LIC Jeevan Shikhar Plan

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.

Read more
Best Investment Options
  • 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

Get Guaranteed returns along with life cover
invest in 100% Guaranteed Return Plans Tax benefits under sec 80C & No Tax on returns*
+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans", you agree to our Privacy Policy and Terms of Use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

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 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.

More Useful Resources

LIC Online Services

LIC Investment Plans

LIC Other Plans

LIC Policy Status

LIC Jeevan Umang

LIC Term Insurance Plans

LIC Online Premium Payment

LIC Jeevan Lakshya Plan

LIC Pension Plans

LIC Online Registration

LIC Money Back Policy

LIC ULIP Plans

LIC Online Login Portal

LIC New Jeevan Anand

LIC Child Plans

LIC Premium Calculator

LIC New Endowment Plan

LIC One Time Investment Plan

Written By: PolicyBazaar - Updated: 05 July 2021

Investment plans articles

Recent Articles
Popular Articles
Importance of Investment Plan to Build a Secured Future

18 Oct 2021

In today’s times, people are always on a regular lookout for...
Smart Investing: Time To Rebalance Your Investment Portfolio

18 Oct 2021

Investment portfolio rebalancing means reconstructing your...
Where To Invest Your Money For High-Interest Returns?

18 Oct 2021

Every investor in India invests with a notion of availing...
How To Invest Money And Get Rich

18 Oct 2021

Investing is an important part of wealth creation that helps...
Best Investment Plans for Monthly Returns

18 Oct 2021

Every breadwinner of a family wants to secure his/her family's...
Best LIC Policies For Investment in 2021
When it comes to purchasing a life insurance plan, 'LIC policies' are the most popular choice for customers. LIC...
What is Investment and What is Its Purpose?
Different people possess different notions and understanding of “investment”. To start with, first of all...
Post Office Monthly Income Scheme (POMIS)
Are you looking for an investment avenue which is safe and secure, earns substantial returns with a short locking...
SBI Life Insurance Plans in India
SBI Life Insurance, a joint venture between State Bank of India (SBI) and BNP Paribas Assurance, provides...
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily...
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL