LIC Jeevan Shiromani Policy – For high-net-worth individuals looking for a combination of insurance protection and wealth creation, the LIC Jeevan Shiromani plan is one of the top premium policies offered by the Life Insurance Corporation of India. This plan is tailored to provide life cover, guaranteed additions, and profit-sharing benefits – all in one. With a limited premium payment term of just 4 years, policyholders can avail long-term financial benefits and coverage up to ₹1 crore or more, making it a preferred choice for those seeking security with savings.
Understanding LIC Jeevan Shiromani Policy
LIC Jeevan Shiromani is a non-linked, participating, individual life insurance savings plan launched specifically for HNI (High Net-worth Individuals). It is designed to provide financial support during medical emergencies, maturity benefits, death benefits, and loyalty additions.
Key Features of LIC Jeevan Shiromani
- Limited premium payment option (only 4 years)
- Minimum Sum Assured: ₹1 crore
- Guaranteed Additions throughout the policy term
- Loyalty Additions depending on LIC’s performance
- Critical illness cover up to 15 diseases
- Option for loan against policy
- Tax benefits under Section 80C and 10(10D)
Eligibility and Policy Details
The LIC Jeevan Shiromani policy is available to individuals aged between 18 and 55 years, with a minimum sum assured of ₹1 crore. It offers flexible policy terms of 14, 16, 18, and 20 years, while requiring premium payments for only 4 years. Policyholders can choose to pay premiums annually, half-yearly, or quarterly. The plan also includes a fixed critical illness benefit of ₹25 lakh and allows loans after one policy year.
| Particulars | Details |
|---|---|
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 55 years (for 14-year term) |
| Policy Term Options | 14, 16, 18, and 20 years |
| Premium Paying Term | 4 years |
| Minimum Sum Assured | ₹1 crore |
| Premium Payment Mode | Yearly, Half-Yearly, Quarterly |
| Critical Illness Benefit | ₹25 lakh (fixed) |
| Loan Facility | Available after 1 policy year |
Premium Illustration
To understand the benefits better, here’s an example for a 35-year-old healthy male purchasing a policy with ₹1 crore Sum Assured for a 20-year policy term.
| Year | Annual Premium | Total Premium Paid | Guaranteed Additions | Expected Maturity Value |
|---|---|---|---|---|
| 1 | ₹4,76,000 | ₹4,76,000 | ₹5,00,000 | |
| 2 | ₹4,76,000 | ₹9,52,000 | ₹10,00,000 | |
| 3 | ₹4,76,000 | ₹14,28,000 | ₹15,00,000 | |
| 4 | ₹4,76,000 | ₹19,04,000 | ₹20,00,000 | |
| 20 | – | ₹19,04,000 | ₹50,00,000 (Total) | ₹1.2 Cr to ₹1.3 Cr* |
(*Including loyalty additions; varies as per LIC’s profit declaration.)
Maturity and Death Benefits of LIC Jeevan Shiromani Policy
Maturity Benefit:
- On surviving the policy term, the policyholder will receive:
- Guaranteed Additions
- Loyalty Additions
- Sum Assured on Maturity
Death Benefit:
- In case of death during the policy term:
- Sum Assured on Death (125% of Basic Sum Assured or 7 times the annual premium, whichever is higher)
- Accrued Guaranteed Additions
- Loyalty Additions (if applicable)
Critical Illness Benefit
An in-built critical illness benefit provides coverage for up to 15 listed major diseases. Upon diagnosis of any of the specified illnesses, the policyholder receives a lump sum payout of ₹25 lakh. Moreover, premium payment is waived for the next two years.
List of Covered Critical Illnesses:
- Cancer
- Open Heart Surgery
- Kidney Failure
- Major Organ/Bone Marrow Transplant
- Stroke
- Paralysis
- Multiple Sclerosis
- And more…
Why Choose LIC Jeevan Shiromani?
- High returns on maturity due to loyalty additions and guaranteed additions
- Coverage for critical illnesses ensures health protection
- Limited premium commitment makes it convenient for HNIs
- Trusted brand with assured claims settlement
- Opportunity for wealth creation with life protection
Comparison with Other LIC Investment Plans
| Feature | LIC Jeevan Shiromani | LIC Jeevan Anand | LIC Bima Jyoti |
|---|---|---|---|
| Minimum Sum Assured | ₹1 crore | ₹1 lakh | ₹1 lakh |
| Premium Paying Term | 4 years | Equal to policy | 15 years |
| Maturity Benefits | High + Additions | Moderate | Guaranteed Additions |
| Critical Illness Cover | Yes (₹25 lakh) | No | No |
| Loan Facility | Yes | Yes | Yes |
| Ideal For | High Income Group | General Public | Conservative Investors |
LIC Jeevan Shiromani is a tailor-made solution for individuals seeking a premium insurance plan with guaranteed returns, critical illness coverage, and loyalty additions. With its high sum assured and short premium payment period, this policy offers a solid combination of investment and protection. Ideal for professionals, entrepreneurs, and NRIs, this plan ensures that your loved ones are financially secure, and your long-term wealth goals are met.
FAQs about LIC Jeevan Shiromani Policy
Q1. What is the minimum sum assured in LIC Jeevan Shiromani?
A1. The minimum sum assured under this policy is ₹1 crore.
Q2. Can I get a loan against the LIC Jeevan Shiromani policy?
A2. Yes, policyholders can avail a loan after completing one policy year, subject to terms and conditions.
Q3. How many premiums do I need to pay?
A3. You only need to pay premiums for 4 years, regardless of the policy term you choose.
Q4. Does this policy provide any health protection?
A4. Yes, it includes an in-built critical illness cover for 15 serious health conditions with a benefit of ₹25 lakh.
Q5. Is this policy eligible for tax benefits?
A5. Yes, premiums paid are eligible for tax deduction under Section 80C and maturity benefits are generally exempt under Section 10(10D) of the Income Tax Act.