Jeevan Tarang policy : Can I switch to LIC’s different plan with same paid premium?

[nishaneelesh]

I was reading more about paidup value in LIC site and understand as my Jeevan Tarang policy is for 20 years with sum assured as 5 lakhs so it comes per year as 25000 (5 lakhs / 20) and if I pay the premium atleast for 3 years (25536*3 = 76608) and stop then it will turn as paidup policy and sum assured should be as 75000 (25000 * 3).

Can you please confirm the sum assured which I calculated is correct or not?
And I will eligible for reduced sum assured and bonus, right?
And when this amount will be paid to me? As we get only bonus amount and don't get the sum assured amount after maturity. Only 5.5% given every year later so what will happen if it becomes paidup after three years?

Please suggest.

[Expert]

I was reading more about paidup value in LIC site and understand as my Jeevan Tarang policy is for 20 years with sum assured as 5 lakhs so it comes per year as 25000 (5 lakhs / 20) and if I pay the premium atleast for 3 years (25536*3 = 76608) and stop then it will turn as paidup policy and sum assured should be as 75000 (25000 * 3).

Can you please confirm the sum assured which I calculated is correct or not?
And I will eligible for reduced sum assured and bonus, right?
And when this amount will be paid to me? As we get only bonus amount and don't get the sum assured amount after maturity. Only 5.5% given every year later so what will happen if it becomes paidup after three years?

Please suggest.

If you stop the policy in 3rd year, (assuming your Sum Insured is 5 lacs), your sum assured will reduce from 5 lacs to 75 thousands (15%), as you have paid the premium only for 15% of the tenure (20 years).

Jeevan Tarang Paid-up Policy shall not be entitled to the future bonuses. The existing vested reversionary bonuses, if any, shall remain attached to a paid-up policy. Also no survival benefit shall be payable under paid up policies.

[nishaneelesh]

Thanks for your time and comments.

Can you please also suggest..

• When this paidup amount will be paid to me with bonus if any in three years paid time?
• As we get only bonus amount and don't get the sum assured amount after maturity in Jeevan Tarang policy on the normal case. Only 5.5% given every year later so what will happen if it becomes paid-up after three years?
• Will it allow me the pay the premium in later years? Like.. I paid the premium till three years and it became as paid-up the after couple of years, want to start paying again.

[Expert]

When this paidup amount will be paid to me with bonus if any in three years paid time?

Paid-up value is your new sum insured and it will remain as your sum insured for term of your policy (i.e. 20 years in your case)

As we get only bonus amount and don't get the sum assured amount after maturity in Jeevan Tarang policy on the normal case. Only 5.5% given every year later so what will happen if it becomes paid-up after three years?

Check with LIC customer care.

Will it allow me the pay the premium in later years? Like.. I paid the premium till three years and it became as paid-up the after couple of years, want to start paying again.

Yes, you can reinstate your LIC policy, later on.