The LIC Jeevan Shree-I is an endowment assurance plan which is considered to have highly convenient when it comes to its payment terms. The key intention of this particular life insurance policy could be believed to be for people to enjoy financial protection against death across the term of plan along with the regular payment of the maturity amount on survival when the policy tenure ends. This policy is said to be specially designed for the upper strata of the regular urban society who are High Networth Individuals, film stars professional, models, industrialist, consultants, business partners, estate owners, self employed individuals since they need protection that matches their profile.
Eligibility Criteria for LIC Jeevan Shree-I
Here are the main eligibility criteria when it comes to applying for this life insurance scheme:
|Minimum entry age||35 years and over|
|Maximum entry age||65 years and below|
|Minimum age at maturity||-|
|Maximum age at maturity||75 years|
Key Features of LIC Jeevan Shree-I
Some of the most important features of this life insurance scheme include:
|Plan Type||Participating Endowment assurance plan|
|Premium paying terms||16 years or a single one-time premium|
|Policy term||25 years.|
|Guaranteed Additions||This amount is calculated as calculated at the rate of Rs. 50 for every Rs. 1000 of the Sum Assured amount.|
|Premium payment frequency||Monthly, quarterly, half-yearly and annually.|
|No Medicals||The plan can be taken without any medicals. However, answering a few questions may be required.|
|Policy revival||The policy can be revived after the term has lapsed within a period of 5 years from the date of first unpaid premium. For this the policyholder has to pay arrears of premium along with the interest, which is decided by LIC Of India at regular intervals along with satisfactory medical check ups.|
|Alterations||The policy allows the individual to alter premium paying frequency.|
|Nomination||Nominations are accepted under this policy.|
|Sum Assured||Minimum: Rs. 5 lakhs. Maximum: There is no limit.|
|Free Look Period||If the policyholder is not satisfied he or she can return the policy within 15 days, from the activation of the policy term.|
|Policy coverage||Death benefits, maturity benefits and bonuses.|
|Loan Against Policy||Loan against the policy can be taken after the individual has regularly paid their premiums for a particular period of time.|
|Surrender Value||Surrender value is available on the plan if it is terminated on the earlier period of the contract.|
Benefits/Advantages of LIC Jeevan Shree-I
The following are the main advantages and features of this scheme:
- Death Benefits: In the event of the untimely death within the policy term of the policy, the nominated will be able to claim the following:
- Sum Assured and Guaranteed Additions which is calculated at the rate of Rs. 50/- for every thousand Sum Assured for the first 5 years of the policy.
- If death occurs after first 5 years, then the nominated will receive the sum assured along with the vested guaranteed additions which is calculated at the rate of Rs. 50/- for every thousand Sum Assured as well as accrued Reversionary Bonuses declared from 6th year onwards.
- Maturity Benefits: The Sum Assured as well as the guaranteed additions along with reversionary bonuses, (if payable in a lump sum on survival when the policy term ends.
- Accidental Benefits: This benefit is available to the policyholder or his or her family for up to Rs.25 lakhs . This includes all other life insurance plans that the individual may have invested in. Also an added amount which is equal to the accident benefit sum assured is payable on death. In the case of complete or permanent disabilities resulted through the accident (within 180 days), the same amount would be paid through a period of 10 years as monthly installment.
- Additional Bonuses: The policy participates in the profits of the company's life insurance profit from the 6th year of the policy term. Hence, the policy also gets a share of the profits in the form of bonuses. This is known as the simple Reversionary Bonus and is calculated per Rs. 1000 Basic Sum Assured annually at the end of each financial year. Once it has been declared by the company.
- Loan against Policy: Loan against the policy can be taken after the individual has regularly paid their premiums for a particular period of time.
- No Restrictions of Higher sum assured: This particular insurance plan is meant for people with very high net worth. Hence, the sum assured has no higher limit.
- Income Tax Benefit: Premiums paid under life insurance policy are exempted from tax under Section 80C and maturity proceeds are exempted from tax under Section 10 (10D)
How The LIC Jeevan Shree-I Plan Works
The policyholder has the option to choose a premium payment period of 16 years, where he can make annual, monthly, half-yearly or quarterly premium payments or he or she can pay one-time lump-sum premium in the beginning of the policy. The policy term lasts for 25 years, in which the policyholder gets the advantage of death benefit and on the successful survival of the term he receives maturity benefits. In the case of permanent disability through an accident the sum assured is paid through monthly installments for a period of 10 years.
Premium Payments for LIC Jeevan Shree-I Plan
Here is the amount payable as premiums per year for the plan, upto a period of 16 years:
|End of the Year||Premium Paid upto The Year (In Rupees)|
There are no designated riders for this particular plan, but some riders may be applicable after consulting the company and based on your requirements. This will require you to pay slightly higher premiums to avail the Rider benefits.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017