LIC’s new children plan 2015-Jeevan Tarun (Table No.834) Review

LIC soon launching one more child plan called Jeevan Tarun (Table No.834) from the month of May 2015. It is typical non-linked, with-profit and limited premium payment option. LIC claims that this plan is suitable to meet the educational or other needs of growing children.

Below is the eligibility for buying this plan.

LIC's Jeevan Tarun (Table No.834)

What do you mean by Date of commencement of risk?

In case the age of entry Life Assured is less than 8 Yrs, then risk under this plan commence either one day before the completion of 2 years from the date of commencement of the policy or completion of 8 years of age, whichever is earlier.

For those aged 8 years or more, the risk will commence immediately.

What do you mean by Premium Wavier Benefit (PWB)?

If the proposer (in this plan, parent) opts for PWB then in case of death of the proposer, future premiums will be waived off. Means, you no need to pay future premiums. This benefit will be offered based on the proposer’s age, personal declaration and other related documents.

If proposer commits suicide within 12 months of policy commencement, then this benefit will not be available. In addition, this benefit ceases in case of lapsed/paid up condition.

Whether you have to buy this plan?

As I said in my review of New Children’s Money Back Plan (Table No.832), here also the life risk is on your kid. So think twice whether Life Insurance required for your kid or not. LIC is offering PWB benefit. However, the life risk will be on your kid.

Life Insurance coverage required on the earning member who has financial depends. In this case, it is on kid’s name. Strange but few falls to trap as this is called children plan. If death occurs to parents then kid’s future education or marriage goals affect. However, if death occurs of the kid then parents will not suffer any financial loss. Hence, Life Insurance must be on parents, but not on the kid.

As of now, the premium chart is not available. However, this being a typical endowment plan, I expect a return of 6% to 7%. Currently, education inflation is hovering around 9% to 10%. I feel this plan will not generate enough wealth to meet your kids’ education goal. Think twice before proceeding to buy this plan.

The only new feature they inserted as unique is survival benefits. Some percentage of the sum assured will be payable to you upfront and the rest will be for the next 5 years as yearly instalment. However, in case you chosen Option No.4 then they immediately pay you 25% of Sum Assured+Bonus+FAB. Rest 75% of Sum Assured will be disbursed as yearly 15% of the sum assured for next 5 Yrs. You notice that remaining 75% of Sum Assured they keep with them and pay 15% yearly up to 5 yrs. However, they will not add a single rupee on this. Hence, it will be idle with them. I suggest choosing Option No.1, where you get the full sum assured. Once you get it, then you can park it FDs kind of product then it will earn some interest than keeping money idle with LIC.

38 Comments

  1. hi actuly problem is my father account holder name has spelling mistake in my bank passbook .. i face some problem to reciving check of lic . is any way to getting rid of this problem.

    right father name – mahipal
    bank account holder name – mahepal

    plz reply my email :

    [email protected]

    Reply
    • not my bank passbook . its my father bank passbook

      Reply
  2. Dear Mr Basavraj,

    Would like to draw your attention towards you going wrong in your analysis of Jeevan Tarun Plan. You have mentioned in the last paragraph:

    “However, in case you chosen Option No.4 then they immediately pay you 25% of Sum Assured+Bonus+FAB. Rest 75% of Sum Assured will be disbursed as yearly 15% of the sum assured for next 5 Yrs. You notice that remaining 75% of Sum Assured they keep with them and pay 15% yearly up to 5 yrs. However, they will not add a single rupee on this. Hence, it will be idle with them. I suggest choosing Option No.1, where you get the full sum assured. Once you get it, then you can park it FDs kind of product then it will earn some interest than keeping money idle with LIC.”

    This is completely different from actual payment schedule which is as follows:

    Survival benefit is payable from age 20 to 24 years in all options 1, 2, 3, 4.

    MATURITY BENEFIT is payable at AGE 25 YEARS, which means the actual situation would be just reverse of what you said & it would be as follows:

    “However, in case you chosen Option No.4, then 75% of Sum Assured will be disbursed as yearly 15% of the sum assured for next 5 Yrs (20 to 24 years). You notice that remaining 25% of Sum Assured they keep with them and pay Bonus + FAB for FULL SUM ASSURED FOR COMPLETE 25 YEARS.”

    I would advise you to take precautions while doing any type of analysis & posting it anywhere as people make their opinions based on whatever you write whether correct or incorrect, so you must be extra cautious.

    Reply
    • Rajnish-That’s great finding 🙂 But will it change the return % so HIGHLY?

      Reply
      • Plz don’t deviate from the topic. I have just used the words you were using but in the correct prospective as per correct information, so what’s the problem? You should accept that you wrongly analyzed it. There shouldn’t be any problem in accepting your mistakes. Its pretty easy to find other’s mistakes & criticize it but very difficult to accept own. I am just asking you to accept yours & just be careful in future.

        Reply
        • Ranjish-I am again asking, will it change the whole return aspect and feature??

          Reply
          • I am also again saying, you are not replying to what I said but just deviating from the topic I raised. Whether it changes the whole return aspect & feature is different point of discussion. The point right now is being factually correct or wrong in your analysis. Its your choice if you wish to accept it or not.

            Reply
            • Rajnish-No..no..I am not deviating. I am asking you the concept you said and I understood will change the return part drastically?

              Reply
  3. Sir this is sanjay form Mysore ( Karnataka) working as driver, i have one year old son, can you please recommend which plan is better for my son for his education etc, whatever you suggest i will follow you, because i ask some insurance advisor they will suggest from their beneficial point of view, since my earnings is average, so whatever you suggest i will follow, because i dont want my son to be driver like me , please suggest me

    Reply
    • Sanjay-First buy term insurance online (to the tune of 15-20 times of your yearly income), health insurance for family, accidental insurance and emergency fund of at least 6-12 months of household expenses. Once these are ready, then start investing in PPF (30% of what you want to invest for your kid’s future) and rest 70% in below said mutual funds.
      Franklin India Bluechip Fund, ICICI Pru Discovery and Franklin Prima Fund.

      Reply
  4. Dear Sir,
    I have girl babies 4 yrs old & 7 months old. I need your suggestion for a good child education plan for both of them in such a way that i get matured money for their college expenses

    Reply
    • Senthil-First advice, stay away from these policies. Buy term insurance and invest based on your goal.

      Reply
    • Jeevan tarun good policy for your child

      Reply
  5. Dear Basu,

    I have gone through most of the reviews, I am a parent 50 yrs of age with a 17 yr old son and 8 yr old daughter.

    I have sufficient Term insurance but No child plan cover. I intent to take a cover for my daughter for the educational expenses after age of 18

    Can you please suggest the best options LIC or otherwise which I can enter into immediately with Premium benefit waiver in case of parent death.
    Thanks and Regards,

    Reply
  6. sir is Matching Insurance required for Jeevan Tarun for child plan.

    Reply
    • Matching insurance of parents required while buying the child plan in LIC, but not upto sum assured Rs. 5 Lac without PWB and sum assured Rs. 10 Lac with PWB

      Reply
  7. Sir,
    I have purchased a LIC jeevan anand of 35 yrs duration of 5 lakh S.A ,which consist of term aasurance rider of 5 lakhs.
    But no where in the policy written about term assuarance rider of 5 lakh .
    How can i cross verify for the teram assurance rider in my policy.

    Reply
    • Rama-It must be written on a policy document. If it is missing then clarify the same with visiting nearest LIC branch.

      Reply
    • there must be endorsement of term rider on the bond, if its not there then get it done from your servicing branch.

      Reply
  8. Good analysis, thanks, don’t know how these kind of policies are allowed, especially considering that a child plan has the child as life assured instead of parent what will parents do with money if child dies ? And what will the child do for education food if parent dies ?,

    Think a simple term plan for the working parent + a SIP in equity fund in the name of child for say 15 years plus could work wonders instead of this.

    Reply
  9. You are looking great in your new pic………Gearing up for the nest bout FY 15-16 ? Good luck…Sir

    Reply
    • Joy-Thanks for comment 🙂 Yes, every new year will come with new opportunities.

      Reply
  10. Hello basu….how did March go…? How many policies did you procure ? How many Term plans did you sell Sir…. I sold 73 policies but could not sell a single Term plan…… Anyways, I am trying my best…….. I feel PMSJYor PMJJY are violations of existing norms of life insurance…These schemes could be designed since the population of India is unofficially greater than the Chinese population…to divert money or funds for the Atal Pension GIMMICK…………Your take Sir….. ?

    Reply
    • Joydeep-I not do business considering the MARCH alone. Every month will be MARCH for me. However, when it comes to LIC business, I am yet to start. Because I mainly sell Term Insurance 🙂 I completely agree about these PMs schemes.

      Reply
      • Good luck Basu Sir….. Bangalore is an educated city…and wealthy too……..Therefore clients there can opt for Term plans- in our place people are yet to learn that………. Anyways, Good luck…………for FY 15/16…..I am fine, pulling on………….The Nepal quake shook our region too and GIC has stopped ‘sale’ or Renewal of shopkeepers policy here…….This year in March I sold one policy of SA 2 crores….Table/Term/PPT 830/12/9…Yly premium 2100000 ……… Have heard that the President has given the go ahead nod to the Finance Bill and the Service tax will go up from 14th May……..Good day Basu Sir…………..

        Reply
  11. Hello I took endowement assurance policy in 2010 and paid around 84022 in premiums till now
    It is split into 24 different premiums of small amounts (each endowment assurance policy) and i would be getting a small amount after 50yrs of age till 73 yrs. Ultimately it acts like a pension plan
    But after checking the minus’ of Endowment policies, i feel that i should invest that money in somethin else
    What is your suggestion
    How much return money I get if I paid up the policy ?
    If I paid up the policy than what could be the intrest rate I got in maturity time?

    Reply
    • Anup-Suggest you to contact nearest LIC branch to get the paid-up values.

      Reply
  12. SIR LIC JEEVAN TAUN PLAN NO.834 VERY GOOD.75000/- SUM ASSURD TO GOOD FOR POOR &MEDIEM FAMILY CHILD.

    Reply
    • Ajay-Whether the current Pradhan Mantri Jeevan Jyoti Bima Yojana and investing in PPF will not be good? I feel it provides more return than this plan. What you say??

      Reply
  13. lic jevan tarun option no.4 is suitable for male child,
    option no.1 is suitable for female child

    Reply
    • Challa-May I know your logic to say so? In my view when you don’t have sufficient corpus to spend on education or marriage then all options are worst.

      Reply
  14. Then sir what is more beneficial. Unit Linked Plan, where there is maximum chance of losing even my capital also. And those big companies will eat my capital and I think u r representing them. Sorry Sir do not misguide others. India,s middle class people earn money by very hard work.

    Reply
    • Alok-Sir, I never said ULIPs as an alternative. Hope you created your own picture in mind. I don’t have control over it 🙂

      Reply

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