LIC Jeevan Tarun: The Child Plan That Actually Pays for College

LIC Jeevan Tarun is a participating endowment plan designed specifically for children's education and future needs. I have helped many families in Gorakhpur set up this plan for their children, and the design of the plan makes it genuinely suitable for the purpose.

**What makes Jeevan Tarun different from other child plans**

Most insurance plans for children are simply endowment or money-back plans rebranded. Jeevan Tarun is structured differently. The survival benefit phase is designed to coincide with the ages when education expenses typically peak.

The insured person is the child. The proposer and premium payer is the parent. If the parent dies during the premium payment term, future premiums are waived — LIC's Payor Benefit Rider can be attached for this purpose, ensuring the policy continues regardless.

**Survival benefit structure**

The policyholder — the child — can choose one of four survival benefit options at the time of policy inception:

Option 1: No survival benefit during the policy. Full Sum Assured + bonuses at maturity. Option 2: 5% of Sum Assured each year from age 20 to 24, then 75% + bonuses at maturity (age 25). Option 3: 10% of Sum Assured each year from age 20 to 24, then 50% + bonuses at maturity. Option 4: 15% of Sum Assured each year from age 20 to 24, then 25% + bonuses at maturity.

This structure means the child can receive annual payouts during college years (ages 20 to 24) from their own insurance policy.

**Entry age**

The child must be between 90 days and 12 years at the time of entry. The policy term is fixed — the policy matures when the child turns 25.

**Practical example**

A parent takes Jeevan Tarun for a 5-year-old child with Sum Assured of Rs 10 lakh and chooses Option 3. The child will receive Rs 1 lakh per year from age 20 to 24 (Rs 5 lakh total) to cover college and post-graduation fees. At age 25, the child receives Rs 5 lakh plus accumulated bonuses — which could be Rs 8 to 10 lakh at current bonus rates.

**Payor Benefit Rider**

I always recommend attaching the Payor Benefit Rider to this plan. For a small additional premium, this rider ensures that if the premium-paying parent dies or becomes permanently disabled, all future premiums are waived and the policy continues. This is the critical feature that makes this a true child protection plan.

**Tax benefits**

Premiums paid by the parent qualify for Section 80C deduction. The maturity amount is tax-free under Section 10(10D) in the child's hands.

If you have a child below 12 and you want to secure their college education with a structured payout, I would recommend sitting with me for 30 minutes to design the right plan. Call 9415313434.