Looking for a high-value insurance-cum-investment option that offers guaranteed returns and elite financial benefits? The LIC Jeevan Shiromani plan could be the game-changer for you.
Contrary to the belief that life insurance is only about long-term returns, this plan offers a rare blend of financial protection, short-term premium payment, money-back benefits, and guaranteed returns - all within a premium payment span of just 4 years.
Let's explore everything you need to know about the LIC Jeevan Shiromani policy in a simplified and practical format.
Type: Non-linked, with-profit, money-back life insurance plan.
Target Audience: High Net-Worth Individuals (HNIs).
Minimum Sum Assured: ₹1 Crore.
Premium Payment Term: 4 years only.
Policy Term Options: 14, 16, 18, or 20 years.
Money-back Benefits: Available during the policy term.
Loan Facility: Available after 1 year.
Tax Benefits: Section 80C and Section 10(10D) exemptions.
You only need to pay premiums for 4 years, regardless of the policy term selected (14, 16, 18, or 20 years). Despite this short-term payment structure, the policy offers continued benefits, including death cover and survival benefits.
A minimum sum assured of ₹1 crore makes this policy ideal for individuals looking to build wealth alongside life protection.
The plan offers guaranteed additions at ₹50 per ₹1,000 sum assured for the first five years, and ₹55 per ₹1,000 thereafter.
You receive periodic payouts even before the policy matures:
For a 14-year term: 30% of Sum Assured in the 10th and 12th years.
For a 16-year term: 35% in the 12th and 14th years.
For an 18-year term: 40% in the 14th and 16th years.
For a 20-year term: 45% in the 16th and 18th years.
On policy maturity, the remaining Sum Assured (after survival payouts), plus guaranteed additions and bonuses, is paid out - potentially making the return cross ₹1 crore depending on term and age.
You can avail a loan after the policy completes one year and full first-year premium is paid. The loan amount depends on the surrender value.
Choose to pay monthly, quarterly, half-yearly, or annually - whichever suits your financial planning.
Premiums are tax deductible under Section 80C.
Maturity and death benefits are tax-free under Section 10(10D).
|
Criteria |
Details |
|
Minimum Entry Age |
18 years |
|
Maximum Entry Age |
Varies with policy term |
|
Minimum Sum Assured |
₹1 crore |
|
Policy Terms Available |
14, 16, 18, or 20 years |
|
Premium Payment Term |
4 years |
|
Policy Term |
Maximum Entry Age |
|
14 years |
55 years |
|
16 years |
51 years |
|
18 years |
48 years |
|
20 years |
45 years |
For a sum assured of ₹1 crore, the monthly premium is around ₹94,000 (approximate, varies based on age and term).
Over four years, you invest approximately ₹45 lakhs. Depending on the term and benefits accumulated (money-back + maturity + bonus + guaranteed additions), your returns can exceed ₹1 crore, offering both security and wealth creation.
This plan is best suited for:
Business owners, entrepreneurs, doctors, or professionals with high annual incomes.
Individuals seeking tax-saving instruments with assured maturity and periodic returns.
Parents planning for a child's higher education/marriage expenses.
Anyone wanting premium insurance coverage without long-term premium commitments.
Visit your nearest LIC branch.
Contact an LIC-authorised agent.
Or, visit the official LIC website: www.licindia.in
If you're seeking a tax-free, guaranteed return plan with short-term investment and long-term benefits, the LIC Jeevan Shiromani plan offers an attractive package. While the premium is on the higher side, so are the rewards - including life cover, survival payouts, and a potential lump sum crossing ₹1 crore.