LIC Jeevan Shiromani Plan

LIC Jeevan Shiromani Review

Jeevan Shiromani is an unlinked money-back plan introduced by LIC on December 19, 2017.

Mainly, it is an effective insurance plan that offers life protection and encourages savings. 

This plan is typically designed for individuals with a high net worth.

The Jeevan Shiromani plan from LIC provides regular payouts, life insurance, and a lump sum as a maturity benefit.

In addition to providing coverage for critical illnesses, the policy includes three optional riders.

The Jeevan Shiromani plan from LIC will provide your family with support, stability, and financial security upon your passing.

It will provide them with the financial support they require following such a tragic loss.

LIC's Jeevan Shiromani will also provide you with numerous other advantages.

As a policyholder, you will receive timely payments during the policy's duration and a lump sum upon maturity.

If you are diagnosed with one of the critical illnesses listed in this plan, you have the option of receiving a lump sum equal to 10% of the sum assured that was initially selected through the built-in critical illness benefit.

What is the LIC Jeevan Shiromani Insurance Policy?

LIC Jeevan Shiromani is a non-linked, participating, individual, life assurance savings plan, according to the insurer's website.

It is a limited premium payment money-back life insurance plan with a minimum Basic Sum Assured of Rs 1 crore, designed specifically for the High Net Worth Individuals market segment.

Under this plan, Guaranteed Additions will accumulate at a rate of :-

• Rs. 50 per thousand Basic Sum Assured for the first five years.
• Rs. 55 per thousand Basic Sum Assured from the sixth policy year until the end of the premium paying term. 

In addition, the policy shall receive Loyalty Additions as a share of the profits.

Key Features of LIC Jeevan Shiromani:

1. You get paid up as soon as you pay a full year's premium policy amount.
2. Surrender the same after a year of following the plan.
3. Choose whether to pay your premium once a year, twice a year, quarterly, or monthly.
4. Withdraw benefits after only one year of having the policy.
5. Critical illness rider built in.

Additional riders include Accidental death and disability benefit rider, Accident benefit rider, and New term assurance rider.

You can choose up to 3 riders.

Criteria for Eligibility for LIC Jeevan Shiromani:

The policyholder must be at least 18 years old to purchase LIC Jeevan Shiromani.

The maximum age is 55 for a policy term of 14 years, 51 for a policy term of 16 years, 48 for a policy term of 18 years, and 45 for a policy term of 20 years.

Therefore, the policyholder cannot be older than 69 at the time of maturity.

Documents Required for LIC Jeevan Shiromani Policy

• ID Proof (Voter ID, Driving License, Govt. Issued ID Card, PAN Card & Aadhar Card etc.)
• Date of Birth Proof (Educational Document, Aadhar Card etc.)
• Address Proof (Voter ID, Driving License, Govt. Issued ID Card, PAN Card & Aadhar Card etc.)
• Latest Photograph (Passport Size)
• Bank Account Details if the premium payment frequency is monthly.

LIC Jeevan Shiromani Benefits

The LIC Jeevan Shiromani Policy provides its policyholders with a variety of advantages depending on the occurrence of certain events, including the following:

1. Death benefits

It is paid to the nominee if the life assured passes away during the policy term and there are no outstanding premiums.

The amount of the benefit depends on two things:

• If the policyholder dies in the first five years, both the sum assured and the guaranteed inclusion will be paid.
• Accrued guaranteed addition, sum assured, and loyalty additions are paid if the policyholder dies after 5 years but before the policy's maturity date.
• 10 times your annual premium, whichever is higher, will be paid out if you die.

1. 105% of the premiums paid up to this point
2. 125% of the basic sum insured

2. Survival benefits: 

If the policyholder survives for the policy term and all premiums have been paid, a fixed proportion of the total insured will be paid.

The following are the fixed percentages for several policy terms:

• For a 14-year policy, 30% of the sum assured on the tenth and twelfth policy years.
• For a 16-year policy, 35% of the sum assured on the 12th and 14th policy years.
• For a policy period of 18 years, 40% of the sum assured on the fourteenth and sixteenth anniversaries.
• For a 20-year policy, 45% of the sum guaranteed is payable on the 16th and 18th policy years.

3. Maturity benefit: 

If the policyholder survives the whole term of the policy and pays all premiums on a timely basis, he will get the sum promised at maturity, plus accrued guaranteed additions and loyalty additions (if any).

Sum assured upon maturity is as follows:

Inbuilt Critical Illness: 

The policyholder is entitled to the following benefits if he or she is diagnosed with one of the fifteen critical illnesses (mentioned in the list) and the policy is in place and premiums are present at the time of diagnosis:

• Lump sum:

The integral critical illness rider benefit equals 10% of the sum insured. This will only be paid if the claim is approved.

• Choice to postpone premium payment: 

The policyholder has the choice to postpone premium payments for a period of two years from the date of Critical Illness claim approval.

• Medical second opinion: 

The insured may get a second medical opinion.

Depending on the Company's agreement in this regard, this may be completed through international healthcare providers, reputable hospitals in India, or specialist physicians available in various locations.

5. Rider Benefit :

The following rider benefits are available for an additional premium payment.

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

6. Tax Benefit

Such insurance plans are covered by the government's existing tax rules.

*Tax benefits are subject to revisions in tax legislation. Standard terms and conditions apply.

List of critical illnesses covered under LIC’s Jeevan Shiromani plan:

LIC Jeevan Shiromani Premium Structure

• The Premium Payment Term (PPT) for this plan is the policy term minus four years. So, if you choose a 14-year policy term, the PPT will be 10 years. 
• Similarly, the PPT for a 16-year policy term will be 10 years, and so on.
• The premium for the LIC Jeevan Shiromani Policy can be paid annually, biannually, quarterly, or monthly.

Only NACH and salary deductions are permitted for monthly payment frequency.

The following is an example of an annualised premium amount for a BSA of Rs.1 Crore when the life assured is 20 years of age (nearer to the birthday):

Exclusions : LIC Jeevan Shiromani Policy

When purchasing the LIC Jeevan Shiromani Policy, it is necessary to review the list of exclusions.

These are some conditions in which your claim may be rejected:

• The survival interval following the diagnosis of a critical illness is thirty days.
• Death resulting from any of the critical illnesses specified throughout the survival period.
• A critical disease diagnosis made within 90 days of the risk's initiation or revival date is inadmissible.
• Self-inflicted injury or suicide attempt.
• Any medical problem caused by substance or alcohol addiction.
• A medical illness caused by the dangers of war or wars.
• Any medical issue that already exists
• All costs associated with HIV, AIDS, and congenital disabilities.
• Radiation exposure resulting from a nuclear disaster.
• Participation in an act of criminal offence.
• Refusal to get therapy prescribed by a licenced medical practitioner.
• lease consult the plan brochure or the policy document for more information regarding exclusions.

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