LIC Jeevan Tarun Plan 734: Features & Review

Planning for your child's future starts long before the first school fee or college admission. A structured savings plan can help you prepare for each milestone with greater confidence. LIC Jeevan Tarun by Life Insurance Corporation of India (LIC) is built to provide structured payouts and long-term savings, but is it the right choice for your family's financial goals?

This guide breaks down LIC Jeevan Tarun policy details, including benefits, premiums, payouts, returns, riders, tax rules, and whether this plan is the right choice for your child’s future.

What Is LIC Jeevan Tarun?

LIC Jeevan Tarun is a child savings plan that combines life insurance with savings. It offers annual survival payouts before maturity, a lump sum at age 25, and bonus-linked benefits that can increase the final payout. 

Parents or grandparents can purchase the plan for children aged 30 days to 12 years. The policy is available offline through LIC agents, corporate agents, brokers, and insurance marketing firms.

Key Features of LIC Jeevan Tarun (Plan 734)

• Death Benefit: If the child passes away after the risk cover begins and before the policy matures, LIC pays the sum assured on death, along with all vested simple reversionary bonuses and any final additional bonus, if declared. The death benefit is the higher of 125% of the basic sum assured or 7 times the annualized premium, and will never be less than 105% of the total premiums paid up to the date of death.
• Survival Benefit: LIC Jeevan Tarun offers annual money-back payouts starting when the child turns 20. Depending on the option chosen at the time of purchase, the child receives 0%, 5%, 10%, or 15% of the basic sum assured every year for five consecutive years. Choosing a lower annual payout leaves a larger amount available at maturity.
• Maturity Benefit: If the child survives until age 25 and the policy remains in force, LIC pays the remaining basic sum assured, along with all vested simple reversionary bonuses and any final additional bonus, if declared. The maturity amount depends on the survival benefit option selected at inception. You may use the LIC Jeevan Tarun maturity calculator for rough estimates of your benefits.
• Participation in Profits: LIC Jeevan Tarun is a participating policy, meaning it is eligible to earn simple reversionary bonuses based on LIC's financial performance. If declared, these bonuses accumulate throughout the policy term and are paid along with the maturity or the eligible death benefit. A final additional bonus may also be payable at exit, though neither bonus is guaranteed.
• Policy Loan: A loan can be taken against the policy after completing one policy year, provided at least one full year's premium has been paid. The loan amount is available within the policy's surrender value, allowing policyholders to meet temporary financial needs without surrendering the policy. 
• Premium Waiver Benefit Rider: Parents can add the Premium Waiver Benefit Rider to strengthen the child's financial security. If the proposer dies during the premium paying term, all future premiums are waived, while the policy continues with full benefits until maturity. This rider can be added only while the policy is in force, provided at least five years of the premium paying term remain. 

Note: The premium for the Premium Waiver Benefit Rider cannot exceed 30% of the premium payable under the base policy. Not every life insurance rider is worth paying for. At Ditto, we recommend the Waiver of Premium Rider and the Critical Illness Rider with term insurance, as they provide the most practical financial protection for most families.

LIC Jeevan Tarun Premium Illustration and Maturity Returns

Note: The annual premiums under different options are for a basic sum assured of ₹2 lakh. These figures are derived from the LIC Jeevan Tarun policy brochure.

In this example, the guaranteed benefits roughly match the total premiums paid over the policy term. The higher payout shown in LIC's 8% illustration comes mainly from non-guaranteed bonuses, not from the guaranteed benefits alone. 

Based on the guaranteed benefits alone, the Internal Rate of Return (IRR) is very modest at around 0% to 1% per year because the total payout is only slightly higher than the premiums you pay. If LIC declares bonuses similar to those shown in its 8% illustration (which are not guaranteed), the overall return could improve to around 4.3% to 4.7% per year. 

In simple terms, the guaranteed component offers very low growth, while any meaningful increase in returns depends on bonuses declared by LIC in the future.

Who Should Buy and Who Should Avoid LIC Jeevan Tarun?

Works Well for 

• Parents or grandparents looking for a structured savings plan to fund a child's future education.
• Families who prefer traditional LIC plans over market-linked investments.
• Buyers who want scheduled payouts between the ages of 20 and 24.
• Conservative savers who value predictable benefits and understand that bonuses are not guaranteed.

Should Be Avoided by 

• Parents who have not yet purchased adequate term insurance for income protection.
• Families that may need easy access to their money during the policy term.
• Investors seeking higher, inflation-beating long-term returns.
• Parents comfortable investing in mutual funds or other market-linked products for long-term education goals.

Why Choose Ditto for Life Insurance? 

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Conclusion

LIC Jeevan Tarun can work well for parents who want a disciplined way to build a dedicated education fund while benefiting from LIC's traditional policy structure. Although it is a participating plan, the overall IRR will be modest, as a meaningful part of the return depends on non-guaranteed bonuses rather than guaranteed benefits alone.

Before considering a child savings plan, build a strong financial foundation first. Start with adequate term insurance for the earning parent and health insurance for the entire family. 

Once these essentials are in place, compare Jeevan Tarun with alternatives like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (where eligible), or mutual funds, which may offer better long-term outcomes depending on your risk appetite and financial goals.

If you are looking for a term plan from established insurers in India, you can explore the best term insurance plans in 2026.