India's 1st IRDAI Approved Insurance Web Aggregator
LIC Jeevan Tarun Plan
views
views
LIC Jeevan Tarun - Table No. 834
LIC Jeevan Tarun Policy is a participating money back plan suitable for planning your child’s future needs. The plan needs to be taken in the name of the child and the life cover if provided to the child and not to the parent.
Launch Date
24th April, 2015
Plan Details
Table No. 834
Policy Type
Money Back, Child Plan
How does LIC Jeevan Tarun Policy work?
When buying the LIC Jeevan Tarun Plan, the customer has to decide on the following:
Sum Assured - this is the amount of cover that you want. You can choose a minimum amount of Rs. 75,000. There is no upper limit.
Policy Term - this is the period for which you wish to have the cover. The term will end when the child reaches the age of 25 years.
Premium Payment Term - You need to pay premiums till the child reaches the age of 20 years.
You have to select one of the following options to decide how you want to get the benefits:
Option
Money Back Options
Maturity Benefit
Option 1
No money Back during policy term
100% of Sum Assured
Option 2
5% of Sum Assured for 5 years.
After child reaches the age of 20, 21, 22, 23 & 24 years
100% of Sum Assured
Option 3
10% of Sum Assured for 5 years.
After child reaches the age of 20, 21, 22, 23 & 24 years
50% of Sum Assured
Option 4
15% of Sum Assured for 5 years.
After child reaches the age of 20, 21, 22, 23 & 24 years
25% of Sum Assured
We will understand these options better with the help of examples.
Based on the amount of cover, your child’s age and how you want to receive the benefits, your annual premium will be decided.
Since it is a Participating plan, you will receive Simple Reversionary Bonus and Final Additions as and when declared by LIC.
COMPARE THIS PLAN WITH OTHER CHILD PLANS
Benefits in the LIC Jeevan Tarun Plan
Death Benefit in LIC Jeevan Tarun Plan
The death cover actually starts only after the “Date of commencement of Risk”. In case the child is less than 8 years of age when taking the policy, the risk cover will start 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.
In case the policyholder dies before the “Date of commencement of Risk”, all premiums paid till now will be returned. This does not include the tax amounts paid or any rider premium which has been paid.
In case the policyholder dies after the “Date of commencement of Risk”, the higher of 10 times the annual premium or 125% of Sum Assured along with the Simple Reversionary Bonus and Final Addition Bonus which has been declared will be paid.
Survival Benefit in LIC Jeevan Tarun Plan
This will depend on the Plan Option which has been selected.
Option
Money Back Options
Option 1
No money Back during policy term
Option 2
5% of Sum Assured for 5 years.
After child reaches the age of 20, 21, 22, 23 & 24 years
Option 3
10% of Sum Assured for 5 years.
After child reaches the age of 20, 21, 22, 23 & 24 years
Option 4
15% of Sum Assured for 5 years.
After child reaches the age of 20, 21, 22, 23 & 24 years
Maturity Benefit in LIC Jeevan Tarun Plan
This will also depend on the Plan Option selected.
Option
Maturity Benefit
Option 1
100% of Sum Assured
Option 2
75% of Sum Assured
Option 3
50% of Sum Assured
Option 4
25% of Sum Assured
Along with this, the Simple Reversionary Bonus and the Final Addition Bonus as declared will be paid to the policyholder.
How to the different Plan Options work in Jeevan Tarun
Let us first understand how the different plan options work.
Option 1
In this option, you don’t get any money back during the term of the policy.
During the term of the policy - No payout On Maturity - 100% Sum Assured + Simple Reversionary Bonus + Final Additions declared
Option 2
End of Year 20 - 5% of Sum Assured End of Year 21 - 5% of Sum Assured End of Year 22 - 5% of Sum Assured End of Year 23 - 5% of Sum Assured End of Year 24 - 5% of Sum Assured On Maturity - 75% Sum Assured + Simple Reversionary Bonus + Final Additions declared
Option 3
End of Year 20 - 10% of Sum Assured End of Year 21 - 10% of Sum Assured End of Year 22 - 10% of Sum Assured End of Year 23 - 10% of Sum Assured End of Year 24 - 10% of Sum Assured On Maturity - 50% Sum Assured + Simple Reversionary Bonus + Final Additions declared
Option 4
End of Year 20 - 15% of Sum Assured End of Year 21 - 15% of Sum Assured End of Year 22 - 15% of Sum Assured End of Year 23 - 15% of Sum Assured End of Year 24 - 15% of Sum Assured On Maturity - 25% Sum Assured + Simple Reversionary Bonus + Final Additions declared
LIC Jeevan Tarun Plan with an Example
We have Suman Banerjee, age 35 who wishes to buy this plan. He goes in for the plan with the following:
Sum Assured - Rs. 2,00,000 Term - 20 years. Based on this the premium payment term gets decided
Based on these parameters, his annual premium is Rs. 6,874 + Taxes = Rs. 7,183. Here we have assumed the current tax rate of 4.5%.
Death Benefit
Scenario 1 : If Suman dies after 3 policy years - The nominee would get the Sum Assured only.
Total Premiums Paid = Rs 21,549
Sum Assured = Rs. 2,00,000
Simple Reversionary Bonus = Nil, as the policy has not completed 5 years
So nominee will get Rs. 2,00,000
Scenario 2 : If Suman dies after 15 policy years - The nominee would get the Sum Assured + Loyalty Addition
Total Premiums Paid = Rs 1,07,745
Sum Assured = Rs. 2,00,000
Loyalty Addition - Since the plan has completed 5 years, it is eligible for receiving Loyalty Addition. The exact value of this can only be known when it is declared. However, we have assumed a one-time value of Rs. 300 per 1,000 Sum Assured = (300 x 2,00,000/1,000) = Rs. 60,000
So his nominee will get Rs. 2,00,000 + Rs. 60,000 = Rs. 2,60,000
Maturity Benefit
Scenario 3 : If Suman survives till the end of the policy term of 20 years - Suman will get the Sum Assured + Loyalty Addition
Total Premiums Paid = Rs. 1,43,660
Sum Assured = Rs. 2,00,000
Loyalty Addition - Since the plan has completed 5 years, it is eligible for receiving Loyalty Addition. The exact value of this can only be known when it is declared. However, we have assumed a one-time value of Rs. 500 per 1,000 Sum Assured = (500 x 2,00,000/1,000) = Rs. 1,00,000
So Sumit will get Rs. 2,00,000 + Rs. 2,00,000 + Rs. 1,00,000 = Rs. 3,00,000
Sample Premium Illustration of LIC Jeevan Tarun Policy
Here are the sample tabular premium rates (inclusive of taxes) payable by a healthy, non-tobacco user male for different combinations of age, Sum Assured and policy term. We have gone with the current applicable tax rate of 4.5% for such policies.
Eligibility Criteria for buying LIC Jeevan Tarun Policy
Minimum
Maximum
Sum Assured
Rs. 75,000
No limit
Policy Term
10 years
20 years
Premium Payment Term
Entry Age
8 years
55 years
Maximum Maturity Age
70 years
Premium paying frequency
Annually, Half-yearly, Quarterly, Monthly
The Sum Assured will be in multiples of Rs. 5,000 for Sum Assured between Rs. 75,000 to Rs. 100,000 and Rs. 10,000/- for Sum Assured above Rs 100,000
Tax Implications in LIC Jeevan Tarun Plan
Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act.
Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act
Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act
Other Benefits in the LIC Tarun Labh Policy
Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.
Grace Period - In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is of 15 days.
Loan - You can avail a long against this policy after you have paid 3 years of premium.
Riders - You have the choice of taking the following rider by paying an extra premium amount:
LIC's Premium Waiver Benefit Rider
Surrender Value - If you surrender the plan anytime before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value. The bonus which you get in the policy also has a surrender value. Click here to understand the Surrender Value Calculations in the LIC Jeevan Tarun Plan.
If you have any questions on the LIC Jeevan Labh Policy, drop in a line in the comments and we will be happy to help out.
