- Date : 21/10/2022
- Read: 4 mins
A look at the features and eligibility of LIC Jeevan Shiromani Policy
With policies designed for citizens from all walks of life, the Government of India’s insurance major Life Insurance Corporation has a high investment, high return policy for High Net-worth Individuals. The Jeevan Shiromani Policy has a basic sum assured of Rs 1 crore and is a money-back life assurance plan. This LIC policy offers death benefits, and benefits on maturity, survival and specified critical illnesses.
It also offers additional rider benefits for accidental death and disability, accident benefit, term assurance and a critical illness rider.
The Rs 1 crore in 4 years proposition
For the basic sum assured of Rs 1 crore, the policyholder needs to pay a premium for four years only. The monthly premium for this assured amount is approximately Rs 94,000 per month. This will amount to a total premium paid of over Rs 45 lakhs. The sum assured is paid at the end of the policy period or in the event of death. LIC Jeevan Shiromani policy has four term options of 14, 16, 18 and 20 years. It is important to know the benefits of Rs. 1 crore in 4 years is paid in part during the policy term.
Let us look at the key features of the LIC Jeevan Shiromani policy,
- The minimum sum assured is Rs 1 crore, which can be increased in multiples of Rs 5 lakhs,
- The sum assured for death benefit during the first five years comprises the death sum assured and accrued Guaranteed Additions. Between five years and the date of maturity, it will also include Loyalty Addition.
- Death sum assured is the higher of 7 times of annualised premium or 1.25 times the basic sum assured. It must not be below 105% of all premiums paid up to the date of death.
- Survival benefit is a fixed basic sum assured percentage paid –
- For a 14-year term - 30% of the basic sum assured on the 10th and 12th policy year
- For a 16-year term - 35% of the basic sum assured on the 12th and 14th policy year
- For a 16-year term - 40% of the basic sum assured on the 14th and 16th policy year
- For a 20-year term - 45% of the basic sum assured on the 16th and 18th policy year
- LIC policy benefits on maturity – The sum assured paid on maturity is 40% for a 14-year term, 30% for a 16-year term, 20% for an 18-year term, and 10% for a 20-year term. It includes guaranteed additions and loyalty additions if any.
- Optional rider benefits are available for 15 specified inbuilt critical illnesses if diagnosed while the policy is active. The benefits include critical illness benefits amounting to 10% of the basic sum assured in lump sums, the option to defer premium payment if the claim is paid under the inbuilt critical illness benefit, and the facility of a medical second opinion as per LIC’s arrangement or empanelment with healthcare providers.
- Policy loan – The policyholder can apply for a loan under this LIC policy upon completion of one policy year. This is subject to conditions and is available only when at least one full year’s premium has been paid.
Eligibility for LIC Jeevan Shiromani policy
The following are the eligibility criteria for purchasing this policy,
- The policyholder must have completed 18 years at the time of entry,
- At the time of entry, the policyholder must not be more than –
- 55 years for the 14-year policy term
- 51 years for the 16-year policy term
- 48 years for the 18-year policy term
- 45 years for the 20-year policy term
- At the time of maturity, the policyholder must not be more than –
- 69 years for the 14-year policy term
- 67 years for the 16-year policy term
- 66 years for the 18-year policy term
- 65 years for the 20-year policy term
- There is no limit on the maximum sum assured.
LIC is an Indian statutory insurance company that has built its legacy over the years, based on the sovereign-backed guarantee. Besides, LIC policy benefits include profit and bonus additions that make it a lucrative option for long-term investors.