LIC Jeevan Shiromani

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.

5. Surrender:

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: