LIC Jeevan Shiromani Plan

Death Benefit

On the unfortunate death of the policyholder during the policy term, the family receives the benefit in the following manner.

On the death during the first five policy years: Sum Assured on Death and Guaranteed Benefits are paid to the beneficiaries on the claim.

On the death after the completion of the first five policy years but before the date of maturity: Sum Assured on Death with accrued Guaranteed Additions and Loyalty Additions are payable to the nominee. Where the Sum Assured on Death is the higher of

• 125% of the Basic Sum Assured
• 7 times the annualised premium

Survival Benefit

When the life assured survives the specified years during the policy term, they receive a fixed percentage of Basic Sum Assured in the following manner:

Maturity Benefit

If the life assured survives the full policy term, and all the premiums are duly paid, they receive a Sum Assured on Maturity as the maturity benefit. Additionally, the Guaranteed Additions and Loyalty Additions are paid. The Sum Assured on Maturity is provided as follows

Inbuilt Critical Illness Benefit

Suppose the life assured is diagnosed with any of the 15 critical illnesses specified under the LIC Jeevan Shiromani Plan. In that case, the life assured can gain the following benefits on the first diagnosis, provided the LIC of India admits the claim.

1. Lump Sum Benefit: Inbuilt Critical Illness Benefit equal to 10% of the Basic Sum Assured is payable.
2. Premium Payment Deferment Option: The life assured can choose to defer/ postpone the due premium payments for 2 years from the date of admission of the critical illness claim under the policy. No interest shall be charged from life assured for the deferred premium. During this period, if any of the benefits are payable under the base policy, then the life assured receives the benefits after deducting all the premiums due.
3. Medical Second Opinion: Under LIC Jeevan Shiromani Plan, the corporation provides life assured with the facility to take a second opinion through any healthcare provider. The life assured can avail of this facility only once during the policy term with no extra cost. The following critical illnesses are covered under LIC Jeevan Shiromani Plan.
   • Cancer of specified severity
   • Open chest CABG
   • Myocardial infarction
   • Kidney failure requiring regular dialysis
   • Major organ/bone marrow transplant
   • Stroke resulting in permanent symptoms
   • Permanent paralysis of limbs
   • Multiple sclerosis with persisting symptoms
   • Aortic surgery
   • Primary (Idiopathic) pulmonary hypertension
   • Alzheimer's disease/ Dementia
   • Blindness
   • Third degree burns
   • Open heart replacement/ repair/ heart valves
   • Benign brain tumor

Participation in Profits

After completing five policy years, the LIC Jeevan Shiromani Policy becomes eligible for loyalty additions, provided all the policy premiums are duly paid. Depending upon the company experience, the life assured or the nominee gets the loyalty additions at the time of exit during the maturity of the policy or claim for death.

The loyalty additions are also payable for the paid-up policy and calculated during the Special Surrender Value calculation if the policy is surrendered after five years of policy completion.

Guaranteed Additions

Guaranteed additions are added at the end of each policy year during the policy premium paying term. The rate of guaranteed additions should be as

• For the first five policy years: Rs. 50 per thousand Basic Sum Assured
• After the first five policy years and till the end of the premium paying term: Rs. 55 per thousand Basic Sum Assured

Premium Payments

The policyholder can choose to pay the premium regularly at yearly, half-yearly, quarterly, or monthly basis per their financial suitability.

Grace Period

A grace period of 30 days is offered for the payments of yearly, half-yearly, and quarterly premium payment modes and 15 days for monthly mode from the first unpaid premium date. During this period, the policyholder can make due premium payments. The policy lapses if the premiums are not paid before the grace period expires.

Policy Revival

The policyholder can revive the LIC Jeevan Shiromani life insurance policy within 5 consecutive years from the date of the first unpaid premium but before the date of maturity. All the benefits under the policy are revived upon paying all the outstanding premiums and interest.

Paid Up Policy

If the policyholder has paid the premiums for less than one year and the subsequent payments are not made, the benefits cease after the expiry of the grace period. Nothing shall be payable to the policyholder.

If the policyholder has paid the premiums for at least one year and any subsequent premiums are not paid, the policy doesn’t stand wholly void and continues as the paid-up policy till the policy term. Loyalty additions are also payable if the premiums are paid for at least 5 years. The benefits payable are paid as Death Paid-Up Sum Assured and Maturity Paid-Up Sum Assured.

Policy Rebate

LIC Jeevan Shiromani offers some rebates/ discounts to the policyholder upon the selected mode of payment and a high basic sum assured. The rebates are provided in the following way

On Premium Payment Mode:

On High Basic Sum Assured:

Surrender Value

If the policyholder pays the premium for at least one year, they can surrender the policy anytime. Upon surrender, the company pays the surrender value higher of the Guaranteed Surrender Value and Special Surrender Value.

Policy Loan

The policyholder can avail of a loan during the policy term if at least one full-year premium has been duly paid. The maximum loan can be availed as

For in-force policies: Upto 90% of the surrender value

For paid-up policies: Upto 80% of the surrender value

Tax Benefits

The policyholder can avail of the prevailing tax benefits on the premium paid towards LIC Jeevan Shiromani and the benefits received, as per the tax laws launched by the Government of India.

Free Look Period

15 days of free look period is offered to the policyholder under LIC Jeevan Shiromani Plan, during which they can review the policy. If they are not satisfied with the terms and conditions, they can return the policy to the corporation stating the reasons for objections. The LIC of India will cancel the policy and return all the premiums paid, deducting any applicable charges.