Keeping backup in life is widely and traditionally practiced in India. This term can also be called life insurance. There are many insurance policies available in India which are offered by many companies which are beneficial for both individuals and groups. LIC continues to dominate when it comes to being a one-stop life insurance solution for Indians. An investor can shop through multiple LIC policies with attractive benefits. One such is LIC’s Jeevan Shiromani plan which offers Basic Sum Assured 1 crore.
LIC Jeevan Shiromani plan is for High Net Worth Individuals (HNIs) who offer a combination of protection and Savings,
This plan provides financial assistance for the family in case of unfortunate death of the policyholders during the policy term. Under the policy, periodic payments are also made on the survival of the policyholder for a specified period of time during the policy term, meanwhile, a lump sum payment is made to the surviving policyholder at the time of maturity.
In addition, the policy also provides for payment of a lump sum amount equal to 10% of the selected Basic Sum Assured on diagnosis of any specified critical illness. In addition, the scheme takes care of the liquidity needs through a loan facility.
The policy has a minimum Basic Sum Assured 1 crore with no maximum limit. Its tenure is 14 years, 16 years, 18 years and 20 years. However, its premium paying term is policy year minus 4 years.
The minimum age to opt for the policy is 18 years, while the maximum is 55 years.
Under death benefit, the policy provides sum assured in excess of 125% of the Basic Sum Assured or 7 times the annualized premium. However, this benefit is given after the completion of five years of the policy but before the date of maturity.
Notably, the death benefit shall not be less than 105% of all premiums paid till the date of death.
Meanwhile, under the Survival Benefit, LIC will pay a certain percentage of the Basic Sum Assured after a certain period. These are:
For a policy term of 14 years, LIC will pay 30% of the Basic Sum Assured on each of the 10th and 12th policy anniversaries. In case of a term of 16 years, 35% of the Basic Sum Assured will be paid on every 12th and 14th policy anniversaries. In addition, 40% of the Basic Sum Assured on the 14th and 16th policy anniversary will be paid over a period of 18 years. In respect of 20 years tenure, 45% of the Basic Sum Assured will be paid on the 16th and 18th policy anniversaries.
On maturity, LIC will pay the Sum Assured at the end of the tenure along with Guaranteed Additions and Loyalty Additions.