Meet Your Children’s Education Needs With LIC Jeevan Tarun Policy
LIC’s Jeevan Tarun plan is a product of LIC Stable which has been specially launched to meet the needs of children’s education. Since it is like a money back policy, it can meet the financial requirement of your child’s education.
LIC Jeevan Tarun Limited Premium Payment Plan is not linked. This plan is available in four options with survival benefit from 20 to 24 years till your requirement.
Conditions to Be Eligible for This Scheme?
- Minimum Sum Assured- 75000
- Maximum Sum Assured – No Limit
- Minimum age to start – 90 days completed
- Maximum age for starting- 12 years completed
- Maturity Period- 25 Years
- Policy term – 25 years at inception
- Premium depositing period – 20 years
Maturity benefit is available at the age of 25 years. LIC Jeevan Tarun has all three benefits namely Posthumous Benefit, Maturity Benefit and Survival Benefit.
Posthumous Benefits (Death Benefits):
Premature death: In this, the full amount is given in the sum assured plus taxes, extra premium, revised premium (if any).
Death after the risk period: This includes the Sum Assured till the time of death, Simple Reversionary Bonuses, Additional Bonuses (if any) available.
Survival Benefit
Every year you get a certain percentage of your Sum Assured as Survival Benefit. It is available every year after the policy is 1 year old.
It is not only available till 20 but even after that it is available for the next 4 years. This percentage depends on the amount and which plan you have chosen.
Maturity Benefit
This benefit is available on completion of the term. This includes the total amount plus simple reversionary bonus, additional bonus (if any) etc.
The amount received at the time of maturity will depend on your plan options, which are as follows:
- Option 1 – 100% of the Sum Assured
- Option 2 – 75% of the Sum Assured
- Option 3 – 50% of the Sum Assured
- Option 4 – 25% of the Sum Assured
Premium Waiver Benefit Rider (Premium Waiver Benefit Amendment)
On payment of additional premium, the policyholder will get the benefit of Premium Waiver Benefit Rider (Premium Waiver Benefit Amendment) of LIC. This can be availed with the normal plan.
Conclusion
This is a money back plan and the returns in such plans are not high. It is for the safety of the child and not for making much profit.
The returns in these types of schemes range from 5 to 7 percent and in view of rising inflation in real terms, it is not possible to bear the expenses of higher education and marriage of the child from this plan.
If you are looking for a long term plan for your child’s education needs, then you can go for Large Cap Equity Mutual Funds.
The reason for this is that the time period of investment in this is from 10 to 20 years, so that these equity mutual funds can give you excellent returns. But keep in mind that investing in mutual funds can be risky, please read the rules first.
