LIC Jeevan Lakshya vs Jeevan Tarun: Big news for LIC Policy holders. Selecting the appropriate financial strategy for their child’s promising future and advanced education is a critical decision for parents. With the escalating inflation and growing educational expenses, Life Insurance Corporation of India’s (LIC) child plans—Jeevan Lakshya (Plan 933) and Jeevan Tarun (Plan 934)—stand out as the preferred options for parents. These plans not only assist in creating a fund for children’s education and career but also provide life insurance coverage, savings, and tax advantages under Section 80C. Before choosing an investment plan, it is crucial to comprehend its characteristics.
The entry age for both LIC plans varies from newborn to 12 years, with premium payment durations ranging from 16 to 25 years. These policies offer distinctive features such as death benefits, loan provisions, and premium waiver in case of parental demise, ensuring the child’s security. The standard annual premium is around Rs 42,000 for a sum assured of Rs 10 lakh, simplifying the decision-making process between the two plans.
LIC Jeevan Lakshya (Plan 933)
This plan is tailored for the breadwinner of the family and highlights a notable feature of an in-built death benefit. If a parent falls ill during the policy term, all future premiums will be waived, and LIC will cover them. Moreover, the nominee will receive 10% of the sum assured annually to meet the child’s educational and household expenses. Upon policy maturity, the nominee will receive 110% of the sum assured along with accrued bonuses, making it a comprehensive protection plan.
LIC Jeevan Tarun (Plan 934)
Jeevan Tarun is a money-back scheme primarily designed for a child’s higher education and significant expenses from the age of 20 to 25. Premiums are payable only until the child reaches 20 years old. The distinguishing feature of this plan is its four money-back alternatives, which can be selected based on individual requirements.
1. Full 100% money-back at age 25 years.
2. 5% of the sum assured annually from ages 20 to 24 years and 75% + bonus in the 25th year.
3. 10% of the sum assured annually from ages 20 to 24 years and 50% + bonus in the 25th year.
4. 15% of the sum assured annually from ages 20 to 24 years and 25% + bonus in the 25th year.
The primary distinction between the two plans is that Jeevan Lakshya provides an inherent premium waiver benefit, while Jeevan Tarun necessitates a separate Premium Waiver Benefit (PWB) rider for this benefit. Before making an investment, it is advisable to consult a certified financial advisor or an LIC agent to align your financial situation and objectives.