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  • LIC’s Jeevan Shikhar Plan

    LIC Life Insurance

    This is a non-linked participating saving cum protection life insurance policy. The premium payment mode is Single Premium only while the risk cover is for 10 times the Single Premium amount. The Sum Assured at Maturity can be chosen by the policyholder while premium amount is decided on the basis of age at entry and Maturity Sum Assured chosen. Sufficient liquidity is provided through loan availability. The policy can be purchased within 4 months (120 days) of date of launch.

    Eligibility Criteria for LIC Jeevan Shikhar

    Minimum entry age 6 years
    Maximum entry age 45 years (nearer birthday)
    Minimum premium As per age at entry and sum assured chosen
    Age at maturity Max 60 years

    Key Features of LIC Jeevan Shikhar

    Plan type Non-linked participating saving cum protection scheme
    Plan basis Individual
    Premium paying terms Single Premium
    Policy term 15 years fixed
    Maturity benefits Maturity Sum Assured plus any Loyalty Additions will be paid at maturity
    Premium payment frequency Single Premium
    Loan Loans can be availed against this policy as per the following table:
    Policy year Max Loan amount as percentage of surrender value (age- 35 yrs or less) Max Loan amount as percentage of surrender value (age- more than 35 yrs)
    3rd month – 3rd year 55% 35%
    4th – 6th year 65% 50%
    7th – 9th year 75% 70%
    10th – 12th year 80% 80%
    13th – 15th year 85% 85%
    Free look period 15 days from the date of receiving policy documents
    Alterations No alterations permitted
    Nominations Nomination facility provided as per the Insurance Act
    Maturity Sum assured
    • Minimum – Rs.1 lakh
    • Maximum – No limit
    Policy coverage Maturity Benefit, Death Benefit and Loyalty Additions

    Benefits of LIC Jeevan Shikhar

    Major benefits of LIC policy are as follows:

    • Maturity benefit – On maturity of the policy, the policyholder will receive the Maturity Sum Assured plus Loyalty Addition, if any.
    • Death benefit – In the unfortunate event of death of the policyholder within the first 5 policy years, the Single Premium paid will be returned (if commencement of risk has not happened) or 10 times the Single Premium paid will be disbursed (if period of risk has commenced). On death at any point after the first 5 policy years but before maturity of policy, 10 times the Single Premium amount plus Loyalty Additions, if any will be disbursed to the nominee.
    • Loyalty Addition – This policy is participating in nature and profits will be disbursed as Loyalty Addition on surrender, death or maturity as per policy terms, with the amount declared by the company.
    • Tax benefits – Tax benefits are available as per relevant sections of the Income Tax Act, 1961.
    • Rebate – Rebates are available on premium amounts of Rs.2 lakhs or more as per the following table:
    Maturity Sum Assured Reduction in Premium amount per Rs.1,000 of maturity sum assured
    Rs.2 lakhs to Rs.4.8 lakhs Rs.15
    Rs.5 lakhs to Rs.9.8 lakhs Rs.20
    Rs.10 lakhs and above Rs.25
    • Loans – Loans are available as per the table given in the ‘Key Features’ section above.
    • Surrender Value – On surrender of the policy at any point during the policy tenure, a Guaranteed Surrender Value will be returned to the policyholder. (a) If policy is surrendered in the first year, 70% of Single Premium will be returned. (b) If policy is surrendered after the first year, 90% of Single Premium will be returned. (c) If policy is surrendered after 5 years, 90% Single Premium plus Loyalty Addition, if any will be returned to the policyholder.

    Example of LIC Jeevan Shikhar Policy

    Let’s say Mr Gupta is 30 years old and has decided to buy LIC Jeevan Shikhar Policy for the fixed term of 15 years. He pays Rs.42,580 as Single Premium towards his policy for a Sum Assured of Rs.4,25,800 and Maturity Sum Assured of Rs.1 lakh.

    Death benefits

    • On his unfortunate death within the first 5 policy years, he will receive a lump sum of Rs.4,25,580 as death benefits.
    • On his death after 5 policy years, he may receive Loyalty Addition on top of the Death Benefit amount. Let’s assume he receives variable amount at 8% p.a.:
    End of Policy Year Loyalty Addition (Rs.) Sum Assured on Death (Rs.) Total amount of benefit (Rs.)
    6 500 4,25,800 4,26,300
    7 700 4,25,800 4,26,500
    8 900 4,25,800 4,26,700
    9 1,100 4,25,800 4,26,900
    10 1,400 4,25,800 4,27,200
    11 1,700 4,25,800 4,27,500
    12 2,000 4,25,800 4,27,800
    13 2,400 4,25,800 4,28,200
    14 2,800 4,25,800 4,28,600
    15 3,200 4,25,800 4,29,000

    Maturity benefits

    Maturity benefits will be paid out to Mr Gupta on survival at maturity of policy (end of 15th policy year). He will receive the Maturity Sum Assured of Rs.1 lakh plus Loyalty Addition at 8% p.a. which comes to Rs.3,200 at the end of the 15th policy year. Therefore, he will be paid an amount of Rs.1,03,200 on maturity of the policy.


    Riders are not available with this policy.

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