LIC’s Jeevan Tarun Plan (Table No. 934)
Introduction:- LIC’s Jeevan Tarun is non-linked, participating, individual life insurance savings plan specially designed to meet the educational and other needs of growing children through annual Survival Benefit payments from ages 20 to 24 years and Maturity Benefit at the age of 25 years. It is a flexible plan wherein at proposal stage the proposer can choose the proportion of Survival Benefits to be availed during the term of the policy as per four options. The chosen option shall become a part of the policy contract and no further change in option shall be allowed. In addition, this plan also takes care of liquidity needs through its loan facility. LIC’s Jeevan Tarun plan can be purchased by any of the parent or grand parent for a child aged 0 to 12 years. LIC’s Jeevan Tarun Plan is one of the best child plans. The benefits and other basic features of the plan are given below.
Basic Eligibility Conditions and Features of LIC’s Jeevan Tarun Plan (Table No. 934): –
a) Minimum Basic Sum Assured:- ` 75000
b) Maximum Basic Sum Assured:- No Limit
(The Sum Assured shall be in multiples of 5,000 from Sum Assured 75,000 to 100,000 and 10,000/- for Sum Assured above 100,000)
c) Minimum Age at entry:- 90 Days (completed)
d) Maximum Age at entry:- 12 years (last birthday)
e) Maximum Maturity Age:- 25 years (last birthday)
f) Policy Term:- (25 – age at entry) years
g) Premium Paying Term:- (20 – age at entry) years
h) Modes of Payments:- Premium can be paid in Yearly, Half-yearly. Quarterly, Monthly (SSS and NACH)
A. Death Benefit:– On 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, if any, without interest shall be payable.
On death after the date of commencement of risk:- Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Death” is defined 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 up to date of death. The premiums mentioned above exclude taxes, extra premium and rider premium, if any.
B. Survival Benefit:- A fixed percentage of Sum Assured shall be payable on each policy anniversary coinciding with or immediately following the completion of 20 years of age and thereafter on each of next four policy anniversaries. These fixed percentages shall depend on the Option chosen at the proposal stage and for various Options the percentages are as given below:-
Policy Anniversary coinciding with/ following completion of ages 20 to 24 years
Option 1:- Nil
Option 2:- 5% Each Year
Option 3:- 10% Each Year
Option 4:- 15% Each Year
(Percentage of Sum Assured to be paid as Survival Benefit)
(Policyholder has to opt for any one of the options above at the proposal stage only.)
C) Maturity Benefit:- On Life Assured surviving the policy term, provided the policy is in-force, “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where Sum Assured on Maturity as a fixed percentage of Sum Assured for various Options is as below:-
Maturity Age:- 25 year
Option 1:- 100%
Option 2:- 75%
Option 3:- 50%
Option 4:- 25%
D) Date of commencement of risk:- In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately from the date of issuance of policy.
E) Rider Benefits:- LIC’s Premium Waiver Benefit Rider
Option to take Maturity/Death Benefit in instalments:- Settlement Option is an option to receive Maturity/Death claim Benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lumpsum amount under an in-force as well as paid-up policy. This option can be exercised by the Policyholder during minority of the Life Assured or by Life Assured aged 18 years and above, for full or part of Maturity/Death claim proceeds payable under the policy. The amount opted for by the Policyholder/ Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.