LIC Jeevan Tarang Policy
LIC Jeevan Tarang Plan is a Whole Life Plan with a Bonus facility.
In this plan, the premium is paid for the Accumulation Period that is chosen by the policyholder of 10, 15 or 20 years. When the Accumulation Period ends, i.e. the Premium Paying Term is over, the vested Bonus is paid in a Lumpsum and the policy continues.
Every year, after the Accumulation Period ends, 5 and ½ % of the Sum Assured is paid as Survival Benefit till the Life Insured is 100 years old. If the Life Insured survives till 100 years, then the entire Sum Assured + Loyalty Bonus is paid and the policy is terminated.
However, if the Life Insured dies within the accumulation period, then the Sum Assured + vested Bonus is paid and the policy is terminated. If the Life Insured dies after the accumulation period but before 100 years of age, then the Sum Assured + Loyalty Addition is paid and the policy is terminated.
Key Features
This plan is a Whole Life Plan with regular annual returns post maturity
Premium is paid till the Accumulation Period only and not after that.
Simple Reversionary Bonus is payable on maturity or earlier death.
Additional Accidental Death Benefit riders, Term Riders, Critical Illness riders, and Premium Waiver Benefits for Critical Illness riders can only be opted for during the Accumulation Period.
Death Benefit is Sum Assured + accrued Bonus + Loyalty Additions if any 5 and ½ % of the Sum Assured is paid as Survival Benefit every year post Accumulation Period
Benefits
In case of the death of the Life Insured
- During the Accumulation Period- Sum Assured + vested Bonus is paid and the policy is terminated
- After the Accumulation Period- Sum Assured + Loyalty Addition is paid and the policy is terminated
When the Life Insured survives after the Accumulation Period, 5 and ½ % of the Sum Assured is paid as Survival Benefit every year post that till the Life Insured is 100 years old.
Being a Whole Life Plan, it matures when the Life Insured is 100 years old. Thus, if the Life Insured survives till 100 years, then the entire Sum Assured + Loyalty Bonus is paid and the policy is terminated.
Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)
There 4 additional Riders available during the Accumulation Phase:
- Accidental Death Benefit Rider
- Term Rider
- Critical Illness Rider
- Premium Waiver Benefit for Critical Illness Rider
Eligibility
|
|
Minimum |
Maximum |
|
Sum Assured (in Rs.) |
1,00,000 |
No Limit |
|
Policy Term (in years) |
Whole Life |
|
|
Age for completion of Premium Payment Term (in years) |
- |
70 |
|
Age at the end of the Accumulation Period (in years) |
18 |
- |
|
Entry Age of Policyholder |
0 |
60 |
|
Age at Maturity (in years) |
- |
100 |
|
Payment modes |
Single, Yearly, Half-yearly, Quarterly, Monthly and SSS |
|
FAQs
What happens if You stop paying the premium?If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured.
What happens if You want to surrender the policy?There is a Guaranteed Surrender Value.
- During Accumulation Period, Guaranteed Surrender Value = (30% of all premiums paid – 1st year’s premium) after 3 policy years for Regular Premiums and (90% of Single Premium) after 1 policy year.
- After Accumulation Period, Guaranteed Surrender Value = 85% of the basic Sum Assured.
Special Surrender Value is also available under this plan.
What happens if You want a loan against your policy?A loan facility is available under this policy
