934

LIC's Jeevan Tarun is basically a participating non- linked limited premium plan that offers a great combination of protection along with savings for your children. This plan designed in a way that can easily meet the educational and several other needs of your growing child with annual survival benefit payments from ages 20 to 24 years and Maturity Benefit at the age of 25 years.

• It is a participating limited pay traditional plans

• You have to pay premiums until your child becomes 20 years old and the policy will remain active until your child become 25 years old.

• The child would be able to get the risk cover once the child becomes 8 years old or 2 years from the date of commencement whichever is earlier.

• Under the plan you have to pay premium till the age of 20 of your child after that you don't have to pay the premium but your plan will remain active for the next five year as well.

• The remaining sum assured along with the vested bonus will be paid to your child as a maturity benefit.

1. Death Benefit (Before Commencement of risk)

In case of death of the insured during the policy's tenure, the return of premium/s paid excluding taxes, extra premium, and rider premium, if any, without interest shall be payable.

2. On death during the policy term (after the commencement of risk):

In case of death during the policy tenure provided all due premiums have been paid Death Benefit, defined as the sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Under the same, the sum assured on death is defined as Higher of 10 times of annualized premium or Absolute amount Assured to be paid on Death i.e. 125% Sum Assured.

In this plan, the death benefit will not be less than 105% of the total premiums paid as on date of death.

The premiums will be free of taxes, extra premium and rider premium if any.

3. Survival Benefit

This benefit will take if the insured person survives till the maturity. Under the same, a fixed sum assured will be payable every year coinciding with or immediately following the completion of 20 years of age and for the next four years of the policy.

4. Maturity Benefit

In the case where the insured surviving the stipulated date of maturity, a fixed percentage of the Sum Assured will be payable at maturity for inforce maturing policies.

5. Participation in Profits

The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is inforce.

When it comes to investing in LIC Jeevan Tarun Plan, the insured has agreed on following terms

• Sum Assured – This is basically the amount that you will get at the end of the policy's tenure. You can choose a minimum amount of Rs. 75,000. There is no upper limit.

• Policy Term – It is the time period for which you wish to have the cover. The term will end when the child reaches the age of 25 years.

• Premium Payment Term - You need to pay premiums till the child reaches the age of 20 years.

• The annual premium will depend upon the amount of cover, your child's age and the way you want to receive benefits. With such features, the insurance company will decide your premium.

• As it is a Participating plan, you will receive Simple Reversionary Bonus and Final Additions as and when declared by LIC.

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Accidental Death and Disability Benefit Rider can be added by the policyholder as an option. For this, the policyholder has to pay the extra cost along with the usual premium.

Death Benefit: Upon the death of the policyholder, this benefit is provided.

• Before the date of commencement of risk: In this case, the single premium is refunded to the nominee without giving any interest on the amount. This final premium amount does not include any extra amount or taxes.

• After the date of Commencement of risk: In this case, Sum Assured on death is decided based on the single tabular premium. It is 10 times of the premiums. The premium paid during the decided tenure does not include any extra tax.

If all the regular premiums for the decided term are paid with no balance premium, the Death benefit is calculated by adding following amounts: Death Benefit = Sum Assured on death + Vested simple Reversionary Bonus + Final

Additional Bonus: The Sum Assured on death is relative to the Life Risk rates provided above. The final Death Benefit will never be less than 105% of all the premiums paid if the tenure of the policy is higher than 10 years. The premium paid during the decided tenure does not include any extra tax. The only extra amount needs to be paid is for Rider Premium, if applicable.

Maturity Benefit: Upon completing the tenure of the policy, maturity benefit is provided to the survivor. The key here is all the premiums should be paid for the entire term. The Maturity benefit is calculated as follows:

Maturity Benefit = Sum Assured on maturity + Vested simple Reversionary Bonus + Final Additional Bonus. Here the Sum Assured on maturity is nothing but the amount deducted after calculating money back amount. This lump sum amount is paid on the maturity of the policy.

Tax Benefit: Similar to other policy schemes, the LIC Jeevan Tarun Policy (Plan No: 934) provides benefits in tax. The premiums are tax exempted Under the Section 80 C of Income Tax Act. The maturity amount provided at the end of Policy tenure is also tax-free. So you need not pay any tax on that amount. The maturity sum decided at the end will be given as it is. It is assured under the section 10 D.

Loan Facility: You can take a loan against the Jeevan Tarun policy in need. But for this, the policy should be more than 3 months old or over the free look period. The amount of the loan is decided based on the age of the policyholder when the policy was started.

Policy Surrender: There is provision to surrender the policy in need. If the policy is surrendered within one year of policy opening, then the policyholder will get up to 70% of single premium paid. After completing one year, if the holder surrenders the policy, then he will get up to 90% returns on the single premium paid. There are many calculators available online to calculate the estimate of surrender policy. If the policy is surrendered after completing five years, the holder is also eligible for Loyalty Bonus along with the premium returns. This can be calculated using online calculators.

This policy can be brought by the parents or grandparents of the child. It will be beneficial for your child for their education or you can also take the benefit for their marriages.