LIC’s Jeevan Shikhar Plan

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.

LIC Jeevan Shikhar Plan

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

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%

Benefits of LIC Jeevan Shikhar

Major benefits of LIC policy are as follows:

  1. Maturity benefit - On maturity of the policy, the policyholder will receive the Maturity Sum Assured plus Loyalty Addition, if any.
  2. 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.
  3. 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.
  4. Tax benefits - Tax benefits are available as per relevant sections of the Income Tax Act, 1961.
  5. 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

  1. Loans - Loans are available as per the table given in the 'Key Features' section above.
  2. 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

  1. On his unfortunate death within the first 5 policy years, he will receive a lump sum of Rs.4,25,580 as death benefits.
  2. 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

Riders are not available with this policy.

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