Life Insurance Corporation (LIC) of India has designed various plans with the typical Indian clientele in mind, looking to address their preferences to match the need for risk protection along with savings. The LIC Jeevan Shiromani Plan combines several elements of protection, savings, handsome returns, and medical cover, targeted at high net-worth Indians (HNI) with a minimum Basic Sum Assured of Rs. 1 Crore.Read more
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
The LIC Jeevan Shiromani Policy is an individual life insurance plus savings plan. It is a limited premium payment plan, providing survival benefit money-back at specified durations. The icing on the cake is the inbuilt Critical Illness Benefit covering 15 diseases. The policy is designed to support the family financially in the event of the policyholder’s unfortunate demise. The policy participates in the profit-sharing in the form of Loyalty Additions paid to the beneficiary.
The entry age structure of the LIC Jeevan Shiromani Plan is designed in conjunction with the policy term. The premium paying term is calculated by deducting four from the policy term (Policy Term – 4).
Minimum Sum Assured: Rs 1 Crore, subsequently in multiples of Rs.5 Lakh.
Maximum Sum Assured: Unlimited.
Policy Term: 14, 16, 18, and 20 years.
Minimum: Completed 18 years.
Maximum (Nearer birthday):
Maximum Maturity Age (Nearer birthday):
The LIC Jeevan Shiromani Policy offers a host of benefits to the policyholders based on event occurrence:
It is payable to the nominee upon the policyholder’s death during the policy term, provided no premium is due. Two conditions determine the benefit quantum:
A specified percentage of the BSA or the Basic Sum Assured is paid to the policyholder upon the survival of specified periods in specific policy terms as described below:
The policyholder receives the benefit amounting to the Sum assured plus the accrued guarantee and loyalty addition upon survival until the policy term’s completion. The percentage of BSA paid is:
It is paid if the policyholder is diagnosed with any of the listed critical illnesses, and the policy is in force with no premium due.
The following rider benefits are optional upon payment of additional premium.
Such insurance plans are covered under the extant tax laws as and when imposed by the GOI.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply.
The premium under the LIC Jeevan Shiromani Policy can be paid in Annual, Semi-Annual, Quarterly, and Monthly rests. For the last frequency, only NACH and salary deduction is the permitted mode. As already discussed earlier, the policyholder must pay the premium for a limited period in the LIC Jeevan Shiromani Plan. The following is illustrative.
The illustrative annualized premium amount is described below when the policyholder’s age is 20 years (nearer birthday) for a BSA of Rs. 1 Crore:
The following standard documents are essential to purchase the LIC Jeevan Shiromani Policy:
The easiest option to buy the LIC Jeevan Shiromani Policy is online, though the traditional model is also open. The advantage of the online mode of purchase is its convenience and 24/7 availability. The entire buying process is accomplished in a few steps, with minor variations here and there.
Step 1: In the first step, the buy online at the official LIC portal or any aggregator of choice is invoked.
Step 2: The initial inputs are personal, comprising name, gender, date of birth, address, phone number, and email ID for communication. Specific other information relating to smoking and drinking is also sought.
Step 3: Select the financial parameters and upload scanned document copies for a premium quote.
Step 4: In the next step, the quote is accepted, and the requisite premium is paid online to complete the process.
Step 5: Wait for the LIC Jeevan Shiromani Plan document receipt at your registered address.
While buying the LIC Jeevan Shiromani Policy, it is essential to check out the list of exclusions. Any failure to absorb its implications may severely mar the claim settlement experience. The indicative list of exclusions about the cover directly or indirectly impacting the claim process is tabulated below for easy comprehension.
*For more information about exclusions, please refer to the plan brochure or the policy document.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
The profit participation mechanism in the LIC Jeevan Shiromani Policy is through the Loyalty addition route. However, the eligibility norm for it is 5 years minimum policy life coupled with the premium fully paid for a like period.
The policyholder can request deferment of survival benefit at any time on or after the due date but within the policy term. If not taken during the policy’s currency, it is paid on termination with due accrued benefits. Similarly, by invoking the Settlement Option, the policyholder can defer the Maturity Benefit payment.
The policyholder can choose to receive the Maturity Benefit in installments spread over 5, 10, or 15 years, both for the matured and paid-up policy, instead of the usual lump-sum payment. The policyholder is free to opt for payment frequency, which can be yearly, half-yearly, quarterly, or monthly. The policyholder is also free to withdraw from the Settlement Option and commute the amount upon a written request.
If the policyholder commits suicide in the first 12 months after the risk commencement date, no claim other than 80% of the total premium is paid to the nominee, provided the policy is in force. Likewise, a surrendered policy is settled similarly.
Usually, a policy is renewed before the policy anniversary date. However, the policyholder can renew the policy within 30 days from the due date for all premium payment frequencies, other than the monthly frequency. Only 15 days is the permissible grace period.
The policyholder can avail of a loan against the policy after one year of its life, and the premium for a similar period is paid. The maximum loan quantum is 90% of the surrender value in the case of in-force policies and 80% if the policy is paid up.
The Guaranteed Additions in the policy accrues at Rs.50 per thousand BSA for the first five years, followed by Rs.55 per thousand BSA from the sixth year onwards till the end of the policy paying term.