Every parent dreams of giving their child the best education possible. But college fees, coaching classes, and career start-up costs can feel overwhelming when you think about them 15 or 20 years down the line. That’s where LIC Jeevan Tarun comes in – a child plan designed specifically to ensure money is available exactly when your child needs it most.
What Is LIC Jeevan Tarun?
LIC Jeevan Tarun (Plan 934) is a traditional child savings plan with a clever twist. Instead of just giving you a lump sum when your child turns 25, it can start paying out yearly amounts from age 20 onwards – right when college expenses typically hit hardest.
Think of it as a financial runway for your child’s launch into adulthood. The plan is taken on your child’s life, you pay premiums for a limited period (stopping well before they turn 20), and then the plan starts delivering money when they need it for higher education, professional courses, or even starting their own venture.
How Does It Actually Work?
The Timeline
Let’s say you start this plan when your child is 5 years old:
Premium payment: You pay premiums for 15 years (until your child is 20). Then, you’re done paying – no more premiums.
Survival benefits: From age 20 to 24, your child receives yearly payouts (if you’ve chosen that option) to help with ongoing college expenses.
Maturity benefit: At age 25, your child receives a lump sum that includes the balance of the sum assured plus all the bonuses that have accumulated over the years.
The beauty is that you stop paying premiums at age 20, but the benefits continue for another 5 years. This means during the most expensive education years, you’re receiving money instead of paying it.
Choosing Your Payout Structure
Here’s where LIC Jeevan Tarun gets flexible. You can choose how you want the money to flow:
Option 1 – All at Once No yearly payouts; your child gets 100% of the sum assured (plus bonuses) at age 25. Perfect if you’re planning for something like starting a business or a big one-time expense.
Option 2 – Balanced Approach 5% of sum assured yearly from age 20-24, then 75% plus bonuses at age 25. This gives some pocket money for books and initial expenses while keeping most for the final year.
Option 3 – Steady Support 10% of sum assured yearly from age 20-24, then 50% plus bonuses at age 25. Great for parents who want to fund annual college fees while still having a good corpus for post-graduation plans.
Option 4 – Maximum Cash Flow 15% of sum assured yearly from age 20-24, then 25% plus bonuses at age 25. Best if you anticipate high annual expenses like medical school or foreign education where yearly costs are substantial.
A Real-Life Example
Meet the Sharmas. Their daughter Ananya is 6 years old. They choose LIC Jeevan Tarun with a sum assured of ₹15 lakhs and select Option 3.
What they pay: Premiums for 14 years (until Ananya turns 20)
What they receive:
- When Ananya is 20-24 (college years): ₹1.5 lakhs every year (10% of ₹15 lakhs)
- When Ananya turns 25: ₹7.5 lakhs plus all accumulated bonuses
The yearly ₹1.5 lakhs helps cover her engineering college fees, hostel expenses, or coaching for competitive exams. The final ₹7.5 lakhs (plus bonuses) can fund her master’s degree or help her start her career on solid footing.
The Bonus Advantage
Since this is a traditional “with-profits” plan, LIC declares bonuses based on the plan’s performance. These bonuses get added to your policy and increase your final payout. There are two types:
Simple reversionary bonuses: Declared regularly and added to your policy each year.
Final additional bonus: A one-time bonus added at maturity, if LIC declares it.
Once bonuses are added to your policy, they’re yours – they vest permanently and increase your guaranteed payout at maturity.
The Safety Net: Premium Waiver Benefit
Here’s the most important feature for any parent: What happens to your child’s plan if something happens to you?
With the optional Premium Waiver Benefit rider, if the parent (the one paying premiums) passes away or becomes permanently disabled, LIC waives all future premiums. But – and this is crucial – your child’s plan continues exactly as planned. All the survival benefits, the maturity amount, the bonuses… everything continues as if you were still paying.
This means even in the worst-case scenario, your child’s education fund remains protected. It’s the kind of peace of mind that’s truly priceless.
Who Should Consider LIC Jeevan Tarun?
Parents of young children (newborns to 12-year-olds) who want to start early and build a dedicated education corpus.
Families who value predictability over market-linked returns. If you prefer knowing you’ll have guaranteed money at specific ages rather than depending on stock market performance, this traditional plan suits you.
Parents planning for expensive education – whether it’s engineering, medicine, MBA, or studying abroad – where you need money flowing in during the college years, not just at the end.
Those who want to “set it and forget it” – pay for a limited period, then stop worrying about premiums while your child reaps the benefits.
Conservative investors who trust LIC’s track record and want the discipline of a committed savings plan with insurance protection.
Making Your Money Work Harder
LIC Jeevan Tarun offers some smart ways to reduce your effective premium:
High sum assured rebate: Choose a higher coverage amount, and LIC gives you a discount on the premium rate.
Mode rebate: Pay annually instead of monthly, and you get a discount (plus you save on the hassle of remembering monthly payments).
These rebates can meaningfully improve your overall returns, especially when you’re looking at a 15-20 year commitment.
What If You Need Money Earlier?
Life doesn’t always go according to plan. If you face a financial emergency:
Policy loan: After a few years, you can take a loan against your policy’s surrender value. You still keep your policy active.
Surrender: You can surrender the policy after it acquires a surrender value (usually after 2-3 years of premium payment), though this means you’ll lose out on the full benefits.
Paid-up policy: If you stop paying premiums after gaining surrender value, the policy becomes paid-up with reduced benefits.
While these options provide liquidity, they’re best kept as last resorts since the real value is in staying the course.
The Fine Print That Matters
Who Can Join?
You can start this plan for a child as young as 30 days old or as old as 12 years. The policy always matures at age 25 – that’s fixed.
The younger your child is when you start, the longer your premium-paying term (but also the more time for bonuses to accumulate). The older your child is at entry, the shorter your payment period.
Tax Benefits
While we’re not tax advisors, life insurance premiums generally qualify for deductions under Section 80C, and the maturity amount may be tax-free under Section 10(10D) of the Income Tax Act, subject to conditions. Since tax laws change, consult with a tax professional for advice specific to your situation.
Minimum Coverage
The minimum sum assured is ₹75,000, but realistically, considering today’s education costs, most parents opt for significantly higher amounts – often ₹10 lakhs or more.
There’s no maximum limit; it’s based on your needs and what passes LIC’s underwriting process.
Is LIC Jeevan Tarun Right for Your Family?
Ask yourself these questions:
- Do you have a child under 12 and want to start planning for their higher education now?
- Would you prefer yearly payouts during college years rather than waiting for a single lump sum?
- Do you value guaranteed returns with bonuses over market-linked investments?
- Is the premium waiver feature important to you (most parents find this invaluable)?
- Can you commit to paying premiums for the required period?
If you answered yes to most of these, LIC Jeevan Tarun deserves serious consideration.
Comparing Your Options
If you’re unsure whether Option 2, 3, or 4 is right for you, think about your child’s likely educational path:
- Professional courses with high yearly fees (medicine, engineering) → Consider Option 3 or 4 for higher annual support
- Planning for foreign education where you’ll need a large final corpus → Option 1 or 2 might be better
- Uncertain about future plans → Option 3 offers a nice balance
Remember, you choose this at the beginning and can’t change it later, so think through your child’s probable needs.
Taking the Next Step
The best time to start a child plan is now – the earlier you begin, the lighter your premium burden and the more bonuses can accumulate.
Before you decide:
- Get a detailed illustration showing exact premiums and projected payouts for your child’s age
- Compare the four options to see which payout structure matches your needs
- Seriously consider adding the Premium Waiver Benefit – it’s what makes this a true protection-cum-savings plan
- Review the official LIC Jeevan Tarun brochure for complete terms and conditions
Important Disclaimer: This information is designed to help you understand LIC Jeevan Tarun better. However, insurance is a complex financial product, and everyone’s situation is unique. For complete details, terms, conditions, exclusions, and to verify current premium rates and features, please refer to LIC’s official sales brochure, Customer Information Sheet, and policy document. Speak with a licensed LIC advisor who can provide personalized guidance based on your family’s specific needs and goals.
The future you’re building for your child starts with the decisions you make today. Make them count.