LIC Jeevan Shiromani
Jeevan Shiromani plan (Plan No. 947, UIN No. 512N315V02) by LIC (Life Corporation of India) offers a perfect culmination of protection and savings to the policyholder looking after financial security for his/her family. This non-linked, participating, individual, life assurance savings plan is specifically designed for individuals with high earnings annually. One of the prime reasons for the popularity of the plan is that in case of the user’ death during the period of the policy, you will get financial assistance in the form of a sum assured.
If the policyholder, on the other hand, survives at specified durations of the policy, then periodic payments shall be made. Also, on the date of the maturity, a lump sum payment to the policyholder shall be paid. Also, the plan offers a total amount of the payment equal to 10% of the selected minimum sum assured in case the user is diagnosed with any aforementioned critical illness. The reason behind the popularity of the plan is that it takes care of liquidity needs through a loan facility.
Here’s the eligibility criteria for the Jeevan Shiromani plan:
|Minimum Years||18 Years (Completed)|
55 years (nearer birthday) for the policy term 14 years
51 years (nearer birthday) for policy term 16 years
48 years (nearer birthday) for the policy term 18 years
45 years (nearest birthday) for the policy term 20 years
|Premium Paying Term||(Policy term – 4) years|
|Policy Term||14, 16, 18 and 20 years|
|Minimum Basic Sum Assured||Rs. 1,00,00,000|
|Maximum Basic Sum Assured|
(The Basic Sum Assured shall be in multiples of Rs. 5,00,000/-)
|Maximum Age at Maturity|
69 years (nearer birthday) for the policy term- 14 years
67 years (nearer birthday) for policy term-16 years
66 years (nearer birthday) for policy term-18 years
65 years (nearer birthday) for the policy term- 20 years
Features & Benefits of LIC Jeevan Shiromani
LIC Jeevan Shiromani offers a multitude of features and benefits to the policyholder that makes it one of the best insurance plans to consider for financial protection. Let’s discuss them in detail!
1. Death Benefit:
This is the biggest benefit that is offered by the policy in case of the death of the policyholder.
The term assures that if you, unfortunately, die during the first five years, then you are entitled to receive “Sum Assured on death” along with the cumulative guaranteed and loyalty addition.
For those who don’t know, the “Sum Assured on Death” simply means that 125% of the minimum sum is assured or 7X the annualized premium. The benefit of the death shall be equal to 105% of the total of all the premiums that have been paid until the death date.
2. Survival Benefit:
If the person who owns the policy lives for a particular time during the policy term, then a specific proportion of the Basic Sum Assured will be paid. But at the same time, there is a condition that all the due premiums should have been paid. Here’s the fixed percentage for different periods of the policy:
|Policy Period||Basic Sum Assured on each of the policy period|
|14 years||30% on 10th and 12th policy anniversaries|
|16 years||35% on 12th and 14th policy anniversaries|
|18 years||40% on 14th and 16th policy anniversaries|
|20 years||45% on 16th and 18th policy anniversaries|
3. Grace Period:
Another benefit that comes into existence is the grace period. Right after the date of the first premium that is unpaid, the policyholder will be granted a grace period of 30 days for yearly, half-yearly, or quarterly premiums and 15 days for monthly premiums. According to the conditions of the policy, the policy will be regarded in force, with the risk cover continuing uninterrupted (during the period of the policy).
It is important for policyholders to note that if the premium is not paid at the specified time, then the policy will lapse before the termination of a grace period. In addition to the minimum payment of the policy, the above-mentioned grace period will be applied to the rider premium.
4. Paid-up Policy:
It is often regarded as both the feature and benefit of LIC Jeevan Shiromani. It states that all the potential advantages of the policy will come to an end if the grace period expires from the date of the first unpaid premium or the premium payment of less than 1 year is paid.
If the policy is not void after at least premium payment of 1 full year has been paid, the policy will remain as a paid-up policy until the completion of the period of the policy. The Sum Assured on Death is lowered in a paid-up policy to a sum known as the ‘Death Paid-up Sum Assured,’ which is equal to the Total Assured on Death computed by multiplying the complete period for which premiums have already been paid by the total term of the policy.
Though the benefit is common among other policies of LIC, it is incredibly important if the policyholder is not satisfied with the general terms and conditions of the policy.
But there are certain conditions that should be met!
Just after one year of policy has passed and the payment of a premium of 1 full year, the insurance can be surrendered at the convenience of the user. Once you have successfully surrendered the policy, then the corporation will pay you the surrender value amount which is undoubtedly more than the special surrender value and guaranteed surrender value.
Note: Always remember that the value of special surrender is liable to modifications and can be adjusted by the company at any time without any prior notice.
6. Loan Against Policy:
As long as at least one full year’s premiums have been paid, the loan can be availed anytime as per the convenience of the user. Also, there’s another condition that one policy year should be successfully passed which is even subject to the respective circumstances laid out by Corporation.
The higher amount of the loan (depicted as a percentage of the amount of the surrender value), includes up to 90% (for enforcing policies) and 80% (for complete payment of plans).
The rate of interest that needs to be charged for the loan of the policy and valid for the complete term of the loan will be determined. But the right amount is always set by the LIC by utilizing the IRDAI-approved process.
7. Free Look Period:
This is the biggest feature and benefit that would help a policyholder to consider!
If the Policyholder has a problem with the policy’s terms and conditions, he or she has the right to return it to the Company within 15 days of receiving the policy bond. Also, the user must state the reason for doing so.
The Corporation shall cancel the policy and reimburse the amount of premium deposited after deducting the proportionate risk premium for the duration of cover, amount of medical examination, special reports, if any, and stamp duty charges.
8. Flexible Payment of Premiums:
This could be the biggest benefit for any policyholder that he/she always wanted while choosing the policy. It allows the user to make the payment for premium on either a monthly basis, quarterly, half-yearly, or yearly basis.
9. Guaranteed Additions:
During the Premium Paying Term (PPT), Guaranteed Additions will accrue after each policy year if all required premiums have been paid to date. In the case of a paid-up policy or on surrender of a policy, the Guaranteed Addition for the policy year in which the last premium is received will be added proportionately in proportion to the premium received for that year.
10. Maturity Benefit:
If the life assured lives to the end of the period of the policy and all required premiums have been paid, the “Sum Assured on Maturity” will be paid. And not only this, the accrued Guaranteed Additions and Loyalty Addition shall also be paid.
Let’s take a look at the sum assured on maturity:
|Policy Term||Basic Sum Assured|
|14 years||40% of Basic Sum Assured for policy|
|16 Years||30% of Basic Sum Assured|
|18 Years||20% of Basic Sum assured|
|20 Years||10% of Basic Sum assured|
15 Critical Illness Covered Under the Policy
Here’s the list of the 15 critical illnesses covered under LIC Jeevan Shiromani policy.
- Cancer of Particular Severity
- Open Chest Bag
- Myocardial Infraction
- Kidney Failure Requiring Regular Dialysis
- Major Organ/Bone Marrow Transplant
- Stroke resulting in permanent symptoms
- Complete Limb Paralysis:
- Multiple Sclerosis with Persisting Symptoms
- Aortic Surgery
- Pulmonary Hypertension
- Alzheimer Disease
- Burns (Third-Degree)
- Open Heart Replacement
- Benign Brain Tumor
What are the Exclusions of the LIC Jeevan Shiromani?
If a critical illness occurs as a direct or indirect result of any of the following, the Corporation is not obligated to pay any of the benefits under the Inbuilt Critical Illnesses Benefit:
- If the death occurs within 30 days of diagnosis with any of the critical disease conditions described above.
- Any sickness condition connected to one of the serious illnesses specified above that appears within 3 months of the start of risk coverage or the resurrection of risk coverage.
- Self-inflicted harm or attempted suicide on a global scale, regardless of mental state.
- Abuse of alcohol or solvents, or the use of pharmaceuticals unless under the supervision of a licenced physician.
- Invasion, hostilities, civil war, rebellion, revolution, or participation in a riot or civil commotion.
- Unable to follow medical advice (i.e., failure to perform tests or treatments that an individual would typically complete as directed by a Medical Practitioner).
- Participating in any criminal activity.
- Any medical conditions that you have had in the past.
- HIV or AIDS
- Contamination with radioactive materials as a result of a nuclear accident.
Premium Structure of LIC Jeevan Shiromani
Let’s take an example to know the right premium of the policy of different age groups for Basic Sum Assured of Rs 1 crore. Let’s discuss them in detail!
|Policy Term (Premium Payment Term)||Policy Term (Premium Payment Term)||Policy Term (Premium Payment Term)||Policy Term (Premium Payment Term)|
|Age (In Years)||14 (10)||16 (12)||18 (14)||20 (16)|
How to Buy LIC Jeevan Shiromani Without Any Hassle?
If you prefer to buy the “LIC Jeevan Shiromani” policy in person, go to your nearby LIC branch. Make sure you bring all your necessary documents along with you to buy the LIC Jeevan Shiromani without any hassle. You can even contact them at +91-022 6827 6827 to get more information.
Alternatively, if you continue to have issues, you can contact Probus Insurance for assistance.
Documents Required to Buy the Policy
The following are the documents that are needed to purchase the LIC Jeevan Shiromani:
- Date of Birth Proof
- ID Proof
- Latest Photograph
- Your Bank Account Details
Frequently Asked Questions
Here are the frequently asked questions related to LIC Jeevan Shiromani.
1. Can I cancel my LIC Jeevan Shiromani Plan immediately after taking it?
Yes, any policyholder who is dissatisfied with the Jeevan Shiromani Insurance’s terms and conditions can terminate the policy within the free-look time. To terminate a policy within the free-look period, policyholders must return it to LIC with the true cause for cancellation. Following receipt of such a request, the corporation will deposit the money in the bank account after subtracting certain charges.
2. Who should buy the LIC Jeevan Shiromani plan?
A LIC Jeevan Shiromani plan is best suited for individuals with high net worth seeking liquidity through loan service, lone earners looking to protect their families in the event of their death, and persons looking for effective and secure returns.
3. How many riders are available under the LIC Jeevan Shiromani Plan?
The Accidental Death and Disability Benefit Rider, the Accident Benefit Rider, the LICs New Term Assurance Rider, and the LICs New Critical Illness Benefit Rider are all included in the LICs Jeevan Shiromani plan.
4. What if the user commits suicide within just 12 months after taking the policy?
The nominee receives only 80% of the total premium, as long as the policy is in force if the policyholder commits suicide within the first 12 months of the risk starting date.