LIC Jeevan Shiromani – LIC Jeevan Shiromani is one of LIC’s premium insurance plans designed specifically for high-net-worth individuals. With guaranteed returns, life coverage, and impressive survival benefits, this plan has gained attention for offering ₹1 crore returns after just 4 years of premium payment. But how does it really work? Let’s dive into the complete details of LIC Jeevan Shiromani and why it might be the right investment choice for you.
What is LIC Jeevan Shiromani Plan?
LIC Jeevan Shiromani (Plan No. 847) is a non-linked, limited premium payment, money-back life insurance plan. It is targeted at individuals seeking both insurance protection and investment growth, especially in the higher-income bracket. The plan provides guaranteed additions, life cover, and maturity benefits along with critical illness coverage.
Key Highlights:
- Premium payment term: Only 4 years
- Policy terms available: 14, 16, 18, and 20 years
- Minimum Sum Assured: ₹1 crore
- Guaranteed Additions: ₹50 per ₹1,000 Sum Assured per year
- Critical illness cover included
How the Plan Works – Example with ₹1 Crore Sum Assured
To help understand better, let’s consider a 35-year-old male investing in a ₹1 crore Jeevan Shiromani policy for a 20-year term. He will pay premiums for only 4 years, and get multiple returns and benefits during and after the policy term.
₹1 Crore Sum Assured – Jeevan Shiromani (20-Year Policy)
| Year | Event Type | Benefit/Amount Received | Remarks |
|---|---|---|---|
| 1 | Premium Paid | ₹24,00,000 approx | First Year Premium |
| 2 | Premium Paid | ₹24,00,000 approx | Second Year Premium |
| 3 | Premium Paid | ₹24,00,000 approx | Third Year Premium |
| 4 | Premium Paid | ₹24,00,000 approx | Final Premium Year |
| 6 | Survival Benefit | ₹10,00,000 | 10% of Sum Assured |
| 10 | Survival Benefit | ₹10,00,000 | 10% of Sum Assured |
| 14 | Survival Benefit | ₹10,00,000 | 10% of Sum Assured |
| 20 | Maturity Benefit | ₹70,00,000+GA | Remaining 70% + Guaranteed Additions |
LIC Jeevan Shiromani Benefits in Detail
1. Limited Premium Payment
- Pay premiums only for 4 years.
- Enjoy policy benefits for up to 20 years.
2. Survival Benefits
- 10% of Basic Sum Assured paid periodically during the policy term, depending on the term chosen.
3. Maturity Benefit
- The balance sum assured (typically 60-70%) is paid at the end of the policy term.
- Guaranteed Additions of ₹50 per ₹1,000 Sum Assured added annually.
4. Death Benefit
- If the policyholder passes away during the policy term, the nominee receives:
- Sum Assured on Death
- Accrued Guaranteed Additions
- No deduction for survival benefits already paid
5. Critical Illness Cover
- Covers 15 listed critical illnesses.
- Includes waiver of future premiums upon diagnosis.
Premium Chart for Jeevan Shiromani
| Sum Assured | Age (30) | Age (35) | Age (40) | Age (45) |
|---|---|---|---|---|
| ₹1 Crore | ₹23.5L/year | ₹24L/year | ₹24.6L/year | ₹25.8L/year |
| ₹2 Crore | ₹47L/year | ₹48L/year | ₹49.2L/year | ₹51.6L/year |
| ₹3 Crore | ₹70.5L/year | ₹72L/year | ₹73.8L/year | ₹77.4L/year |
These are approximate annual premium values. Exact premiums vary by term and health profile.
Why Choose LIC Jeevan Shiromani?
- High Security with Guaranteed Returns: Perfect for investors seeking safe returns.
- Life Cover with Investment: Ensures family security along with wealth creation.
- Premium Waiver for Critical Illness: Adds peace of mind in difficult times.
- High Liquidity: Multiple survival benefits act as liquidity at key intervals.
Jeevan Shiromani Eligibility Criteria
| Parameter | Minimum | Maximum |
|---|---|---|
| Entry Age | 18 years | 55 years |
| Policy Term | 14, 16, 18, 20 years | |
| Premium Paying Term | 4 years | Fixed |
| Sum Assured | ₹1 crore | No upper limit (multiples of ₹5 lakh) |
Things to Keep in Mind
- LIC Jeevan Shiromani is suitable for those who can invest higher amounts in a short period.
- Ideal for tax-saving under Section 80C and maturity under Section 10(10D).
- Early surrender may not offer substantial value; best results are obtained if the policy runs full term.
- Critical illness coverage starts after 1 policy year.
LIC Jeevan Shiromani is a prestigious life insurance-cum-investment plan tailored for high-income individuals looking for safe returns and financial protection. With limited premium payment and guaranteed payouts, it ensures both peace of mind and long-term wealth. If you have the capacity to invest in a high-value plan, this could be your pathway to a ₹1 crore return with added benefits.
