LIC Jeevan Shiromani Plan-947

The plan has been withdrawn by LIC and is not available for purchase but remains active for existing policyholders.

LIC Jeevan Shiromani - An Overview

LIC Jeevan Shiromani Plan is a limited premium payment endowment plan offered by the Life Insurance Corporation of India. It is designed to look after the insurance needs of high-net-worth individuals. It provides policyholders with a comprehensive life insurance solution and attractive investment features. Jeevan Shiromani offers a high sum assured, guaranteed additions, and loyalty additions, making it a perfect choice for long-term financial planning. The policy also provides various optional riders to enhance coverage, ensuring policyholders can customize their plans to meet their specific needs. The plan also offers a loan facility for policyholders’ emergency liquidity needs.

Key Features of LIC Jeevan Shiromani Plan

• It is a limited premium payment plan, providing survival benefit money-back at specified durations.

• It comes with an inbuilt Critical Illness Benefit covering 15 diseases.

• The policy is designed to support the family financially in the event of the life assured's unfortunate demise.

• The policy participates in LIC’s profits that are distributed to the policyholders in the form of Loyalty Additions, paid with the death or maturity benefits.

• Guaranteed Additions accrue yearly during the Premium Paying Term (PPT) if all premiums are paid.

Eligibility Criteria for LIC Jeevan Shiromani Plan

Benefits of LIC Jeevan Shiromani Plan

The LIC Jeevan Shiromani Plan offers a host of benefits to the insurance holders based on event occurrence:

1. Death Benefit

   Payable in lumpsum and instalments, it is payable to the nominee upon the life assured’s death during the policy term, provided no premium is due. The sum assured on death is the higher of:

   • 125% of the Basic Sum Assured (BSA)

   • 7 times the annualised premium

   This amount is never less than 105% of the total premiums paid till the date of death.

   Two conditions determine the benefit amount:

   • Death within the first five years of policy term: Sum Assured plus the guaranteed additions.
     Death after completion of five years: Sum assured plus accrued guaranteed additions and loyalty additions, if any.

   Option to Take Death Benefit in Instalments

   Under the Jeevan LIC Shiromani plan, policyholders have the flexibility to receive the death benefit in instalments also. This option is available under both active and paid-up policies. The life assured can choose to receive the death claim amount (including any deferred Survival Benefits, if applicable) over a period of 5, 10, or 15 years. This benefit can be structured either in complete or as a percentage of the total payout. Instalments will be paid in advance, as per the frequency selected, yearly, half-yearly, quarterly, or monthly, subject to minimum amount limits.

   Mode of Instalment payment	Minimum instalment amount
   Monthly	5,000
   Quarterly	15,000
   Half-Yearly	25,000
   Yearly	50,000

2. Survival Benefit

   A specified percentage of the Basic Sum Assured is paid to the insurance holder upon the survival of specified periods within the policy terms.

   Policy Term	Survival Benefit
   	Payout Years	Payout Amount
   14 years	10th & 12th year	30% of the BSA
   16 years	12th & 14th year	35% of the BSA
   18 years	14th & 16th year	40% of the BSA
   20 years	16th & 18th year	45% of the BSA

   Option to Defer Survival Benefits

   The LIC Shiromani plan also offers an option to defer the Survival Benefits. By choosing to defer, policyholders receive the increased survival benefits that includes the original survival benefits and interest, at any time before the policy ends. If not claimed earlier, the total accumulated benefit is paid at the time of death, maturity, or surrender. This option can be used under both active and paid-up policies.

3. Maturity Benefit

   The insurance holder receives the sum assured on maturity plus the accrued guaranteed and loyalty additions upon survival until the policy term’s completion. The percentage of BSA paid is:

   • 14 years policy term: 40% of the BSA.

   • 16 years policy term: 30% of the BSA.

   • 18 years policy term: 20% of the BSA.

   • 20 years policy term: 10% of the BSA.

   Settlement Option

   The Jeevan Shiromani plan of LIC includes a settlement option for maturity benefits, allowing the life assured to receive the payout in instalments over 5, 10, or 15 years instead of a lump sum. This option is available for both in-force and paid-up policies. It applies to the full or partial maturity proceeds, including any deferred Survival Benefits, and can be selected in either absolute amount or percentage terms. Instalments will be paid in advance on a yearly, half-yearly, quarterly, or monthly basis, as opted by the policyholder.

   Mode of Instalment payment	Minimum instalment amount
   Monthly	5,000
   Quarterly	15,000
   Half-Yearly	25,000
   Yearly	50,000

4. Guaranteed Benefit

   LIC Jeevan Shiromani 947 provides annual Guaranteed Additions throughout the Premium Paying Term (PPT), provided all due premiums are paid. For the first five years, it offers Rs. 50 per thousand Basic Sum Assured, which increases to Rs. 55 per thousand from the 6th policy year till the end of PPT.

5. Inbuilt Critical Illness Benefit

   It is paid if the life assured is diagnosed with any of the listed critical illnesses, and the policy is in force with no premium due.

   • Lump-sum: 10% of the BSA.

   • Deferred Premium Payment: Allowed for two years from the illness acceptance date.

   • Second Medical Opinion: It is allowed only once during the policy term.

6. Participation in Profits

   Under the Jeevan Shiromani Plan of LIC, if at least five full years' premiums are paid, the policy may receive Loyalty Additions on death, maturity, or surrender. Jeevan Shiromani policyholders are eligible for these additions based on LIC's declared rates and experience.

7. Rider Benefit

   Under LIC Jeevan Shiromani Plan 947, the following rider benefits are available upon payment of an additional premium.

   Accident Benefit Rider

   Policyholders can opt for this rider at any time during the premium paying term, when the policy has at least five years of premium term remaining. If the life assured passes away due to an accident during the rider cover period, under the rider, the Accident Benefit Sum Assured is paid out in a lump sum to the nominee.

   Accidental Death and Disability Benefit Rider

   In case of accidental death, a lump sum equal to the Accident Benefit Sum Assured is paid. If disability occurs within 180 days of the accident, the same amount is paid in equal monthly instalments over 10 years, and future premiums for both this rider and an equivalent portion of the base policy are waived. It can be added anytime during the premium paying term if at least five years remain.

   New Critical Illness Rider

   This rider can only be selected at policy inception. It pays the Critical Illness Sum Assured upon the first diagnosis of one of 15 covered critical illnesses.

   New Term Assurance Rider

   This rider is also available to choose only at policy inception and provides a lump sum on the death of the life assured during the policy term.

8. Tax Benefit

   Such insurance plans are covered under the tax laws as and when imposed by the GOI.
   *Tax benefit is subject to changes in tax laws. Standard T&C Apply.

Listed Critical Illnesses Under LIC Jeevan Shiromani Plan

The Jeevan LIC Shiromani plan includes an in-built Critical Illness benefit covering the following 15 critical illnesses:

1. Cancer of specified severity

2. Open chest CABG

3. Myocardial infarction (First heart attack of specified severity)

4. Kidney failure requiring regular dialysis

5. Major organ/bone marrow transplant (only for recipient)

6. Stroke resulting in permanent symptoms

7. Permanent paralysis of limbs

8. Multiple sclerosis with persisting symptoms

9. Aortic surgery

10. Primary pulmonary hypertension

11. Alzheimer’s disease/ Dementia (before age 85)

12. Blindness (irreversible loss of sight)

13. Third-degree burns (covering ≥20% of body surface area)

14. Benign brain tumor

15. Open Heart Replacement or Repair of Heart Valves

Premium Structure of LIC Jeevan Shiromani Plan

The premium payment term (PPT) under this plan will be equal to the policy term minus 4 years. So, if you choose a policy term of 14 years, the PPT will be 10 years. Similarly, for a 16-year policy term, the PPT will be 10 years, and so on.

The premium under the LIC Jeevan Shiromani Plan can be paid every year, every 6 months, every quarter, or every month. By using the LIC Jeevan Shiromani calculator, you can estimate these amounts as per your convenience and know which option best suits you. 

For a monthly payment frequency, only NACH and salary deduction is permitted.

The illustrative annualized premium amount is described below when the life assured’s age is 20 years (nearer birthday) for a BSA of Rs.1 Crore:

Documents Required for LIC Jeevan Shiromani Plan

• ID Proof

• Date of Birth Proof

• Address Proof

• Latest Photograph

• Bank Account Details if the premium payment frequency is monthly.

LIC Jeevan Shiromani Policy Details

1. Grace Period

   The plan offers a grace period of 30 days for due payment of quarterly, half-yearly, or yearly premiums and 15 days for paying due monthly premiums. During this time, your policy remains in force with full risk cover. The grace period also applies to any rider premiums attached to the plan.

2. Free Look period

   If you're not satisfied with the terms of the plan, you can return the policy within 15 days of receiving the policy bond along with stating the reasons of return. LIC will cancel the plan and refund your premium after deducting risk premium, stamp duty, and any medical examination costs.

3. Rebates

   Mode Rebate:

   Yearly mode	2% of Tabular Premium
   Half-yearly mode	1% of Tabular premium
   Quarterly,Monthly (NACH)& Salary deduction	NIL

    High Basic Sum Assured Rebate:

   Basic Sum Assured (BSA)	Rebate on tabular premium (Rs.)
   100,00,000 to 195,00,000	Nil
   200,00,000 to 495,00,000	0.030% BSA
   500,00,000 and above	0.050% BSA

4. Revival

   After a missed premium payment, if premiums are not paid within the grace period, the policy will lapse. You can revive it within 5 consecutive years from the date of the first unpaid premium and before maturity. Revival requires paying all due premiums with interest and meeting LIC’s underwriting criteria. Revival of riders is only allowed when the base policy is also revived. Once approved, LIC will issue a revival receipt, officially reinstating your policy.

5. Paid-up Policy

   If you stop paying premiums after completing at least one full policy year, it becomes a paid-up policy. The death and maturity benefits will be reduced in proportion to the number of premiums paid. You’ll still receive accrued Guaranteed Additions and Loyalty Additions, if applicable. Survival benefits are also paid on a reduced basis.

6. Surrender

   You can surrender the Jeevan Shiromani plan of LIC anytime after completing one policy year with at least one year’s premium paid. On surrender, you will receive either the Guaranteed Surrender Value or the Special Surrender Value, whichever is higher. These are calculated based on the total premiums paid and applicable surrender value factors, minus any due survival benefits.

7. Policy Loan

   A loan can be availed under the LIC Jeevan Shiromani policy after paying at least one full year’s premium. The loan amount could be up to 90% of the surrender value if the policy is active, and up to 80% if it has become paid-up.

Exclusions

The policy will become void in case of Suicide.

• If the life assured (sane or insane) commits suicide withing 12 months from the policy inception, no promised benefits will be payable. Only 80% of the premiums paid will be returned if the policy is active. 

• In case a sane/insane life assured commits suicide within within 12 months of policy revival, LIC will pay the higher of either 80% of the total premiums paid or the surrender value available on the date of death. No other benefits will be paid.

*For more information about exclusions, please refer to the plan brochure or the LIC Jeevan Shiromani plan 947 Policy document.

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