Here’s an overview of the LIC Children Plans, specifically focusing on the Jeevan Tarun Plan (Table No. 734) and the Jeevan Baal Plan (Table No. 774):
1. LIC Jeevan Tarun Plan (Table No. 734)
Type: Endowment Plan designed for children.
Target Group: This plan is suitable for children aged between 0 to 12 years.
Policy Term: Available for 10 to 25 years.
Sum Assured: Minimum sum assured is ₹75,000, with no upper limit.
Premium Payment: The plan offers flexibility in the premium payment mode, including regular premiums as well as limited premium payment options (under limited payment mode).
Maturity Benefit: On maturity, the policyholder receives the sum assured along with accrued bonuses (if any) at the end of the policy term.
Premature Withdrawal: The policy provides options for partial withdrawals from the accumulation after the premium payment term is over.
Death Benefit: In case of the unfortunate demise of the life insured during the policy term, the nominee will receive the sum assured plus bonuses. The policy will continue, and the sum assured will be paid at maturity.
Additional Features:
The insured has the option to select an education benefit, where benefits will be paid in installments at specified ages during the policy term to assist with educational expenses.
Loan facility available against the policy after attaining surrender value.
2. LIC Jeevan Baal Plan (Table No. 774)
Type: A unique plan catering specifically to the needs of children.
Target Group: Suitable for children aged between 0 to 8 years.
Policy Term: Options available in the range of 10 to 25 years.
Sum Assured: Minimum sum assured is ₹1 lakh, with no upper limit.
Premium Payment: The premium payment can be made annually, semi-annually, quarterly, or monthly.
Maturity Benefit: At the end of the policy term, the sum assured along with bonuses (if declared) is paid.
Death Benefit: If the policyholder dies during the policy term, the nominee will receive the sum assured with bonuses, and the policy will continue with the future premiums being waived until maturity. The sum assured will then be paid at maturity.
Additional Features:
Option to take a loan against the policy after acquiring a surrender value.
There are provisions for premium waivers in case of the policyholder's death.
Key Points for Both Plans:
Riders: Both plans may offer additional riders like Accident Benefit Rider, Critical Illness Rider, etc., to enhance coverage.
Tax Benefits: Premiums paid towards these plans may qualify for tax deductions under Section 80C, and the maturity proceeds could be tax-exempt under
Section 10(10D) of the Income Tax Act, subject to specific conditions.
Surrender Value: Both plans acquire a surrender value after a certain number of premiums are paid, providing an option for policyholders to access their funds if needed.
Conclusion
These children’s plans from LIC are designed to provide financial security and savings for the future needs of children, such as education and other essential life events. It is advisable for parents to evaluate their financial goals and choose a plan that best suits their needs, while also consulting with a LIC representative for detailed information and options specific to their situation.
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