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LIC’s Jeevan Tarun (Plan No. 734): Complete Guide to
India’s Popular Children’s Money Back Policy
Introduction
Planning for a child’s future is one of the most important
financial responsibilities for Indian parents. From higher education to career
building and marriage, each milestone requires disciplined financial
preparation. Life Insurance Corporation of India (LIC), the country’s most
trusted insurer, offers a specialized children’s policy designed to support
these goals—LIC’s Jeevan Tarun (Plan No. 734).
LIC Jeevan Tarun is a participating, non-linked,
with-profits, money-back life insurance policy specially crafted to meet
the education and financial needs of children. It combines insurance
protection, guaranteed survival benefits, and bonus accumulation,
making it a long-term savings and protection solution.
This article provides a detailed, unbiased, and
easy-to-understand guide to LIC’s Jeevan Tarun, covering eligibility,
benefits, premium details, bonuses, tax advantages, and suitability—helping
parents make informed decisions.
What is LIC’s Jeevan Tarun (Plan 734)?
LIC’s Jeevan Tarun is a children’s money-back policy
where the parent or guardian proposes the policy, and the child is the life
assured. The policy ensures:
- Regular
payouts during higher education years
- Full
maturity amount at the end of the policy term
- Life
insurance cover throughout the policy duration
- Waiver
of premium benefit in case of proposer’s death
This plan is especially suitable for parents who want guaranteed
money availability at critical stages of their child’s life.
Key Features of LIC’s Jeevan Tarun
- Participating
policy (eligible for bonuses)
- Non-linked
(not market-dependent)
- Money-back
structure
- Flexible
survival benefit options
- Premium
waiver benefit
- Long-term
financial planning
- Backed
by LIC’s claim settlement record
Eligibility Criteria
Age Eligibility
Child (Life Assured):
- Minimum
age: 0 years
- Maximum
age: 12 years
Proposer (Parent/Guardian):
- Must
be a major (18 years or above)
Policy Term
- Policy
term = 20 years minus the age of the child at entry
For example:
- If
child’s age is 2 years → Policy term = 18 years
- If
child’s age is 10 years → Policy term = 10 years
Premium Paying Term
- Premiums
are payable until the child turns 20 years of age
Sum Assured Options
- Minimum
Sum Assured: ₹75,000
- Maximum
Sum Assured: No upper limit, subject to LIC underwriting rules
Choosing the right sum assured depends on:
- Expected
education expenses
- Inflation
- Family
income and financial capacity
Survival Benefit Options (Money-Back Choices)
LIC’s Jeevan Tarun offers four different survival benefit
options, giving parents flexibility based on their needs.
Option 1: No Survival Benefit
- No
payouts during policy term
- Entire
amount paid at maturity
Option 2: 5% Survival Benefit
- 5%
of Sum Assured paid at ages 18, 19, and 20
Option 3: 10% Survival Benefit
- 10%
of Sum Assured paid at ages 18, 19, and 20
Option 4: 15% Survival Benefit
- 15%
of Sum Assured paid at ages 18, 19, and 20
Remaining amount + bonuses is paid at maturity.
Maturity Benefits
On surviving till maturity, the policyholder receives:
- Remaining
Sum Assured
- Accrued
Simple Reversionary Bonuses
- Final
Additional Bonus (if declared)
The maturity amount helps in:
- College
admissions
- Professional
courses
- Startup
funding
- Marriage
expenses
Death Benefit
Death of Child (Life Assured)
If the child passes away during the policy term:
- Sum
Assured on Death + accrued bonuses is paid to the nominee
- Policy
terminates thereafter
Death of Proposer (Parent)
If the proposer dies during the policy term:
- Future
premiums are waived
- Policy
continues without interruption
- Benefits
remain unchanged and payable as scheduled
This feature ensures child’s financial security even if
the parent is not around.
Premium Details
Premiums depend on:
- Child’s
age
- Sum
assured
- Policy
term
- Chosen
survival benefit option
- Mode
of premium payment
Premium Payment Modes
- Yearly
- Half-yearly
- Quarterly
- Monthly
(NACH)
Premium rebates are available for yearly and half-yearly
modes.
Bonuses in LIC Jeevan Tarun
Since Jeevan Tarun is a participating policy, it
earns bonuses based on LIC’s performance.
Types of Bonuses
- Simple
Reversionary Bonus
- Final
Additional Bonus (FAB)
Bonuses are not guaranteed but historically LIC has
maintained consistent bonus declarations.
Loan Facility
After acquiring surrender value, policyholders can avail a loan
against the policy.
- Maximum
loan: Up to 90% of surrender value
- Useful
for emergency funding
- Interest
rate as per LIC norms
Surrender Value
- Policy
can be surrendered after 2 full years’ premiums
- Surrender
value depends on:
- Premiums
paid
- Policy
duration
- Bonuses
accrued
Note: Surrendering early may result in lower returns.
Tax Benefits
LIC Jeevan Tarun offers tax advantages under Indian Income
Tax laws.
Tax Deduction on Premium
- Under
Section 80C
- Up
to ₹1.5 lakh per year
Tax Exemption on Maturity
- Under
Section 10(10D)
- Subject
to prevailing tax laws
Tax rules may change; consult a tax advisor for updated
guidance.
Why Choose LIC’s Jeevan Tarun?
Advantages
- Guaranteed
money-back for education
- Long-term
disciplined savings
- Life
cover for child
- Premium
waiver benefit
- Stable
returns
- Trusted
LIC brand
Limitations
- Returns
are moderate, not high
- Long
lock-in period
- Not
suitable for aggressive investors
LIC Jeevan Tarun vs Child ULIP
|
Feature |
Jeevan Tarun |
Child ULIP |
|
Risk |
Low |
Market-linked |
|
Returns |
Stable |
Variable |
|
Guarantee |
Yes |
No |
|
Bonuses |
Yes |
No |
|
Ideal For |
Conservative parents |
High-risk investors |
Who Should Buy LIC Jeevan Tarun?
This policy is suitable for:
- Parents
with children aged 0–12
- Risk-averse
investors
- Families
planning guaranteed education funds
- Those
seeking tax benefits with insurance
- Long-term
financial planners
Is LIC Jeevan Tarun a Good Investment?
LIC Jeevan Tarun should not be viewed purely as an
investment. It is best considered as:
- A secure
child education planning tool
- A protection-cum-savings
plan
- A low-risk,
long-term commitment
For wealth creation, mutual funds or ULIPs may offer higher
returns, but they come with higher risk.
Important Things to Consider Before Buying
- Inflation
impact on education costs
- Sum
assured adequacy
- Premium
affordability
- Long-term
commitment
- Policy
flexibility needs
Frequently Asked Questions (FAQs)
Is LIC Jeevan Tarun guaranteed?
Benefits are guaranteed except bonuses, which depend on
LIC’s performance.
Can I change survival benefit option later?
No, the option chosen at policy inception cannot be changed.
Is medical test required?
Usually not for children, subject to underwriting rules.
Can grandparents propose the policy?
Yes, legal guardians can act as proposers.
Final Verdict
LIC’s Jeevan Tarun (Plan No. 734) is a well-structured
children’s policy offering financial security, stability, and peace of
mind. It is ideal for parents who prioritize certainty over high returns
and want a reliable plan for their child’s future milestones.
Backed by LIC’s legacy and strong claim settlement record,
Jeevan Tarun remains a popular choice for safe and disciplined child
financial planning in India.