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 financial requirements of child education from 20 to 25 years of child age. This plan can be purchased by parent or grand parent for their 0-12 year old child and very useful with premium waiver rider which provides premium waiver in case of death of guardian (proposer) during policy term.
Key Features
- A plan to fulfill requirement child education
- Option to select required amount from 20-25 year age of 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 year old, then, life cover will start 2 year after policy purchase or completion of 8 year of age, whichever is earlier.
- Example, if child is 2 year old, then life cover (risk) will start after 2 year i.e. when child will become 4 year old and if child is 7 year old then, risk will start when child becomes 8 year old i.e. that is one year after purchasing policy.
- If child is 8 year old at the time of buying policy then, risk will start immediately.
Death benefits
- If death of child happens before start of risk, all premiums paid excluding taxes will be paid to nominee as death claim.
- If death of child happens after start of risk, then Sum Assured on death (125% of sum assured) + Bonus + FAB will be paid to nominee as 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 year of age to 25 year of age child. The four option are explained in 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 |
Premium Waiver Benefit Rider (PWB)
This plan can be bought with Premium waiver benefit against life of proposer (Parents or Grand Parents) with 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.
Jeevan Tarun plan with Example
To Illustrate the benefits of Jeevan Tarun plan, Lets take an example of a who is 32 year old and who is purchasing this plan for his 3 year old child. Father (Proposer) Age : 33 Years Child Age: 3 Years Sum Assured: Rs. 5,00,000 Policy Term: 23 (25-3) Years Premium Paying Term: 17 (20-3) Years Policy Purchase Year: 2015
Following table explains approximate premium to be paid and money back amounts along with maturity which will be available from 20 to 25 year age of child.
| Options | Premium (yearly) | From 20 -24 year of age | At 25 Year of Age |
|---|---|---|---|
| 1 | 25451 | 0 | 1103000 |
| 2 | 26145 | 25000 Each year | 978000 |
| 3 | 26865 | 50000 Each year | 853000 |
| 4 | 27560 | 75000 Each year | 728000 |
With the help of above example, we can understand that Jeevan Tarun plan allows to plan children education and marriage needs from 20 to 25 year age.
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