Jeevan Shikhar policy (Table No. 837) is a non-linked, single premium life insurance plan from one of India’s most trusted insurers, LIC. It’s an amazing plan from LIC that provides its members with great returns.

This endowment plan comes with a 15 years’ term and offers a very high risk cover in case of death. The cover is 10 times of the Single Premium. This amazing LIC policy allows proposers to choose the Maturity Sum Assured (MSA). The single premium amount is based on the MSA chosen and the age of the policy holder.

Let’s take a quick look at the various features, Plan details and benefits of the policy.

Key Features of LIC Jeevan Shikhar Policy

• Higher Cover in case of death.
• Flexibility to choose Maturity Sum Assured (MSA).
• Guaranteed Return (MSA) along with Loyalty addition on maturity.
• Higher surrender value with an option to surrender the insurance anytime.
• Tax benefits under Section 80(C) of Income Tax Act.
• Tax free maturity amount under Section 10(10D) of Income Tax Act.

Plan Details of LIC Jeevan Shikhar Policy

• The minimum Entry Age is 6 Years (Completed)
• The maximum entry age is 45 years (Nearest Birthday)
• This is Single Premium policy and policyholders need to make one time lump sum premium payment.
• The fixed Policy Term is 15 Years
• The Maturity Sum Assured should 1,00,000 and above and should be in the multiples of 20,000.
• Policy can be surrendered after 3 month.
• The policy allows loan against it after 3 Months of policy completion.

Now that you know the vital details of the plan, let’s check out some of the many benefits of this plan.

Benefits of LIC Jeevan Shikhar Policy

Maturity Benefits: On policy maturity, policy holders are paid the Maturity Sum Assured (MSA) +Loyalty Addition.

Death Benefits: This endowment policy offers amazing death benefits. Let’s check out the death benefits offered by this plan.

Death during First Five Policy Years:

•   Single premium paid (excluding service tax) is returned, if the death happens before 8 years of Age.
•   10 times of the single premium (excluding service tax) paid is returned, if the death happens after 8 years of age.

Death after Five Policy Years and Before Maturity:

•   10 times of single premium paid (excluding service tax) along with loyalty addition is payable as death benefit. 

Please Note: Under this policy, the minimum age of risk commencement is 8 Years. Policyholders get to earn Loyalty Addition only after 5 years of successful completion of policy. 

Loyalty Addition: The Loyalty Addition is paid on the death of the policy holder or when the policy is surrendered. However, it is important to complete at least five policy years, or the policy holder must survive till the end of the policy.

Surrender Option & Surrender Value: Policy holders can surrender the policy at any time during the term of the policy.

The Guaranteed Surrender Value allowed is:

• 70% of the Single premium (excluding extra premiums paid and taxes) in the first year.
• 90% of the Single premium paid (excluding extra premiums paid and taxes), thereafter. (If policy holder chooses to surrender the policy after 5 years of the Policy, Loyalty addition (if any) is also payable.)

Example:

Let’s say, you’re investing in Jeevan Shikhar Policy (837).  Suppose:

• The Maturity Sum Assured you select is Rs. 5,00,000
• The Policy Term is 15 Years
• The Policy Purchase Year is 2016
• Your present age is 28 Years.

Basis the information provided above, your Single Premium turns out to be Rs. 2,07,405 (with Statutory Taxes).

With above details, there are two possibilities. In the first case, the policy holder survives 15 years and receives the maturity amount. Alternatively, in the second case, the policy holder dies before 15 years and nominee gets death claim amounts. 

Here, we’ve explained both the cases below: 

First Case: Maturity 

If Policy holder survives 15 years, then the Maturity amount (i.e., the combined total of Maturity Sum Assured plus the Loyalty Additions) will be provided as mentioned below: 

Maturity Year	Age at Maturity	Maturity Sum Assured (Guaranteed)	Loyalty Addition (Variable)	Total Maturity
2031	43	500000	16000	516000

 

Case 2 (Death before 15 Years)

10 times of single premium paid (excluding Service Tax) + Loyalty Addition is payable as death claim amount, in case of death of the policy holder before completing 15 years or the maturity date of the policy. Loyalty Addition is provided on the policy only after 5 year from date of purchase. 

Table: Suppose if Death happened in Year 2022 then nominee will get death claim amount as 2017500. 

Year of Death	Age at Death	10 Times of Single Premium (Excluding Service Tax)	Loyalty Addition (Variable)	Total Death Claim
2016	28	2001500	0	2001500
2017	29	2001500	0	2001500
2018	30	2001500	0	2001500
2019	31	2001500	0	2001500
2020	32	2001500	0	2001500
2021	33	2001500	16000	2017500
2022	34	2001500	16000	2017500
2023	35	2001500	16000	2017500
2024	36	2001500	16000	2017500
2025	37	2001500	16000	2017500
2026	38	2001500	16000	2017500
2027	39	2001500	16000	2017500
2028	40	2001500	16000	2017500
2029	41	2001500	16000	2017500
2030	42	2001500	16000	2017500

 

Pros & Cons

Let’s check out the pros and cons of this plan:

Positives

• Ten times Risk coverage on single premium.
• Loan facility available after 3 months

Negatives

• In case of unfortunate death of the policy holder death risk commencement, only premium paid will be paid back.
• The company stipulates that bonus will not be paid on maturity.
• The policy provides very low expected Returns.

The Verdict

LIC Jeevan Shikhar (Table no. 837) is one of the best plans from LIC. Buying this policy proves to be a good alternative to invest your money. Go for it if you’re looking for high returns, complete financial protection and peace of mind.

You may also like to read : Best LIC policies in 2018

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