Should you invest in LIC Jeevan Tarun Insurance Plan for Children?
Few days back, LIC has introduced one more children money back plan Table no. 834 called LIC Jeevan Tarun Insurance Plan. It is similar to earlier money back policy. This LIC Jeevan Tarun Insurance Policy is non linked with a profit plan offering 4 options to plan for children's education and other requirements. In this article, I would review this new LIC Jeevan Tarun Life Insurance Plan. What are the features of this plan? Does death benefit and survival benefits secure your child's future with this new Jeevan Tarun Insurance Plan of LIC? Should you invest LIC’s Jeevan Tarun Policy Insurance Plan?
Features of LIC Jeevan Tarun Insurance Plan
- Non linked endowment insurance plan.
- Savings cum protection plan.
- LIC indicates that this plan is aimed to meet children education, marriage, other needs etc.,
- Age of entry for child – Min 90 days and max 12 years.
- Term of insurance – 25 years from age entry. Means you can take maximum period where your child attains 25 years of age.
- Minimum Sum Assured – Rs 75,000
- Max sum assured – No limit
- Limited premium payment options available.
- Premium waiver benefit rider available
- Loan facility available
Also Read: What are the Best Child Investment Plans to invest in India?
Benefits of this LIC Jeevan Tarun Insurance Plan
- If death occurs before commencement of risk, i.e. within 8 years of age, of kid or within 2 years from the date of policy, all premiums paid (excl taxes) would be payable.
- If death occurs after the commencement of risk, i.e. after 8 years of age, of kid or after 2 years from the date of policy, Sum Assured + Bonus + Final Additional Bonus, if any, shall be payable.
- This death benefit shall not be less than 105% of the total premiums paid as of the date of death.
- If one opts for Premium waiver benefit rider and if a parent dies, kid will receive all survival / maturity benefits.
Survival and Maturity benefits
There are 4 options available on survival and at maturity.
- Option 1 – At maturity, 100% of Sum Assured + Bonus + Final additional bonus would be paid. No survival benefit.
- Option 2 – At maturity, 75% of Sum Assured + Bonus + Final additional bonus would be paid. In addition, as survival benefit, 5% of Sum Assured would be paid every year for 5 years.
- Option 3 – At maturity, 50% of Sum Assured + Bonus + Final additional bonus would be paid. In addition, as survival benefit, 10% of Sum Assured would be paid every year for 5 years.
- Option 4 – At maturity, 25% of Sum Assured + Bonus + Final additional bonus would be paid. In addition, as survival benefit, 15% of Sum Assured would be paid every year for 5 years.
What is LIC’s Premium Waiver Benefit Rider applicable in this plan?
LIC’s Premium Waiver Benefit Rider is available as an optional rider on the life of proposer aged between ages 18 to 55 years by payment of additional premium. In case of death of the proposer, the premiums under the basic plan falling due after the date of death shall be waived. The cost of medical and special reports shall be borne by the proposer.
How are the premiums for this LIC Jeevan Tarun Insurance plan?
Premium charts are not yet available now. However, if you see earlier children money back plan launched in Mar-15, following are some of the sample tabular premium rates (exclusive of service tax) per Rs. 1000/- Basic Sum Assured. We expect that it would not be different from them.
Also Read: Which are the best investment plans to make Rs 1 Crore?
Age (in years) Premium (Rs.)
Should you invest in LIC’s Jeevan Tarun Insurance plan?
As indicated in my earlier reviews, money back plans of LIC generally provide 5% to 7% returns along with risk coverage. Inflation is between 5% to 7 and education inflation cost is over 10%. Hence investing in such plans would not beat your education inflation costs. If you do not believe in equity investments, you can simply consider such plans. Choose option no. 1 where you would get a lump sum at maturity and you can invest them in a simple FD and get higher returns. Alternatively, you can consider the term insurance plan and invest the balance in Sukanya Samriddhi Yojana Scheme (if you have girl child) or invest in top mutual funds and redeem them and use for your child education needs. You can read my recommendations on some of the top children's investment plans to invest in India posted earlier.
Readers, what is your view on this LIC’s new Jeevan Tarun Plan for children?
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Should you invest in LIC Jeevan Tarun Insurance Plan for Children
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What is the Premium Paying Term (PPT) in LIC Table 834 & 832 ? Pls can you compare both as my boy child is 2 yrs now and we parents are 35 and 33 ( believe that doesn’t make a diff in premium) ? S.A – 10 Lac.
sir this is sanjay from mysore ( Karnataka), working as driver , i have one year old son, can you please recommend better plan for my son for education ,marriage ,
Hi Sanjay, Best option to invest for your child education or marriage is investing in mutual funds. Invest in Birla SL Frontline, ICICI focussed blue chip fund, ICICI Balanced fund and HDFC balanced fund to start with. You can invest as low as RS 500 per month in these funds
thank you sir for replaying me, shall i go for LIC’s e-Term for me, my age is 32 years, please guide me
Sure you can go
Regarding Life insurence there are lot of talks everywhere. But insurence for women always gets a 2nd priority. Here my concern is related to that matter only. Considering the tenure of a woman work life, which is mostly obstructed by factors like marriage, kids, family management, what can be the options for them to make their life insured. I am not sure if this is a right place to ask this question, but still if you could answer it, would be great.
Thanks Gaurav for your comment. It is immaterial whether it is men or women, I would advice one should consider term insurance till the time they are working so that their family financial position is secured and financial goals are met even through they are not there. All other insurance policies are for very low risk takers where you would get less returns compared to bank FD’s.