LIC Jeevan Shiromani Plan (Table No. 847) is new money back plan propelled 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 particularly intended for HNIs (High Net worth Individuals).
It gives a life insurance cover, payouts at regular intervals during the policy term and a lump sum on maturity. This plan also provides cover for critical illnesses and has 3 optional riders.
Eligibility conditions for LIC Jeevan Shiromani Policy
|ELIGIBITY CONDITIONS & RESTRICTIONS:|
|Minimum age||18 years|
|Maximum age||55 years for Policy term 14 years
51 years for Policy term 16 years
48 years for Policy term 18 years
45 years for Policy term 20 years
|Policy term||14, 16, 18 & 20 years|
|Premium paying term||Policy term (-) 4 years|
|Minimum Sum Assured||Rs. 1 Crore|
|Maximum Sum Assured||No limit|
|Premium payment||Yearly / Half yearly / Quarterly / Monthly (Thru bank)|
|Loan||Eligible after 1st year|
|Surrender||Eligible after 3 years|
|Critical Illness (In built)||15 Major diseases are covered|
|Money Back at||For Policy term 14 years, 30% of SA in 10th & 12th year
For Policy term 16 years, 35% of SA in 12th & 14th year
For Policy term 18 years, 40% of SA in 14th & 16th year
For Policy term 20 years, 45% of SA in 16th & 18th year
|On Maturity / Death||Sum Assured + Guaranteed Additions + Loyalty Addition|
|Income Tax Benefits||(i) Premiums paid are eligible for Tax rebate u/s 80c
(ii) Money Back amount/ Maturity amount / Death claim is
Non-taxable u/s 10(10d)
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 likewise share an example of each of these benefits.
Death Benefit in LIC Jeevan Shiromani
- If Death occurs amid the initial 5 years of policy period – Sum Assured on death + Guaranteed Additions.
- In the event that Death occurs from the sixth year to policy maturity date – Sum Assured on death + Guaranteed Addition + Loyalty Additions.
For the initial 5 years, Guaranteed Additions in LIC Jeevan Shiromani will be at Rs. 50 for every Rs.1,000 Sum Assured and from sixth-year onward it will be Rs. 55 for every Rs.1,000 Sum Assured each year.
Loyalty Additions in LIC Jeevan Shiromani will be as announced by LIC. There is no real way to know this ahead of time.
Sum Assured on Death in LIC Jeevan Shiromani is characterized as HIGHER of the accompanying:
- 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 relies upon 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 will never be under 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 settled % is as underneath:
- For 14 Yrs Policy – 30% of Basic Sum Assured on the tenth and twelfth policy anniversary.
- For 16 Yrs Policy – 35% of Basic Sum Assured on the twelfth and fourteenth policy anniversary.
- For 18 Yrs Policy – 40% of Basic Sum Assured on the fourteenth and sixteenth policy anniversary.
- For 20 Yrs Policy – 45% of Basic Sum Assured on the sixteenth and eighteenth policy anniversary.
Maturity Benefit in LIC Jeevan Shiromani
If policyholder survives till the end of the policy term, at that point he will get the underneath benefits notwithstanding the Survival Benefits said 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 initial 5 years Guaranteed Additions in LIC Jeevan Shiromani will be at Rs.50 per Rs.1,000 Sum Assured and from sixth year onward it will be Rs.55 per Rs.1,000 Sum Assured each year.
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 likewise gives a critical illness benefit. On the first diagnosis of any of the 15 Critical Illnesses said beneath, the following benefits will be provided:
Lump Sum Benefit – 10% of Basic Sum Assured will be payable subject to the accompanying:
- LIC is satisfied with the reports with particular postponement period (in respect to specific diseases). The advantage will be payable just once during the policy period.
- A Survival time of 30 days is applicable from the date of diagnosis of critical illness. On the off chance that demise happens amid the 30 days time span, at that point no critical illness benefit will be payable.
- A holding up time of 90 days will apply from the date of the beginning of risk or date of revival of risk (whichever is later). However, such a waiting period is not applicable for accidental cases.
Option to concede the payment of premiums if there is a critical illness claim -If LIC accepts the critical illness claim, at that point you can concede the premiums for the following two years. LIC won’t charge any interest on such delayed payment. In any case, if there are a survival benefit dues to be payable to policyholder amid this 2 years time span, at that point LIC will pay the survival benefit by DEDUCTING the premiums which are expected. The deferred premiums will have to be paid after 2 years. All future premiums should be paid according to plan.
Medicinal Second Opinion – Under this benefit, the policyholder has a choice to take the second assessment from the LIC empaneled healthcare providers or through presumed clinics in India in light of the plan 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.
A few limitations which apply to the In-built Critical Illness benefit in the Jeevan Shiromani Plan:
- Now and again, a deferment period may apply to build up the permanence of the illness.
- In paid-up policies, only a proportional benefit amount will be paid.
Waiting Period – There is a holding up time of 90 days from the Date of Commencement of Risk for the In-assembled Critical Illness Benefit. In the event that the policyholder is determined to have a basic disease within 90 days, the benefits will not be available in the plan at all. This waiting period additionally applies on account of 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 happens inside 30 days of diagnosis of the listed critical illness, no benefit is payable.
Benefits won’t be paid in case of critical illnesses due to the following situations:
- Intentionally self-inflicted injury or attempted suicide, irrespective of mental condition.
- Liquor or dissolvable mishandle, or the taking of medications with the exception of 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 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
- Third-degree burns
- Open heart replacement or repair of heart valves
- Benign brain tumor
Other Features & Conditions in LIC Jeevan Shiromani Plan
Loyalty Additions – Since this is a participating plan, the policyholder will get benefits as Loyalty additions gave 5 long periods of premiums have been paid. This is paid on Maturity of the plan or if there should arise an occurrence of death of the policyholder. The amount would rely upon the performance of the company will only be known when it is declared. For paid-up policies, the Loyalty increases would be based on the number of years that the premiums have been paid. On the off chance that the plan is surrendered, loyalty additions would be based on the number of years that the premium was paid.
Optional Riders- you have the choice of choosing any of the 3 riders specified underneath 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 decide to not take the Survival Benefits during the policy term. It can be taken when the policy is ended, either at Maturity or if there should be an occurrence of death of the policyholder. In such a scenario, the amount would earn an interest. The loan cost will be the “Yield relating 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 of this option.
The alternative to taking Maturity Benefit in Installment – Instead of taking the Maturity Benefits in the lump sum, you can take it in portions over a time of 5, 10 or 15 years. The portions could be month to month, 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.
Choice to take Death Benefit in Installment – Instead of taking the Death Benefits in the lump sum, the nominee one can take it in portions over a time of 5, 10 or 15 years. The portions could be month to month, 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 of 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 gets a Paid-up value in 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/Total number of premiums payable. Any Guaranteed Additions and Loyalty Additions which have collected till the time the premiums were being paid will likewise be payable.
- Paid-Up Sum Assured on Maturity = (Sum Assured on Maturity) x Number of premiums paid/Total number of premiums payable. Any Guaranteed Additions and Loyalty Additions which have collected till the time the premiums were being paid will likewise be payable.
- Paid-Up Survival Benefit = (Survival Benefit Payable) x Number of premiums paid/Total number of premiums payable.
- Basic Illness Benefit = (10% of Sum Assured) x Number of premiums paid/Total number of premiums payable.
Riders will not obtain any Paid-up benefit.
Surrender Value in Jeevan Shiromani – – The policy will have a Guaranteed Surrender Value once 1 year’s premiums have been paid. The Guaranteed Surrender Value is a % of the premiums paid short any survival benefits which have been paid to the policyholder. The premiums paid here do exclude any rider premiums, taxes or increase in base premiums based on an underwriting decision.
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 dynamic strategies – 90% of Surrender Value
- For Paid-up strategies – 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.