LIC’s special premium plan for High Net-worth Individuals

LIC’s Jeevan Shiromani: A premium policy that combines protection, savings, attractive returns, and medical cover.

  • LIC’s Jeevan Shiromani plan offers a combination of protection and savings with inbuilt benefits for 15 critical illnesses. 
  • This plan is specially designed for High Net-worth Individuals. 
  • This plan provides financial support for the family in case of the 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 lumpsum 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

1. Survival Benefit:

On 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 the Basic Sum Assured shall be payable. The fixed percentage for various policy terms is as below:

  • For policy term 14 years: 30% of the Basic Sum Assured on each of 10 and 12 policy anniversaries. 
  • For policy term 16 years: 35% of the Basic Sum Assured on each of the 12 and 14 policy anniversaries. 
  • For policy term 18 years: 40% of the Basic Sum Assured on each of the 14 and 16 policy anniversaries. 
  • For policy term 20 years: 45% of the Basic Sum Assured on each of the 16 and 18 policy anniversaries.

2. Maturity Benefit:

On the life assured surviving to the end of the policy term, provided all due premiums have been paid, “Sum Assured on Maturity” along with accrued Guaranteed Additions and Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Maturity” is as under:

  • 40% of the Basic Sum Assured for a policy term of 14 years
  • 30% of the Basic Sum Assured for a policy term of 16 years
  • 20% of the Basic Sum assured for a policy term of 18 years
  • 10% of the Basic Sum assured for a policy term of 20 years

3. Inbuilt Critical Illness Benefit:

I. Benefit: On the first diagnosis of any one of the 15 critical illnesses (as mentioned in policy document), provided the policy is in force on the date of diagnosis by payment of all premiums due under the policy, the following benefits facilities shall be available:
i) Lumpsum Benefit: Inbuilt Critical Illness Benefit equal to 10% of the Basic Sum Assured shall be payable provided the claim is admissible.

ii) Option to defer the payment of premium(s): When a claim under inbuilt Critical Illness Benefit is admitted, the life assured will have the option to defer the payment of premiums falling due within 2 years from the date of admission of the Critical Illness claim under the policy (including rider premiums). The deferment of premiums shall be allowed for a period of 2 years from the date of admission of the Critical Illness claim and subsequent premiums, if any, shall be payable on their due dates. No interest shall be charged from the life assured for deferred premiums within the period of such deferment. During this period, if any due premium(s) are not paid, and any of the benefits payable under the base policy and/or rider(s) become due, the applicable benefit(s) shall be payable as under an in-force policy after the deduction of all the premiums due under the policy.

iii) Medical Second Opinion: The policyholder will have the facility of taking Medical Second Opinion, 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. This facility shall be available only once during the policy term with no extra cost. This provision for all or either of the options of Medical Second Opinion is subject to the availability of the facility and arrangement made by the Corporation and as intimated in this regard. The details of same shall be
furnished to the policyholder along with the policy document.

4. Death Benefit:

On death during first five years: Death Benefit defined as the sum of “Sum
Assured on Death” and accrued Guaranteed Addition shall be payable.

On death after completion of five policy years but before the date of maturity: Death Benefit defined as the sum of “Sum Assured on Death” and accrued Guaranteed Addition and Loyalty Addition, if any, shall be payable. Where “Sum Assured on Death” is defined as the higher of 125% of Basic Sum Assured or 7 times of annualized premium. This death benefit shall not be less than 105% of all the premiums paid up to the date of death.

Premiums referred to above exclude taxes, extra premiums, and rider premium(s), if any.

Waiting Period

A waiting period of 90 days will apply from the date of commencement of risk or date of revival of risk cover, whichever is later, to the first diagnosis of the Critical Illness under consideration. However, the waiting period will not apply to conditions arising directly out of an accident.

Survival Period

A survival period of 30 days is applicable from the date of diagnosis of the critical Illness listed above. If death occurs within the survival period, no inbuilt critical illness benefit shall be payable.

Participation in Profits

Provided the policy has completed five policy years and at least 5 full years’ premium has been paid, then depending upon the Corporation’s experience the policies under this plan shall be eligible for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity, at such rate, and on such terms as may be declared by the Corporation.

The actual allocation to policyholders, out of the surplus emerging from the actuarial investigation, shall be as approved by Central Government in
accordance with provisions in this regard under LIC Act, 1956.

Guaranteed Additions

Guaranteed Additions shall accrue at the end of each policy year during the Premium Paying Term (PPT), provided all due premiums have been paid to date.
The rate of Guaranteed Additions shall be as follows:
• Rs. 50 per thousand Basic Sum Assured for the first five years
• Rs. 55 per thousand Basic Sum Assured from the 6th policy year till the end of PPT
In case of a paid-up policy or on surrender of a policy the Guaranteed Addition for the policy year in which the last premium is received will be added on a proportionate basis in proportion to the premium received for that year.

Eligibility conditions and other restrictions

a) Minimum Basic Sum Assured: Rs. 1,00,00,000
b) Maximum Basic Sum Assured: No limit (The Basic Sum Assured shall be in multiples of Rs. 5,00,000/-)
c) Policy Term: 14, 16, 18, and 20 years
d) Premium Paying Term: (Policy term – 4) years
e) Minimum Age at entry: 18 years (completed)

f) Maximum Age at entry:

55 years (nearer birthday) for a policy term of 14 years
51 years (nearer birthday) for a policy term of 16 years
48 years (nearer birthday) for a policy term of 18 years
45 years (nearest birthday) for a policy term of 20 years

g) Maximum Age at Maturity:

69 years (nearer birthday) for a policy term of 14 years
67 years (nearer birthday) for a policy term of 16 years
66 years (nearer birthday) for a policy term of 18 years
65 years (nearer birthday) for a policy term of 20 years

For further details and customized calculations of contributions and payouts Contact us.

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