Life insurance coverage proves beneficial in providing financial security and if the coverage stretches to whole life, you are assured of your family’s security in your absence. LIC Jeevan Tarang is one such saving oriented whole life insurance plan which provides you with a variety of coverage and savings related benefits.
Overview of LIC Jeevan Tarang Plan
LIC Jeevan Tarang Plan is a money-back plan which offers coverage lifelong till 100 years of age. The plan has a limited premium payment term. You also get money back benefits and a lifelong coverage which stops either on death or when you reach 100 years of age, whichever is later.
Salient features of LIC Jeevan Tarang Plan
Here are some features which make LIC Jeevan Tarang Plan a unique plan –
- Though the coverage is allowed until 100 years of age, you have to pay premiums for a limited tenure. This tenure is called the accumulation phase. You can also pay a single premium under the policy and choose an accumulation phase
- After the completion of the accumulation phase, money back benefits are paid every year till death or maturity
- The plan is a participating plan which earns reversionary bonuses as well as loyalty additions
- There is an optional rider under the policy for a better scope of coverage
- Premium discounts are given to lower the premium outgo
- You can also avail a policy loan if you need funds during the term of the plan
Benefits of LIC Jeevan Tarang Plan
The following benefits are applicable under LIC Jeevan Tarang Plan –
- Survival Benefit
Once the accumulation phase is over and the premium payment is complete, you get the vested bonuses in one lump sum. Thereafter, one year after the completion of the accumulation phase, money back benefits start to accrue. You get money back benefits of 5.5% of the sum assured every policy year. These benefits are paid till the plan matures or till death, whichever is earlier.
- Maturity Benefit
If you survive until the policy anniversary following your 100th birthday, the plan would pay a maturity benefit. This benefit would be sum assured and loyalty additions added to the corpus.
- Death Benefit
In case of death any time before reaching 100 years of age, a death benefit is paid. This death benefit depends on the period when the insured dies. If the insured dies during the accumulation phase, the sum assured and vested reversionary bonuses are payable as the death benefit. On the other hand, if the insured dies any time after the completion of the accumulation phase, the sum assured and any loyalty additions added would be paid.
- Rider coverage
The plan allows you to opt for the Accident Benefit Rider by paying an additional premium. Under this rider, you can get additional coverage in case of accidental death or disablement. If you suffer from accidental death, an additional rider sum assured would be paid. In case of accidental disablement, the sum assured would be paid in instalments over 10 years and the premiums would also be waived.
Over the accumulation phase, the policy earns simple reversionary bonuses if LIC makes a profit. The rate of the bonus depends on the profits earned by LIC and it varies across the years.
- Loyalty additions
After the accumulation phase is over, loyalty additions might also be added to the corpus of the policy depending on the profits earned by LIC. These additions are added on maturity or death, whichever is earlier.
- Premium discounts
You can avail premium discounts for paying premiums annually or half-yearly and also for higher sum assured levels. Under a limited premium plan, if you pay premiums annually, you get a discount of 2% of the tabular premium which reduces to 1% if you pay premiums semi-annually. For sum assured rebates, the discount rates are as follows –
|Sum assured level
|Discount in limited premium policies
|Discount in single premium policies
|INR 2 lakhs to less than INR 5 lakhs
|1.25% of the sum assured
|7.50% of the sum assured
|INR 5 lakhs and above
|2.25% of the sum assured
|12.50% of the sum assured
Eligibility parameters of LIC Jeevan Tarang Plan
|0 years to 60 years
|Maximum maturity age
|10, 15 or 20 years
|Minimum age at the end of the accumulation phase
|The maximum age for premium payment
|Term of the plan
|Premium paying term
|Limited premium – 10,15 or 20 yearsSingle premium – once
|Minimum – INR 1 lakhMaximum – no limit
|Depends on age, the sum assured, accumulation phase and term
Other details of LIC Jeevan Tarang Plan
Here are some other aspects of the plan which you should know –
- Paid-up value
Under limited premium plans, if you have paid three full years’ premiums and then the premiums are discontinued, you do not lose the plan benefits. In such cases, the plan acquires a paid-up value and runs on that value. The paid-up value would be calculated as follows –
Paid-up sum assured = (number of premiums paid/total number of premiums paid) * sum assured
This sum assured, along with bonuses added till the policy became paid-up, would be paid in case of maturity or death. Survival benefits do not accrue under paid-up policies.
- Surrender value
If you want, you can exit from the policy before the term comes to an end. This called surrender. When you surrender the policy, you get a guaranteed surrender value. This surrender value depends on the period when the policy is surrendered and would be as follows –
|Period of surrender
|Applicable surrender value for single premium plans
|Applicable surrender value for limited premium plans
|During the accumulation phase
|90% of the single premium paid + surrender value of the vested bonuses
|Surrender would be available if the policy has acquired a paid-up value. The surrender value would be 30% of the premiums paid excluding the first-year premium.
However, if the insured is below 12 years of age and risk coverage has not started, the value would be 90% of the premiums paid
If the insured is below 12 years of age and risk coverage has started, the value would be –
(90% of the premiums paid excluding the first-year premium for the period in which risk cover was not available + 30% of the premiums paid over the coverage period) + surrender value of vested bonuses
|After the completion of the accumulation phase
|85% of the sum assured
|85% of the sum assured
You can revive a lapsed policy by paying the outstanding premium and interest on them. Revival is allowed within 2 years from the date of the unpaid premium and you would also have to provide a proof of insurability to revive the plan.
- Policy Loan
If your policy has acquired a surrender value, you can avail a loan against such value. There is a limit on the amount of loan which you can avail and the loan would also incur interest as fixed by LIC from time to time.
- Grace period
Additional time is allowed for paying outstanding premiums if you miss paying the premium within the due date. This is called a grace period. The period is 15 days for monthly premiums and 30 days for other modes of premium payments.
- Cooling-off period
If you want to cancel the plan after you have bought it, you can do so during the cooling-off period. The policy allows a period of 15 days from policy purchase to cancel the plan and avail a premium refund.
Sample premiums for LIC Jeevan Tarang Plan
The following chart shows the sample premium rates if you pay limited premiums at different combinations of accumulation term and age. The sum assured is taken to be INR 5 lakhs and the premium is assumed to be paid annually. AP means the accumulation period
|Age of the insured
|AP 10 years
|AP 15 years
|AP 20 years
|Up to 40 years
|41 years to 45 years
|46 years to 50 years
Tax benefit under LIC Jeevan Tarang Plan:
LIC Jeevan Tarang Plan offers you two types of tax benefits which are as follows –
- The premiums paid are allowed as a deduction up to INR 1.5 lakhs under Section 80C
- The benefits earned from the policy are tax-free under Section 10 (10D). The entire benefit would be allowed as a tax-free benefit without any maximum limit
Exclusions under LIC Jeevan Tarang Plan
If the insured commits suicide and dies within a year of buying the policy, the promised death benefit would not be paid. In such cases, a part of the premium paid would be refunded as a death benefit.
How to buy LIC Jeevan Tarang Plan?
LIC Jeevan Tarang Plan is a withdrawn plan which is not currently offered by LIC. You would not be able to buy a new policy currently. However, you can opt from the other money-back policies offered by LIC and buy them from LIC office or a LIC agent.
You can also visit Turtlemint and browse from a range of money back plans available in the market. Turtlemint is partnered with leading insurance companies and offers some of the best money-back policies. You can, therefore, visit www.turtlemint.com/life-insurance and find the available policies for your coverage needs. You can also compare across the available policies to find a policy which offers the best coverage benefits and is not very expensive.
Making a claim under the LIC Jeevan Tarang Plan
To make a claim under your Jeevan Tarang policy, you would have to take some steps. For a maturity claim or to claim your survival benefits, fill up and submit a claim discharge voucher and your identity proof to get the claim paid. In case of a death claim, the claimant should fill up Form number 3783 available with LIC and submit it to notify the company about the insured’s death. Along with the form, the following documents would also be required –
- Death certificate
- Police FIR, post mortem report, coroner’s report, etc. if death occurred in an accident
- Identity proof of the claimant
- Bank account details of the claimant
- Policy bond
When the documents are submitted with the claim form, LIC would process the claim and settle it.
You can also raise your claim through Turtlemint if you had earlier bought the policy from Turtlemint’s platform. To raise a claim, call the company’s helpline number 1800 266 0101 or send an email to email@example.com. Turtlemint would then process your claim and coordinate with LIC in getting your claims settled faster.
Coverage of the rider can only be availed till the accumulation period. Moreover, the premiums should be paid duly to enjoy rider coverage. If the premiums are discontinued, the rider coverage would stop.
No, loyalty additions are not guaranteed. They are paid depending on the profit experience of the insurance company and are specified by LIC from time to time.
No, they don’t. Bonus is paid only in those policies which are in force and in which the premiums are paid regularly for the specified tenure.