LIC Jeevan Tarun Policy (Plan No.834) is typical money back plan with 4 options to choose from. This is a non-linked, with profit children insurance plan. At the same time, this is a limited premium payment money back plan.
Do you think your child needs an insurance policy to secure his/her education expenses? Let us see how LIC Jeevan Tarun can help you to plan your child’s future education expenses.
Entry age: Min 90 days and Max 12 years.
Maturity Age: 25 years
Policy Term: 25 – entry age
Premium Paying Terms: 20 – entry age
Sum Assured: Min: 75,000 and Max: no limit. If sum assured value is above 1 lakh, then one can increase in multiples of Rs 10,000.
LIC Jeevan Tarun Policy Key Highlights
LIC Jeevan Tarun Policy (Plan No.834) Benefits
Death Benefits: Death benefit amount will depend on the date of commencement of risk. In general the death benefit will be max 10 times of annual premium or not less than 105% of total premium paid.
In case of death before the commencement of risk, policy holder’s family will get the paid premiums till date after deducting taxes, extra premium and rider Premiums (if any).
But if unfortunate death happens after commencement of risk, then nominee will get Sum Assured on death + Vested Simple Reversionary bonuses and Final Additional Bonus (if any).
Survival Benefit: Survival benefit of LIC Jeevan Tarun Policy will depend on the option opted during policy subscription. As this is a money back policy, a fixed percentage amount will be distributed to policy holder in the last 5 years of policy tenure. Let’s see how this % will vary depending on the options chosen.
If we consider that policy term is 25 years, then the survival benefit will be paid during 20 to 24 years as per below percentage.
Option 1 Nil
Option 2 5% each year
Option 3 10% each year
Option 4 15% each year
Maturity Benefit: On completion of policy tenure, policy holder will get the remaining money after money back as survival benefit. The amount of survival benefit for LIC Jeevan Tarun Policy will be as follows
Option 1 100% of Sum Assured
Option 2 75% of Sum Assured
Option 3 50% of Sum Assured
Option 4 25% of Sum Assured
This is very simple. Just you have to deduct the money back amount percentage declared in the previous point.
Premium Waiver Benefit Rider:
In case you opt for PWB, then if unfortunate death happens no further premium payment is required to continue the policy. But to avail Premium Waiver Benefit Rider, one has to pay extra premium while buying the basic policy.
LIC Jeevan Tarun Policy Premium Calculation
You can visit LIC Jeevan Tarun page of LIC of India website and check out the complete details of premium chart and maturity return benefits explained.
Which option is best for LIC Jeevan Tarun Policy?
As per the explanation above, we can see that if you choose option 1, there will be no money back concept. Entire amount will be paid as sum assured value. But if you go further, some % will be paid as maturity amount and rest will be paid in 5 years. E.g. if you choose option 4, then on maturity you will get only 25% amount. Rest 75% amount will be paid in 5 years term. Now in that 5 years, your 75% amount will not at all grow or get any interest. Then why to keep that money with them? When one can get even 6% interest from a saving account itself.