LIC Jeevan Shiromani Plan

LIC Jeevan Shiromani Plan Review

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 especially designed for HNIs (High Networth Individuals).¬

It provides a life insurance cover, payouts at regular intervals during the policy term and a lumpsum amount on maturity.This plan also provides cover for critical illnesses and has 3 optional riders.

Eligibility conditions for LIC Jeevan Shiromani Policy

 MinimumMaximum
Sum AssuredRs. 1 CroreNo Limit
Policy Term14,16,18 and 20 years
Premium Paying TermPolicy term – 4 years
Policyholder’s Age18 Years (Completed)55 Years for 14 Year term
51 Years for 16 year term
48 Years for 18 year term
45 years for 20 year term

Age here refers to nearest birthday

Maximum Age at Maturity69 years for 14 years term
67 years for 16 years term
66 years for 18 years term
65 years for 20 years term

Age here refers to nearest birthday

Premium Payment ModesYearly, Half Yearly, Quarterly and Monthly¬

Monthly mode is through NACH and Salary deductions only

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

  • 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 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:

  1. 10 times of your annualised premium (excluding taxes and the extra amount due to underwriter decisions or rider premium)
  2. 125% of Basic Sum Assured
  3. 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 do 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:

  • 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 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.

Plan Parameters

Age at Entry18 years (Completed)
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 Assured1,00,00,000 and above in multiples of 5,00,000
Premium Paying ModeYearly, Half Yearly, Quarterly & Monthly (SSS and NACH Only)
Premium Payment Mode rebate2% 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 certain percentage of Sum Assured) and on completion of 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 Back2nd Money BackMaturity Details¬
(on completion of policy term)
1430% of SA at end of 10th policy year30% of SA at end of 12th policy year40% of SA + GAs + LA
1635% of SA at end of 12th policy year35% of SA at end of 14th policy year30% of SA + GAs + LA
1840% of SA at end of 14th policy year40% of SA at end of 16th policy year20% of SA + GAs + LA
2045% of SA at end of 16th policy year45% of SA at end of 18th policy year10% of SA + GAs + LA

In above table, SA is Basic Sum Assured or simply Sum Assured

Risk Cover and Death Benefit

In case of death¬ during first 5 year 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).

Jeevan Shiromani Policy (847) with an Example

For explanation, let’s take example of a policy with following details.

Purchase Year2017
Age29 Years
Basic Sum Assured1,00,00,000
Policy Term20
Premium Paying Term16
Premium of Basic Plan (without GST)6,91,390

As per above policy details, following table provides Year-wise and age premium paid, moneyback, risk covers and maturity details.

¬
Year NoYearAgeBasic Sum AssuredPremium PaidGuaranteed Additions(GAs)Life Cover¬
(125% of BSA + GAs +LA)
Return
120172910000000691390500000130000000
22018301000000013827801000000135000000
32019311000000020741701500000140000000
42020321000000027655602000000145000000
52021331000000034569502500000150000000
6202234100000004148340305000015550000 + LA0
7202335100000004839730360000016100000 + LA0
8202436100000005531120415000016650000 + LA0
9202537100000006222510470000017200000 + LA0
10202638100000006913900525000017750000 + LA0
11202739100000007605290580000018300000 + LA0
12202840100000008296680635000018850000 + LA0
13202941100000008988070690000019400000 + LA0
14203042100000009679460745000019950000 + LA0
152031431000000010370850800000020500000 + LA0
162032441000000011062240855000021050000 + LA4500000
(1st Money Back)
172033451000000021050000 + LA0
182034461000000021050000 + LA4500000
(2nd Money Back)
192035471000000021050000 + LA0
20203648Maturity9550000 + LA

Please Note: Above illustration has been generated just for the purpose of explanation.

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