LIC Jeevan Tarun Plan 734: Features, Benefits, and Major Modifications

LIC Jeevan Tarun Plan 734 – Life Insurance Corporation of India (LIC) recently introduced a modified version of its Jeevan Tarun Plan, providing a flexible savings and life insurance option aimed at securing the financial needs of children, especially for educational purposes. The following article explains the features, benefits, eligibility, and options under LIC Jeevan Tarun Plan 734, as outlined in the official circular.

Also see: LIC enter Health Insurance Sector with deal with ManipalCigna

Introduction to LIC Jeevan Tarun Plan 734

LIC Jeevan Tarun Plan 734 is a non-linked, participatory, savings-oriented life insurance plan. It was restructured in response to the Insurance Regulatory and Development Authority of India (IRDAI) 2024 guidelines, taking the place of the former Plan No. 934. Available for new business starting November 18, 2024, the plan aims to support parents and guardians in planning for their children’s educational and developmental needs.

Also see: LIC New Money Back Plan 720

Key Modifications in LIC Jeevan Tarun Plan 734

Here are the twelve major modifications to LIC Jeevan Tarun Plan 734, as described in the document:

1. Minimum Basic Sum Assured: Increased from ₹75,000 to ₹2,00,000.
2. Minimum Age at Entry: Changed from 90 days to 30 days.
3. Revised Premium Rates: Adjustments have been made to the premium rates.
4. Surrender Value Acquisition: Now acquires a surrender value after the first policy year if one full year’s premium is paid, compared to the previous requirement of two years.
5. Death Benefit in Paid-up Policy: The death benefit will be at least 105% of total premiums paid up to the date of death.
6. Policy Loan Amount: Loan quantum as a percentage of surrender value has been revised.
7. Premium Waiver Benefit Rider: A modified version of this rider (UIN: 512B204V04) is available.
8. Free Look Period: Extended to 30 days from the receipt of the policy bond, previously 15 days.
9. Option Change for Survival Benefits: Policyholders may alter the survival benefits option before the commencement of these benefits.
10. Customized Benefit Illustration: Has been updated to reflect the plan’s modifications.
11. Agent and Intermediary Commission: Commission and remuneration structures for agents and intermediaries have been modified.
12. Customer Information and Need Analysis: Now included in the policy document for suitability assessment purposes.

Also see: LIC Revised Jeevan Amar Plan 955

the Jeevan Tarun Plan offers four options for Survival Benefits, which can be chosen based on the policyholder’s needs. These options outline the percentage of the Basic Sum Assured to be received as Survival Benefits from ages 20 to 24, with the remaining balance paid as the Maturity Benefit at age 25:

• Option 1: No Survival Benefit; 100% of the Basic Sum Assured as the Maturity Benefit.
• Option 2: 5% of the Basic Sum Assured annually from ages 20 to 24; 75% as the Maturity Benefit.
• Option 3: 10% annually from ages 20 to 24; 50% as the Maturity Benefit.
• Option 4: 15% annually from ages 20 to 24; 25% as the Maturity Benefit.

These modifications are designed to enhance policyholder benefits and adjust the plan’s conditions to align with recent regulations and market needs

Also see: LIC Bima Jyoti Plan 760

Eligibility Requirements

• Minimum Age at Entry: 30 days (completed)
• Maximum Age at Entry: 12 years
• Policy Term: 25 years minus the entry age
• Premium Paying Term: 20 years minus the entry age
• Basic Sum Assured: Starts from ₹2,00,000 with no upper limit

Coverage and Benefits

1. Death Benefit

The plan provides comprehensive death coverage if the Life Assured passes away during the policy term. It includes:

• Higher of either 125% of the Sum Assured or 7 times the annual premium.
• Vested bonuses and Final Additional Bonus, subject to policy conditions.
• Minimum Death Benefit of 105% of all premiums paid till the date of death.

Also see: LIC Bima Shree Plan 748

2. Survival Benefits

The Jeevan Tarun plan includes flexible survival benefit options, which allow partial payouts between the ages of 20 and 24:

• Option 1: No survival benefit; 100% payout of the Basic Sum Assured on maturity.
• Option 2: 5% annually with 75% payout on maturity.
• Option 3: 10% annually with 50% payout on maturity.
• Option 4: 15% annually with 25% payout on maturity.

3. Maturity Benefits

The maturity benefit provides a percentage of the Basic Sum Assured based on the option selected, ensuring financial assistance at age 25, which is useful for educational expenses.

4. Participation in Profits

Jeevan Tarun is a participatory policy, entitling policyholders to a share in LIC’s profits through Simple Reversionary Bonuses, as long as the policy remains in force. In cases of surrender, a bonus, if applicable, is paid in proportion to the surrender value.

Also see: LIC Jeevan Utsav Plan 771

Additional Features

Optional Premium Waiver Benefit Rider

If opted, this rider waives future premiums in case of the proposer’s (policyholder’s) death, ensuring the policy benefits remain intact for the minor Life Assured.

Settlement Options

The plan offers flexibility in receiving the maturity or death benefits in installments over 5, 10, or 15 years rather than as a lump sum, allowing a steady income stream to the beneficiary.

Grace Period and Revival

• A 30-day grace period is granted for yearly, half-yearly, or quarterly payments, while monthly payments get 15 days.
• If a policy lapses, it can be revived within five years by paying outstanding premiums along with interest.

Surrender and Paid-Up Options

Policyholders may surrender the policy after the first policy year, gaining a minimum Guaranteed Surrender Value or a Special Surrender Value based on the total premiums paid and vested bonuses. Policies also gain a paid-up value if premium payments are discontinued after one full year, providing a reduced benefit on maturity or death.

Also see: 4 Upcoming LIC Plans in November 18, 2024

Premium Rebates

Rebates: Available for high sum assured amounts and certain premium payment modes.

• For high sum assured, rebates are available starting from policies with ₹5,00,000.
• Yearly and half-yearly premium payments qualify for a rebate of 2% and 1%, respectively.

Commission Structure

• Agent Commissions: Commission structure varies by premium-paying term, encouraging intermediaries to promote the plan effectively.

Tax Implications

Premiums paid towards the Jeevan Tarun policy qualify for tax deductions, subject to applicable tax laws, and policy proceeds may also be tax-exempt under current regulations. LIC will inform policyholders of changes in tax requirements as they occur.

Also see: LIC New Jeevan Anand Plan 715

Optional Rider Benefit

The rider benefit for LIC Jeevan Tarun Plan (Plan No. 734) is the Premium Waiver Benefit (PWB) Rider:

• Eligibility: The PWB Rider can be availed if the Life Assured is up to age 15 (next birthday) and is applied to the proposer, allowing premium payments under the base policy to be waived if the proposer passes away during the policy term.

• Rider Term: The term is the outstanding Premium Paying Term of the base plan or up to 20 minus the age of the child at the time of opting for the rider, with a minimum outstanding term of 5 years.

• Premiums: An additional premium is charged for the rider, and it can be selected at policy inception or during the Premium Paying Term on a policy anniversary.

• Benefits: On the proposer’s death, all future premiums of the base policy will be waived until the rider term ends.

This rider does not acquire any paid-up or surrender value, and it terminates if the policy lapses.

Also see: LIC Index Plus and LIC Nivesh Plus Plan 749

Premium Payment Modes

The modes of premium payment for LIC’s Jeevan Tarun Plan (Plan No. 734) include:

• Yearly, Half-Yearly, Quarterly, and Monthly options.
• Monthly payments can be made through NACH (National Automated Clearing House) or through salary deductions (SSS).
• For monthly mode through NACH, 3 months’ premiums are collected in advance. If NACH validation isn’t completed within 3 months from the policy start date, the premium mode will be converted to quarterly.

Further instructions on premium payments are issued by LIC CRM/PS Department as needed​.

Also see: LIC Micro Bachat Plan 751

Premium Rates

The premium rates for LIC Jeevan Tarun Plan No. 734 are outlined as follows:

1. Base Plan: Premium calculations can be done through LIC’s online calculator on the LIC website, the NB Module, or LIC apps. Specific Class-I extra premium rates for the base plan are provided per Rs. 1,000 Sum Assured.
2. Premium Waiver Benefit (PWB) Rider: Additional premium rates apply if opting for the PWB Rider, which are calculated per Rs. 100 Base Plan Premium for this rider.

These rates are exclusive of any applicable taxes​.

Also see: LIC New Jeevan Shanti Plan 758

Rebate

The rebate options for LIC’s Jeevan Tarun Plan 734 are:

Mode Rebate:

• Yearly Mode: 2% of the tabular premium
• Half-Yearly Mode: 1% of the tabular premium
• Quarterly, Monthly (through NACH), and SSS modes: No rebate

This mode rebate applies to both the base plan premium and the Premium Waiver Benefit rider premium, if opted for.

High Basic Sum Assured Rebate:

• ₹2,00,000 to less than ₹5,00,000: No rebate
• ₹5,00,000 to less than ₹10,00,000: ₹2.50 per thousand of Basic Sum Assured
• ₹10,00,000 and above: ₹4 per thousand of Basic Sum Assured

This rebate is only applicable to the Basic Sum Assured under the base plan, excluding any Premium Waiver Benefit Rider Sum Assured.

Also see: How RBI Monetary Policy Could Affect LIC Pension Plan Annuity Rates

How to Apply and Purchase

Jeevan Tarun can be purchased offline via LIC agents, brokers, or insurance marketing firms. A detailed benefit illustration is provided at the time of sale to help potential policyholders understand the financial implications and ensure transparency.

Claim Process and Requirements

To claim benefits, policyholders or nominees need to submit required documents, including identity proofs, NEFT mandates, death certificates (if applicable), and other supporting documents. For maturity or survival claims, discharge forms and policy documents are required for processing.

Conclusion

LIC Jeevan Tarun Plan 734 is designed to provide financial security for a child’s future while offering flexible options to meet varying needs. With features like adjustable survival benefits, comprehensive death coverage, and optional premium waivers, Jeevan Tarun continues LIC’s tradition of delivering tailored insurance solutions for Indian families.

FAQs

Disclaimer: This article provides a general overview of LIC Jeevan Tarun Plan (Plan No. 734) based on publicly available information. It is not a substitute for professional financial advice. Policyholders should review all terms in official documents and consult LIC representatives or financial advisors for specific details, as terms, benefits, and conditions may change periodically.