LIC Jeevan Tarang – The Best Whole Life Money Back Plan

LIC Jeevan Tarang Table No. 178 is a whole Life Money Back Plan for you or your children. It gives you a survival benefit of 5.5% of the sum assured GUARANTEED for LIFETIME This unique policy is a perfect financial planning tool for you or your child. Your child stays financially protected for life. You pay a premium for only a short period – of onetime or, 6,10,15 or 20 years. And guess what !! The policy then keeps paying you EVERY YEAR for your LIFETIME apart from a Bonus at the end of the period, plus covers life for the lifetime! LIC’s lifetime money-back policy A Deferred Annuity Plan.

For example, if you go for Rs.10 lakh Sum assured policy, you would receive Rs.10 Lakh on maturity + Bonus +  Rs.55000/- per year till you or your child survive. That how unique this plan is.

A Deferred Annuity Plan that offers you

• Life Insurance Coverage right from day 1 of commencement till your 100 years of age,
• Bonus on the total insured amount for the full Premium Payment Term (PPT) you have chosen which could be 10 or 15, or 20 years,
• Tax-free Annuity (Annual Payment) @ 5.5 % of the sum insured up to your 100 years of age, the first annuity commencing 1 year after completion of the PPT.
• I.T exemption up to Rs 1,00,000/- per annum along with other investments under section 80C of the Income-Tax Act 1961,
• Loan facility to meet your emergencies that may crop up at any time without affecting the benefits guaranteed under the plan in any way,
• Compensation against fatal accident or Total and Disablement due to Accident,
• Maximum Liquidity so that, you can discontinue the plan at any time,
• all, against a one-time or Recurring payment for either 10 or 15 or 20 years.

Open for age group 0-60 Years, Jeevan Tarang is one of the most popular LIC plans.

More information:
Jeevan Tarang is a with-profit whole of life plan which provides for annual survival benefits at a rate of 5½ % of the Sum Assured after the chosen Accumulation Period. The vested bonuses in a lump sum are payable on survival to the end of the Accumulation Period or on earlier death. Further, the Sum Assured, along with Loyalty Additions, if any, is payable on survival to age 100 years or on earlier death.

Accumulation Period :
Jeevan Tarang’s plan offers three Accumulation periods – 10, 15, and 20 years. A proposer may choose any of them.

Payment of Premium:
Premiums can be paid regularly at yearly, half-yearly, quarterly, or monthly intervals or through salary deductions over the Accumulation Period. Alternatively, a Single Premium can be paid on commencement of a policy.

Sample Premium Rates:

The tables below provide tabular premiums for various age-term combinations for Rs. 1000/- Sum Assured.

Participation in Profits:
Policies under the Jeevan Tarang plan shall participate in the profits of the Corporation. During the accumulation period, policies shall be entitled to receive simple reversionary bonuses, which will be payable on survival to the end of the accumulation period or on earlier death. After the accumulation period, policies will be entitled to receive a Loyalty Addition payable on maturity or earlier death. The amount of simple reversionary bonus and Loyalty Addition will depend on the experience of the Corporation.

Survival Benefits:

• On survival to the end of the selected accumulation period: Vested reversionary bonuses in a lump sum will be payable.
• On survival to the end of each year after the accumulation period: 5½% of the Sum Assured will be payable. The first survival benefit will be payable on survival to one year after the end of the accumulation period.

Maturity Benefit:
On survival to the policy, anniversary coinciding with or immediately following the completion of age 100 years, the Sum Assured along with Loyalty Addition, if any, will be payable.

Death Benefit:

• In case of death of the Life Assured during the Accumulation Period, the Sum Assured and vested reversionary bonuses are payable.
• In case of death of the Life Assured any time after the Accumulation Period, the Sum Assured along with Loyalty Addition, if any is payable.

OPTIONAL RIDERS AVAILABLE DURING THE ACCUMULATION PERIOD:
Accident Benefit Rider Option (Allowed for Regular Premium policies only):
The accident Benefit Option will be available under the plan by the payment of an additional premium. Accident Benefit Rider shall be available for an amount not exceeding the Sum Assured under the basic plan subject to an overall limit of Rs.50 lakh taking all existing policies of the life assured under individual as well as group schemes taken with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.

This benefit is available under Regular Premium policies only and it is not available under single premium policies.

In case of accidental death, the Accident benefit sum assured will be payable as lumpsum along with the death benefit under the basic plan. In case of accidental disability arising due to an accident (within 180 days from the date of accident), an amount equal to the Accident Benefit sum assured will be paid in monthly installments spread over 10 years or up to death or maturity, if earlier, and all future premiums under the policy will be waived.

The disability due to an accident should be total and such that the life assured is unable to carry out any work to earn the living. Following disabilities due to accidents are covered:

• irrevocable loss of the entire sight of both eyes or
• amputation of both hands at or above the wrists or
• amputation of both feet at or above ankles or
• amputation of one hand at or above the wrist and one foot at or above the ankle.

No benefit will be paid if accidental death or disability arises due to an accident in case of:

• intentional self-injury attempted suicide, insanity or immorality of the life assured is under the influence of intoxicating liquor, drug or narcotic
• engagement in aviation or aeronautics other than that of a passenger in any aircraft
• injuries resulting from riots, civil commotion, rebellion, war, invasion, hunting, mountaineering, steeplechasing or racing of any kind.
• an accident resulting from committing any breach of law
• accident arising from employment in armed forces or military services or police organization.

Other riders available under this plan are:

• Term Assurance Rider Option
• Critical Illness Rider Option

All three optional rider benefits mentioned above shall be available during the accumulation period only.

GUARANTEED SURRENDER VALUE:

• During Accumulation Period:

For Single Premium policies – After completing at least one policy year, 90% of the Single Premium received, excluding premiums for optional riders and extras, if any, will be payable.
If any, the cash value of any vested reversionary bonuses will also be payable.
This is irrespective of the age of the Life Assured.

For Regular Premium policies – After completion of at least three policy years and at least three full years’ premiums have been paid, 30% of the total amount of premiums paid, excluding the premiums for the first year and all premiums in respect of optional benefits and extras will be payable. However, if the age at entry of the Life Assured is less than or equal to 12 years, the guaranteed surrender value will be equal to

• Before commencement of risk: 90% of the total amount of premiums (excluding premiums paid for the first year and any extras) paid.
• After commencement of risk: 90% of the total premiums (excluding premium for the first year and any extras) paid before commencement of risk and 30% of premiums paid (excluding any extras) after the commencement of risk.

Premiums for Accident Benefit rider cover, Term Assurance rider cover, and Critical Illness rider cover will be excluded.
If any, the cash value of any vested reversionary bonuses will also be payable.

• After Accumulation Period: This will be 85% of the Basic Sum Assured.

OTHER BENEFITS:

• Loan: A loan facility is available under the Jeevan Tarang plan. However, the rate of interest would be determined from time to time by the Corporation. Presently the rate of interest is 9 % pa payable half-yearly.
• Grace period: A grace period of one month but not less than 30 days will be allowed for payment of yearly, half-yearly, or quarterly premiums and 15 days for monthly premiums.
• Cooling-off period: If you are not satisfied with the terms and conditions of the policy, you may return the policy to us within 15 days.
• Revival: Subject to satisfactory evidence of continued insurability, a lapsed policy can be revived during the lifetime of the Life Assured but before the expiry of the Accumulation Period within a period of five years from the due date of the first unpaid premium by paying arrears of premium together with interest. The rate of interest applicable will be as fixed by the Corporation from time to time.

Eligibility Conditions For Jeevan Tarang:

• Ages at entry: 0 to 60 years nearest birthday
• Accumulation periods available: 10, 15, and 20 years
• Maximum age at which premium payment ceases: 70 years nearest birthday
• Age up to which life cover available: 100 years
• Minimum age at the end of Accumulation Period: 18 years last birthday
• Premium paying terms: Single Premium and, in case of regular premiums, equal to the accumulation period, i.e., 10, 15, and 20 years
• Modes of premium payment: Yearly, Half Yearly, Quarterly, Monthly, SSS, and Single Premium
• Sum Assured: Rs.1 lakh and over in multiples of Rs.5,000/-.

Jeevan Tarang: For Accident Benefit Rider (Allowed under Regular Premium policies only):

• Ages at entry:18 to 60 years nearest birthday
• Maximum age at which premium payment ceases: 70 years nearest birthday
• Age up to which life cover available: 70 years
• Minimum age at the end of Accumulation Period: 18 years last birthday
• Premium paying terms: Equal to the accumulation period, i.e. 10, 15, and 20 years
• Modes of premium payment: Yearly, Half Yearly, Quarterly, Monthly, SSS and Single Premium
• Sum Assured: Rs.25,000 to Rs.50 lakh, considering all Accident Benefit Sums Assured under individual and
• Group policies and Accident Benefit Rider Sum Assured under new proposals into consideration. The Sum Assured can be in multiples of Rs.5,000/-.
• Availability of Rider: During the chosen Accumulation Period.

REBATES/EXTRA FOR MODE OF PREMIUM PAYMENT AND HIGH SUM ASSURED:

• Mode Rebate:

• Yearly mode: 2% of tabular premium
• Half-yearly mode: 1% of the tabular premium
• Quarterly: NIL
• In the case of a monthly mode other than SSS, an additional amount of 5% of the tabular premium will be charged.

• High Sum Assured Rebates:

For Annual premium

• Rs.1.25%o Sum Assured for Sum Assured Rs 2 lakh and over;
• Rs. 2.25%o Sum Assured for Sum Assured Rs 5 lakh and over.
• For Single premium
• Rs.7.50%o Sum Assured for Sum Assured Rs 2 lakh and over;
• Rs.12.50%o Sum Assured for Sum Assured Rs 5 lakh and over.

EXCLUSIONS:

Jeevan Tarang shall be void if the Life Assured commits suicide (whether sane or insane at the time) at any time on or after the date on which the risk under the policy has commenced but before the expiry of one year from the date of commencement of risk under the policy and the Corporation will not entertain any claim by virtue of this Policy except to the extent of a third party’s bonafide beneficial interest acquired in the policy for valuable consideration of which notice has been given in writing to the office to which premiums under this policy were paid last, at least one calendar month before death.

Update: Table No.178 Has Been Discontinued.