LIC’s Jeevan Shiromani plan offers a combination of protection and savings. This plan is specially designed for High Net-worth Individuals. This plan provides financial support for the family in case of unfortunate death of the policyholders during the policy term. Periodic payments shall also be made on the survival of the policyholder at specified durations during the policy term and a lump sum payment to the surviving policyholder at the time of maturity. In addition, this plan also provides for payment of a lump sum amount equal to 10% of the chosen Basic Sum Assured on the diagnosis of any of the specified Critical Illnesses. This plan also takes care of liquidity needs through a loan facility.
Benefits
Maturity Benefit
The maturity benefit of LIC Jeevan Shiromani will be Sum Assured on Maturity along with the accrued Guaranteed Additions and Loyalty Addition, (if any)
The Sum Assured on Maturity is as follows:
- 40% of Basic Sum Assured for policy term 14 years
- 30% of Basic Sum Assured for policy term 16 years
- 20% of Basic Sum assured for policy term 18 years
- 10% of Basic Sum assured for policy term 20 years
Death Benefit
On death during the first five years: The Death Benefit can be defined as Sum Assured on Death and accrued Guaranteed Addition will be payable to the policyholder.
On death after completion of five policy years but before the date of maturity: The Death Benefit can be defined as Sum Assured on Death and accrued Guaranteed Addition and Loyalty Addition(if any) will be payable.
The Sum Assured on Death is defined as the highest of
- 10 times of the annualized premium
- Sum Assured on Maturity as defined or
- Absolute amount assured to be paid on death, i.e. 125% of Basic Sum Assured
This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Survival Benefit
The surviving benefit of the life assured surviving to each of the specified durations during the policy term provided all due premiums have been paid. A fixed percentage of Basic Sum Assured shall be payable.
The fixed percentage for various policy terms is as below:
- For policy term 14 years: 30% of Basic Sum Assured on each of 10th and 12th policy anniversary.
- For policy term 16 years: 35% of Basic Sum Assured on each of 12th and 14th policy anniversary.
- For policy term 18 years: 40% of Basic Sum Assured on each of 14th and 16th policy anniversary.
- For policy term 20 years: 45% of Basic Sum Assured on each of 16th and 18th policy anniversary.
Additional benefit
The additional benefit will be there in this policy which is not been provided for any other policy. The first diagnosis of any one of the 15 critical illnesses as mentioned below.
- Lump sum Benefit: Inbuilt Critical Illness Benefit equal to 10% of Basic Sum Assured shall be payable provided the claim is admissible.
- Option to defer the payment of premium: 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 two years from the date of admission of Critical Illness claim under the policy.
- Medical Second Opinion: The policyholder will have the facility of taking Medical Second Opinion, through the available health care providers, internationally or through reputed hospitals in India.
The list and definitions of the 15 Critical Illness conditions covered under this benefit:
- Cancer Of Specified Severity
- Open Chest Cabg
- Myocardial Infarction
- Major Organ /Bone Marrow Transplant
- Stroke Resulting In Permanent Symptoms
- Permanent Paralysis Of Limbs
- Multiple Sclerosis With Persisting Symptoms
- Aortic Surgery
- Primary (Idiopathic) Pulmonary Hypertension
- Alzheimer’s Disease/ Dementia
- Blindness
- Third Degree Burns
- Benign Brain Tumor
- Open Heart Replacement Or Repair Of Heart Valves
- Kidney Failure Requiring Regular Dialysis
Optional Benefit
Rider Benefits
LIC Jeevan Shiromani provides the policyholder with the option to choose 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.
The optional benefit of the policy is as follows-
- LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC’s Accident Benefit Rider (UIN:512B203V03)
- LIC’s New Term Assurance Rider (UIN: 512B210V01)
- LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)
Option to take Death benefit in installments
This is an option to receive Death Benefit in installments over the chosen period of 5 or 10 or 15
years instead of lump sum amount.
Option to defer the Survival Benefit
The policyholder has an option to defer the Survival Benefit and take the increased Survival Benefits at any time on or after its due date but during the currency of the policy.
Eligibility for the LIC Jeevan Shiromani
| Minimum Basic Sum Assured | Rs. 100,00,000 |
| Maximum Basic Sum Assured | No limit |
| Policy Term | 14, 16, 18 and 20 years |
| Premium Paying Term | 4 years |
| Minimum Age at entry | 18 years |
| Maximum Age at entry | 55 years for policy term 14 years
birthday 51 years for policy term 16 years 48 years for policy term 18 years 45 years for policy term 20 years |
| Maximum Age at Maturity | 69 years for policy term 14 years
67 years for policy term 16 66 years for policy term 18 years 65 years for policy term 20 years |
Rebates
Mode Rebate
| Yearly mode | 2% of Tabular Premium |
| Half-yearly mode | 1% of the Tabular premium |
| Quarterly, Monthly | NIL |
High Basic Sum Assured Rebate
| Basic Sum Assured (BSA) | Rebate on tabular premium(Rs.) |
| 100,00,000 to 195,00,000 | Nil |
| 200,00,000 to 495,00,000 | 0.030 ‰ BSA |
| 500,00,000 and above | 0.050 ‰ BSA |
Surrender Value
The policy can be surrendered at any time provided one full year’s premium has been paid and after completion of one policy year. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value
Policy loan
The loan can be availed at any time during the policy term once the policy acquired its surrender value of around 80-90% of the total surrender value at the interest rate that can vary. The interest rate for the 2016-17 is 9.5% p.a. payable half yearly.
Free lookup period
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy bond stating the reasons of objections
Revival
If premiums are not paid by the end of the grace period then the policy will lapse. A lapsed policy can be revived within a period of two consecutive years from the date of first unpaid premium but before the date of Maturity.
Exclusion
The policy gets void in the case of suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim except for 80% of the premiums paid, provided the policy is in force. If the Life Assured (whether sane or insane) commits suicide within 12 months from the date of revival, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value, will be payable.
