The new policy is named as Jeevan Tarun (Plan No. 834), and it’s a non-linked, with profit, limited premium payment policy, specially designed to meet the requirement of growing children. Premium paying term is 5 years less that the policy term. In this plan, proposer can choose any of the four options for survival benefit between the 20 to 24 years of child age and the maturity at the age of 25 years of child’s age.
The four options are as follows:
|Option||Survival Benefit||Maturity Benefit|
|Option 1||No survival benefit||100% of Sum Assured|
|Option 2||5% of Sum Assured every year for 5 years||75% of Sum Assured|
|Option 3||10% of Sum Assured every year for 5 years||50% of Sum Assured|
|Option 4||15% of Sum Assured every year for 5 years||25% of Sum Assured|
Benefits of Jeevan Tarun Policy:
Benefits payable to an inforce Jeevan Tarun (834)policy are as under
On death before the date of Commencement of risk:
The death benefit is paid as the total amount of Premiums paid excluding taxes, extra premium and rider Premiums (if any).
On death after the date of Commencement of risk: Death benefit is paid as Sum Assured on death + Vested Simple Reversionary bonuses and Final Additional Bonus (if any). Where “Sum Assured on death” is defined as higher of 10 times of the annualized premium or absolute amount assured to be paid on death ie 125% of Basic sum assured.
Survival benefit is paid to the life assured in last five year of the policy if he/she survives between the next policy anniversary falling after life assured complete the age of 20 and up to24 years of age, amount of the survival benefit will depend on upon the option chosen by the proposer at the proposal stage. There are four options to choose from to get the survival benefit. Once the option is chosen at proposal stage it cannot be altered later on.
|Policy Anniversary coinciding with/following completion of ages||Percentage (%) of Sum assured to be paid as Survival Benefit|
|Option 1||Option 2||Option 3||Option 4|
|20 to 24 years||Nil||5% each year||10% each year||15% each year|
Under Maturity benefit, the policyholder will receive the Sum Assured on Maturity + Vested Simple Reversionary bonuses and Final Additional Bonus (if any).
Sum Assured on maturity depends on survival benefit in which the option is chosen by the policyholder. If Policyholder opts for any of the four options then the maturity benefits given to policyholder are as follows.
Option 1: 100% of Basic Sum Assured
Option 2: 75% of Basic Sum Assured
Option 3: 50% of Basic Sum Assured
Option 4: 25% of Basic Sum Assured
Jeevan Tarun Policy will participate in the profit of corporation if, in inforce stage, No final additional bonus will be paid if the policy is in reduce paid up condition.
Premium Waiver Benefit Rider
Premium waiver benefit rider is available with this plan, and can be taken at the proposal stage by paying an extra premium or it can be taken later in policy term provided at least 5 years of premium paying term is left.
Date of commencement of risk under the plan: In case the age at entry of the Life Assured is less than 8 years, the risk under this plan 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, the risk will commence immediately.
Date of vesting under the plan: The policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.
Eligibility Conditions of Premium Waiver Benefit Rider (Optional)
- Minimum age at entry: 18 years (LBD)
- Maximum age at entry: 55 years (NBD)
- Policy term: 20-age at entry of child at the time of opting the rider
- Cover ceasing age: 70 years
This plan is best suitable for the planning of higher education child. To know more about Jeevan Tarun Please Visit the official website of LIC of India.