LIC Jeevan Shiromani Plan:
LIC Jeevan Shiromani Plan (Table No. 847) is a new money back plan launched by LIC on 19th December 2017. It is a non-linked, limited premium payment money back plan. It is a with-profits participating plan. This plan is specially designed for HNIs (High Networth Individuals).
It provides a life insurance cover, payouts at regular intervals during the policy term and a lump sum amount on maturity. This plan also provides cover for critical illnesses and has 3 optional riders.
It provides a life insurance cover, payouts at regular intervals during the policy term and a lump sum amount on maturity. This plan also provides cover for critical illnesses and has 3 optional riders.
LIC Jeevan Shiromani Plan (847) Details:
LIC Jeevan Shiromani is a non-linked money back plan, especially for high income group with the minimum sum, assured 1 Crore. This plan comes with a guaranteed addition at the rated of Rs. 50 per thousand of basic sum assured for first 5 policy years and Rs 55 per thousand of sum assured from sixth policy year till the year of last premium payment. Available premium payment terms in this plan are 10, 12, 14 and 16 years with 14, 16, 18 and 20 years as maturity term respectively. Apart from Inbuilt critical illness rider which provides benefits against 15 critical illnesses like cancer and kidney failure, it has the option to opt riders like Accidental Death & Disability Benefit (AD & DB), Critical Illness Rider, Accidental Benefit riders, Term Assurance rider. This plan has been explained with the help of an example in later part of this article.
Key Features:
- Guaranteed Additions during premium payment term.
- Critical Illness benefits against 15 diseases.
- Availability of Accidental Death & Disability Benefit (AD & DB), Term Assurance riders.
- Paid premiums are exempted from income tax under 80C.
- Tax-free Money Backs and Maturity.
Plan Parameters
| Age at Entry | 18 years (Completed) Calculate your Age |
|---|---|
| Policy Term (Premium Paying Term) | 14(10), 16(12), 18(14), 20(16) |
| Maximum Age at Entry in Years) (As per Nearest Birthday) | |
| 55 Years for 14 Year Term | |
| 51 Years for 16 Year Term | |
| 48 Years for 18 Year Term | |
| 45 Years for 20 Year Term | |
| Basic Sum Assured | 1,00,00,000 and above in multiples of 5,00,000 |
| Premium Paying Mode | Yearly, Half Yearly, Quarterly & Monthly (SSS and NACH Only) |
| Premium Payment Mode rebate | 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly |
Money Back and Maturity:
The plan provides Guaranteed additions (GAs) at the rate Rs 50 per thousand of Sum Assured for first 5 policy years and Rs. 55 per thousand of sum assured from 6th year till the year of last premium payment and one-time loyalty addition on maturity. During the policy term, this plan provides two fixed money backs (as the certain percentage of Sum Assured) and on completion of the policy term, maturity will be Sum Assured + Guaranteed additions (GAs) + Loyalty Addition (LA). Following table provides money backs and maturity details of all term available in this plan.
| Policy Term (Years) | 1st Money Back | 2nd Money Back | Maturity Details (on completion of policy term) |
|---|---|---|---|
| 14 | 30% of SA at end of the 10th policy year | 30% of SA at end of the 12th policy year | 40% of SA + GAs + LA |
| 16 | 35% of SA at end of the 12th policy year | 35% of SA at end of the 14th policy year | 30% of SA + GAs + LA |
| 18 | 40% of SA at end of the 14th policy year | 40% of SA at end of the 16th policy year | 20% of SA + GAs + LA |
| 20 | 45% of SA at end of the 16th policy year | 45% of SA at end of the 18th policy year | 10% of SA + GAs + LA |
In the above table, SA is Basic Sum Assured or simply Sum Assured
Risk Cover and Death Benefit:
In case of death during first 5 years of policy, the death claim will be 125 % of Basic Sum Assured + Guaranteed Addition (GAs) at the rate of Rs 50 per thousand of Sum Assured per year.
In case of death after completion of 5 policy years and before maturity, the death claim will be 125 % of Basic Sum Assured + Guaranteed Addition (GAs) at the rate of Rs 55 per thousand of Sum Assured per year (up to the policy year of last premium payment) + Loyalty Addition (LA).
LIC Jeevan Shiromani Policy Benefits:
LIC Jeevan Shiromani provides the following benefits:
- Death Benefit
- Survival Benefit
- Maturity Benefit
- Critical Illness Benefit
Let us understand these benefits better. We will also share an example of each of these benefits.
Death Benefit in LIC Jeevan Shiromani
Death Benefit in LIC Jeevan Shiromani
- If Death happens during the first 5 years of policy period - Sum Assured on death + Guaranteed Additions.
- If Death happens from 6th year to policy maturity date - Sum Assured on death + Guaranteed Addition + Loyalty Additions.
For the first 5 years, Guaranteed Additions in LIC Jeevan Shiromani will be at Rs. 50 per Rs.1,000 Sum Assured and from 6th year onward it will be Rs. 55 per Rs.1,000 Sum Assured every year.
Loyalty Additions in LIC Jeevan Shiromani will be as declared by LIC. There is no way to know this in advance.
Sum Assured on Death in LIC Jeevan Shiromani is defined as HIGHER of the following:
Loyalty Additions in LIC Jeevan Shiromani will be as declared by LIC. There is no way to know this in advance.
Sum Assured on Death in LIC Jeevan Shiromani is defined as HIGHER of the following:
- 10 times of your annualized premium (excluding taxes and the extra amount due to underwriter decisions or rider premium)
- 125% of Basic Sum Assured
- Sum Assured on Maturity
The Sum Assured on Maturity in LIC Jeevan Shiromani depends on the policy term and is as follows:
- For 14 Yrs Policy - 40% of Basic Sum Assured
- For 16 Yrs Policy - 30% of Basic Sum Assured
- For 18 Yrs Policy - 20% of Basic Sum Assured
- For 20 Yrs Policy - 10% of Basic Sum Assured
The Death Benefit shall never be less than 105% of all premiums paid. The premium here does not include the taxes or rider premiums or increase in premium on account of underwriting decisions.
Survival Benefit in LIC Jeevan Shiromani Plan
If policyholder survives each of the specified duration during the policy term, a fixed % of Basic Sum Assured will be payable. This fixed % is as below:
Survival Benefit in LIC Jeevan Shiromani Plan
If policyholder survives each of the specified duration during the policy term, a fixed % of Basic Sum Assured will be payable. This fixed % is as below:
- For 14 Yrs Policy - 30% of Basic Sum Assured on the 10th and 12th policy anniversary.
- For 16 Yrs Policy - 35% of Basic Sum Assured on the 12th and 14th policy anniversary.
- For 18 Yrs Policy - 40% of Basic Sum Assured on the 14th and 16th policy anniversary.
- For 20 Yrs Policy - 45% of Basic Sum Assured on the 16th and 18th policy anniversary.
Maturity Benefit in LIC Jeevan Shiromani
If policyholder survives till the end of the policy term, then he will receive the below benefits in addition to the Survival Benefits mentioned above.
- For 14 Yrs Policy - 40% of Basic Sum Assured + Guaranteed Addition + Loyalty Additions.
- For 16 Yrs Policy - 30% of Basic Sum Assured+Guaranteed Addition + Loyalty Additions.
- For 18 Yrs Policy - 20% of Basic Sum Assured+Guaranteed Addition + Loyalty Additions.
- For 20 Yrs Policy - 10% of Basic Sum Assured+Guaranteed Addition + Loyalty Additions.
For the first 5 years, Guaranteed Additions in LIC Jeevan Shiromani will be at Rs.50 per Rs.1,000 Sum Assured and from 6th year onward it will be Rs.55 per Rs.1,000 Sum Assured every year.
Loyalty Additions in LIC Jeevan Shiromani will be as declared by LIC. There is no way to know this in advance.
Loyalty Additions in LIC Jeevan Shiromani will be as declared by LIC. There is no way to know this in advance.
Critical Illness Benefit in LIC Jeevan Shiromani
This plan also provides a critical illness benefit. On the first diagnosis of any one of the 15 Critical Illnesses mentioned below, the following benefits will be provided:
Lump Sum Benefit – 10% of Basic Sum Assured will be payable subject to the following:
This plan also provides a critical illness benefit. On the first diagnosis of any one of the 15 Critical Illnesses mentioned below, the following benefits will be provided:
Lump Sum Benefit – 10% of Basic Sum Assured will be payable subject to the following:
- LIC is satisfied with the reports with specific deferment period (in respect to specific diseases). The benefit will be payable only once during the policy period.
- A Survival period of 30 days is applicable from the date of diagnosis of critical illness. If death occurs during the 30 days period, then no critical illness benefit will be payable.
- A waiting period of 90 days will apply from the date of commencement of risk or date of revival of risk (whichever is later). However, such a waiting period is not applicable for accidental cases.
Option to defer the payment of premiums if there is a critical illness claim - If LIC accepts the critical illness claim, then you can defer the premiums for the next two years. LIC will not charge any interest on such delayed payment. However, if there are a survival benefit dues to be payable to policyholder during this 2 years period, then LIC will pay the survival benefit by DEDUCTING the premiums which are due. The deferred premiums will have to be paid after 2 years. All future premiums will have to be paid as per schedule.
Medical Second Opinion – Under this benefit, the policyholder has an option to take the second opinion from the LIC empaneled healthcare providers or through reputed hospitals in India based on the arrangement made by LIC. This facility is available only once during the policy period, for which you no need to pay the cost and then reimburse the expense.
Some restrictions which apply to the In-built Critical Illness benefit in the Jeevan Shiromani Plan:
Medical Second Opinion – Under this benefit, the policyholder has an option to take the second opinion from the LIC empaneled healthcare providers or through reputed hospitals in India based on the arrangement made by LIC. This facility is available only once during the policy period, for which you no need to pay the cost and then reimburse the expense.
Some restrictions which apply to the In-built Critical Illness benefit in the Jeevan Shiromani Plan:
- In some cases, a deferment period may apply to establish the permanence of the illness.
- In paid-up policies, only a proportional benefit amount will be paid.
- Waiting Period - There is a waiting period of 90 days from the Date of Commencement of Risk for the In-built Critical Illness Benefit. In case the policyholder is diagnosed with a critical illness within 90 days, the benefits will not be available in the plan at all. This waiting period also applies in the case of policy revival - 90 days from the date of policy being revived. This waiting period does not apply to a condition caused due to an accident.
- Survival Period - If the death of the policyholder occurs within 30 days of diagnosis of the listed critical illness, no benefit is payable.
- Benefits will not be paid in case of critical illnesses due to the following situations:
- Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition.
- Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practitioner.
- War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion.
- Taking part in any act of a criminal nature.
- Any Pre-existing medical condition.
- HIV or AIDS
- Failure to seek medical or follow medical advice (i.e. failure to undergo tests or treatments that a prudent person would normally undergo as recommended by a Medical Practitioner.
- Radioactive contamination due to nuclear accident.
List of Critical Illnesses covered in Jeevan Shiromani for which the above-mentioned benefits are provided are as follows:
- Cancer of specified severity
- Open chest CABG
- Myocardial infarction
- Kidney failure requiring regular dialysis
- Major organ/bone marrow transplant (as the recipient)
- Stroke resulting in permanent symptoms
- Permanent paralysis of limbs
- Multiple sclerosis with persisting symptoms
- Aortic Surgery
- Primary (idiopathic) pulmonary hypertension
- Alzheimer’s disease/dementia
- Blindness
- Third-degree burns
- Open heart replacement or repair of heart valves
- Benign brain tumor
Click for a more detailed description of List of Critical Illnesses covered in LIC Jeevan Shiromani Plan.
Other Features & Conditions in LIC Jeevan Shiromani Plan:
Loyalty Additions - Since this is a participating plan, the policyholder will receive benefits in the form of Loyalty additions provided 5 years of premiums have been paid. This is paid on Maturity of the plan or in case of death of the policyholder. The amount would depend on the performance of the company will only be known when it is declared. For paid-up policies, the Loyalty additions would be based on the number of years that the premiums have been paid. In case the plan is surrendered, loyalty additions would be based on the number of years that the premium was paid.
Optional Riders - you have the option of selecting any of the 3 riders mentioned below by paying an extra premium.
Optional Riders - you have the option of selecting any of the 3 riders mentioned below by paying an extra premium.
- Accident Death and Disability Benefit Rider
- Accident Benefit Rider
- New Term Assurance Rider
Option to Defer the Survival Benefits - The policyholder may choose to not take the Survival Benefits during the policy term. It can be taken when the policy is terminated, either at Maturity or in case of death of the policyholder. In such a scenario, the amount would earn an interest. The interest rate will be the “Yield corresponding to the 5-year G-Sec rate minus 150 basis points” as on 31st March preceding the date of exercise of the deferment option. You will need to intimate LIC in writing in case you wish to avail this option.
Option to take Maturity Benefit in Instalment - Instead of taking the Maturity Benefits in the lump sum, you can choose to take it in installments over a period of 5, 10 or 15 years. The installments could be monthly, quarterly, half-yearly or yearly. You can choose to take a part of the maturity benefit in installments. You will be eligible for an interest rate if you exercise this option - the interest rate would be communicated by LIC from time to time. In case you. wish to avail this option, you will have to intimate LIC at least 3 months before the date of maturity of the policy. Note - After Maturity, in case the policyholder who has chosen this option dies, the payout will continue to be paid in installments. It cannot be changed by the nominee.
Option to take Death Benefit in Instalment - Instead of taking the Death Benefits in the lump sum, the nominee can choose to take it in installments over a period of 5, 10 or 15 years. The installments could be monthly, quarterly, half-yearly or yearly. You can choose to take a part of the maturity benefit in installments. You will be eligible for an interest rate if you exercise this option - the interest rate would be communicated by LIC from time to time. In case you wish to avail this option, you will have to intimate LIC at least 3 months before the date of maturity of the policy. Note - In case the policyholder who has chosen this option dies, the payout will continue to be paid in installments. It cannot be changed by the nominee.
Paid Up Value - The Jeevan Shiromani policy acquires a Paid-up value in the case at least one full year’s premiums have been paid.
Option to take Maturity Benefit in Instalment - Instead of taking the Maturity Benefits in the lump sum, you can choose to take it in installments over a period of 5, 10 or 15 years. The installments could be monthly, quarterly, half-yearly or yearly. You can choose to take a part of the maturity benefit in installments. You will be eligible for an interest rate if you exercise this option - the interest rate would be communicated by LIC from time to time. In case you. wish to avail this option, you will have to intimate LIC at least 3 months before the date of maturity of the policy. Note - After Maturity, in case the policyholder who has chosen this option dies, the payout will continue to be paid in installments. It cannot be changed by the nominee.
Option to take Death Benefit in Instalment - Instead of taking the Death Benefits in the lump sum, the nominee can choose to take it in installments over a period of 5, 10 or 15 years. The installments could be monthly, quarterly, half-yearly or yearly. You can choose to take a part of the maturity benefit in installments. You will be eligible for an interest rate if you exercise this option - the interest rate would be communicated by LIC from time to time. In case you wish to avail this option, you will have to intimate LIC at least 3 months before the date of maturity of the policy. Note - In case the policyholder who has chosen this option dies, the payout will continue to be paid in installments. It cannot be changed by the nominee.
Paid Up Value - The Jeevan Shiromani policy acquires a Paid-up value in the case at least one full year’s premiums have been paid.
Paid-Up Sum Assured on Death = (Sum Assured on Death) x Number of premiums paid the / Total number of premiums payable. Any Guaranteed Additions and Loyalty Additions which have accrued till the time the premiums were being paid will also be payable.
Paid-Up Sum Assured on Maturity = (Sum Assured on Maturity) x Number of premiums paid the / Total number of premiums payable. Any Guaranteed Additions and Loyalty Additions which have accrued till the time the premiums were being paid will also be payable.
Paid-Up Survival Benefit = (Survival Benefit Payable) x Number of premiums paid / Total number of premiums payable.
Critical Illness Benefit = (10% of Sum Assured) x Number of premiums paid the / Total number of premiums payable.
Paid-Up Sum Assured on Maturity = (Sum Assured on Maturity) x Number of premiums paid the / Total number of premiums payable. Any Guaranteed Additions and Loyalty Additions which have accrued till the time the premiums were being paid will also be payable.
Paid-Up Survival Benefit = (Survival Benefit Payable) x Number of premiums paid / Total number of premiums payable.
Critical Illness Benefit = (10% of Sum Assured) x Number of premiums paid the / Total number of premiums payable.
Riders shall not acquire any Paid-up benefit.
Surrender Value in Jeevan Shiromani - The policy will have a Guaranteed Surrender Valueonce 1 year’s premiums have been paid. The Guaranteed Surrender Value is a % of the premiums paid minus any survival benefits which have been paid to the policyholder. The premiums paid here do not include any rider premiums, taxes or increase in base premiums based on an underwriting decision.
Click to know the Surrender Value in LIC Jeevan Shiromani.
The Guaranteed Additions will also be paid out when you surrender this plan. Click to check the Surrender Value Factors for Guaranteed Additions in LIC Jeevan Shiromani.
Loan Facility - You can avail a loan against this policy as soon as it acquires a Surrender Value. The loan amounts in LIC Jeevan Shiromani will be as follows:
Surrender Value in Jeevan Shiromani - The policy will have a Guaranteed Surrender Valueonce 1 year’s premiums have been paid. The Guaranteed Surrender Value is a % of the premiums paid minus any survival benefits which have been paid to the policyholder. The premiums paid here do not include any rider premiums, taxes or increase in base premiums based on an underwriting decision.
Click to know the Surrender Value in LIC Jeevan Shiromani.
The Guaranteed Additions will also be paid out when you surrender this plan. Click to check the Surrender Value Factors for Guaranteed Additions in LIC Jeevan Shiromani.
Loan Facility - You can avail a loan against this policy as soon as it acquires a Surrender Value. The loan amounts in LIC Jeevan Shiromani will be as follows:
For active policies - 90% of Surrender Value
For Paid-up policies - 80% of Surrender Value
For Paid-up policies - 80% of Surrender Value
For the Financial year 2017-18 the interest rate of the loan will be 9.25% p.a. Payable half-yearly. Loan outstanding will be cleared off against any benefits which are payable at the time of exit from the plan.
If you have any questions on this plans, do write in the comments section below and we will get back to you.
If you have any questions on this plans, do write in the comments section below and we will get back to you.
Jeevan Shiromani Policy (847) with an Example:
For explanation, let's take the example of a policy with following details.
| Purchase Year | 2017 |
| Age | 29 Years |
| Basic Sum Assured | 1,00,00,000 |
| Policy Term | 20 |
| Premium Paying Term | 16 |
| The premium of Basic Plan (without GST) | 6,91,390 |
As per above policy details, the following table provides Year-wise and age premium paid, money back, risk covers and maturity details.
| Year No | Year | Age | Basic Sum Assured | Premium Paid | Guaranteed Additions(GAs) | Life Cover (125% of BSA + GAs +LA) | Return |
|---|---|---|---|---|---|---|---|
| 1 | 2017 | 29 | 10000000 | 691390 | 500000 | 13000000 | 0 |
| 2 | 2018 | 30 | 10000000 | 1382780 | 1000000 | 13500000 | 0 |
| 3 | 2019 | 31 | 10000000 | 2074170 | 1500000 | 14000000 | 0 |
| 4 | 2020 | 32 | 10000000 | 2765560 | 2000000 | 14500000 | 0 |
| 5 | 2021 | 33 | 10000000 | 3456950 | 2500000 | 15000000 | 0 |
| 6 | 2022 | 34 | 10000000 | 4148340 | 3050000 | 15550000 + LA | 0 |
| 7 | 2023 | 35 | 10000000 | 4839730 | 3600000 | 16100000 + LA | 0 |
| 8 | 2024 | 36 | 10000000 | 5531120 | 4150000 | 16650000 + LA | 0 |
| 9 | 2025 | 37 | 10000000 | 6222510 | 4700000 | 17200000 + LA | 0 |
| 10 | 2026 | 38 | 10000000 | 6913900 | 5250000 | 17750000 + LA | 0 |
| 11 | 2027 | 39 | 10000000 | 7605290 | 5800000 | 18300000 + LA | 0 |
| 12 | 2028 | 40 | 10000000 | 8296680 | 6350000 | 18850000 + LA | 0 |
| 13 | 2029 | 41 | 10000000 | 8988070 | 6900000 | 19400000 + LA | 0 |
| 14 | 2030 | 42 | 10000000 | 9679460 | 7450000 | 19950000 + LA | 0 |
| 15 | 2031 | 43 | 10000000 | 10370850 | 8000000 | 20500000 + LA | 0 |
| 16 | 2032 | 44 | 10000000 | 11062240 | 8550000 | 21050000 + LA | 4500000 (1st Money Back) |
| 17 | 2033 | 45 | 10000000 | -- | -- | 21050000 + LA | 0 |
| 18 | 2034 | 46 | 10000000 | -- | -- | 21050000 + LA | 4500000 (2nd Money Back) |
| 19 | 2035 | 47 | 10000000 | -- | -- | 21050000 + LA | 0 |
| 20 | 2036 | 48 | Maturity | 9550000 + LA | |||
Please Note: Above illustration has been generated just for the purpose of explanation.
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