid in a Lumpsum and the policy continues.

Every year, after the Accumulation Period ends, 5 and ½ % of the Sum Assured is paid as Survival Benefit till the Life Insured is 100 years old. If the Life Insured survives till 100 years, then the entire Sum Assured + Loyalty Bonus is paid and the policy is terminated.

However, if the Life Insured dies within the accumulation period, then Sum Assured + vested Bonus is paid and the policy is terminated. If the Life Insured dies after the accumulation period but before 100 years of age, then Sum Assured + Loyalty Addition is paid and the policy is terminated.

§  This plan is a Whole Life Plan with regular annual returns post maturity

§  Premium is paid till the Accumulation Period only and not after that.

§  Death Benefit is Sum Assured + accrued Bonus + Loyalty Additions, if any

§  5 and ½ % of the Sum Assured is paid as Survival Benefit every year post Accumulation Period

§  Simple Reversionary Bonus is payable on maturity or earlier death.

§  Additional Accidental Death Benefit rider, Term Rider, Critical Illness rider and Premium Waiver Benefit for Critical Illness rider can be opted for during the Accumulation Period only.

Death Benefit – In case of death of the Life Insured

·         During the Accumulation Period- Sum Assured + vested Bonus is paid and the policy is terminated

·         After the Accumulation Period- Sum Assured + Loyalty Addition is paid and the policy is terminated

Survival Benefit— When the Life Insured survives after the Accumulation Period, 5 and ½ % of the Sum Assured is paid as Survival Benefit every year post that till the Life Insured is 100 years old.

Maturity Benefit – Being a Whole Life Plan, it matures when the Life Insured is 100 years old. Thus, if the Life Insured survives till 100 years, then the entire Sum Assured + Loyalty Bonus is paid and the policy is terminated.

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

The below illustration is for a healthy Male of 35 years (non-tobacco user) opting for

Sum Assured = Rs 1,00,000.

Accumulation Term = 15 years and 20 years

Riders – There 4 additional Riders available during the Accumulation Phase:

·         Accidental Death Benefit Rider

·         Term Rider,

·         Critical Illness rider and

·         Premium Waiver Benefit for Critical Illness rider

You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured.

You want to surrender the policy – There is a Guaranteed Surrender Value

·         During Accumulation Period,

Guaranteed Surrender Value = (30% of all premiums paid – 1st year’s premium) after 3 policy years for Regular Premiums and (90% of Single Premium) after 1 policy year.

·         After Accumulation Period, Guaranteed Surrender Value = 85% of basic Sum Assured.

Special Surrender Value is also available under this plan.

You want a loan against your policy – Loan facility is available under this policy

1.     Future Generali Saral Anand Plan

2.     ICICI Prudential Whole Life Plan

3.     Kotak Eternal Life Classic Shield

1.     The Whole Life Policy

2.     The Whole Life Policy- Limited Payment

3.     The Whole Life Policy- Single Payment

4.     Jeevan Anand