Life Insurance Corporations Jeevan Shiromani Plan is traditional, non-market linked, limited premium payment money back life insurance plan that offers financial protection & savings to the policyholders. The plan focuses to provide future financial security to the family in the event of unfortunate demise of the life assured i.e. policyholder during the tenure of the policy. Periodic payments are paid to the policyholder in event of survival of the policyholder. Following is an in-depth analysis of the LICs Jeevan Shiromani Plan.
Following are the key highlights of the LICs Jeevan Shiromani Plan :
Following are the benefits payable under the Jeevan Shiromani policy provided the policy is in-force and that all the due premiums are paid till date.
Maturity Benefit = Sum Assured on Maturity + Guaranteed Additions + Loyalty Additions, if any
The policyholder’s of Jeevan Shiromani Plan are eligible to get Guaranteed Additions and the Loyalty Additions along with maturity payouts depending upon the policy tenure.
The Sum Assured on Maturity is defined as :
The rest of the benefit is paid as survival benefit during the policy tenure as per the pre-defined schedule.
Under this option :
The payment of survival benefit at regular interval as under :
|Policy Tenure||% of Sum Assured paid as Survival Benefit||Survival Benefit years||Maturity Benefit = % of Basic Assured + Guaranteed Additions + Loyalty Additions||Total Benefit = Survival Benefit + Maturity Benefit (As % of Basic Sum Assured + Guaranteed Additions + Loyalty Additions|
|14 years of policy||30%||10th & 12th Policy Year||40%||100%|
|16 years of policy||35%||12th and 14th Policy Year||30%||100%|
|18 years of policy||40%||14th & 16th Policy Year||20%||100%|
|20 years of policy||45%||16th & 18th Policy Year||10%||100%|
Kindly note that the life assured is eligible to receive survival benefit subject to payment of all due premiums.
Following are the various benefits available under the inbuilt cover :
The above listed critical illnesses are covered under the critical illness benefit. Kindly note, the critical illness benefit will be paid by the corporation upon satisfactory analysis of available medical records of treatment. The payment of the critical illness benefit is done only once during the tenure of the policy.
The basic eligibility parameters to avail the LICs Jeevan Shiromani Plan are as under :
The premium rates of the LIC Jeevan Shiromani Plan are as under :
|Age||For 14 Years of Policy Term and 10 Years of Premium Paying Term||For 16 Years of Policy Term and 12 Years of Premium Paying Term||For 18 Years of Policy Term and 14 Years of Premium Paying Term||For 20 Years of Policy Term and 16 Years of Premium Paying Term|
Let us understand with an example of how the tabular premium rate chart can be used to derive the premium amount of the LIC Jeevan Shiromani Plan.
Annual Premium :
= 95.10/1000 * Rs 3,00,000
= Rs 28,530 + Tax
(Since premium rates are of Rs 1000 per basic sum assured)
The premium of Jeevan Shiromani can be paid in various modes namely Yearly, Half-Yearly, Quarterly, Monthly or by salary deduction. For premium payment is expected to be paid on due date however LIC has offered grace period facility where a certain period after the due date is given to the policyholder to pay the due premium. For yearly, half- yearly, quarterly mode of premium payment a grace period of 30 days is given while for the monthly mode of premium payment a grace period of 15 days is offered by LIC.
Following are the rebates and discounts offered under the Jeevan Shiromani Plan :
|Particulars of rebate on premium payment mode|
|For yearly mode of premium payment||2% rebate on tabular premium|
|For half-yearly mode of premium payment||1% rebate on tabular premium|
|For Quarterly and salary deduction i.e. monthly mode of premium payment||NIL Rebate|
|Particulars of rebate on High Sum Assured|
|Sum assured Rs 1,00,00,000 to Rs 1,95,00,000||NIL|
|Sum assured Rs 2,00,00,000 to Rs 4,95,00,000||0.030% of basic sum assured|
|Sum assured Rs 5,00,00,000 and above||0.050% of basic sum assured|
The Jeevan Shiromani Policy stands void in case of death due to Suicide. Death due to suicide is not covered under the LICs Jeevan Shiromani Policy. The LIC shall not entertain any claim registered due to death by suicide :
LICs Jeevan Shiromani Plan can be purchased via the web portal (online channel) or through authorized agents, brokers, LIC office etc (offline channel). The process of purchasing the LIC Shiromani plan is simple and quick. Submit all the related required documents along with proposal form and premium amount. Upon receipt of such documents LIC shall process the request and policy shall be issued in policyholder’s name.
Surrendering of LIC Jeevan Shiromani Plan is quick and simple. The policyholder’s of Jeevan Shiromani Plan can at any time during the tenure of the policy choose to surrender the policy provided the Jeevan Shiromani policy has completed one policy year and a premium of one entire year is duly paid.
Process of surrender
In order to surrender the LICs Jeevan Shiromani policy the policyholder needs to visit the nearest office or branch of LIC and submit the original policy document along with completely filled discharge form. On receipt of such request LIC shall credit the surrender value in the bank account.
Yes, the policyholders of LICs Jeevan Shiromani Plan can avail policy loan on their in force policy after the policy has acquired surrender value. The maximum loan limit receivable based on surrender value is as under :
LICs Jeevan Shiromani Plan offers 5 modes of premium payment namely Yearly, Half-Yearly, Quarterly, Monthly and Salary Deduction.
Yes, any policyholder who is not happy with the terms and conditions of the Jeevan Shiromani Policy can cancel the policy within the free-look period. For cancellation of the policy in the free-look period the policyholders have to return the policy to LIC stating the actual reason of cancelation. On receiving such request the corporation after deducting certain charges shall credit the amount in the bank account.
LICs Jeevan Shiromani offers 4 riders under this plan namely LICs Accidental Death and Disability Benefit Rider, LICs Accident Benefit Rider, LICs New Term Assurance Rider and LICs New Critical Illness Benefit Rider.
And the same would be processed at the earliest. If there are any further requirements, the same would also need to be submitted for the claim to get processed.