LIC Jeevan Tarun is a product from the LIC Stable, which is to be launched later this month. LIC Jeevan Tarun (Table NO 834) is specifically meant to meet your child's education.

Since it is more like a money back policy, it could help you when you need the money for your child's important need.

LIC Jeevan Tarun is a non linked, with profits with limited premium payment plan. The plan comes with four options with survival benefits from 20-24 years of age depending on the requirement.

What are the eligibility conditions?

• Minimum sum Assured: Rs 75,000
• maximum Limit: no limit
• Minimum Entry Age: 90 days completed
• Maximum age of entry: 12 years completed
• Minimum/Maximum Maturity age: 25 years
• Policy term: 25 years age at entry
• Premium payment term: 20 years

Death Benefits:

On Death before the Date of commencement of risk:
Death benefit is the total amount of premiums paid excluding taxes, extra premium and rider premium (if any)
On Death after the Date of commencement of risk:
Death benefit is ‘Sum Assured on death' and vested Simple Reversionary Bonuses, Final Additional Bonus, if any.

Survival benefits:

On surviving on each respective policy anniversary a fixed percentage of sum assured shall be payable as survival benefit.

It shall be payable every year starting from policy anniversary coinciding with / following the completion of 20 years of age and thereafter on each of next 4 policy anniversaries. These percentages depend on the option choose by the proposer at the proposal stage.

Maturity Benefit

On Survival, Maturity Benefit will be Sum Assured on maturity along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any will be payable.

Sum Assured on Maturity for various options are given below

Option Name Maturity Benefit

Option 1 100% of Sum Assured
Option 2 75% of Sum Assured
Option 3 50% of Sum Assured
Option 4 25% of Sum Assured

Premium Waiver Benefit Rider

On Payment of additional Premium LIC's Premium Waiver Benefit Rider is provided to the policyholder. This can be opted with basic plan

Conclusion

As this is a money back plan, returns are very low in such schemes. This insurance is for child as child is not a income generator, this plan cannot be of much help.

The returns expected from such schemes varies from 5-7 per cent and at this rate it will not help the kid in higher education or marriage plans when considered practical inflation rate.

If you are looking at a more long term option to meet your child's education need you could consider some large cap equity mutual funds. The reason for this option is that as the tenure for investment is high like 10-20 years, equity mutual funds tend to generate superior returns.

Having said so, we must caution that equity mutual funds also have an element of risk attached to them.

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