LIC Jeevan Tarun Policy
LIC Jeevan Tarun Policy
LIC Jeevan Tarun Policy: A Comprehensive Guide
LIC Jeevan Tarun is a prominent child-focused life insurance policy provided by the Life Insurance Corporation of India (LIC). Designed with the future needs of children in mind, this non-linked, participating policy blends protection and savings features.
By opting for Jeevan Tarun, you secure a financial safety net for your child’s education, career development, or other significant life milestones.
This comprehensive guide will delve into the policy’s features, benefits, eligibility criteria, and more, helping you understand how this plan can play a crucial role in your child’s future financial planning.
Key Features of LIC Jeevan Tarun
Non-Linked
LIC Jeevan Tarun is categorized as a non-linked policy, which means its performance is not tied to the ups and downs of the stock market or other investment indices.
This ensures that the returns are stable and predictable, offering a sense of financial security. The policy’s value remains unaffected by market volatility, providing a fixed sum assured upon maturity or in case of claims.
Participating
As a participating policy, LIC Jeevan Tarun allows policyholders to share in the profits of LIC. This is achieved through the declaration of bonuses, which are paid out to policyholders as dividends.
These bonuses enhance the overall value of the policy and provide additional financial benefits beyond the guaranteed sum assured.
Limited Premium Payment
One of the key advantages of Jeevan Tarun is its limited premium payment feature. You are required to pay premiums only for a specific term, which is shorter than the policy term.
This means that once you have completed the premium payments, you do not need to make further contributions, while still enjoying the benefits of the policy until its maturity.
Survival Benefits
LIC Jeevan Tarun offers several flexible options for survival benefits. These options are designed to cater to different financial needs and can be chosen based on your preferences:
- Option 1: No Survival Benefit
With this option, the entire sum assured is paid as a lump sum upon maturity. This straightforward approach is ideal for those who prefer to receive the entire amount at once. - Option 2: 5% of Sum Assured
This option allows for annual payments of 5% of the sum assured for five years, starting from the end of the sixth policy year. The remaining sum assured is paid at maturity. This can be useful for managing regular expenses or funding ongoing needs. - Option 3: 10% of Sum Assured
Here, 10% of the sum assured is paid annually for five years, starting from the end of the sixth policy year. The remaining amount is disbursed at maturity, providing a more substantial annual benefit. - Option 4: 15% of Sum Assured
This option involves annual payments of 15% of the sum assured for five years, beginning at the end of the sixth policy year. The balance sum assured is paid at maturity, offering a higher annual benefit.
These flexible survival benefit options allow policyholders to tailor the policy according to their financial planning needs and the anticipated expenses for their child.
Maturity Benefit
Upon reaching the policy’s maturity, the policyholder receives a lump sum payment that includes:
- Sum Assured: The guaranteed amount promised at the time of policy purchase.
- Accrued Bonuses: Any bonuses declared by LIC over the policy term.
The maturity benefit can be utilized for a variety of purposes, such as:
- Higher Education: Funding college or advanced studies.
- Marriage: Covering wedding expenses.
- Business Ventures: Investing in entrepreneurial projects or other ventures.
This lump sum payment provides a significant financial boost, aiding in major life events or significant expenses.
Death Benefit
In the unfortunate event of the child’s death, the LIC Jeevan Tarun policy provides a death benefit. This benefit includes:
- Sum Assured: The amount guaranteed by the policy.
- Accrued Bonuses: Any bonuses accumulated up to the date of death.
The death benefit offers financial support to the family, ensuring stability and alleviating financial burdens during a challenging time. It is designed to help cover any immediate expenses or provide financial support in the absence of the policyholder.
Benefits of LIC Jeevan Tarun
Survival Benefits
The survival benefits of LIC Jeevan Tarun are designed to provide ongoing financial support, especially as the child grows and their needs evolve. Depending on the chosen option, survival benefits can help manage regular expenses, support educational costs, or contribute to other financial goals.
The flexibility in choosing between different survival benefit options allows policyholders to tailor the plan to their specific needs and preferences.
Maturity Benefit
The maturity benefit of LIC Jeevan Tarun represents a substantial financial sum that can be used for various purposes.
The lump sum payment received at maturity can be pivotal in funding higher education, contributing to marriage expenses, or supporting entrepreneurial endeavors. This benefit ensures that the policyholder’s child is well-prepared for significant life events and transitions.
Death Benefit
The death benefit provided by LIC Jeevan Tarun offers crucial financial support in the event of the child’s untimely demise.
The sum assured, along with any accrued bonuses, provides a financial cushion that can help the family manage immediate expenses and cope with the loss. This benefit underscores the policy’s role in providing security and support during difficult times.
Eligibility Criteria
To qualify for LIC Jeevan Tarun, certain eligibility criteria must be met. These criteria ensure that the policy is accessible to a broad range of individuals while aligning with the policy’s objectives.
Age of the Life Assured
- Minimum Age: 1 year
The policy is available for children as young as 1 year old, allowing for early financial planning and protection. - Maximum Age: 18 years
The maximum age limit for the life assured is 18 years, covering children up to their late teenage years.
Policy Term
The policy term varies based on the age of the life assured at the time of entry. The term is structured to ensure that the policy aligns with the child’s developmental milestones and financial needs.
Premium Payment Term
The premium payment term is typically shorter than the policy term. This allows policyholders to complete their premium payments within a defined period while continuing to enjoy the policy benefits until maturity.
How to Buy LIC Jeevan Tarun
Acquiring LIC Jeevan Tarun can be done through several channels, each offering different levels of convenience and assistance.
LIC Branch Offices
Visiting a LIC branch office provides direct access to policy information and application assistance. At the branch, you can:
- Get Detailed Information: Obtain comprehensive details about the policy features, benefits, and terms.
- Complete Application Process: Receive help with filling out and submitting the application forms.
- Personalized Assistance: Benefit from face-to-face interaction with LIC staff who can address specific queries and provide tailored advice.
LIC Agents
Consulting with an LIC agent offers a personalized approach to purchasing the policy. An agent can:
- Guide You Through Policy Features: Explain the various features and options available under LIC Jeevan Tarun.
- Help Choose the Right Plan: Assist in selecting the most suitable plan based on your financial goals and needs.
- Facilitate Application Process: Help with the paperwork and application submission, ensuring a smooth purchasing experience.
Online
Purchasing LIC Jeevan Tarun online provides a convenient and efficient option. Through online channels, you can:
- Access Information: Review policy details and compare different options.
- Apply Online: Complete the application process from the comfort of your home.
- Receive Digital Assistance: Obtain support through online chat or email if needed.
Factors to Consider Before Buying LIC Jeevan Tarun
Before making a decision to purchase LIC Jeevan Tarun, consider the following factors to ensure the policy aligns with your financial objectives and family needs.
Financial Goals
Assess your child’s future financial needs and goals to determine how LIC Jeevan Tarun fits into your overall financial plan:
- Education Costs: Evaluate projected education expenses, including tuition, books, and other costs. Determine how the survival benefits and maturity amount can support these costs.
- Marriage Expenses: Plan for potential marriage expenses, which can be substantial. Consider how the maturity benefit can contribute to these expenses.
- Career Development: Account for any costs associated with career development or starting a business. The policy’s lump sum payment at maturity can provide significant support in these areas.
Risk Appetite
Your risk tolerance plays a crucial role in selecting the right policy features and sum assured:
- Low Risk Tolerance: Opt for features with guaranteed returns and minimal exposure to market fluctuations.
- Higher Risk Tolerance: Consider policies with higher exposure to market-linked investments if you are comfortable with potential fluctuations in returns.
Comparison with Other Plans
Comparing LIC Jeevan Tarun with other child insurance plans can help you make an informed decision:
- Premiums: Compare the premium amounts and payment terms across different plans.
- Benefits: Evaluate the types and amounts of benefits offered by each policy.
- Flexibility: Consider the flexibility of survival benefits and other features.
Tax Benefits
Understanding the tax implications of LIC Jeevan Tarun is essential for effective tax planning:
- Section 80C: Premiums paid towards the policy qualify for tax deductions under Section 80C of the Income Tax Act, subject to the prescribed limits.
- Section 10(10D): The maturity proceeds and death benefits are tax-free under Section 10(10D), provided the policy meets certain conditions.
Final Remarks
LIC Jeevan Tarun is a well-structured child insurance policy that offers a combination of financial protection and savings. Its non-linked, participating nature ensures stable returns, while the flexible survival benefit options cater to various financial needs.
By understanding the policy’s features, benefits, and eligibility criteria, you can make an informed decision that aligns with your child’s future financial requirements.
Before proceeding, it’s advisable to consult with a financial advisor to tailor the policy to your specific needs and goals. This will help ensure that LIC Jeevan Tarun effectively supports your child’s financial security and growth.
Note
This guide is intended for informational purposes only and does not constitute financial advice. It is recommended to seek professional advice from a financial advisor to make well-informed investment decisions based on your individual circumstances and goals.
