LIC’s Jeevan Shiromani

LIC’s Jeevan Shiromani is a non-linked money back plan that was launched by LIC on 19th December 2017. Basically, it is an efficient insurance plan that provides life protection as well as promotes savings. This plan is typically designed for High Net worth individuals. LIC’s Jeevan Shiromani plan offers pay-outs at regular terms, life coverage as well as a lump sum amount as a maturity benefit. It provides a cover for critical illnesses and also includes three optional riders.

LIC’s Jeevan Shiromani plan will provide support, stability and financial security to your family, when you die. It will give them the financial backbone they will need after such a tragic loss to them. Apart from this, LIC’s Jeevan Shiromani will also reap you many other benefits. As a policy holder, you will receive timely payments while the policy is in force and also receive a lump sum amount on maturity. If you happen to be diagnosed with any of the critical illnesses mentioned under this plan, you have an alternative of a lump sum that will be equivalent to 10% of the sum assured that was chosen initially through the in-built critical illness benefit.

1. Death benefits

• If the policy holder dies during the first five years of the policy, then accrued guaranteed addition along with sum assured will be paid.
• If the policy holder dies after completing 5 years but before the maturity date of the policy, then accrued guaranteed addition, sum assured and loyalty additions are paid.
• Sum assured on death (amount payable is higher of)
  - 10 times of your annual premium
  - 105% of premiums paid till date
  - 125% of basic sum assured

2. Survival benefits: If the policy holder survives for the entire policy term and all the premiums are paid, a fixed percentage of sum assured amount will be paid. The fixed percentage for various policy terms are as follows:

• For a policy term of 14 years, 30% of the sum assured on both, the 10th and 12th policy anniversary.
• For a policy term of 16 years, 35% of the sum assured on both, the 12th and 14th policy anniversary.
• For a policy term of 18 years, 40% of the sum assured on each, the 14th and the 16th policy anniversary.
• For a policy term of 20 years, 45% of the sum assured on each, the 16th and the 18th policy anniversary.

3. Maturity benefit: If the policy holder survives for the entire term of the policy and all premiums have been duly paid, he will receive sum assured on maturity, along with accrued guaranteed additions and loyalty additions (if any). Sum assured on maturity is under:

• For a policy term of 14 years, 40% of sum assured.
• For a policy term of 16 years, 30% of sum assured.
• For a policy term of 18 years, 20% of sum assured.
• For a policy term of 20 years, 10% of sum assured.

4. Inbuilt Critical Illness: The policy holder will be entitled to the following benefits, if he or she is diagnosed with any of the fifteen critical illnesses and if the policy is in effect at the time of diagnostics along with due premiums paid:

• Lump sum: Inbuilt critical illness rider benefit is equivalent to 10% of the sum assured. This will be paid only if the claim is permitted.
• Alternative to postpone the premium payment: The policy holder gets this option wherein premiums are postponed for a period of two years from the date of admission of the Critical Illness claim.
• Medical second opinion: The policyholder can take Medical Second Opinion. This can be done either through the available healthcare providers, internationally or through reputed hospitals in India or through specialist doctors available in different places depending on the arrangement in this regard by the Corporation.

List of critical illnesses covered under LIC’s Jeevan Shiromani plan:

1. Cancer of particular severity
2. Open chest CABG
3. Benign brain tumor
4. Third degree burns
5. Open heart replacement or repair of heart valves
6. Blindness
7. Primary pulmonary hypertension
8. Alzheimer's disease or dementia
9. Multiple sclerosis with persisting symptoms
10. Aortic surgery
11. Stroke that results in permanent symptoms
12. Permanent paralysis of limbs
13. Major organ or bone marrow transplant (as recipient)
14. Myocardial infarction
15. Regular dialysis due to kidney failure.

• If the policy holder commits suicide within 12 months of the inception of the policy being in effect, the company will not provide any claim. Only 80% of the premiums will be payable.

• If the life insured commits suicide within 12 months from the date of renewal, an amount higher than 80% of the premiums paid until the death date or surrender value as on that day will be payable.

If the policy has got a surrender value and correlates with the terms and conditions as per the corporation from time to time, a loan can be availed during the particular policy term. For all the loans granted in 2017-2018 financial year, the interest rate applied is 9.5% per annum. This is to be paid semi-annually for the whole term of the loan. However, the interest rate that is to be applied for policy loans and full term loans is decided periodically.

According to surrender value percentage, the maximum loan will be until 90% for policies that are in effect and up to 80% for policies that are paid-up.

If there is any loan amount or interest pending, it gets cleared through survival benefits or claim amount.