LIC Jeevan Shiromani – Details, Reviews, Benefits and Settlement

LIC introduced a non-linked money-back plan called Jeevan Shiromani on December 19, 2017. It is a successful insurance policy that encourages saving while offering life protection. Typically, high net worth individuals are the target market for this plan. The Jeevan Shiromani plan from LIC provides payouts over time, life insurance, and a lump sum payment as a maturity bonus. LIC Jeevan Shiromani’s plan also has three optional riders and provides cover for any catastrophic illness.

In an unfortunate scenario wherein someone passes away, LIC Jeevan Shiromani’s plan from LIC provides assistance, stability, and financial security to the family for a better future. It will give them the financial stability they require in the wake of such a sad loss. In addition, Jeevan Shiromani of LIC will assist you in other ways. You will get periodic payments while the policy is active and a lump sum payout at maturity as a policyholder. You can receive a lump sum equal to 10% of the sum assured that was initially chosen through the built-in critical illness benefit if you are diagnosed with any of the critical illnesses listed under this plan.

LIC Jeevan Shiromani Plan Details Table

The proposer may choose from one of four options for the percentage of Survival or Maturity Benefits to be utilised over the policy’s lifetime under the flexible LIC Jeevan Shiromani 947 plan. The LIC Jeevan Shiromani insurance specifics are as follows:

LIC Jeevan Shiromani Policy Premium Chart Table

Yearly, half-yearly, quarterly, and monthly premium payments are accepted (through NACH only), as well as salary deductions (SSS). Following is the Premium Chart Table for LIC Jeevan Shiromani 947 plan:

LIC Jeevan Shiromani Plan Eligibility Criteria

LIC Jeevan Shiromani Plan Key Features

LIC Jeevan Shiromani Plan has some great notable features, some of which are listed below:

• This is a money-back insurance strategy that emphasizes insurance protection and savings.
• This is a limited premium payment plan providing money-back survival benefits.
• This plan becomes paid up when ONE policy year has passed.
• There are 15 critical illnesses covered by the plan’s built-in critical illness benefit.
• The policyholder may select up to 3 out of the 4 riders available under the plan to increase their insurance coverage.
• The plan offers five ways to pay premiums: annually, half-yearly, quarterly, monthly, and by salary deduction.

LIC Jeevan Shiromani Benefits

The LIC Jeevan Shiromani Plan offers numerous benefits to its policyholders; some of them are listed below:

Death Benefit 

If no premium is owed, it will be paid to the nominee upon the life assured’s passing within the policy’s term. The benefit amount is dependent on two factors:

• Passing away within the policy’s first five years terms: Assured sum and all the additions guaranteed.
• Passing away after completing the five years of policy term: Assured sum along with all the additions guaranteed and loyalty additions.

Survival Benefit

Upon the passage of specific periods within the policy’s terms, a pre-determined portion of the Basic amount Assured is paid to the insurance holder.

Maturity Benefit

When the policy matures, the insurance holder receives any accrued guaranteed and loyalty additions if they live to the end of the policy term. 

Benefit for Critical Illness

If the life assured receives a diagnosis of one of the aforementioned catastrophic illnesses while the policy is still in effect and no premium is owed, it would be paid.

Benefit of Rider

Upon payment of an additional premium, the following rider perks are accessible.

• Rider for Accident Benefit

• Rider for the Accidental Death and Disability Benefit

• Critical Illness Rider New

• Rider for New Term Assurance

The Benefit of Tax

Such insurance policies are protected by the current tax rules as well as any GOI-imposed regulations.

NOTE: Benefits of Tax can vary according to the taxation laws

LIC Jeevan Shiromani Maturity Value

The “Sum Assured on Maturity” and any accrued Guaranteed Additions and Loyalty Additions, if any, will be paid if the life assured lives to the end of the policy term. 

“Sum Assured on Maturity” is defined as follows: 

1. For a 14-year policy term, 40% of the Basic Sum Assured 

2. For a 16-year policy period, 30% of the Basic Sum Assured 

3. For an 18-year policy term, 20% of the Basic Sum Assured 

4. For a 20-year policy term, 10% of the Basic Sum Assured

LIC Jeevan Shiromani Settlement and Surrender Value

Once one year’s worth of premiums has been paid, the policy will have a Guaranteed Surrender Value. The Guaranteed Surrender Value is a percentage of the premiums paid, less any survivor benefits that have been paid to the policyholder. The premiums paid do not include taxes, rider charges, or base premium increases resulting from underwriting decisions.

LIC Jeevan Shiromani Comparison 

The Jeevan Shiromani Plan and the Bima Shree Plan from LIC are money-back life insurance policies. These programs are best for those who want to choose a big sum assured. These policies’ benefits enable policyholders to prepare for important moments in their life. Both the policies allow policyholders to borrow money against their policies, which can assist them in covering any unexpectedly high immediate bills.

The Jeevan Shiromani Plan from LIC has an integrated critical illness benefit that gives an additional payout if the affected person is found to have a critical illness, which is the main distinction between the two plans.

As a prospective buyer, you should pick a policy after evaluating your needs and the needs of your dependents, liabilities, investments and savings, and ability to pay premiums, given that both policies offer appealing features and benefits. To make an informed choice, ensure that you are familiar with both policies’ terms and conditions.

FAQ’s