LIC's Jeevan Tarun (734)

How the plan works

Jeevan Tarun is taken on the life of a child by a parent or grandparent. The policy always matures when the child turns 25, so the policy term is 25 minus the child's age at entry, while premiums are paid only until the child turns 20 (premium paying term = 20 minus age at entry).

At the proposal stage you choose one of four options that split the benefits between yearly survival payouts (ages 20 to 24) and the maturity amount (age 25).

Basic Sum Assured must be in multiples of ₹5,000 (₹2,00,000 to ₹4,50,000), ₹50,000 (above ₹4,50,000 to ₹9,00,000) and ₹1,00,000 (above ₹9,00,000).

• Start of risk cover: For a child below 8 years at entry, cover starts 2 years after the policy begins or on the policy anniversary on or after age 8, whichever is earlier. From age 8 onwards, cover starts immediately.
• Vesting: The policy automatically transfers to the child on the policy anniversary on or after the child turns 18.

Sample annual premiums for Basic Sum Assured ₹2 lakh (standard life, excluding taxes):

Death benefit

If the child dies after risk cover has started and before maturity, with the policy in force, the Sum Assured on Death plus vested Simple Reversionary Bonuses and Final Additional Bonus, if any, is paid.

• Sum Assured on Death is the higher of 7 times the annualised premium or 125% of the Basic Sum Assured.
• The death benefit is never less than 105% of total premiums paid up to the date of death.
• If a child who entered below age 8 dies before risk cover starts, total premiums paid (excluding taxes, extra and rider premiums) are refunded without interest.

Survival benefits

A fixed percentage of the Basic Sum Assured is paid on the policy anniversary on or after the child turns 20 and on each of the next four anniversaries (ages 20 to 24):

The option can later be changed only to one with a higher survival benefit percentage, by paying a consideration amount and informing LIC in writing at least 3 months before survival benefits begin.

Maturity benefit

At age 25, with the policy in force, the Sum Assured on Maturity (as per the option chosen, see table above) is paid along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any. Bonuses are declared based on LIC's experience and are not fixed in advance.

Optional riders

• LIC's Premium Waiver Benefit Rider (UIN: 512B204V04) – on the proposer's life; on the proposer's death, base premiums due till the end of the rider term are waived. Can be added on a policy anniversary while the child is a minor, if at least 5 years of premium term remain and rider term plus proposer's age does not exceed 70 years.

Loan, surrender & revival

• Loan: Available after the first policy year once one full year's premium is paid. Maximum loan: 50% of surrender value (in-force) or 40% (paid-up) before two full years' premiums; 75% (in-force) or 65% (paid-up) after.
• Surrender: Allowed after the first policy year if one full year's premium is paid. Guaranteed Surrender Value is acquired after at least two full years' premiums; the higher of Guaranteed and Special Surrender Value is paid.
• Paid-up: If at least one full year's premium is paid and premiums stop, the policy continues with reduced benefits; no future survival benefits are paid.
• Revival: Within 5 consecutive complete years from the first unpaid premium, by paying arrears with interest, subject to continued insurability.

Other key terms

• Grace period: 30 days for yearly, half-yearly and quarterly premiums; 15 days for monthly.
• Free-look period: 30 days from receipt of the policy document.
• Death benefit in instalments and settlement option: Death or maturity benefit can be taken in instalments over 5, 10 or 15 years (minimum instalment ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly). Settlement option must be opted at least 3 months before maturity.
• Mode rebate: Yearly 2% and half-yearly 1% of tabular premium; nil for quarterly and monthly.
• High Sum Assured Rebate: Nil for ₹2,00,000 to below ₹5,00,000; ₹2.50 per thousand for ₹5,00,000 to below ₹10,00,000; ₹4 per thousand for ₹10,00,000 and above.