LIC’s Jeevan Tarang (Plan -178) All details with premium, maturity, and benefit calculators. Jeevan Tarang is a specialized insurance plan from LIC of India which provides life long survival benefits at the rate of 5.5% of the sum assured. This plan is having a unique benefit pattern compared to other plans of LIC.
Please note that Jeevan Tarang (plan 178) has been already withdrawn from sales and is not available for purchase now. Here at InsuranceFunda, we are getting a lot of queries on the benefit pattern of the plan. This article is expected to clear all your doubts and queries abou the plan.
- Jeevan Tarang is a whole life plan, which provides annual survival benefits for life, after the accumulation period, at a rate of 5.5% of the sum assured.
- The plan offers three accumulation periods, 10, 15 and 20 years (Chosen by the life assured at the time of purchase of the policy).
- The vested simple reversionary bonus is paid as a lump sum amount on survival to the end of the selected accumulation period.
- Sum Assured along with Loyalty addition (if any) will be payable on the life assured surviving 100 years of age.
- The Death benefit will be
- During the accumulation period: Sum Assured along with accrued simple reversionary bonus.
- After the accumulation period: Sum Assured along with Loyalty addition.
- Before commencement of risk: Premiums paid will be returned without any interest.
- Life long survival benefit, the bonus paid and the maturity amount (payable on death as well as attaining 100 years of age) will be exempted from income tax u/s 10(10D) of the income tax act.
Jeevan Tarang 178 – Eligibility conditions and restrictions
|Jeevan Tarang (Plan 179)|
|Age at Entry||0 years (nbd)||60 Years(nbd)|
|Sum Assured||1,00,000||No limit|
|Premium Paying Term||10,15 and 20 Years and single premium|
|Riders available||Double Accident Benefits, Term Assurance and Critical Illness|
How Jeevan Tarang Plan Works?
In Jeevan Tarang Plan, the life assured chooses the accumulation period (10, 15 or 20 years) and pay the premium as a single premium or regular premium. After the premium paying term, the life assured receives all the accumulated bonus as a lumpsum amount.
Annual life long survival benefit, equal to 5.5% of the sum assured starts after the completion of the accumulation period. Death coverage continues throughout the life of the policyholder or 100 years of age (whichever is earlier). On death or attaining 100 years of age, Sum Assured + loyalty addition applicable is paid.
Bonus rates of Jeevan Tarang plan
You may be knowing that LIC shares its profit to its policyholders in the form of t
|Bonus Rates of Jeevan Tarang – Plan 178|
|Premium PayingTerm||10 Years||15 Years||20 Years|
|Bonus Rates||Rs. 47||Rs. 48||Rs. 49|
Bonus Rates shown above are for Rs. 1000 Sum Assured. The declared bonus gets added to the policy account every year as and when it is declared.
For example, if the sum assured is Rs. 10,00,000 and the declared bonus is Rs. 49 the bonus amount added to that policy account for that particular year will be 10,00,000 * 49/1000 = 49,000.
Read more: Complete details of latest bonus rates declared by LIC of India – with charts and illustrations.
Loyalty addition rates for LIC’s Jeevan Tarang Plan
Loyalty additions become payable at the time of exit from the policy by way of death or maturity. As it is a one time payment, the rates declared will be applicable for the particular year of exit only. As per the 2019 march valuation the loyalty addition rates declared is Rs 60 per 1000 sum assured for the period up to death of 15 years and above.
Income Tax benefits – Plan 178
This plan follows Exempt-Exempt-Exempt model of taxation.
- Premium paid: Premium paid is eligible for income tax rebate under section 80C of the income tax act. The overall limit of 1.5 lakhs will be applicable for the exemption.
- The bonus Amount: The accrued bonus amount paid after the completion of the premium paying term is exempted under section 10(10D) of the income tax act.
- Survival Benefit: Survival paid every year after the completion of premium paying term also shall be exempted from income tax u/s 10(10D). Unlike the annuity payments in pension plans (with are taxable), the payments from Jeevan Tarang enjoys tax benefits even though the payments received are similar to annuities.
- Death Benefit: Death benefit is also exempted from income tax as in other insurance plans.
Jeevan Tarang – Premium and benefits online calculator
Jeevan Tarang – Plan 178 – Premium and benefit calculator can help you in understanding the plan better. Give your own details such as age, sum assured and select the term to get the calculations. Full calculations can be obtained by clicking the button provided below.
Example of benefits.
Let us consider an example of a person with details mentioned below purchasing a Jeevan Tarang policy to understand the benefits of the plan.
|Age ||30 Years||Sum Assured||10,00,000|
|Term||20 Years||Premium Payment||20 Years|
The benefits of the plan at current bonus rates will be as shown below. Please note that I have shown the illustration up to age 60 only and similar pattern will continue up to age 100.
- Accrued Bonus* amount of Rs.9,80,000 shall be paid at the end of the premium paying term of 20 years.
- Survival rates at the rate of 5.5% of sum assured (Rs 55,000) will become payable thereafter every year up to death or 100 years of age, which ever is earlier.
- On death or life attaining 100 years of age, Sum assured of 10,00,000 along with applicable loyalty additions also shall become payable.
If you have any doubts or have any queries, please use the comment section given below.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.