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.
Save upto ₹46,800 in tax under Sec 80C
Inbuilt Life Cover
Tax Free Returns Unlike FD
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
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.
Now that you know the vital details of the plan, let’s check out some of the many benefits of this plan.
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:
Death after Five Policy Years and Before Maturity:
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:
Example:
Let’s say, you’re investing in Jeevan Shikhar Policy (837). Suppose:
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 |
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
Negatives
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 2020
Got questions about LIC’s Jeevan Shikhar (Table no. 837)? Leave us a comment and we’ll be more than happy to answer all your queries.
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