LIC Jeevan Shiromani Plan

The Life Insurance Corporation of India (LIC) has long stood as a symbol of trust in the country. With LIC, you can find a variety of insurance products tailored to the diverse requirements of its vast customers.

One such offering is the LIC Jeevan Shiromani Plan (Plan No. 947), which has been crafted for individuals seeking a blend of life security and wealth accumulation. Designed with an eye towards facilitating a bright future, the plan not only promises the potential to gather wealth over INR 1 crore through systematic investments but also boasts of a suite of unmatched benefits.

Table of Content

Features of LIC Jeevan Shiromani Plan
Benefits of LIC Jeevan Shiromani Plan
Eligibility Criteria for LIC Jeevan Shiromani Plan
What is the Premium Structure of LIC Jeevan Shiromani Plan?

Let’s find out more about the LIC Jeevan Shiromani Plan and explore its core features, benefits, eligibility criteria, and other aspects so that you, as a prospective policyholder, have all the information that you require to make an informed decision.

Features of LIC Jeevan Shiromani Plan

The LIC Jeevan Shiromani Plan is an insurance and savings solution for individuals who aim to blend financial security with wealth creation. It comes with unparalleled benefits, with some of the major ones discussed below -

Limited Premium Payment with Survival Benefits - LIC Jeevan Shiromani is a limited premium payment plan. What makes it even more attractive is the survival benefit money-back feature offered at predetermined intervals. This feature ensures that policyholders are rewarded at regular stages throughout the policy tenure.
Inbuilt Critical Illness Cover - The unpredictability of life demands a safety net. Taking note of this, the LIC Jeevan Shiromani plan includes an inbuilt Critical Illness Benefit. It covers 15 specific diseases, providing an extra layer of security for the policyholder against life's unforeseen health challenges.
Comprehensive Family Support - The core essence of any insurance plan is to offer solace during difficult times. In the unfortunate event of the life assured's demise, this policy stands strong to provide financial support to the bereaved family.
Profit Participation through Loyalty Additions - More than just an insurance cover, the LIC Jeevan Shiromani also paves the way for wealth accumulation as policyholders are eligible to participate in profit-sharing. Loyalty Additions are paid out alongside the death or maturity benefits, enhancing the total sum received.

Benefits of LIC Jeevan Shiromani Plan

The LIC Jeevan Shiromani Plan stands out for its well-rounded array of benefits, offering policyholders both peace of mind and avenues for wealth creation. Whether it's safeguarding against untimely death or ensuring consistent returns, this policy has got you covered.

Here are the detailed advantages of choosing the LIC Jeevan Shiromani Plan -

1. Assured Death Benefit

Upon the unfortunate event of the life assured's demise within the policy term (with no due premium), the nominee receives a guaranteed death benefit.

The payout amount varies depending on when the demise occurs -

Within the First Five Years: Sum Assured plus guaranteed additions
Post Completion of Five Years: Sum Assured, combined with both accrued guaranteed additions and loyalty additions

2. Scheduled Survival Benefit

Policyholders are rewarded at specific milestones during the policy term with the survival benefit.

Here's the breakdown of these specific benefits -

For a 14-year term: 30% of the Basic Sum Assured (BSA) during the 10th and 12th year
For a 16-year term: 35% of the BSA during the 12th and 14th year
For an 18-year term: 40% of the BSA during the 14th and 16th year
For a 20-year term: 45% of the BSA during the 16th and 18th year

3. Maturity Benefit

For those who stand by the policy until its completion, the maturity benefit is provided in the form of a rewarding payout -

14-year term: 40% of the Basic Sum Assured (BSA)
16-year term: 30% of the BSA
18-year term: 20% of the BSA
20-year term: 10% of the BSA

4. Embedded Critical Illness Cover

This policy adds another layer of safety by covering critical illnesses. On being diagnosed with a critical illness, the following benefits apply -

Immediate Payment: 10% of the BSA
Premium Relaxation: A deferment for two years post illness confirmation
Second Medical Consultation: This benefit is available once during the policy's lifespan

5. Additional Rider Benefits

For enhanced financial protection, policyholders can opt for extra rider benefits at a supplementary premium -

Accident Benefit Rider
New Term Assurance Rider
Accidental Death and Disability Benefit Rider
New Critical Illness Rider

6. Tax Efficiency

You can also avail of the tax benefits under prevailing tax regulations set by the Government of India. However, it's worth noting that tax benefits are subject to amendments in tax laws and that standard Terms and Conditions will apply.

Eligibility Criteria for LIC Jeevan Shiromani Plan

For those considering the LIC Jeevan Shiromani Plan, understanding the eligibility criteria is crucial to ensure a seamless application process.

Given below are some detailed conditions that you need to be aware of:

Policy & Premium Paying Terms:

To cater to varied financial goals, the LIC Jeevan Shiromani Plan offers multiple policy terms, each with its associated premium paying term -

For a 14-year Policy Term: The premium paying term is 10 years
For a 16-year Policy Term: The premium paying term extends to 12 years
For an 18-year Policy Term: The premium is to be paid for 14 years
For a 20-year Policy Term: The premium paying term stands at 16 years

Age Specifications

Age is a vital parameter for any insurance policy. Here's what the LIC Jeevan Shiromani Plan mandates -

Minimum Entry Age: Irrespective of the policy term, the minimum entry age remains constant at 18 years.
Maximum Entry Age: Depending on the policy term, the upper age limit varies -
- 14-year term: 55 years
- 16-year term: 51 years
- 18-year term: 48 years
- 20-year term: 45 years
Maximum Maturity Age:
- For the 14-year term: 69 years
- For the 16-year term: 67 years
- For the 18-year term: 66 years
- For the 20-year term: 65 years

Sum Assured:

The sum assured is the guaranteed amount payable to the policyholder or their nominee –

Minimum Sum Assured: INR 1 Crore
Maximum Sum Assured: Unlimited

What is the Premium Structure of LIC Jeevan Shiromani Plan?

The LIC Jeevan Shiromani Plan offers a well-structured premium payment system to cater to the diverse financial preferences of its policyholders. Here’s how the premium structure for this plan operates -

Determining the Premium Payment Term

The duration for which premiums need to be paid, also known as the Premium Payment Term (PPT), is strategically set to be the policy term minus four years. This implies:

For a 14-year Policy Term: Your PPT will span 10 years.
For a 16-year Policy Term: Here too, the PPT is designed for 10 years. This pattern continues similarly for longer policy terms.

Flexible Premium Payment Intervals

The LIC Jeevan Shiromani Plan allows you to pick a payment frequency that aligns with your financial routine. You can opt to pay your premiums in the following ways -

Annually: Once every year
Semi-Annually: Every 6 months
Quarterly: Every 3 months
Monthly: Every month

Note: For those who favour the monthly frequency for their premium payment, it's essential to be aware that the only accepted methods for such payments are through NACH (National Automated Clearing House) or a direct deduction from your salary.

Exclusions of LIC Jeevan Shiromani Plan

When securing your future with the LIC Jeevan Shiromani Policy, it's equally important to be well-informed about the scenarios under which claims may not be entertained. Understanding these exclusions ensures that you, as a policyholder, are clear about the policy's scope and boundaries.

Here's a comprehensive list of the exclusions of this LIC policy -

Critical Illness Stipulations
- 30-Day Survival Period: After the diagnosis of a critical illness diagnosis, a survival period of 30 days is mandatory for the policy's benefits to be applicable.
- Death due to Critical Illness: If death ensues due to any of the specified critical illnesses within the survival period, the claim will be denied.
- Initial Waiting Period: Diagnosing a critical illness within 90 days from either the commencement of risk or the revival date is not considered under the policy.
Self-inflicted injuries or instances of attempted suicide are excluded.
Medical conditions stemming from excessive alcohol consumption or substance abuse are not covered.
Medical conditions arising due to war, invasion, hostilities, or similar war-like operations are excluded.
Any ailment or medical condition known to the policyholder before obtaining the policy will not be considered.
Costs or treatments associated with HIV, AIDS, and any congenital disabilities are not covered.
Illnesses or conditions resulting from radioactive contamination due to a nuclear accident are not covered.
Any injury or condition resulting from the policyholder's involvement in acts of a criminal nature is excluded
Claims can be rejected if the policyholder fails to adhere to or undergo treatment as prescribed by a registered medical practitioner.

In the next section, we will discuss the most frequently asked questions with answers to help you gather more information on the LIC Jeevan Shiromani Plan.

Frequently Asked Questions

Q1. Can the policy term or premium payment frequency be changed after purchasing the LIC Jeevan Shiromani policy?

Ans: Once the policy is bought, the term is fixed and cannot be altered. However, under certain conditions and with the insurance provider's approval, the premium payment frequency might be adjusted.

Q2. How is profit participation facilitated in the LIC Jeevan Shiromani Policy?

Ans: The LIC Jeevan Shiromani Policy ensures profit participation via the addition of loyalty benefits. To be eligible for this, the policy must be active for at least 5 years with complete premium payments made during that span.

Q3. Is there an option to defer survival or maturity benefits in the policy?

Ans: Yes, policyholders can opt to delay their survival benefits any time after it's due but before the policy term concludes. If not claimed during the active policy term, it's awarded upon termination alongside accrued benefits. Similarly, through the settlement option, maturity benefits can also be deferred.

Q4. How long is the grace period for renewing the LIC Jeevan Shiromani Policy?

Ans: Typically, policies must be renewed before they mature. A grace period of 30 days from the due date is provided for all premium frequencies except for monthly ones, which have a 15-day grace period.

Q5. Can you explain the Settlement Option and how it alters the maturity benefit payout?

Ans: Using the Settlement Option, you can choose to receive the maturity benefits over periods of 5, 10, or 15 years instead of a one-time lump sum. You can select from yearly, semi-yearly, quarterly, or monthly payout options. In case you change your mind, you can exit the Settlement Option and claim the total amount by submitting a written request.

Q6. What is the protocol for cancelling or surrendering the policy?

Ans: After the LIC Jeevan Shiromani policy has been in force for the minimum specified period and the necessary premiums have been paid, it can be surrendered. In this case, the policyholder will receive a certain percentage of the total premiums paid or the acquired surrender value, whichever is higher.

Q7. In the regrettable event of the life assured's suicide within the first year, how does the policy respond?

Ans: If the life assured unfortunately takes their life within the initial 12 months from the policy's start date, the nominee will be entitled to receive 80% of the total premiums paid (as long as the policy remains active). Note that the same applies to surrendered policies.

Q8. Is there a provision to obtain a loan using the LIC Jeevan Shiromani Policy as collateral?

Ans: Certainly, after the policy has been active for a year and the premium for the same duration has been paid, a loan can be taken against it. For active policies, up to 90% of the surrender value can be loaned; for paid-up policies, it's 80%. Keep in mind that the borrowed amount incurs an interest rate.

Q9. Are there any additional riders that can be attached to this policy?

Ans: Yes, the LIC Jeevan Shiromani Policy allows for the addition of various riders such as accident benefits or critical illness benefits for a more comprehensive coverage. These riders can be availed by paying an additional premium cost.

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