Investment Plans 527 views July 31, 2020

LIC Jeevan Shiromani Plan

Insurance plans have become a necessity for many individuals because it not only gives you a life cover but has a bunch of benefits. Therefore, most of the individuals prefer insurance plans rather than investing in markets or any other instruments. So, you can explore the LIC Jeevan Shiromani Plan that includes death benefits, survival benefits, and maturity benefits. On the other hand, if you are diagnosed with a critical illness during the policy term then it will be also covered in this plan. You can explore the key features of this plan and it is especially meant for high net-worth individuals who want to support their families.

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Key Features of Jeevan Shiromani Plan

  1. There is no limit for the maximum sum assured in this policy.
  2. The insured will enjoy the maturity benefits and survival benefits in this policy.
  3. You will also get a life cover in this plan.
  4. Some Critical illnesses are also covered in this insurance plan.
  5. The company gives you a grace period if you are unable to pay the premium on time.
  6. Flexibility of choosing the Policy Term and the Sum Assured.
  7. Get Tax benefits in this plan

Benefits of Jeevan Shiromani Plan

You must take a look at the exclusive benefits of this plan and see how it can be helpful for you. This plan includes various benefits like death benefits, survival benefits, and maturity benefits.

Death Benefits

  1. The nominee is entitled to receive the death benefit on the unfortunate death of the insured and it will be as follows:-
  2. The nominee will receive Sum Assured on Death and the Guaranteed Additions if the insured dies during the first five policy years.
  3. The nominee will receive Sum Assured on Death, Loyalty Additions, and the Guaranteed Additions if the insured dies after five policy years.
  4. The Sum Assured on death will be the highest of the following:-
  5. 125% of the Basic Sum Assured
  6. 7 Times of the Annualized Premium
  7. The death benefit will never be less than 105% of all premiums paid up to the time of death.

Survival Benefits

There are certain time periods defined by the company on which you will receive a percentage of the sum assured as the survival benefit for different policy terms. You can take a look at the percentages in the table given below. Survival benefits will only be paid if you have paid all the premiums due until the date when the benefit is due.

Policy TermPercentage of Sum AssuredPolicy Anniversary Year
Policy Term for 14 Years30% of the Basic Sum Assured10th and 12th Policy Anniversary
Policy Term for 16 Years35% of the Basic Sum Assured12th and 14th Policy Anniversary
Policy Term for 18 Years40% of the Basic Sum Assured14th and 16th Policy Anniversary
Policy Term for 20 Years45% of the Basic Sum Assured16th and 18th Policy Anniversary

Maturity Benefits

You will receive maturity benefits once the policy term is over along with the Guaranteed Additions and the Loyalty Additions. The Sum Assured on maturity will be as follows:-

Policy TermPercentage of the Sum Assured
Policy Term for 14 Years40% of the Basic Sum Assured
Policy Term for 16 Years30% of the Basic Sum Assured
Policy Term for 18 Years20% of the Basic Sum Assured
Policy Term for 20 Years10% of the Basic Sum Assured

Critical Illness Benefits

In the LIC Jeevan Shiromani Plan, the company will give you 10% of the Sum Assured if you are diagnosed with a critical illness. The critical illnesses covered in this plan are as follows:-

  1. Cancer of Specified Severity
  2. Open Chest CABG
  3. Myocardial Infarction
  4. Kidney Failure Requiring Regular Dialysis
  5. Major Organ or Bone Marrow Transplant
  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 or Dementia
  12. Blindness
  13. Third Degree Burns
  14. Open Heart Replacement or Repair of Heart Valves
  15. Benign Brain Tumor

Guaranteed Addition Benefits

The company will make some guaranteed additions to your overall benefit and it will be payable as follows:-

  1. Rs.50 per thousand of the Basic Sum Assured for the first 5 Years.
  2. Rs.55 per thousand of the Basic Sum Assured from the 6th policy year until the expiry of the premium paying term.

Add Riders

You can also add riders to this plan to cover some more risks. So, the riders options available in the Jeevan Shiromani Plan are as follows:-

  1. Accidental Death and Disability Benefit Rider
  2. Accident Benefit Rider
  3. New Term Assurance Rider
  4. New Critical Illness Benefit Rider

Various Modes for Paying the Premium

The company gives you different payment frequency modes for paying the premium and they are available on a yearly, half-yearly, quarterly, and monthly basis. You can pay the amount of premium through NACH Facility in which it will deduct the premium amount automatically from your account on the due date.

Surrender Benefits

You can surrender this policy and take the surrender value in case of an emergency. But you’ll only get the surrender benefits if you have paid all the premiums for one year without missing any premium. You will get the highest of the following:-

  1. Guaranteed Surrender Value
  2. Special Surrender Value

Loan Against Policy

You can take a loan against the policy from the company if you don’t want to surrender it. But you are allowed to take a loan against the policy only if your policy has acquired a surrender value. LIC will charge the applicable interest on the loan borrowed against the policy. If the loan is taken during the premium paying term then the maximum loan amount will be:-

  1. Up to 90% in the case of inforce policies
  2. Up to 80% in the case of paid-up policies

Free-Look Period

You will get a free-look period of 15 days in this plan and it means that you can return the policy within 15 days if you don’t find it interesting. If you have purchased the policy online then you will get a grace period of 30 days.

Eligibility Criteria for LIC Jeevan Shiromani Plan

ParticularsDetails
Minimum Age of Entry18 Years
Maximum Age of Entry55 Years
Maximum Age of Maturity69 Years
Premium Paying TermPolicy Term Minus 4 Years
Minimum Amount of the Sum AssuredRs.1 Crore
Maximum Amount of the Sum AssuredNo Limit
Policy Term14 Years, 16 Years, 18 Years, and 20 Years

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