The importance of having life insurance known to all of us. The Life Insurance Corporation of India (LIC), the country’s largest insurer, offers a plethora of products for different sections of our society. LIC’s Jeevan Shiromani is a non-linked, participating, individual, limited premium payment money back life insurance plan with minimum basic sum assured of Rs 1 crore. Other than that, this plan also offers an inbuilt critical illness benefit that covers for 15 critical illnesses. LIC’s Jeevan Shiromani plan is specially designed for high net-worth individuals.
Minimum basic sum assured: Rs 1 crore
Maximum basic sum assured: No limit
Policy term : 14, 16 , 18 and 20 years
Premium paying term: Four years less than policy paying term
Minimum age at entry : 18 years
Maximum age at entry : 45 years to 55 years, will be depend on policy term
Maximum age at maturity: 65 years to 69 years, will be depend on policy term
The LICs Jeevan Shiromani plan offers coverage for 15 critical illnesses. Policyholders will get 10% of the chosen basic sum assured in case he or she is diagnosed with any of these illnesses.
This plan offers a guaranteed additional bonus at the rate of Rs 50 per thousand during the first five years of the policy and Rs 55 per thousand from the sixth policy year till the end of the premium paying term (PPT).
The policy can be surrendered at any time provided at least one full years’ premiums have been paid.
In case of death of the policyholder during the first five years, the sum assured along with accrued guaranteed addition is paid to the nominee.
Policyholders are paid a fixed percentage of sum assured after a regular interval if they survive for the entire policy term. 30% of the basic sum assured is paid on each of the 10th and 12th policy anniversary for policy term 14 years. This percentage increases to 35, 40 and 45 for policy terms of 16, 18 and 20 years respectively.
The policyholder receives the maturity benefit amounting to the sum assured on maturity along with accrued guaranteed additions and loyalty additions.
The sum assured on maturity will be 40%, 30% and 20% and 10% of the basic sum assured for policy terms of 14, 16, 18 and 20 years respectively.
LICs Jeevan Shiromani plan offers 4 rider benefits by payment of additional premium. However, a maximum of three riders can be availed under a policy.
Download Money9 App for the latest updates on Personal Finance.