LIC Special Policy: In today’s world, the biggest responsibility for parents is to provide their children with a better education and a secure future. Given the rapid increase in school, college, and professional course fees, simple savings are no longer sufficient. Often, due to financial constraints, children’s educational and career dreams remain unfulfilled. To address this concern, the Life Insurance Corporation of India (LIC) has introduced the Jeevan Tarun policy, which aims to provide a strong foundation for children’s future.

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What is the Jeevan Tarun Policy?

LIC’s Jeevan Tarun policy is a non-linked and limited premium payment plan. This means that the investor does not have to bear any risk associated with stock market fluctuations. This scheme provides a secure financial plan for children’s education, higher studies, or starting a business in the future. Parents invest in this policy in the child’s name, and the child receives the amount in installments after a certain age.

How Small Savings Create a Large Fund

If a parent decides to save just Rs 150 daily, this amounts to Rs 4,500 per month and approximately Rs 54,000 annually. This amount can easily fit into the budget of most middle-class families. If this policy is started when the child is one year old and continued for 25 years, a benefit of approximately Rs 26 lakhs can be received at maturity. This amount includes the sum assured, along with the bonus and the final additional bonus declared by LIC.

Important Terms and Conditions Related to Policy Duration and Age

The minimum age for a child to be eligible for the Jeevan Tarun policy is 90 days, and the maximum age is 12 years. If the child is older than 12 years, they will not be eligible for this scheme. The total policy term is 25 years, and the premium payment period is determined by subtracting the child’s current age from the total policy term. This makes the investment plan clear and systematic from the outset.

Money-Back Feature Makes Education Expenses Easier

The biggest advantage of this policy is its money-back feature. While in typical insurance plans the entire sum is paid at the end of the policy term, Jeevan Tarun starts paying out from the child’s 20th birthday. A fixed amount is paid every year between the ages of 20 and 24, which is typically the time for college and higher education. In the 25th year, the remaining amount, along with the bonus, is paid out, which can help meet the child’s future financial needs.

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Tax Benefits and Loan Facility Also Available

The Jeevan Tarun policy is also beneficial for tax planning. The premium paid is eligible for tax deduction under Section 80C of the Income Tax Act. Additionally, the maturity amount or death benefit is completely tax-free under Section 10(10D). A loan facility is also available against this policy if needed, making this plan even more useful.