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LIC's Jeevan Tarun (Plan 734) is a participating, non-linked, individual savings plan for children from Life Insurance Corporation of India. A parent or grandparent buys it for a child aged 30 days to 12 years. The policy always matures when the child turns 25, and premiums are paid only until the child is 20, so the policy term is 25 minus the child's age and the premium paying term is 20 minus the child's age. At the proposal stage you choose one of four options for survival benefits, which are paid on each policy anniversary from the child's age 20 to 24: Option 1 pays nothing and gives 100% of the Basic Sum Assured at maturity, Option 2 pays 5% a year and 75% at maturity, Option 3 pays 10% a year and 50% at maturity, and Option 4 pays 15% a year and 25% at maturity. Vested Simple Reversionary Bonuses and any Final Additional Bonus are added at maturity or on death. After the risk has started, the nominee gets on death the higher of 125% of the Basic Sum Assured or 7 times the annualised premium, plus bonuses, and never less than 105% of the premiums paid. For a child below 8, risk starts only after two years or at age 8, whichever is earlier. The minimum Basic Sum Assured is ₹2 lakh, and the plan can be bought only offline.
Child plan with four survival benefit options: no payouts, or 5%, 10% or 15% of the Basic Sum Assured each year from age 20 to 24, with the balance at age 25.
Jeevan Tarun is a disciplined, low-risk way to build a lump sum for a child's education or marriage at age 20 to 25, but its returns are low. In LIC's own illustration (child aged 5, Option 4, ₹2 lakh Basic Sum Assured, 20-year term, 15-year premium term), the yearly premium is ₹13,338, so you pay ₹2,00,070 in total. The guaranteed benefits are ₹30,000 a year for five years at ages 20 to 24 and ₹50,000 at maturity, which adds up to ₹2 lakh, about the same as the premiums paid. The guaranteed payouts add up to 100% of the Basic Sum Assured under every option, so the return depends almost entirely on bonuses. At LIC's 4% illustration rate the maturity amount is ₹70,000, and at the 8% rate it is ₹1.83 lakh including a final additional bonus. Our estimate of the yearly return is about 0% on guaranteed amounts alone, about 0.9% in the 4% case and about 4.4% in the 8% case, before tax, which is low for premiums locked in for 15 years. The life cover is modest too, ₹2.5 lakh in the example, and for a child below 8 it starts only after two years or at age 8, so this is not real protection for the child. Early exit is costly, since nothing is paid back in the first year and the guaranteed surrender value starts at 30% of premiums in the second year. Choose it only if you value the forced saving and the age-25 payout, and can pay premiums for the full term.
LIC
Key Insights
Founded
1956
LIC was established 70 years ago and has built strong credibility over time, backed by its long-standing presence in the market.
Claims Experience
98.5% CSR, calculated as a 3-year average
LIC settles 98.5% of all claims it receives, demonstrating strong credibility.
Contact Details
022-68276827
Headquarters: Jeevan Bima Marg, Nariman Point, P.O. Box No. 19953, Mumbai, Maharashtra 400021, India
You choose one option at the start. Option 1 pays no survival benefit, Option 2 pays 5% of the Basic Sum Assured each year, Option 3 pays 10% and Option 4 pays 15%, on each policy anniversary from the child's age 20 to 24.
Paid only while the policy is in force; the guaranteed payouts add up to 100% of the Basic Sum Assured under every option.
At age 25 you get a fixed share of the Basic Sum Assured, 100% under Option 1, 75% under Option 2, 50% under Option 3 and 25% under Option 4, plus vested Simple Reversionary Bonuses and any Final Additional Bonus.
The earlier survival benefits come on top of this.
The premium paying term is 20 minus the child's age, and the policy term is 25 minus the child's age, so the last five years need no premiums.
For a 5-year-old, that is 15 years of premiums and a 20-year term.
After the risk has started, the nominee gets the Sum Assured on Death, which is the higher of 125% of the Basic Sum Assured or 7 times the annualised premium, plus vested Simple Reversionary Bonuses and any Final Additional Bonus, and never less than 105% of the premiums paid.
The cover is modest, for example ₹2.5 lakh on a ₹2 lakh Basic Sum Assured.
Simple Reversionary Bonuses are declared every year based on LIC's experience, and a Final Additional Bonus may be added when the policy ends in a claim. Declared bonuses become part of the guaranteed benefits.
Bonuses are not guaranteed until declared, and a policy that stops paying premiums stops sharing in future profits.
If the proposer dies, the remaining base plan premiums are waived and the policy continues, which protects the child's savings goal.
Needs at least five years of premium paying term left; the rider term plus the proposer's age cannot exceed 70, and its premium cannot exceed 30% of the base premium.
Conditions or treatments that the policy clearly says it will not cover.
Insurer
LIC plans and claim process
It is a participating, non-linked, individual savings plan for children from LIC (Plan 734, UIN 512N299V03). A parent or grandparent buys it for a child, premiums are paid until the child is 20, survival benefits can be paid at ages 20 to 24, and the policy matures at age 25 with life cover throughout, subject to the risk start rules for young children.
Option 1 pays no survival benefit and 100% of the Basic Sum Assured at maturity. Option 2 pays 5% of the Basic Sum Assured every year at ages 20 to 24 and 75% at maturity. Option 3 pays 10% a year and 50% at maturity. Option 4 pays 15% a year and 25% at maturity. Vested bonuses and any Final Additional Bonus are added at maturity.
A parent or grandparent can buy it for a child aged 30 days (completed) to 12 years (last birthday). The policy matures at age 25, so the policy term is 25 minus the child's age and the premium paying term is 20 minus the child's age; for a 5-year-old that is 20 and 15 years. The minimum Basic Sum Assured is ₹2 lakh with no upper limit, in multiples of ₹5,000 up to ₹4.5 lakh, ₹50,000 up to ₹9 lakh and ₹1 lakh above that.
Disclaimer: Premium amounts are indicative and may vary based on age, health, and plan selected. Claim settlement ratios are from IRDAI Annual Reports. Finzony is not an insurance broker or agent. Verify all details on the official LIC website before purchasing.
Official Website
licindia.in
Visit the official LIC website for plan brochures, premium quotes and policy services.
The aforementioned ratios have been averaged over three years (FY24-FY26)
If the child is 8 or older, risk starts immediately. If the child is below 8, risk starts after two years from the policy start or on the policy anniversary after the child turns 8, whichever is earlier. If the child dies before that, only the total premiums paid are returned, without interest. The policy vests in the child on the policy anniversary after turning 18.
After the risk has started, the nominee gets the Sum Assured on Death, which is the higher of 125% of the Basic Sum Assured or 7 times the annualised premium, plus vested Simple Reversionary Bonuses and any Final Additional Bonus. The total is never less than 105% of the premiums paid. For a ₹2 lakh Basic Sum Assured, the Sum Assured on Death is ₹2.5 lakh.
At age 25 you get the Sum Assured on Maturity, 100%, 75%, 50% or 25% of the Basic Sum Assured depending on your option, plus vested bonuses and any Final Additional Bonus. In LIC's example (child aged 5, Option 4, ₹2 lakh), ₹30,000 is paid each year at ages 20 to 24 and ₹50,000 is guaranteed at maturity; the maturity amount is ₹70,000 at the 4% illustration rate and ₹1.83 lakh at 8%.
LIC's sample yearly premiums for a ₹2 lakh Basic Sum Assured, before taxes, are ₹9,114 to ₹9,722 for a newborn, ₹11,505 to ₹12,407 at age 4, ₹15,464 to ₹16,846 at age 8 and ₹22,854 to ₹25,166 at age 12, from Option 1 to Option 4. Paying yearly gets a 2% rebate, and a Basic Sum Assured of ₹5 lakh or more gets a further rebate. The exact premium depends on the child's age, sum assured and option.
No. The plan is participating, so Simple Reversionary Bonuses are declared every year based on LIC's experience, and a Final Additional Bonus may be paid when the policy ends in a claim. Once declared, a bonus becomes part of the guaranteed benefits. A policy that stops paying premiums stops sharing in future profits. Only the survival benefits and the maturity percentage are fixed in advance.
Yes, but only to an option with a higher survival benefit percentage, and only before survival benefits start. You must write to LIC at least 3 months before the first benefit date and pay a consideration amount, the higher of the premium difference with interest or the difference in surrender value. The new premium rate cannot be lower than the original.
If you stop before one full year of premiums is paid, the policy lapses and nothing is payable. After one full year, it becomes a paid-up policy with a reduced death benefit and a reduced maturity amount that already includes the survival benefits, so no survival benefits are paid separately. Vested bonuses stay attached, but no new bonuses are added. A lapsed policy can be revived within five years.
You can surrender after the first policy year, but a guaranteed surrender value applies only after two full years of premiums, at 30% of premiums paid in year 2, 35% in year 3 and 50% in years 4 to 7, reaching 90% in the last two policy years, less any survival benefits already paid. LIC can also pay a higher special surrender value. A loan is available after the first policy year, up to 75% of the surrender value on an in-force policy after two full years of premiums, at an interest rate that LIC resets every year.
Yes. The death benefit and the maturity benefit can be taken in instalments over 5, 10 or 15 years, in full or in part, with a minimum instalment of ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly or ₹50,000 yearly. One optional rider is available for an extra premium, the Premium Waiver Benefit Rider, which waives future premiums if the proposer dies and cannot cost more than 30% of the base premium.