LIC Jeevan Tarun Plan - Combination of protection and saving features for children

The Jeevan Tarun money-back plan from LIC was created exclusively for India's youthful population, to support their educational and other needs as they grow.

From the ages of 20 to 24, they will be eligible for annual Survival Benefit payments, and Maturity Benefits will be paid at the age of 25.

This post has described LIC's money-back scheme, as well as a benefit calculation, so you can have a rough estimate of how much you'll get out of a specific amount of investment.

The minimum age for entry for the LIC's Jeevan Tarun plan is 90 days, and the maximum age at entry is 12 years, so a parent can choose this plan on behalf of a kid. Age of Maturity (Minimum or Maximum): 25 years. The minimum Sum Assured is Rs. 75,000, while the maximum Sum Assured is unlimited. From Rs. 75,000 to Rs. 100,000, the Sum Assured shall be in multiples of Rs. 5,000, and from Rs. 100,000 to Rs. 10,000, the Sum Assured shall be in multiples of Rs. 10,000.

The Jeevan Tarun policy has a 25-year policy term and a 20-year Premium Paying Term (PPT). This is a non-linked, child-specific life assurance savings plan that provides both protection and savings.

Maturity benefits are quite lucrative for the LIC's Jeevan Tarun plan. It has been mentioned before, that the Maturity Age under the policy is 25 years. The "Sum Assured on Maturity" along with vested Simple Reversionary Bonuses (and Final Additional Bonus, if any) will be paid by LIC under maturity benefits to the policyholder.

The Sum Assured for the maturity benefits varies upon the 4 different options. Under option 1 the maturity benefits will be 100% of the Sum Assured, under option 2 the maturity benefits will be 75% of the Sum Assured, under option 3 the maturity benefits will be 50% of the Sum Assured, and under option 4, the maturity benefits will be 25% of the Sum Assured.

There are also few settlement options for receiving the Maturity Benefit in installments. You can receive the benefits over the chosen period of 5 or 10 or 15 years, instead of lumpsum. One can exercise this option during the minority of the Life Assured or by Life Assured aged 18 years and above.

LIC will pay a refund of premium(s) paid, except taxes, additional premium, and rider premium, if any, without interest, if you die before the risk begins. The Sum Assured on Death of LIC Jeevan Tarun is the Death Benefits.

The Sum Assured on Death, according to the organisation, is the greater of 7 times the annualised premium or 125 percent of the Sum Assured. This Death Benefit will be at least 105 percent of the total premiums paid up until the date of death. Instead of a lump payment, the policyholder's family can choose to receive the death benefit in instalments over 5, 10, or 15 years. It will cost Rs. 5,000 for a monthly term, Rs. 15,000 for a quarterly time, Rs. 25,000 for a half-yearlong period, and Rs. 50,000 for a yearly period.

You have four options for how much Survival Benefits you want to receive during the policy's duration. There is no survivor benefit in Option 1, and the Maturity Benefit is 100 percent of the Sum Assured. Option 2 provides a Survival Benefit of 5% of the Sum Assured every year for 5 years, and a Maturity Benefit of 75% of the Sum Assured. Option 3 provides a Survival Benefit of 10% of the Sum Assured every year for 5 years, and a Maturity Benefit of 50% of the Sum Assured. Option 4 provides a Survival Benefit of 15% of the Sum Assured every year for 5 years, and a Maturity Benefit of 25% of the Sum Assured.

On each policy anniversary corresponding with or immediately succeeding the completion of 20 years of age, and thereafter on each of the next four policy anniversaries, a specified percentage of the Sum Assured will be paid. These set percentages, according to LIC, will be determined by the alternatives selected.