LIC Jeevan Tarun Plan (Table No: 834)

LIC’s Jeevan Tarun (Table No: 834) is children money back plan which is specially designed for securing children education. This plan gives options to choose survival benefit and helps to ensure the financial requirements of child education from 20 to 25 years of child age. This plan can be purchased by the parent or grandparent for their 0-12-year-old child and very useful with premium waiver rider which provides the premium waiver in case of death of guardian (proposer) during the policy term.

Key Features:

A plan to fulfill requirement child education
Option to select the required amount from 20-25 year age of the child
Premium waiver option which and important feature
Paid premiums are exempted from income tax under sec 80C
Maturity amount is tax-free under 10 (10D)

Eligibility Conditions:

Age of Entry	90 days to 12 years
Premium Paying Mode	Yearly, Half Yearly, Quarterly, Monthly (ECS Only) Calculate Premium
Policy Term	25 - Age at Entry (20 years in case of 5 year old child)
Premium Paying Term	20 - Age at Entry (15 years in case of 5 year old child)
Sum Assured	75000 and above (in multiples of 10000)
Premium Mode Rebate	2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly
High Sum Assured Rebate (per Thousand of SA)	Rs. 0 on 75,000 to 1,90,000 Rs. 2 on 2,00,000 to 4,90,000 Rs. 3 on SA on 5,00,000 and above
Loan	After 2 Years for less than 10 year term & 3 years for more than 10 year term
Surrender	After 2 Years for less than 10 year term & 3 years for more than 10 year term
Revival	Within 2 Years of Lapse

Starting of Risk

In case, the child is less than 8 years old, then, life cover will start 2 year after policy purchase or completion of 8 years of age, whichever is earlier.
Example, if the child is 2 years old, then life cover (risk) will start after 2 years i.e. when the child will become 4 years old and if the child is 7 years old then, the risk will start when the child becomes 8 years old i.e. that is one year after purchasing the policy.
If the child is 8 years old at the time of buying the policy then, the risk will start immediately.

Death benefits

If the death of the child happens before the start of risk, all premiums paid excluding taxes will be paid to the nominee as the death claim.
If the death of the child happens after the start of risk, then Sum Assured on death (125% of sum assured) + Bonus + FAB will be paid to the nominee as the death claim.

Maturity benefit

There are four options available to take the maturity on survival which gives the flexibility to plan and secure future requirements from 20 years of age to 25 years of age child. The four options are explained in the following table.

Option	From 20 -24 year of age	At 25 Year of Age
1	0	100% of SA + Bonus + FAB
2	5% of SA	75% of SA + Bonus + FAB
3	10% of SA	50% of SA + Bonus + FAB
4	15% of SA	25% of SA + Bonus + FAB

The annual premium will depend upon the amount of cover, your child’s age and the way you want to receive benefits. With such features, the insurance company will decide your premium.

As it is a Participating plan, you will receive Simple Reversionary Bonus and Final Additions as and when declared by LIC.

Premium Waiver Benefit Rider (PWB):

This plan can be bought with Premium waiver benefit against the life of proposer (Parents or Grand Parents) with the additional premium. In case of death of Parents, further premiums will not be required to pay. This rider must be included with this policy to get a complete child plan.

LIC Jeevan Tarun - Riders:

Accidental Death and Disability Benefit Rider can be added by the policyholder as an option. For this, the policyholder has to pay the extra cost along with the usual premium.

Product Specification:

Death Benefit: Upon the death of the policyholder, this benefit is provided.

Before the date of commencement of risk: In this case, the single premium is refunded to the nominee without giving any interest on the amount. This final premium amount does not include any extra amount or taxes.
After the date of Commencement of risk: In this case, Sum Assured on death is decided based on the single tabular premium. It is 10 times of the premiums. The premium paid during the decided tenure does not include any extra tax.

If all the regular premiums for the decided term are paid with no balance premium, the Death benefit is calculated by adding following amounts: Death Benefit = Sum Assured on death + Vested simple Reversionary Bonus + Final

Additional Bonus: The Sum Assured on death is relative to the Life Risk rates provided above. The final Death Benefit will never be less than 105% of all the premiums paid if the tenure of the policy is higher than 10 years. The premium paid during the decided tenure does not include any extra tax. The only extra amount needs to be paid is for Rider Premium, if applicable.

Maturity Benefit: Upon completing the tenure of the policy, maturity benefit is provided to the survivor. The key here is all the premiums should be paid for the entire term. The Maturity benefit is calculated as follows:

Maturity Benefit = Sum Assured on maturity + Vested simple Reversionary Bonus + Final Additional Bonus. Here the Sum Assured on maturity is nothing but the amount deducted after calculating money back amount. This lump sum amount is paid on the maturity of the policy.

LIC Jeevan Tarun - Additional Benefits:

Tax Benefit: Similar to other policy schemes, the LIC Jeevan Tarun Policy provides benefits in tax. The premiums are tax exempted Under the Section 80 C of Income Tax Act. The maturity amount provided at the end of Policy tenure is also tax-free. So you need not pay any tax on that amount. The maturity sum decided at the end will be given as it is. It is assured under the section 10 D.

Loan Facility: You can take a loan against the Jeevan Tarun policy in need. But for this, the policy should be more than 3 months old or over the free look period. The amount of the loan is decided based on the age of the policyholder when the policy was started.

Policy Surrender: There is provision to surrender the policy in need. If the policy is surrendered within one year of policy opening, then the policyholder will get up to 70% of single premium paid. After completing one year, if the holder surrenders the policy, then he will get up to 90% returns on the single premium paid. There are many calculators available online to calculate the estimate of surrender policy. If the policy is surrendered after completing five years, the holder is also eligible for Loyalty Bonus along with the premium returns. This can be calculated using online calculators.

This policy can be brought by the parents or grandparents of the child. It will be beneficial for your child for their education or you can also take the benefit for their marriages.

CHECK PREMIUM CALCULATION HERE:

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