LIC Jeevan Tarun Plan
Insurance is a way to get compensation from the insurance provider in case of any loss, damage, sickness, and upon death in place of premiums paid by the buyer. The amount of the premium is decided according to the coverage required and the type of insurance plan one sought to buy. Traditionally, insurance policies were just a means to put aside some money that could financially support them in case the earning member of the family passes away. But due to changing demands and rising inflation, new insurance plans are being introduced in the market to meet one's needs. Insurance these days are not only about saving money but also gives the benefit of investment as well.
Such dual plans not only provide you with sufficient money to meet those long term goals but also help you to earn some additional pennies over the assured sum. Endowment plans are a good example of this type of dual benefit policy. Moreover, these days such endowment policies are not only meant for working adults but could be purchased for young children and even for infants.
An insurance policy for your child could be purchased for a specific duration such that upon maturity, one has enough money in hands to meet child-specific goals. It could be their education, marriage, or any other financial motive that requires a bulk amount.
LIC Jeevan Tarun Policy (UIN: 512N299V02) is one such endowment plan designed to cater to the needs of children. This plan could be purchased for your newborn as well.
What is LIC Jeevan Tarun Plan?
LIC Jeevan Tarun Policy (UIN: 512N299V02) is a recently launched insurance plan by LIC India. This plan was introduced in February 2020 exclusively to take care of the future needs of children.
Jeevan Tarun Policy by LIC is an endowment plan offering, non-linked, profit-sharing benefits. The policy not only helps in managing the finances for the child's long duration plans but will also share the profit earned.
LIC Jeevan Tarun policy could even be bought for infants. Being an endowment policy, the policyholder is going to receive an additional loyalty profit share from the corporation.
Why should you buy LIC Jeevan Tarun Policy?
LIC Jeevan Tarun life insurance policy could be fruitful for accomplishing long term goals of children for up to 25 years of age. LIC Jeevan Tarun policy helps in earning loyalty additions through the investment of your hard-earned money besides providing financial security.
A policy providing dual benefits of both investment and future saving would certainly be proved beneficial.
LIC Jeevan Tarun Policy is worth purchasing because of the below-mentioned reasons:
LIC Jeevan Tarun policy exclusively deals with children. So in a way, one is saving money for the child by paying periodic premiums for the purchased policy.
The policy duration and the type of scheme chosen under LIC Jeevan Tarun policy can be set such that one could get some return through the policy and when a large sum is required. For any major expenditure such as college fee, other education-related goals, marriage etc., the policy would help financially.
Minimum Buying Age
One could purchase the policy even for their infants.
LIC Jeevan Tarun policy, being an endowment plan, serves as an investment tool to increase your money. The policyholder will receive a profit share or loyalty additions from the policy provider on the maturity of the policy. The amount received as loyalty additions depends upon the performance of the corporation.
Features of LIC Jeevan Tarun Policy
LIC Jeevan Tarun Policy comes with features listed below:
- Being an endowment plan LIC Jeevan Tarun Policy is a participating, non-linked plan
- LIC Jeevan Tarun life insurance endowment plan pays off additional loyalty sum as per the profit gained by the insurance provider
- This plan is for a limited period only
- Commencement of risk is entry age-dependent. If the entry age of the child is 8 years or more, the risk starts immediately after the purchase of the policy. If the child is younger than 8 years, the risk shall commence as per the following, whichever is earlier
- One day before completion of 2 years from the date of purchase of the policy
- One day before the date of purchase of the policy coinciding or immediately after the 8th birthday
- The policy would be vested upon the proposer (life insured) automatically on the policy anniversary after the child turns 18 years old. This shall be considered a contract between the proposer (life insured) and the insurance provider
- The policy gets matured and then is terminated at the age of 25
- Annual survival benefit payments can be made starting from 20 years of age
- The plan provides flexibility to customers as it offers 4 schemes to choose from. Before purchasing the policy, the proposer can decide the percentage of survival benefit and accordingly the maturity benefit is modified
- Option 1: No survival benefit is chosen. In that case, the entire assured sum is paid by the corporation upon maturity of the policy
- Option 2: The proposer can choose to receive 5% of the assured sum per year for 5 years. In that case, upon the maturity of the policy, the corporation is entitled to pay 75% of the assured sum
- Option 3: If the survival benefit amount received annually for the duration of 5 years is 10% of the assured amount, only 50% of the assured amount is paid upon the maturity of the policy
- Option 4: If the survival benefit chosen is 15% of the total assured sum then the amount paid at the time of maturity of the policy is 25% of the sum assured through the policy
- The survival benefit is paid at the age of 20 years to 24 years
The four options are summarised in Table 1 below:
Table 1: Survival Benefit Options and the related Maturity Amount
|Option||Percentage of Survival Benefit||Relative Maturity Benefit|
|Option 1||Nil||100% of the assured amount|
|Option 2||5% of assured sum till five years annually||75% of the assured amount|
|Option 3||10% of the assured sum annually until five years||50% of the assured amount|
|Option 4||15% of the assured sum annually until five years||25% of the assured amount|
- Once a choice is made regarding the scheme, no further changes would be allowed on later stages
- A child ageing between 0 to 12 years is eligible for a new scheme
- The policy can be bought by any of the parents or even grandparents on behalf of their young children
LIC premium waiver benefit rider plan can be availed with the basic LIC Jeevan Tarun policy by paying additional premiums
LIC premium waiver benefit rider plan can be availed on the life of the proposer. Since the policyholder is a minor, the rider plan has opted upon the life of the person buying the policy.
If the rider is purchased with the basic plan, on the death of the proposer, premiums are waived off. The waiving starts from the date of death of the proposer till the expiry of the rider plan.
Premiums for the rider plan should be less than or equal to 30% of the premiums for the basic plan.
More details about LIC premium waiver rider plan can be gathered either from the rider brochure or from LIC office.
Benefits of LIC Jeevan Tarun Policy
The benefits of LIC Jeevan Tarun Policy are as follows:
LIC Jeevan Tarun Policy shares its profits with the policyholder. Loyalty additions are not paid in case of paid-up policies. Provided premiums for at least 3 consecutive years are paid regularly, the policy is still applicable if further premiums remain unpaid.
Although, the policyholder would get an amount equal to the product of the assured sum and the ratio of paid premiums to that of unpaid premiums. Payment of loyalty additions is made as per the terms and conditions of the policy.
If one has opted for survival benefit (option 2, 3 and 4 of Table 1) then a decided amount, as per the chosen option, is payable at each policy anniversary coinciding or immediately after the 20th birthday. The same shall follow for the next 5 years. This will help in achieving the financial goals of the child at this stage, especially related to higher education.
For example, Ram has purchased LIC Jeevan Tarun policy for his child ageing 6 years old. The assured sum is set to be Rs 1 Lakh. At the time of purchase, the proposer decides to avail 10% of the sum assured as the survival benefit (option 3 from Table 1). The survival benefit will start from the policy anniversary after the child turns 20 years. So he/she is going to receive 10% of one lakh, i.e. Rs. 10,000. This amount is payable in continuation for the next 4 years.
LIC Jeevan Tarun policy could be purchased for children between 90 days old (0 years) to 12 years of age. The policy has opted against the life of the proposer as the policyholder is a minor. In case the life assured (the proposer) dies before the commencement of the risk, then the corporation will refund all the premiums paid till that date.
Refer to Ram's example above. Suppose he dies before the child turns 8 years old. Premium amount was Rs 6,055 per year. And by then two premiums are paid. If he had paid Rs 12,110 as the premium before death, then this amount shall be refunded.
This amount is excluding any interest, taxes, extra premiums or riders if any. (*tax benefit is subject to changes in tax laws)
If the life assured dies after the commencement of risk, the corporation is entitled to pay the Sum Assured on Death and loyalty additions.
The sum assured on death is equal to the higher one of the following:
- 7 times of annual premiums, or
- 125% of the sum assured for the policy
Suppose Ram dies when the child turned 10 years of age. Then the amount payable by the corporation is higher of the following:
- 7*6055, i.e. Rs 42,685
- 125% * 100000, i.e. Rs. 1,25,000
Therefore, Rs. 1,25,000 is payable by the insurance provider.
LIC Jeevan Tarun policy can be used to get a loan over it. But to avail of this benefit, the policy should have reached a stage of surrender value. This is a variable benefit and could be modified from time to time by the corporation.
The policy is termed as paid-up under the following scenarios:
- For policy duration less than 10 years: If at least 2 full premiums are paid and the payment remains unpaid for subsequent years, the policy would still be valid
- For policy duration of 10 years or more: If at least 3 full premiums are paid and the payment remains unpaid for subsequent years, the policy would still be valid
For a paid-up policy the modified assured sum is calculated as per the following rules:
- Death paid-up sum assured: It is the new assured paid-up sum payable if the life insured dies. It equals the product of the ratio of paid premiums to that of unpaid premiums and the sum assured in the basic policy
- Maturity paid-up sum assured: It is the amount payable under paid-up policy upon the maturity of the basic policy. It is equal to (total paid premiums/ premiums due)*(total sum assured upon maturity + total survival benefit)
Paid-up policy no longer has any profit share with the corporation. Although, the vested simple reversionary benefit would still be attached with the paid-up policy. The paid-up policy assured sum along with the vested reversionary benefits are payable either upon the maturity of the policy or if the life assured dies. The amount would be paid as a lump-sum. For such a lapsed policy, survival benefits and the rider benefits, if opted, shall cease.
Accident Benefit Rider
Apart from the basic Jeevan Tarun plan, one could add on LIC accident benefit rider plan. This could be opted by paying additional premiums. If one pays for the LIC accidental benefit rider, then the registered nominee would receive the accidental assured amount, apart from the basic amount of LIC Jeevan Tarun Policy.
One is entitled to claim tax exemption in the premiums paid as per section 80C of the income tax act.
Tax benefits are also applicable to the assured sum received either upon the death of the life insured or in case of maturity of the policy. For the sum, assured tax exemption can be claimed under section 10 D of the income tax act.
Note: Service tax or any other tax either on premiums or on the lump sum received through basic LIC Jeevan Tarun Policy should be paid by the proposer. Any taxes levied on premiums of rider plans, if opted, are needed to be paid by the proposer at a rate prevailing at that time.
Tax paid by the proposer on premiums would not be taken into account while calculating the benefits to be paid under the given plan. (*Tax benefit is subject to changes in tax laws)
Eligibility Criteria for LIC Jeevan Tarun Policy
Eligibility criteria to opt for the LIC Jeevan Tarun Policy are listed below:
- Entry Age criteria: The policy can be purchased for children between 90 days and 12 years of age
- Sum assured: The basic LIC Jeevan Tarun Policy could be bought with a minimum assured amount of Rs 75,000. There is no upper limit on the assured sum
Although, the assured sum should be a multiple of 5000.
- Duration of maturity term: LIC Jeevan Tarun policy has maturity duration of up to the time the child turns 25 years of age
- Exit Age: The policy terminates when the child turns 25 years old irrespective of the entry age
- Additional LIC accidental rider plan: One could opt for this additional plan with the basic LIC Jeevan Tarun Policy. The minimum age requirement is 18 years. It can be bought at any of the anniversaries of your basic plan during the existing term
The exit age and tenure of the rider plan are the same as that of the basic LIC Jeevan Tarun Policy.
- Payment Criteria: payments could be made through Electronic Clearing Service (ECS) or could be paid through deductions from salary accounts during the tenure of the policy
Installments can be paid yearly, half-yearly, quarterly, or monthly as decided during the purchase of the policy. In case of late payments a grace period of 30 days for yearly, half-yearly, and quarterly modes is provided while for monthly payments a grace period of 15 days is given.
- Surrender of Policy: If one has already paid premiums for at least 3 full consecutive years then he/she is eligible to surrender the policy for cash
The surrendered value equals a defined percentage of the total value of the premiums paid. These premiums include only the basic policy and not any add-ons like the accidental rider plan.
The percentage depends upon the year of surrender along with the original terms of the policy.
- Loan Criteria: Loan can only be obtained on the LIC Jeevan Tarun policy if the surrender amount is reached. The criteria are subject to change as per the provider’s guidelines.
- Returning the Purchased Policy, the Cooling-off Period: It is permitted to return the policy within 15 days of the date of purchase. But one needs to acknowledge the reason for return.
The insurance provider will then cancel the policy. Premium paid during the purchase shall be returned. Deductions would obviously be made for stamp duty charges and the risk premium for that time.
- The revival of Policy: If due to some reason the policy gets lapsed, one has an option to revive it within 2 years of the last unpaid premium.
One needs to pay all the remaining installments till then along with interest compounded half-yearly. Rate of interest is charged as fixed by the insurance company at the time of payment.
Accidental rider plan, if opted, is revived with the basic Jeevan Tarun Policy.
- Rebate on Premiums: Rebate is a discount one could avail on the premiums under certain conditions as decided by the insurance provider.
In case of LIC Jeevan Tarun Policy, the rebate is applicable on premiums either according to the mode of premiums or the high sum assured to the policyholder.
The rebate details are given below in table 1 and 2.
Table 1 Rebate based on Mode
|Yearly||2% of premium|
|Half-yearly||1% of premium|
|Quarterly and monthly (ECS) and Salary deductions||Nil|
Table 2 Rebate based on High Sum Assured
|High Sum Assured||Rebate Percentage|
|75000 to 1.45 Lakh||Nil|
|1.5 Lakh and above||1.5% of the sum assured|
Exclusions of LIC Jeevan Tarun Policy
The policy is meant for healthy people not undergoing any sort of medical examination.
The claims are processed on the maturity of the policy and the assured sum is paid to the policyholder after the term is over. But all periodic installments need to be paid regularly.
However, LIC Jeevan Tarun Policy excludes the following scenarios and could deny the claim
- If the policyholder, irrespective of his/her mental condition, commits suicide within a period of 12 months from the date of commencement of the risk (start of policy). The insurance provider would then be paying back 80% of the amount paid through premiums by the insured. The percentage of the amount paid would exclude the taxes, additional premiums, or accidental rider plan premium, if opted, by the insured person
- If the insured person commits suicide, irrespective of his/her mental health, within 12 months from the date of renewal of a revived policy. In such a scenario the amount paid to the registered nominee is either of the highest of the following:
- 80% of the premiums paid by the policyholder till death. These premiums are excluding any taxes, add on premiums over the basic policy or accidental rider plan, if opted
- The surrender value of the policy
Product Specifications of LIC Jeevan Tarun Policy
All the brief details about LIC Jeevan Tarun Policy are summarised in table 3 provided below.
Table 3: Specifications of LIC Jeevan Tarun Policy
|The age requirement to purchase the policy||8 years||55 years|
|Age requirement on Maturity of policy||NA||70 years|
|Duration of plan||10 years||20 years|
|Premium paying duration||Equals plan duration|
|Payment frequency||Annual, semi-annual, quarterly, monthly|
|Insured sum applicable*||Rs. 75000||Rs. 2 Lakh|
*The sum assured needs to be a multiple of 5000.
Premium Details of LIC Jeevan Tarun Policy
Premium percentage details as per LIC guidelines are provided in table 4 below. The percentage is given assuming Rs 100 as the basic assured sum with LIC Jeevan Tarun Policy.
Table 4: Percentage premium amount to be paid as per the age of policyholder and tenure of the plan
Illustration: Suppose a person aged above 30 years buys the plan for 20 years. He wants a basic sum assured of Rs 1 Lakh. Then his premium would be Rs. (3.595*100000)/100. This amounts to Rs. 3595 per year.
This implies he/she has to pay Rs 3595 annually for 20 years and is liable to receive an assured sum of Rs 1 lakh upon the maturity of the plan.
Documents Required to Purchase LIC Jeevan Tarun Policy
Documentation is a crucial step under "Know Your Customer" or KYC guidelines. The documents listed below are required to purchase the policy:
- A filled application form (proposal) for buying the particular policy
- Complete medical history or currently on-going medical treatments
Although medical examinations are not mandatory, unless otherwise specified depending upon the case, it is advisable not to hide any health condition.
- Documents to prove one's Identity under KYC
How to Renew LIC Jeevan Tarun Policy?
The tenure of LIC Jeevan Tarun Policy should be decided beforehand. The tenure period varies from 10 to 20 years.
Once the tenure is decided, the policy cannot be renewed further. The policy stands cancelled after the end of the previously decided duration. The policy also terminates with the death of the policyholder.
How to File a Claim under LIC Jeevan Tarun Policy?
Given the policyholder has paid all the premiums regularly, around the maturity date he is eligible to make a claim of maturity amount.
An intimation letter is sent to the insured person from LIC at least 2 months prior to the maturity date.
The person then needs to send the following documents to file the claim:
- Original policy
- Form 3825 or discharge voucher
- NEFT form
- Identity proof (self-attested)
- Address proof (self-attested)
- A cancelled cheque of the policyholder's account
After receiving the documents and after required verification the claim is processed within 5 to 7 days. The maturity amount is paid directly to the policyholder's account.
How to Purchase LIC Jeevan Tarun Policy?
LIC Jeevan Tarun Policy can be bought online by providing necessary details and making payment by NetBanking.
Disclaimer: PolicyBazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Ans: LIC Jeevan Tarun Policy provides one with a rebate on premiums if one is regular in payments. Any rebate is applicable as per the following conditions:
- A 2% rebate on the premium is guaranteed if the mode of payment is annual. For half-yearly payment mode, 1% rebate is applicable on premiums
- No rebate shall be given in case of quarterly or monthly payments through ECS mode or on salary deductions
- One could avail the rebate benefit on an assured sum of Rs 1.5 Lakh and above. No rebate could be availed below this amount
Q: Is there any add on rider plans that could be purchased along with the basic LIC Jeevan Tarun Policy?Ans: Yes. One could purchase the LIC accidental rider plan with the basic policy by paying additional premiums.
This could be purchased on any of the purchase anniversaries of the basic LIC Jeevan Tarun Policy. The tenure of the rider plan ends with the termination of the basic plan.
Ans: LIC Jeevan Tarun Policy is an endowment plan. The policyholder thus has a share in the corporation's profits as per the terms and conditions. Therefore, the LIC Jeevan Tarun Policy also serves as an investment to save money.
This additional amount is paid to the policyholder as a loyalty bonus upon the maturity of the plan.
Ans: Depending upon the terms and conditions of the corporation, one is eligible to take the loan on the policy. It depends whether the premiums paid have reached a value equal to the surrender amount.
This is a variable benefit and thus can be modified or changed as per the modified terms and conditions of the corporation.
Ans: LIC Jeevan Tarun Policy has a "cooling off" period of about 15 days. One can rethink the policy and change their mind. If not satisfied, then he/she can return the policy within 15 days of the purchase of the policy giving appropriate reasons for the return.
After the approval, your amount is returned after certain deductions.
Ans: LIC Jeevan Tarun Policy offers a grace period of 30 days to make the payment for annual, semi-annual and quarterly modes. This grace period is reduced to 15 days for monthly premiums. One can pay the premium within that time frame through ECS mode.
Ans: LIC Jeevan Tarun Policy could not be renewed. It gets terminated upon maturity or the policyholder's death.
Ans: A paid off value is the newly calculated assured sum that will be paid to the policyholder or the registered nominee in case of death of the policyholder, if payments were not made for the entire policy year.
This new assured sum would be payable by the corporation only if the policyholder had paid premiums for at least three consecutive years.
LIC accidental rider plan, if purchased along with the basic policy, will not fall into the paid off category.
Ans: Any claim related to LIC Jeevan Tarun Policy can be denied by the corporation if the policyholder, irrespective of if the person is sane or insane, commits suicide within 12 months of the purchase of the policy or within 12 months of the revival of the policy.
Ans: Claims regarding LIC Jeevan Tarun Policy cannot be submitted online. All the required self-attested documents along with the original scanned policy papers need to be posted to the corporation. An application seeking claim, complete in all respects, should be sent along with other necessary documents.
The claim would then be processed upon receiving the hard copy of the documents.