LIC Jeevan Shiromani Plan – The Life Insurance Corporation of India (LIC) has long been known for its reliable, high-return life insurance policies. Among its premium offerings is the LIC Jeevan Shiromani plan, specially designed for high-net-worth individuals. This policy not only provides robust life coverage but also guarantees attractive returns. One of its most attractive features? You only pay premiums for 4 years and still enjoy coverage for up to 20 years, with potential benefits reaching ₹1 crore or more. Let’s explore the full benefits, eligibility, premium chart, and return structure of the LIC Jeevan Shiromani plan.
What is LIC Jeevan Shiromani Plan?
LIC Jeevan Shiromani is a non-linked, with-profits, limited premium payment money-back life insurance plan. It is specially tailored for individuals looking for high life cover, assured returns, and long-term investment benefits. Introduced as a plan for the elite class, it provides both financial protection to the family and savings opportunities.
Key Features of LIC Jeevan Shiromani:
- Premium paying term : Only 4 years
- Policy term : 14, 16, 18, or 20 years
- Minimum sum assured : ₹1 crore
- Guaranteed Additions : ₹50 per ₹1,000 sum assured annually
- Survival benefits at regular intervals
- Critical Illness Benefit Cover included
Eligibility Criteria and Plan Options
The LIC Jeevan Shiromani plan is available to individuals aged between 18 and 55 years, depending on the chosen policy term. It offers flexible policy durations of 14, 16, 18, or 20 years, with a fixed premium payment period of just 4 years. The minimum basic sum assured is ₹1 crore, with no upper limit, making it ideal for high-net-worth individuals. The plan also provides loan facilities after one year, ensuring both security and liquidity.
Here’s a snapshot of eligibility requirements for the LIC Jeevan Shiromani plan:
| Feature | Details |
|---|---|
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 55 years (varies with term) |
| Policy Term Options | 14, 16, 18, 20 years |
| Premium Paying Term | 4 years |
| Minimum Basic Sum Assured | ₹1 crore |
| Maximum Basic Sum Assured | No upper limit (in multiples of ₹5 lakh) |
| Loan Facility | Available after 1 year |
Survival Benefits Structure
Policyholders receive a percentage of the Basic Sum Assured at pre-determined intervals during the policy term.
| Policy Term | Payout at 4th Year | Payout at 8th Year | Payout at 12th Year | Final Maturity |
|---|---|---|---|---|
| 14 Years | 30% | 30% | N/A | 40% + Bonus |
| 16 Years | 30% | 30% | N/A | 40% + Bonus |
| 18 Years | 30% | 30% | 20% | 20% + Bonus |
| 20 Years | 30% | 30% | 20% | 20% + Bonus |
Death and Maturity Benefits
LIC Jeevan Shiromani offers both death and maturity benefits, making it a comprehensive protection plan.
Death Benefits:
- Before commencement of risk : Return of premium paid (excluding taxes and extra premiums).
- After commencement of risk : Sum Assured on Death + Guaranteed Additions + Bonuses.
Sum Assured on Death = Higher of:
- 10 times the annualized premium
- 125% of Basic Sum Assured
Maturity Benefits:
At the end of the policy term, the policyholder receives:
- Remaining portion of Basic Sum Assured
- Guaranteed Additions
- Final Additional Bonus (if any)
Premium and Return Examples
To help you understand the return structure better, here’s a sample premium and benefit projection for different policy terms:
| Age | Policy Term | Basic Sum Assured | Annual Premium (approx.) | Total Premium (4 years) | Total Returns (Approx.) |
|---|---|---|---|---|---|
| 30 | 14 years | ₹1 crore | ₹8,60,000 | ₹34,40,000 | ₹1.04 crore |
| 35 | 16 years | ₹1 crore | ₹8,80,000 | ₹35,20,000 | ₹1.10 crore |
| 40 | 18 years | ₹1 crore | ₹9,00,000 | ₹36,00,000 | ₹1.16 crore |
| 45 | 20 years | ₹1 crore | ₹9,30,000 | ₹37,20,000 | ₹1.22 crore |
Note: Premiums are indicative and may vary based on health, rider options, and GST.
Critical Illness Benefit and Riders
LIC Jeevan Shiromani also offers an inbuilt Critical Illness Rider which provides:
- Lump sum payment on diagnosis of any of the 15 critical illnesses
- Option to defer premiums for up to 2 years
- Second medical opinion facility
Additional Riders Available:
- Accidental Death and Disability Benefit Rider
- New Term Assurance Rider
Why Choose LIC Jeevan Shiromani?
- Ideal for HNIs looking for tax-free, guaranteed long-term returns
- Policy coverage continues even after premium payments end in 4 years
- Early liquidity via money-back survival benefits
- Assured maturity benefits, making it low-risk
- Offers life cover, investment, and critical illness protection in one plan
Tax Benefits
Under the current tax regime, the following exemptions are applicable:
- Premiums paid eligible for deduction under Section 80C
- Maturity/death benefits are tax-free under Section 10(10D)
LIC Jeevan Shiromani is a unique blend of savings and protection tailored for individuals seeking high-return, tax-efficient investment instruments with guaranteed benefits. With the limited 4-year premium paying option and returns that could go beyond ₹1 crore, this plan stands out as a premium product in LIC’s portfolio. For those looking to secure their future while minimizing financial stress in the present, Jeevan Shiromani is a powerful choice.
FAQs
1. Can I surrender LIC Jeevan Shiromani before maturity?
Yes, the policy acquires a surrender value after premium payments for at least one full year. Guaranteed Surrender Value and Special Surrender Value will be applicable.
2. Are the returns from LIC Jeevan Shiromani tax-free?
Yes, all maturity and death claim amounts are tax-free under Section 10(10D), provided premiums do not exceed 10% of the sum assured in any year.
3. Is the Critical Illness benefit available by default?
Yes, the Critical Illness Rider is an inbuilt feature and covers 15 specified diseases, offering lump sum payouts and premium deferment options.
4. Can I take a loan against this policy?
Yes, loan facility is available once the policy acquires surrender value, generally after payment of one full year’s premium.
5. Is this plan suitable for regular investors or only high-net-worth individuals?
Due to the high minimum sum assured of ₹1 crore, this plan is best suited for high-net-worth individuals looking for a secure, high-return life insurance policy.