While some investors prefer the stock market approach to build on their hard-earned savings, but if you are looking for good returns and an investment that is safe at the same time, then look know further than the Jeevan Shiromani Plan from Life Insurance Corporation (LIC). This scheme from the state-owned insurer, which is set for historic largest IPO in India's history, offers the chance to earn good profit on every rupee that you invest. Moreover, the policy doesn’t just offer savings but also protection to the customer. Read on to find out more details.
Details about LIC Jeevan Shiromani Plan
This scheme from LIC is a non-linked plan which guarantees at least Rs 1 crore sum assured. This policy gives a minimum return of Rs 1 crore. In other words, a one rupee a day deposit for 14 years will bring back up to Rs 1 crore.
LIC Jeevan Shiromani is a limited premium payment money back life insurance plan. The scheme has been specially designed for HNI (High Net Worth Individuals). As optional rider benefit, cover is also provided for critical illnesses.
The scheme helps the policyholder’s family with financial support as death benefits during the term of the policy. It offers a fixed pay-out as percentage of basic sum assured as payment in the event of the policy holder surviving. Additionally, a lump sum amount is received on the maturity of the policy.
The survival benefits payable as per various policy terms are as follows:
- Policy for 14 years - On each of the 10th and 12th anniversary of the policy, 30% of basic sum assured
- Policy for 16 years - On each of the 12th and 14th anniversary of the policy, 35% of basic sum assured
- Policy for 18 years - On each of the 14th and 16th anniversary of the policy, 40% of basic sum assured
- Policy for 20 years - On each of the 16th and 18th anniversary of the policy, 45% of basic sum assured
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Other special features of LIC Jeevan Shiromani Plan
The policyholder is eligible to seek a loan on the basis of surrendering value of the policy. This can be availed after premium payments for premium amount of at least 1 full year are done and one policy year is completed. This is subject to certain terms and conditions of LIC. The rate of interest for loans is also decided from time to time.
Plan terms and conditions
- Minimum Sum Assured: Rs 1 crore
- Maximum Sum Assured: No limit
- Basic Sum Assured in multiples of Rs 5 lakh
- Term of Policy: 4 options of 14, 16, 18 and 20 years
- Term of premium payment: 4 years
- Minimum eligible age: 18 years
- Maximum age:
- 14 years policy: 55 years
- 16 years policy: 51 years
- 18 years policy: 48 years
- 20 years policy: 45 years
