The Jeevan Tarun Policy for Children from LIC is an individual, non-linked, participating life insurance policy. The combination of saving and protection features offered by the plan is interesting. Through annual payments of the Survival Benefit from the ages of 20 to 24 and the Maturity Benefit at the age of 25, this plan can support the growing children’s needs in terms of education and other financial demands.
Eligibility Criteria, Policy Term & Premium Paying Term
There is no maximum basic sum assured under the Jeevan Tarun Policy, and the minimum sum assured is Rs. 75,000. Between Rs. 75,000 and Rs. 100,000, the Sum Assured must be in multiples of Rs. 5,000, and above Rs. 100,000, it must be in multiples of Rs. 10,000. The minimum and maximum admission ages are 90 days and 12 years, respectively. The maximum maturity age of the plan is 25 years. It will have a 25-year policy term and a 20-year premium payment term (PPT).
The plan can be purchased by any parent or grandparent for a child aged 0 to 12 years.
LIC’s Jeevan Tarun Policy – Survival Benefits and Maturity Benefit
Jeevan Tarun is a flexible plan where at the proposal stage, the proposer can choose the proportion of Survival Benefits to be availed during the term of the policy. You can choose from four options to receive the Survival Benefits. Survival Benefit is the annual payment of a fixed percentage of Sum Assured every year starting from policy anniversary coinciding with or following the completion of 20 years of age and thereafter on each of the next 4 policy anniversaries. Under Option 1, there will be no survival benefit, but the policy holder will get 100% of the Sum Assured as Maturity Benefit. Under Option 2, the policy holder will get 5% of Sum Assured every year for 5 years, and 75% of the Sum Assured will be provided as Maturity Benefit. Under Option 3, the policy holder will get 10% of Sum Assured every year for 5 years, and 50% of the Sum Assured will be provided as Maturity Benefit. Lastly, under Option 4, the policy holder will get 15% of Sum Assured every year for 5 years, and 25% of the Sum Assured will be provided as Maturity Benefit.
Death benefit
On the death of the Life Assured during the policy term provided the policy is in-force i. e. all due premiums have been paid shall be as under: On death before the date of commencement of risk refund of premium(s) paid excluding taxes, extra premium and rider premium, without the interest will be paid. On death after the date of commencement of risk, death Benefit, which is defined as sum of Sum Assured on Death and vested Simple Reversionary Bonuses and Final Additional Bonus, will be paid.
Here the “Sum Assured on Death” is as higher of 7 times of annualized premium or 125% of Sum Assured. This Death Benefit shall not be less than 105% of the total premiums paid upto date of death. The premiums will exclude taxes, extra premium and the rider premium.
