LIC Jeevan Shiromani Policy | Features and Benefits

LIC Jeevan Shiromani Policy | Features and Benefits

LIC (Life Insurance Corporation of India) launched a new money back policy called LIC Jeevan Shiromani on 19th December 2017. LIC Jeevan Shiromani policy offers a combination of protection and savings. It is a non-linked, money back, limited premium payment life insurance policy. LIC Jeevan Shiromani policy is specially designed for High Net-worth Individuals.

LIC Jeevan Shiromani Policy

LIC Jeevan Shiromani policy provides financial support for the family in case of unfortunate death of the policyholders during the policy term. This is a money back policy, therefore, periodic payments shall also be made on survival of the policyholder at specified durations during the policy term and a lump sum payment is made to the surviving policyholder at the time of maturity. LIC Jeevan Shiromani policy also provides for payment of a lump sum amount equal to 10% of the Basic Sum Assured on diagnosis of any of the specified critical illnesses. In this post, let’s take a look at LIC Jeevan Shiromani policy features and benefits.

Eligibility Conditions for LIC Jeevan Shiromani Policy

Following are the eligibility conditions for LIC Jeevan Shiromani Policy

1. Minimum Basic Sum Assured (BSA) – 1 crore.

2. Maximum Basic Sum Assured (BSA) – There is no maximum limit but it should be in multiples of Rs. 5 lakhs.

3. Policy Term – 14 years, 16 years, 18 years and 20 years.

4. Premium Paying Term – (Policy term – 4) years.

5. Minimum Age at entry – 18 years (completed).

6. Maximum Age at entry – 55 years (nearer birthday) for policy term 14 years.

                                        – 51 years (nearer birthday) for policy term 16 years.

                                        – 48 years (nearer birthday) for policy term 18 years.

                                        – 45 years (nearer birthday) for policy term 20 years.

7. Maximum Age at maturity – 69 years (nearer birthday) for policy term 14 years.

                                          – 67 years (nearer birthday) for policy term 16 years.

                                          – 66 years (nearer birthday) for policy term 18 years.

                                          – 65 years (nearer birthday) for policy term 20 years.

Date of commencement of risk under LIC Jeevan Shiromani Policy

Under LIC Jeevan Shiromani policy the risk will commence immediately from the date of acceptance of the risk.

Features of LIC Jeevan Shiromani Policy

Following are the features of LIC Jeevan Shiromani policy:

1. LIC Jeevan Shiromani is a non-linked with-profit money back life insurance policy.

2.  LIC Jeevan Shiromani is a limited premium payment life insurance policy but the risk coverage will be there for the entire policy term.

3. This policy offers a guaranteed addition of Rs 50 per thousand Basic Sum Assured for first 5 policy year.

4. Guaranteed addition of Rs. 55 per thousand Basic Sum Assured from 6th policy year till the end of premium paying term.

5. The policy will be eligible for paid-up immediately after the 1st year completion of policy. In all other LIC policies, the policy becomes eligible for paid-up if you pay the premiums for 3 years.

6. LIC Jeevan Shiromani policy has inbuilt critical illness coverage.

7. LIC Jeevan Shiromani policy offers four optional riders:

i) LIC’s Accidental Death and Disability Benefit Rider

ii) LIC’s Accident Benefit Rider

iii) LIC’s New Term Assurance Rider

iv) LIC’s New Critical Illness Benefit Rider

However, you can opt between either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Therefore, a maximum of three riders can be availed under a policy.

8. Loyalty additions provided the policy has completed five policy years.

9. You can surrender LIC Jeevan Shiromani policy immediately after completion of one year.

10. The loan can be availed on LIC Jeevan Shiromani policy after completion of one year.

11. Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals.

Benefits under LIC Jeevan Shiromani Policy

Following are the benefits under LIC Jeevan Shiromani policy:

1. Death Benefit

a) On death during first five years: Sum Assured on Death and accrued Guaranteed Addition shall be payable.

b) On death after completion of five policy years but before the date of maturity: Sum Assured on Death and accrued Guaranteed Addition and Loyalty Addition, if any, shall be payable.

Where “Sum Assured on Death” is defined as the highest of the below

i) 10 times of annualised premium.

ii) 125% of Basic Sum Assured.

iii) 105% of all the premiums paid as on date of death.

2. Survival Benefit

A fixed percentage of the Basic Sum Assured will be payable if the life assured survives to each of the specified durations during the policy term. The fixed percentage is as below:

a) For policy term 14 years: 30% of Basic Sum Assured on each of 10th and 12th year of the policy.

b) For policy term 16 years: 35% of Basic Sum Assured on each of 12th and 14th year of the policy.

c) For policy term 18 years: 40% of Basic Sum Assured on each of 14th and 16th year of the policy.

d) For policy term 20 years: 45% of Basic Sum Assured on each of 16th and 18th year of the policy.

3. Maturity Benefit

If life assured survives up to the end of the policy term then “Sum Assured on Maturity” along with accrued Guaranteed Additions and Loyalty Addition, if any, shall be payable.

Where “Sum Assured on Maturity” is as under:

i) 40% of Basic Sum Assured for policy term 14 years.

ii) 30% of Basic Sum Assured for policy term 16 years.

iii) 20% of Basic Sum assured for policy term 18 years.

iv) 10% of Basic Sum assured for policy term 20 years.

4. Inbuilt Critical Illness Benefit

LIC Jeevan Shiromani policy also offers the inbuilt critical illness benefits. List of the 15 critical illness which are covered under LIC Jeevan Shiromani policy

1. Cancer of specified severity

2. Open chest CABG

3. Myocardial infarction

4. Kidney failure requiring regular dialysis

5. Major organ /bone marrow transplant (as recipient)

6. Stroke resulting in permanent symptoms

7. Permanent paralysis of limbs

8. Multiple sclerosis with persisting symptoms

9. Aortic Surgery

10. Primary (idiopathic) pulmonary hypertension

11. Alzheimer’s disease/ dementia

12. Blindness

13. Third-degree burns

14. Open heart replacement or repair of heart valves

15. Benign brain tumor

On first diagnosis of any one of the 15 critical illnesses as mentioned above, provided the policy is inforce, the following benefits will be available.

1. Lumpsum Benefit

Inbuilt Critical Illness Benefit equal to 10% of Basic Sum Assured shall be payable provided the claim is admissible.

2. Option to defer the payment of premium(s)

When a claim under inbuilt Critical Illness Benefit is admitted, the life assured will have an option to defer the payment of premiums falling due within 2 years from the date of admission of Critical Illness claim under the policy (including rider premiums).

3. Medical Second Opinion

The policyholder will have facility of taking Medical Second Opinion, through the available healthcare providers, internationally or through reputed hospitals in India depending on the arrangement in this regard by the Corporation. This facility shall be available only once during the policy term with no extra cost.

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LIC Jeevan Shiromani Policy | Features and Benefits