LIC Jeevan Tarun (834) Calculator

LIC Jeevan Tarun (834) Calculator

What this calculator does

LIC's Jeevan Tarun (Table No. 834) is a non-linked, participating (with-profits) children's money-back plan. A parent or guardian takes the policy on a child aged 0 to 12 years, and the policy always matures when the child turns 25 - so the Policy Term shrinks as the child's entry age rises (a 2-year-old gets a 23-year term, a 10-year-old gets a 15-year term, and so on).

What makes Jeevan Tarun distinctive among LIC's savings plans is its money-back structure timed to a young adult's needs: instead of a single lump sum at maturity, 5% of the Basic Sum Assured is paid out every year the child turns 20, 21, 22, 23, and 24 - covering college, career, or wedding expenses right when they typically arise - before the balance 75% plus all accrued bonus is paid as the final Maturity Benefit at age 25.

The plan also has a Premium Waiver Benefit built into the base premium at no extra cost: if the person paying the premiums (usually a parent) dies during the Premium Paying Term, all future premiums are waived, and every survival payout, the maturity benefit, and (if the child later dies) the death benefit still get paid exactly as originally scheduled.

This calculator gives you an indicative estimate of:

• the premium for your chosen Premium Paying Term option (same as Policy Term, or reduced by 5, 10, or 15 years, or a one-time Single Premium) and payment mode
• the five Survival Benefit payouts (5% of Sum Assured each) at ages 20-24, and their total
• the Total Maturity Benefit - balance Sum Assured plus vested bonus plus a Final Additional Bonus for longer terms
• the minimum Sum Assured on Death, and a year-by-year schedule showing exactly which benefit (death cover, a survival payout, or the final maturity benefit) applies in each shown policy year

based on the child's entry age, the Basic Sum Assured, your chosen Premium Paying Term option, and payment mode.

Formula Used

Eligibility and term. Entry age must be between 0 and 12 years; the Policy Term always runs to a fixed maturity age of 25:

$$PolicyTerm = 25 - EntryAge$$

Premium Paying Term options. You may pay premiums for the full Policy Term, or a reduced term (5, 10, or 15 years shorter), or as a one-time Single Premium - subject to a minimum Premium Paying Term of 5 years:

$$PremiumPayingTerm = PolicyTerm - Reduction, \quad Reduction \in \{0, 5, 10, 15\}$$

Premium. The illustrative tabular annual premium rate (₹ per ₹1,000 Sum Assured) combines a savings component that shrinks as the Premium Paying Term lengthens with a small mortality component (the life assured is a child, so mortality cost is low):

$$BaseRate(age, ppt) = \frac{1000}{ppt} \times 0.78 + \big(1.2 + age \times 0.01\big)$$

A High Sum Assured Rebate applies for larger policies:

$$Rebate(SumAssured) = \begin{cases} 3 & SumAssured \ge 10{,}00{,}000 \\ 2 & SumAssured \ge 5{,}00{,}000 \\ 0 & \text{otherwise} \end{cases}$$ $$AnnualPremium = \frac{SumAssured}{1000} \times \big(BaseRate(age, ppt) - Rebate(SumAssured)\big)$$

For a Single Premium, the one-time payment is priced as a discounted lump sum of what the "same as Policy Term" regular-pay option would have cost in total over the whole term - approximating the combined effect of time-value-of-money and no per-installment loading:

$$SinglePremium = AnnualPremium(age, PolicyTerm) \times PolicyTerm \times 0.62$$

For regular/limited premium options, the annual premium is split by your chosen payment mode using LIC's standard modal factors (yearly 1.00, half-yearly 0.510, quarterly 0.260, monthly 0.0875):

$$InstallmentPremium = AnnualPremium \times ModeFactor$$ $$TotalPremiumPayable = InstallmentPremium \times InstallmentsPerYear \times PremiumPayingTerm$$

Survival Benefits. 5% of the Basic Sum Assured is paid at the end of each of the five policy years in which the child turns 20 through 24 - regardless of entry age, these always fall in the last 5 years before maturity:

$$SurvivalBenefit = 0.05 \times SumAssured, \quad \text{paid at ages } 20, 21, 22, 23, 24$$ $$TotalSurvivalBenefits = 5 \times SurvivalBenefit = 0.25 \times SumAssured$$

Death benefit. If the child dies during the Policy Term, the Sum Assured on Death is the highest of three floors - 125% of the Basic Sum Assured, 10 times the annualized premium (or 125% of the Single Premium, for that option), or 105% of total premiums paid to date - plus accrued bonus. Notably, any Survival Benefits already paid out do not reduce this - the full Basic Sum Assured is still used in the calculation:

$$SumAssuredOnDeath(year) = \max\Big(1.25 \times SumAssured,\ \ 10 \times AnnualPremium \text{ (or } 1.25 \times SinglePremium\text{)},\ \ 1.05 \times PremiumsPaidToDate(year)\Big)$$ $$DeathBenefit(year) = SumAssuredOnDeath(year) + VestedBonus(year)$$

Simple Reversionary Bonus. An illustrative bonus of ₹50 per ₹1,000 Sum Assured vests at the end of every completed policy year:

$$VestedBonus(year) = year \times \frac{SumAssured}{1000} \times 50$$

Final Additional Bonus (FAB). An illustrative one-time bonus of ₹1,500 per ₹1,000 Sum Assured, paid only at maturity and only when the Policy Term is 20 years or more (i.e. entry age 5 or younger):

$$FAB = \begin{cases} \frac{SumAssured}{1000} \times 1500 & PolicyTerm \ge 20 \\ 0 & \text{otherwise} \end{cases}$$

Maturity Benefit. Since 25% of the Sum Assured has already been paid out as Survival Benefits, only the balance 75% is paid at maturity, along with the full vested bonus and FAB:

$$MaturityBenefit = 0.75 \times SumAssured + VestedBonus(PolicyTerm) + FAB$$

Note: these rates are illustrative approximations for planning purposes, not LIC's official rate table, which is IRDAI-approved and can change over time. Always confirm exact figures with LIC or an authorized agent before purchasing a policy.

How to Use

1. Enter the Child's Age at Entry in years (0 to 12).
2. Enter your desired Basic Sum Assured (minimum ₹75,000, in multiples of ₹5,000).
3. Choose a Premium Paying Term Option - same as Policy Term, reduced by 5/10/15 years, or Single Premium. Reduced options need a long enough Policy Term (a younger entry age) to leave at least 5 years of premium paying.
4. Choose your Premium Payment Mode (ignored if you picked Single Premium).
5. Click Calculate Benefits to see your premium, the five Survival Benefit payouts, the Total Maturity Benefit, the minimum death benefit, and the year-by-year schedule.

Worked Example

Suppose the child is 5 years old at entry, with a Basic Sum Assured of ₹5,00,000, the "Same as Policy Term" premium option, and yearly payment mode.

The Policy Term is 25 - 5 = 20 years, so the Premium Paying Term is also 20 years.

$$BaseRate(5, 20) = \frac{1000}{20} \times 0.78 + (1.2 + 5 \times 0.01) = 39 + 1.25 = 40.25$$

Since the Sum Assured is exactly ₹5,00,000, a rebate of 2 per mille applies:

$$AnnualPremium = \frac{5{,}00{,}000}{1000} \times (40.25 - 2) = 500 \times 38.25 = ₹19{,}125 \text{ per year}$$

Over 20 years that's a total premium payable of 19{,}125 \times 20 = ₹3{,}82{,}500.

Each year the child turns 20 through 24 (policy years 15-19), a Survival Benefit of 0.05 \times 5{,}00{,}000 = ₹25{,}000 is paid - ₹1,25,000 in total across the five payouts.

At maturity (policy year 20, child's age 25), the vested Simple Reversionary Bonus is 20 \times 500 \times 50 = ₹5{,}00{,}000, and since the Policy Term is 20 years (≥ 20), a Final Additional Bonus of 500 \times 1500 = ₹7{,}50{,}000 is also paid. The balance Sum Assured at maturity is 0.75 \times 5{,}00{,}000 = ₹3{,}75{,}000, so the total Maturity Benefit is:

$$MaturityBenefit = 3{,}75{,}000 + 5{,}00{,}000 + 7{,}50{,}000 = ₹16{,}25{,}000$$

So across the full policy, the family receives ₹1,25,000 in Survival Benefits during the child's early twenties, followed by ₹16,25,000 at maturity - and if the child instead passes away at any point during the term, the family receives the Sum Assured on Death (at least ₹6,25,000, being 125% of the Basic Sum Assured) plus bonus accrued to that point, with no reduction for any Survival Benefits already paid.