LIC has recently upgraded its popular child plan Jeevan Tarun and launched a new version. This plan number is 734, which is a perfect savings scheme for children’s education and future needs. If you are planning a secure future for your child, then do not miss this plan, because it has everything from death benefit to survival benefit.
Basic details of the plan
LIC Jeevan Tarun 734 is a non-linked, participating life insurance plan that parents or grandparents can buy in the name of the child. The entry age starts from 30 days to 12 years, and the maturity age is fixed at 25 years. The policy term is 25 years minus the entry age, while the premium payment term is 20 years minus the entry age. The minimum sum assured is Rs 2 lakh, and there is no maximum limit – it can be taken in multiples of Rs 5,000 or Rs 10,000.
The proposer (who is buying the policy) can choose between four options, which decide survival benefit and maturity benefit. Premium can be paid annually, half-yearly, quarterly or monthly mode. Rebate is also available on high sum assured, like 2-4% on above Rs 10 lakh.
Benefits that make it special
The biggest advantage of this plan is the survival benefit, which is available at the age of 20 to 24 years of the child. No survival benefit in Option 1, but 100% sum assured on maturity. Option 2 has 5% per annum for 5 years, and maturity 75%. Option 3 has 10% per annum, maturity 50%, and Option 4 has 15% per annum but maturity only 25%. Apart from this, Simple Reversionary Bonus and Final Additional Bonus are also added.
If something untoward happens to the child, the death benefit is – higher of 7 times the annualized premium or 125% of the sum assured, subject to a minimum of 105% of the total premiums. The risk coverage is on the child and not on the proposer. 105% premiums are also available in paid-up policies. At the age of 25, a bonus is added along with the maturity benefit, which gives a boost for the child’s higher education or marriage.
There is also a policy loan facility, up to 90% of the surrender value (80% in paid-up case). If the premium is missed, it can be revived within 5 years. The free look period is 30 days, and the grace period is 15-30 days. Tax benefits are available under sections 80C and 10(10D).
How does this plan work?
Suppose, you take this plan for a 5 year old child, Sum Assured 2 lakh, choose option 4. The premium payment term will be 15 years, and the total term will be 20 years. Every year at the age of 20-24, you will get 15% i.e. Rs 30,000 survival benefit, and at 25 years, you will get 25% i.e. Rs 50,000 + bonus. Full coverage on death. Premium rates are revised, but can be checked from LIC calculator – On an average, 10-12 thousand annually for a 5-6 year old child.
This plan is better than the old 934 version, because the minimum SA has increased but the entry age has reduced, and surrender is available sooner. LIC launched it on 14th November 2024, and is available from 18th November. If you are looking for investment for child education, visit LIC branch.
