LIC Jeevan Lakshya Vs Jeevan Tarun: Which Child Plan Suits Your Goals Better?
As education costs continue to rise and long-term financial planning becomes increasingly important, many parents are exploring insurance-backed savings options for their children. Among the widely discussed choices are LIC Jeevan Lakshya and LIC Jeevan Tarun , two plans designed to help families build a financial cushion for higher education and future aspirations.
Both plans combine life insurance protection with savings benefits and also offer tax advantages under Section 80C. However, their objectives and payout structures vary, making it important for parents to understand how each option works before making a decision.
With a sum assured of ₹10 lakh, the annual premium is estimated at around ₹42,000, although the exact premium may vary depending on factors such as age, policy term and selected benefits.
Both policies include provisions such as loans against the policy and financial protection features intended to safeguard a child’s future even during difficult circumstances.
One of the most significant aspects of the plan is that if the parent covered under the policy passes away during the policy term, future premiums are waived. The policy continues without interruption, ensuring that the child’s financial security remains intact.
In addition, the nominee receives 10 per cent of the sum assured every year. These payments can help meet educational expenses and household needs during challenging times.
At maturity, the beneficiary receives 110 per cent of the sum assured along with applicable bonuses, offering a combination of protection and long-term savings.
Premium payments under this plan continue only until the child reaches the age of 20. Thereafter, the policy provides flexible payout options between the ages of 20 and 25, helping families manage educational and career-related expenses.
The plan offers four different money-back choices. Policyholders can choose to receive the entire maturity amount at age 25 or opt for annual payouts between ages 20 and 24, with the remaining amount and bonuses paid at maturity.
This flexibility allows parents to align policy benefits with expected educational expenses such as university fees, professional courses or career development costs.
Both plans combine life insurance protection with savings benefits and also offer tax advantages under Section 80C. However, their objectives and payout structures vary, making it important for parents to understand how each option works before making a decision.
Designed To Support Children From An Early Age
The two plans are available for children from infancy up to 12 years of age, allowing families to start planning early. Premium payment terms generally range between 16 and 25 years, depending on the policy chosen.With a sum assured of ₹10 lakh, the annual premium is estimated at around ₹42,000, although the exact premium may vary depending on factors such as age, policy term and selected benefits.
Both policies include provisions such as loans against the policy and financial protection features intended to safeguard a child’s future even during difficult circumstances.
How Jeevan Lakshya Works
LIC Jeevan Lakshya is structured primarily as a protection-oriented plan. It is designed with the earning member of the family in mind and includes an in-built premium waiver feature.One of the most significant aspects of the plan is that if the parent covered under the policy passes away during the policy term, future premiums are waived. The policy continues without interruption, ensuring that the child’s financial security remains intact.
In addition, the nominee receives 10 per cent of the sum assured every year. These payments can help meet educational expenses and household needs during challenging times.
At maturity, the beneficiary receives 110 per cent of the sum assured along with applicable bonuses, offering a combination of protection and long-term savings.
Jeevan Tarun Focuses On Education Funding
LIC Jeevan Tarun, on the other hand, is designed specifically to support higher education and major financial needs during a child’s young adult years.Premium payments under this plan continue only until the child reaches the age of 20. Thereafter, the policy provides flexible payout options between the ages of 20 and 25, helping families manage educational and career-related expenses.
The plan offers four different money-back choices. Policyholders can choose to receive the entire maturity amount at age 25 or opt for annual payouts between ages 20 and 24, with the remaining amount and bonuses paid at maturity.
This flexibility allows parents to align policy benefits with expected educational expenses such as university fees, professional courses or career development costs.
Key Difference Between The Two Plans
While both plans aim to support children’s futures, the biggest distinction lies in the premium waiver benefit .Next Story