LIC Jeevan Tarang Plan 178 is a unique with-profits whole life insurance plan offered by the Life Insurance Corporation of India (LIC). This plan was designed to provide policyholders lifelong survival benefits along with protection and bonuses. It stands out by offering an innovative benefit pattern unlike many traditional insurance plans.

Launch and Withdrawal Dates

LIC Jeevan Tarang Plan 178 was officially launched on March 7, 2006. It remained available for sale until LIC decided to withdraw it. The withdrawal date of the plan from sale was January 1, 2014. While the plan is no longer available for new purchases, it continues to be of interest for those who already hold this policy or want to understand its benefits and calculations.​

What is LIC Jeevan Tarang Plan 178?

The Jeevan Tarang Plan is a whole life insurance plan with profits, meaning it combines life coverage with investment-linked bonuses declared by LIC.

Key Features

• Whole Life Cover: Provides coverage for the policyholder’s entire life, or till the age of 100 years.
• Accumulation Period: Policyholders can choose an accumulation period of 10, 15, or 20 years. During this time, premiums are paid and bonuses accumulate.
• Annual Survival Benefit: After the accumulation period, the plan pays a lifelong annual survival benefit amounting to 5.5% of the Sum Assured every year.
• Bonuses: Simple Reversionary Bonus is declared and added during the accumulation period. On maturity (death after accumulation period or survival till 100 years), Sum Assured plus loyalty additions are paid.
• Multiple Premium Payment Options: Premiums can be paid yearly, half-yearly, quarterly, monthly, or as a single premium.
• Loan Facility: Policyholders can avail loans against the policy.
• Riders: Optional riders such as Term Assurance Rider, Accidental Death Benefit Rider, and Critical Illness Rider can be added.

Eligibility Criteria

• Minimum entry age: 0 years (newborn)
• Maximum entry age: 60 years
• Maximum maturity age: 100 years
• Sum Assured: Minimum INR 1,00,000 with no upper limit
• Premium Paying Term: 10, 15, or 20 years, or single premium​

How Does LIC Jeevan Tarang Plan Work?

Premium Payment and Accumulation Phase

The planholder selects an accumulation period (10, 15, or 20 years) during which they pay premiums regularly or as a single premium. During this phase, the policy does not pay survival benefits but simple reversionary bonuses accumulate on the Sum Assured annually.

Survival Benefits and Maturity

After the accumulation period ends, the policyholder starts receiving an annual survival benefit equal to 5.5% of the Sum Assured for life or till age 100, whichever is earlier. This provides a steady income stream alongside the life cover.

When the policyholder either survives till 100 years or dies after the accumulation period, the full Sum Assured plus loyalty additions are payable as a lump sum to the policyholder or nominee.

Death Benefit

• During the accumulation period, death results in the nominee receiving the Sum Assured plus accrued simple reversionary bonus.
• After the accumulation period, the nominee receives Sum Assured plus loyalty additions.

Other Benefits

• This policy offers tax benefits on premiums paid and maturity proceeds under Section 80C and Section 10(10D) of the Income Tax Act.
• Loans are available against the policy at a competitive interest rate.

LIC Jeevan Tarang Plan 178 Bonus and Loyalty Additions

The plan participates in LIC’s profit-sharing by receiving bonuses declared annually based on the company’s profits.

Bonus Rates

• Bonus is declared as a simple reversionary bonus per INR 1,000 Sum Assured.
• Current typical bonus rates (approximate) are:
  • 43 to 49 INR per 1000 Sum Assured depending on the premium payment term (10, 15, or 20 years).

Example: For a Sum Assured of INR 10,00,000 and a declared bonus rate of 49, the policyholder receives an annual bonus of INR 49,000 credited to the policy.​

Loyalty Additions

Loyalty additions are paid on maturity or on death after the accumulation period. These are one-time bonuses declared based on valuation by LIC and can significantly increase the maturity amount.

Using the LIC Jeevan Tarang Plan 178 Calculator

A LIC Jeevan Tarang Plan 178 Calculator helps apply the plan’s formulas and bonus rates to estimate:

• Annual premium required for a selected Sum Assured, age, and premium payment term.
• Projected maturity amount, including Sum Assured, bonuses, and loyalty additions.
• Survival benefits post accumulation period.
• Death benefits for various policy scenarios.
• Surrender values if the policyholder opts to withdraw early.

How the Calculator Works

1. Input Basic Data: Age of the policyholder, selected Sum Assured, premium payment term (10, 15, 20 years), and payment mode (yearly, half-yearly, etc.).
2. Premium Calculation: The calculator estimates the premium based on LIC’s premium rates for the chosen Sum Assured and policy parameters.
3. Bonus Projection: Using current bonus rates declared by LIC, it projects accrued bonuses over the accumulation period.
4. Maturity and Survival Benefits: It calculates lump sum maturity values plus lifelong annual survival benefits after the accumulation phase.

Benefits of Using the Calculator

• Enables planning and helps decide suitable Sum Assured and premium terms.
• Provides clarity on expected returns and survival benefits.
• Assists in comparison with other LIC plans for informed decisions.

Online calculators like those available on LIC India’s official site or trusted insurance portals offer easy access to this tool. LIC Official Jeevan Tarang Brochure (PDF) provides essential rates and details used in these calculations.​

Example Calculation

Consider a 35-year-old individual who opts for:

• Sum Assured: INR 1,00,000
• Premium Paying Term: 10 years
• Payment Mode: Single Premium
• Premium payable is approximately INR 75,600.
• During the 10 years, bonuses accumulate (e.g., approx INR 88,000).
• After accumulation, the individual gets survival benefits equal to 5.5% of Sum Assured annually (INR 5,500).
• If surviving till 100 years, total maturity amount includes Sum Assured + loyalty additions.
• In death during accumulation, nominee receives Sum Assured + accrued bonus.​

Important Points and Conditions

• Grace Period: 30 days grace for annual, half-yearly, quarterly premiums; 15 days for monthly.
• Surrender Value: Available as per LIC’s rules; the calculator can estimate surrender value.
• Revival: Lapsed policies can be revived before the end of accumulation period.
• Cooling-Off Period: Policy can be returned within 15 days of purchase if dissatisfied.
• Loan Facility: Loans are available at competitive interest rates against the policy as security.

Summary of Benefits

Feature	Detail
Plan Type	Whole Life with profits
Sum Assured	Min INR 1,00,000; No max limit
Premium Payment Term	10, 15, 20 years or single premium
Survival Benefit Rate	5.5% of Sum Assured annually for life
Bonus	Simple Reversionary Bonus each year
Loyalty Additions	Payable on maturity or death after term
Entry Age	0 to 60 years
Maturity Age	Up to 100 years
Loan Facility	Available
Riders	Term Rider, Accidental, Critical Illness
Tax Benefits	Under Section 80C and 10(10D)

Frequently Asked Questions

Conclusion

LIC Jeevan Tarang Plan 178 is a distinctive whole life insurance plan combining lifelong survival benefits, bonuses, and protection. Although withdrawn from new sales since January 2014, it remains important for existing policyholders and those seeking to understand legacy LIC whole life plans.

Using a dedicated LIC Jeevan Tarang Plan 178 Calculator can simplify complex premium and maturity calculations, helping holders plan their finances clearly.