Main Features of LIC Jeevan Shiromani Policy
An insurance policy which invests in fixed return investment. It does not invest in share market and you do not get the unit of investment. ULIPs are the Linked Insurance plan. The endowment insurance plans are the Non-linked plan. It gives a minimum maturity amount.
Money Back Plan
Limited Premium Payment Plan
Basic Information of LIC Jeevan Shiromani Plan
Below are the eligibility conditions for Jeevan Shiromani Policy
Minimum basic sum assured (SA): 1 crore
Maximum basic sum assured (SA): No Limit
Minimum Age at entry: 18 years
Maximum age: To join this policy, your age should not be more than the limit. This limit is different for different policy terms.
|Policy Term||Maximum Age At Entry|
Policy term and premium paying term
There are 4 premium paying terms of this policy. You can choose the term as per your requirement. As you would notice that the premium paying term is 2 years less than the policy tenure.
|Policy Tenure||Premium Payment Term|
|14 years||10 years|
|16 years||12 years|
|18 years||14 years|
|20 years||16 years|
Modes of Payment
You have enough flexibility to pay the premiums of this policy. As, you can pay premium yearly, half-yearly, quarterly and even monthly. But for the monthly payment, you have to give the mandate for automatic deduction from the account. Also, it is only possible for a salaried person.
The LIC Jeevan Shiromani gives guaranteed addition every year. The rate of guaranteed addition increases after the first five years. The guaranteed addition is given every year till the end of premium payin term. However, this addition is given at the end of policy and you do not get any interest, meanwhile.
|Guaranteed Addition on Sum Assured of Every ₹1,000|
|First 5 Years||₹50|
|6th Year Onwards||₹55|
Critical Illness Benefit
The Jeevan Shiromani Plan gives Critical illness benefit without any extra premium. In fact, this rider is the part of the plan.
The critical Illness rider gives you a fixed sum assured in case you are detected with any of the specified diseases. This rider helps to meet the expense of these illnesses.
There are 15 illnesses under the critical illness rider of the Jeevan Shiromani Policy. You would get 10% of the basic sum assured on diagnosis of critical illness. Also, you would get the facility to defer the premium for 2 years. More details are given below.
Like all other life insurance policy, Jeevan Shiromani also gives two types of tax benefit.
- Your premium is eligible for tax deduction under section 80C. It is available every year.
- There is no tax on maturity amount, guaranteed addition and Loyalty addition. This tax exemption is available under section 10 (10D)
You can take a loan against this policy just after one year. As this policy becomes paid up after one year. The maximum loan amount would be the 90% of the surrender value. If the policy is paid up the maximum loan would be 80% of the surrender value.
The LIC is charging 9.5% interest rate on this loan for the year 2017-18.
Settlement option of Jeevan Shiromani Policy
The settlement option gives you a chance to defer the maturity payment. In this option, you get the maturity amount in instalments. You can spread your instalments for 5, 10 or 15 years. You can use only a part of the maturity amount for settlement. However, an instalment amount should not be less than the minimum amount. These are given below.
|Mode of Instalment Payment||Minimum Amount|
Another LIC Policy of 2017- LIC Cancer Cover
Benefits under LIC’s new Jeevan Shiromani Plan
In this section, I would tell about the benefits of the Jeevan Shiromani Plan. What would you get after paying this hefty premium?
The policyholder would get maturity amount in the following manner. Since it is a Money Back plan, you would get the maturity amount in instalments. Note, there are separate patterns of payment for different terms of policy. There would be 3 instalments of the maturity amount.
You get the last instalment of your maturity amount at the end of the policy. Along with the last instalment, you also get the Loyalty addition and Guaranteed Additions.
Policy Term – 14 Years
In the 10th and 12th year, you would get 30% amount each. In the 14th Year, you would get remaining 40% amount.
Policy Term – 16 Years
The Money Back starts from the 12th year. You would get 35% of the amount each on 12th and 14th year. The remaining 30%amount would be given in 16th year.
Policy Term – 18 Years
You get the first instalment in 14th year. In the 14th year and 16th year, you get the 40% amount each. In the 18th year, you get the remaining 20% amount.
Policy Term – 20 Years
In the 20 year plan, you get the 45% amount each as first and second instalment. The final amount would be 10% of the maturity amount. The instalments start from 16th year.
|LIC Jeevan Shiromani Money Back Amount|
|Policy Term||Year of Payment|
|Loyalty Addition and Guaranteed Addition is given with the last instalment|
If the insured person dies during the policy period, the nominee would get the money in the following manner.
Death within 5 years of the policy – Death Sum Assured + Guaranteed Addition (SA+GA)
Death after 5 years – Death Sum Assured + Guaranteed Addition + Loyalty Addition (SA+GA+LA)
Sample Premium Rates
Following are some of the sample tabular annual premium rates (in Rs.) (exclusive of applicable
tax) per Rs. 1000/- Basic Sum Assured:
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly, Monthly (NACH) & – NIL
High Basic Sum Assured Rebate
|Basic Sum Assured (BSA)||Rebate on tabular premium (Rs.)|
|1 Crore to 1.95 Crore||nil|
|2 Crore to 4.95 Crore||0.003% of BSA|
|Above 5 Crore||0.005% of BSA|
Details of Critical Illness Benefit
Lumpsum Benefit: You would get 10% amount of the basic sum assured. It means you would get minimum 10 lakhs as minimum basic sum assured is ₹1 crore.
Option To Defer Premium Payment: Under this benefit, you get the option to defer the premium payment. You can avoid paying the premium for 2 years. After two years you can pay the pending premiums. The LIC would not charge any penalty or interest for this delay. During this deferment, you would not lose in benefit.
Medical Second Opinion: The LIC also gives you the facility to have a second opinion about your illness. You can take this second opinion from any specialist of India or LIC empanelled healthcare providers. The LIC would pay the expense for this.
Critical Illness Covered in Jeevan Shiromani
- Cancer of specified severity
- Open chest CABG
- Myocardial infarction
- Kidney failure requiring regular dialysis
- Major organ/bone marrow transplant (as recipient)
- Stroke resulting in permanent symptoms
- Permanent paralysis of limbs
- Multiple sclerosis with persisting symptoms
- Aortic Surgery
- Primary (idiopathic) pulmonary hypertension
- Alzheimer’s disease/dementia
- Third-degree burns
- Open heart replacement or repair of heart valves
- Benign brain tumour
To know more about the terms and condition of critical illness benefit, you can refer to the LIC website.
These are the basic details of the LIC Jeevan Shiromani. If you find it useful then you must read the review of LIC Jeevan Shiromani before taking any decision.