If you want to secure the future of your child, the Life Insurance Corporation’s (LIC) Jeevan Tarun policy can be a great option. The plan offers life insurance savings and helps in securing the future of both children and parents. The plan has a maturity period of 25 years and you need to pay the premium of the policy for only 20 of them. One can buy this scheme for a minimum of Rs. 75,000. No upper limit has been set on how much you are able to invest. For goals such as the education of your children and marriage, you can set up a significant fund by making an investment in this scheme.
It should be noted that the child must be at least 90 days old in order to make an investment in this plan. You can buy this scheme concurrently for a child who is up to an age of 12 years. Once the child touches the age of 25 years, the entire amount of maturity is also paid.
If you invest Rs 150 every day and select a sum assured of Rs 5 lakh, your annual premium will amount to Rs 54,000. In this case, after a period of 23 years, the plan bought at the age of 12 years will give a return of Rs 8.44 lakh.
In the scheme, you can avail the survival benefits in four options given below:
Option 1: Non-survival benefit
In this option, you receive 100 per cent of the sum assured on maturity.
Option 2: 5 percent of Sum Assured every year for 5 years
If you opt for this option, you will earn 75 per cent of the sum assured on maturity.
Option 3: 10 percent of Sum Assured every year for 5 years
With this option, you get 50 per cent of the sum assured on maturity.
Option 4: 15 percent of Sum Assured every year for 5 years
In this option, you will be getting 25 per cent of the sum assured on maturity.
There are some other policies by LIC as well which offer guaranteed returns for children, such as LIC’s Child Future Plan and LIC’s New Children’s Money Back Plan.