LIC's Jeevan Shiromani Policy - Should You Be Buying?

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    The state-run life insurance company LIC on Tuesday launched Jeevan Shiromani, a non-linked with profit, money back policy specially targeted at HNIs or high net worth individuals.

    LIC's Jeevan Shiromani Policy - Should You Be Buying?


    Individuals in the age group of 18-55 years can opt for the plan that is available for 14,16, 18 and 20 years term. A limited premium payment policy offers a minimum cover or sum assured value of Rs. 1 crore with no upside limit i.e a minimum of Rs. 5 lakh to 10 lakh in premium has to be paid for the policy.

    Additionally critical illness benefit as a lump sum payment is also provided in case the insured during the policy term is diagnosed with any of the 15 critical illnesses specified under the plan.

    In such a case, the policyholder also has the option to defer premium payments for another two years and no interest shall be charged by the insurer. LIC also has in place empanelled healthcare professionals from wherein such customers can take second medical opinion.

    Unlike other conventional policies of LIC, Jeevan Shiromani entitles the policyholder to receive paid-up value immediately after completion of one policy year. So, with this eligibility you can also surrender the policy after completing one year.

    Loan on the policy can also be availed after a year.

    In addition to the inbuilt critical illness cover, additional riders that come with the plan include accidental death and disability benefit rider, Accident benefit rider and new term assurance Rider.

    Benefits under the plan
    Other than the usual survival, death and maturity benefit , this policy offers guaranteed addition of Rs. 50 per Rs. 1000 sum assured for first five years of the policy term. From next year onwards until policy premium paying term, addition of Rs. 55 per sum assured value of Rs. 1000.



    With a high premium value of Rs. 5 lakhs to Rs. 10 lakhs payable towards the policy, this policy cannot be afforded by all. However if you can still afford it, this new policy by LIC shall not prove to be a good bet with a return of just 4-6% that is though not enough to beat inflation rate.

    Nonetheless, some of the positives of the plan such as guaranteed addition, eligibility for paid up and surrender after first policy year and inbuilt critical illness rider in respect of 15 specified illnesses cannot be ignored.

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