LIC’s Jeevan Tarang (Plan-178) – Key Features, Benefits, Eligibility and Exclusions

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Updated on Jan 31, 2024

LIC Jeevan Tarang (Plan-178) is a Whole Life Insurance Policy that offers bonus facilities. Let’s discuss the benefits and features of this plan offered by India’s most reliable insurer, in this post.

LIC’s Jeevan Tarang Plan 178 allows the policyholders to pay the premiums for an accumulation period, which is predetermined. The duration of this period generally ranges from 20, 15, or 10 years. The customer gets a lump sum vested bonus at the end of the accumulation period, while the plan still continues. Further, five and half percent of the sum assured is offered as survival benefit after the end of the accumulation time. The loyalty bonus is also paid till the end of the survival years, which is 100 years or till the demise of the insured.

However, in case of death of the policyholder within or after the accumulation period, the sum assured along with a vested bonus is offered and the plan ends.

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LIC Jeevan Tarang Policy Features

Below are some key features of the Jeevan Tarang (Plan-178):

  • INR 1 lakh is the minimum sum assured under the plan
  • For maximum sum assured, there is no limit
  • 10, 15, or 20 years is the Premium Paying Term of the plan
  • The insured can pay the premium on an annual, semi-annual, quarterly, and monthly basis
  • The nominee receives death benefit as Sum Assured together with loyalty additions and + accrued Bonus
  • The policy offers five and half percent of the Sum Assured every year as Survival Benefit after the period of accumulation
  • On maturity or in case of earlier death of the insured, Simple Reversionary Bonus is paid
  • The plan offers three basic riders – Term assurance Rider, Accidental Death Benefit rider and Critical Illness rider

Eligibility Criteria of Jeevan Tarang Plan 178

Eligibility criteria Details 
Min. age of entry 0
Max. age of entry 60 years
Max. age of maturity 100 years
Min. age when accumulation period ends 18 years
Age during completion of premium payment term 70 years
Duration of premium payment Term of policy minus 3 years
Min. sum assured duration INR 1 lakh
Max. sum assured duration No upper limit

Jeevan Tarang Plan 178 Maturity Benefits

  1. Maturity benefits – The plan matures once the policyholder turns 100 years. Hence, in case the insured outlives the plan till 100 years of age, he/she receives the complete sum assured along with the loyalty bonus.
  2. Death benefit – In the event of death of the policyholder during the policy tenure, the nominee receives a sum assured and vested bonus before policy getting terminated.
  3. Survival benefit – In case the life assured outlives the policy term, a bonus of vested reversionary is paid in lump sum.
  4. Income tax benefit – Tax deduction is available for all premiums paid under Section 10 (10D) and Section 80 C.
  5. Rider benefit – Available riders under the plan are accidental benefit rider, term rider, critical illness rider, and premium waiver for critical illness.

LIC Jeevan Tarang Plan 178 Details 

  1. Grace period – A grace period of 30 days is allowed for premium payment that is paid annually, semi-annually, and quarterly, while 15 days of grace period is offered on monthly premium payment.
  2. Loan – The Jeevan Tarang Plan from LIC is available with a loan facility.  So, the investor can apply for a loan under this plan. The current rate of interest of the policy is 9 %.
  3. Cooling off period – If the policyholder is not happy with the terms of the plan, he/she can surrender the policy within 15 days of joining the plan.  
  4. Period of revival – A lapsed policy can be revived during the lifetime of the policyholder. However, it should be done before the expiry of the accumulation period.
  5. Rebate – 2% tabular premium rebate under yearly mode is offered, while it is 1% in case of half-yearly mode.  Rebates are also available on High SA on an annual premium.

Documents Required for Jeevan Tarang Policy  

Below are the documents required to apply for LIC Jeevan Tarang Plan 178:

  • Application form
  • Photographs (passport size)
  • Proof of Address
  • Proof of Age
  • Medical reports

Exclusions  

The one exclusion of the Jeevan Tarang 178 Policy is that the plan becomes invalid in case the insured commits suicide during 1 year from the date of policy initiation. In that case, the insurer will not pay any returns to the nominee of the policy.

LIC Jeevan Tarang (Plan 178) Example:

To better comprehend the advantages of the plan, let’s use the example of a person who purchases a Jeevan Tarang policy using the information listed below.

Age 30 Years Sum Assured 10,00,000
Term 20 Years Premium Payment 20 Years

The following table outlines the plan’s advantages at the current bonus rates. Please take note that I have only shown the illustration up to the age of 60, but that the pattern will remain the same up to the age of 100.

lic jeevan tarang plan maturity benefit

  • At the conclusion of the 20-year period during which premiums are paid, an Accrued Bonus* amount of Rs. 9,80,000/- will be paid.
  • Following that, annual survival rates at the rate of 5% of the assured amount (Rs. 55,000/-) will become due until death or 100 years of age, whichever comes first.
  • The sum assured of $10,000 plus any applicable loyalty additions will also become payable upon death or upon reaching the age of 100.

How does Jeevan Tarang Work?

The Jeevan Tarang Plan is available with a policy term of 10, 15, or 20 years. The insured can make payment of the premium annually or regularly. Once the duration of the premium payment is over, the insured can get the accrued bonus in a lump sum amount.

As soon as the accumulation period completes, the annual life-long benefit of survival begins, which is equivalent to 5.5% of your policy sum insured. Further, the policy also offers death coverage to the insured for up to 100 years or all through the policyholder’s life span. In the event of the death of the policyholder, the nominee receives the sum assured plus loyalty additions.

Jeevan Tarang plan 178 Bonus Calculator 

Life Insurance Corporation of India (LIC) shares profit with their policyholders by benefiting them with a simple reversionary bonus declared every year after the implementation of the valuation. Below are the bonus rates declared for Jeevan Tarang Policy:

PPT – Premium Paying Term

10 years 

15 years 

20 years 

Bonus Rates INR 47/1000 sum assured INR 48/1000 sum assured INR 49/1000 sum assured

As you know, the bonus rates are paid for INR 1000 of your policy Sum Assured. Every year, the insurer adds the declared bonus to your Jeevan Tarang policy after declaring it.

For instance, if your policy sum assured is INR 10,00,000, while the bonus declared by LIC is INR 49. You will get a bonus amount of 49,000.

10,00,000 * 49/1000 = 49,000

LIC Jeevan Tarang Plan – Rates of Loyalty Additions  

The loyalty additions are paid by the insurer when the policyholder exits the plan due to plan maturity or due to the death of the policyholder. It is a one-time expense and the rates are valid for the exit year only.

Income Tax benefits of Jeevan Tarang

This Jeevan Tarang plan follows EEE or Exempt-Exempt-Exempt taxation model:

  • The premium paid under the plan is entitled to tax exemptions
  • The bonus received under the plan after the end of the term of premium payment is also tax exempted
  • The benefit of survival offered by the insurer each year after your Jeevan Tarang policy premium paying term is ended is also excused from tax paying
  • The death benefit received after the demise of the policyholder also doesn’t come under the purview of income tax

The Process to Buy Plan Online

The latest developments in the digital platforms offered by LIC now make it easy for consumers to enjoy various online services.  The insurer has ensured a user-friendly portal for the consumers to make their experience smooth in accessing the website. The policyholders can now easily track the status of their policy, buy a plan online, and make payments through digital mode.

Here are the basic steps to follow for purchasing a policy online:

  • Go to the official website of the insurer and choose a plan
  • Click on the option of ‘Buy’ the plan
  • Your details like your name, DOB or date of birth, age, contact number, address, and habits like smoking/drinking should be mentioned in the next step
  • Make the online payment using a payment gateway available to complete your buying process
  • Once the payment is successfully done, you will receive the receipt of the payment on your mobile number and email ID

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To Sum Up

Jeevan Tarang is a cost-effective policy with several benefits. Moreover, a policyholder can use a LIC Jeevan Tarang maturity calculator to calculate LIC Jeevan Tarang (Plan 178) maturity amount offered under the policy.

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FAQs: LIC's Jeevan Tarang Plan

What is the maturity benefit of Jeevan Tarang?

The Jeevan Tarang Whole Life Plan matures when the Life Insured turns 100 years old.

What is the one key feature of Jeevan Tarang?

One key feature of the plan is that there is no limit on the maximum sum assured.

Can Jeevan Tarang policy be surrendered?

Jeevan Tarang policy can be surrendered after completing three years of the policy.

What death benefit is possible in the Jeevan Tarang plan?

Death Benefit is payable as Sum Assured + accrued Bonus + Loyalty Additions if any.

 

What is the least sum amount that can be invested under the Jeevan Tarang plan of LIC?

1 lakh is the minimum sum to be invested under this plan initially. Later, you can deposit amounts in multiples of INR 5000.

Is there any grace period available to pay the premium for the LIC Jeevan Tarang plan?

The LIC Jeevan Tarang Plan offers a grace period of 30 days for paying premiums, which can be done on an annual, semi-annual, and quarterly basis. For paying monthly premiums, the grace period is fifteen days.

Does LIC Jeevan Tarang offer the facility of loans?

Yes, the policyholder under LIC Jeevan Tarang can avail of a loan under the plan. However, you may note that the interest rate under the plan may be revised by the insurer from time to time.

Does LIC Jeevan Tarang policy have a cooling-off period too?

Yes, as per the cooling-off period, the policyholder can return the policy to LIC if the individual is not satisfied with the terms of the plan within the first fifteen days of buying the policy. However, the person has to give appropriate reasons for withdrawing from the policy.

Does the LIC Jeevan Tarang policy offer pledged loyalty additions?

No, the loyalty additions under this plan are not pledged but are subject to the profit incurred.

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Mar 21, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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