Last Updated 24 March 2019
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- LIC Jeevan Tarun: Child Insurance Plan 834 Review
- Should you buy Jeevan Tarun Policy or Not?
LIC Jeevan Tarun: Child Insurance Plan 834 Review
LIC is soon going to launch Child Money Back Plan with limited premium payment term under the name of ?Jeevan Tarun? (Plan no. 832). This plan aims to cater various financial needs such as for education, marriage etc. Couple of months back LIC had come out with similar plan for children (LIC New Children?s Money Back Plan (Table No. 832)) but Jeevan Tarun (plan 834) has some additional options and rider over the previous plan 832.
LIC Jeevan Tarun Plan Eligibility and Other Features:
- Minimum Entry Age: 90 days
- Maximum Entry Age: 12 years
- Minimum/Maximum Maturity Age: 25 years
- Policy term: 25 years ? Age at entry (years)
- Premium Paying Term: 20 years ? Age at entry (years)
- Minimum Sum Assured: Rs.75,000/-
- Maximum Sum Assured: No limit
- Premium Payment Mode: All Modes
- Premium Waiver Benefit Rider: Available
- Proposer?s Minimum Age: 18 years
- Proposer?s Maximum Age: 55 years
1. Sum Assured (SA) shall be in multiples of Rs.5,000/- from SA Rs.75,000/- to Rs.1,00,000/- and Rs.10,000/- for SA above Rs.1,00,000/-.
2. Proposer can be either parent or legal guardian aging between 18 years to 55 years.
3. Premium Waiver Benefit Rider: An optional rider available by paying extra premium under which if the proposer of the plan dies, the premium becomes due after the death of the proposer shall be waived and plan will be continued up to the maturity term as if all the premiums are paid on time.
LIC Jeevan Tarun Plan: Death Benefits, Maturity & Survival Benefits
1. If death of the life assured (child) occurs before the commencement of risk, amount equals to all premiums paid (excluding taxes, extra premium and rider premium) will be paid.
2. If death of the life assured (child) occurs after the commencement of risk, amount equals to
Sum Assured + Simple?Revisionary?Bonuses + Final Additional Bonus (if any)
will be paid.
If the policy term is higher than 10 years, the minimum sum paid on the death of the life assured cannot be less than 105% of the total premiums paid.
What does Commencement of Risk means?
If the entry age of the life assured is below 8 years, then the risk 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.
Maturity & Survival Benefits:
Maturity & Survival benefits of the Jeevan Tarun policy is paid to the life assured (child) in the last 5 years of policy i.e. from 20 year to 24 year of age of the child.
LIC Jeevan Tarun Policy Premium Calculation
Should you buy Jeevan Tarun Policy or Not?
1. First of all, Life Insurance is always taken for the bread winner of the house because the lives of the other family members are dependent on him/her. Since child cannot be the bread winner there is no need to even think about getting life insurance for your child.
2. Generally the higher education in India starts by the age of 18 years onwards and this plan offers maturity or survival benefits from the age of 20 years of child, which makes this plan not suitable for higher education.
3. These types of money back plans attracts investor by using words such as financial help for child marriage, education etc. but as we all know these money back plans usually?gives returns around 5% to 6% (maximum 7%) which even could not beat the inflation and in case of education, the rate of inflation is much higher than this rate.4. If still you are not convinced and would like to buy Jeevan Tarun policy than choose option first under the maturity & survival benefit. This is because in all other options insurer will retain certain percentage of amount with them and give you at a regular interval without adding interest. So it would be better to go with option one to take whole amount at once and invest in risk-free investment such as bank fixed deposits or NSC etc.
Instead of buying money back plans for your child, do consider risk-free investment with higher returns of up to 9% for your child?s education, marriage etc. to secure his/her future. There is plethora of investment avenues to choose from namely PPF investment, Sukanya Samriddhi Yojana, Bank fixed deposits etc.
In case your risk-appetite is higher, than you also can go for mutual funds or can invest directly into the equity (shares).
Draft Circular of LIC Jeevan Tarun Plan 834 Floating on Whatsapp