LIC launched new money back plan LIC Jeevan Shiromani Plan 847 on 19th December 2017. It is non-linked with profits, limited premium payment money back plan. LIC is saying that this plan is designed for HNIs (High Net worth Individuals). This plan also provides you critical illness cover also. Let us see features and returns of LIC Jeevan Shiromani Plan 847.
Features of LIC Jeevan Shiromani Insurance Plan 847
- This money back plan is paid-up insurance plan immediately after 1st year completion of policy. In all other LIC plans, this paid up feature will be applicable if you paid premium for at least 3 years.
- As policy is eligible for paid up after year, you are eligible to surrender policy immediately after 1st year completion.
- You can avail loan after 1 year of policy
- Along with inbuilt critical illness rider, this plan offers another 3 types of riders and they are Accidental Death and Disability Benefit Rider, Accident benefit rider, new term Assurance Rider. But including critical illness rider, you can opt for 3 riders only.
- You can pay premium yearly, quarterly, half-yearly or monthly.
- Income Tax Benefits available u/s 80C of income tax act
Eligibility of LIC Jeevan Shiromani Insurance Plan 847
First, let us see eligibility condition of LIC Jeevan Shiromani Insurance Plan 847. See Now, insurance policies must link with Aadhaar and PAN
- Maximum Age entry is 18 yrs and Maximum age is 55 years. However maximum age of maturity will be 69 years. Hence, maximum age of entry depend on tenure of plan.
- Minimum Sum Assured is Rs 1crore. This means plan is for High Net worth Individuals only.
- Maximum Sum Assured – No limit
- Tenure of policy is 14 year, 16 year, 18 years and 20 years.
- Premium Payment Term is 4 years less than policy term. This means if you are opting for 20 years plan and you need to pay premiums only for 16 years, however risk coverage will be full term of 20 terms.
- Date of Commencement of Risk is immediate from date of issuance of policy.
As LIC is saying, that minimum sum assured this plan is Rs.1 Crore. Hence, this is not for any ordinary earning individual.
Benefits of LIC Jeevan Shiromani Insurance Plan 847
There are many benefits available under LIC Jeevan Shiromani Insurance Plan 847. This plan offers guaranteed addition. For first 5 year, additional guaranteed will be Rs. 50 for every Rs. 1,000 Sum Assured. From 6th year onward to till policy premium paying term, this plan offers guaranteed addition of Rs.55 for every Rs.1, 000 Sum Assured. Now let us see benefits available under LIC Jeevan Shiromani Insurance Plan 847.
Death Benefits of LIC Jeevan Shiromani Insurance Plan 847
There are two conditions to pay death benefits under this plan and they are as below. Check How to avail maturity benefits from life insurance policies
Death during first 5 years of policy period
- If death occurs within 5 years from policy date, then benefit is Sum Assured on death + Guaranteed addition at Rs. 50 for every Rs.1, 000 Sum Assured.
Death after 5 year to till maturity date of policy
- If death occurs after 5 years from policy date, Sum Assured on Death + Guaranteed addition of Rs. 50 for every Rs. 1, 000 sum assured for first 5 years + guaranteed additions of Rs 55 for every Rs 1,000 sum assured from 6th year would be paid to nominee.
You can also put off death benefits payable to your nominee in installments rather than lump sum payment. You can choose period of 5 yrs, 10 or 15 yrs. This can be exercised by policyholder during his lifetime only. Based on this, nominee will receive death benefits at period set by policyholder.
Nominee cannot alter this feature. This can be either % of death benefit or absolute value of money. Installments will be payable in advance by LIC as per policyholder opted. LIC will be deciding such interest rate from time to time.
Survival Benefits of LIC Jeevan Shiromani Insurance Plan 847
If policyholder survives during policy term, then fixed % of basis sum assured will be payable. This fixed % is as below.
- For 14 yrs policy – 30 percent of basic sum assured will be paid on 10th and 12th policy year.
- For 16 yrs policy – 35 percent of basic sum assured will be paid on 12th and 14th policy year
- For 18th Policy – 40 percent of basic sum assured will be paid on 14th and 16th policy year.
- For 20 yrs policy – 45 percent of basic sum assured will be paid on 16th and 18th policy year
Like death benefit, this policy offers you to take survival benefit at policy date. You can receive survival benefit as per your interest at later state of your need. However, you have to put back this survival benefit up to policy maturity only. Before that, you have to receive this benefit along with interest.
If you do not take this survival benefit and interest before maturity, death or surrender, then LIC will pay this during maturity, death or surrender time along with interest. This interest will be yearly compounding but rate will fixed by LIC from time to time. You have to inform this survival benefit receiving option 6 months earlier to actual due date of survival benefit. Otherwise, LIC will pay you survival benefits as per due dates.
Whatever paid in survival benefits will get deducted from sum assured and balance will pay on maturity. If policyholder survives up to policy period, then you will receive below benefits.
- For 14 yrs policy – 40 percent of basic Sum Assured + guaranteed + loyalty addition will be paid.
- For 16 yrs policy – 30 percent of basic Sum Assured + guaranteed + loyalty addition will be paid.
- For 18 yrs policy – 20 percent of basic Sum Assured + guaranteed + loyalty addition will be paid.
- For 19 yrs policy – 10 percent of basic Sum Assured + guaranteed + loyalty addition will be paid.
Inbuilt Critical Illness benefits
Along with above benefits, like death, survival and maturity, this plan also offers inbuilt critical illness benefits. On first diagnosis of any one of 15 critical illnesses as specified below and also if policy is in force, then following benefits will be provided. But before that let us first understand 15 critical illnesses which this plan covers. They are as below.
- Cancer of specified severity
- Open chest CABG
- Myocardial infarction
- Kidney failure which require regular dialysis
- Major organ/bone marrow transplant
- Stroke resulting in permanent symptoms
- Permanent paralysis of limbs
- Multiple sclerosis with persisting symptoms
- Aortic Surgery
- Primary pulmonary hypertension
- Alzheimer’s disease
- Third-degree burns
- Open heart replacement or repair of heart valves
- Benign brain tumor
Once you are diagnosed with an above illness, then LIC will give you below benefits.
Lump Sum Benefit
Inbuilt critical illness benefits equal to 10% of Basic Sum Assured will be payable subject to the following.
This benefit will be payable after LIC satisfied with reports with specific period (in respect to specific diseases). And benefit will be payable only once during policy period.
Survival period of 30 days is applicable from date of diagnosis of critical illness. If death occurs during 30 days period, then no critical illness benefit will be payable.
But, waiting period of 90 days will apply from date of commencement of risk or date of revival of risk (whichever is later). However, such waiting period is not applicable for accidental cases.
Option for payment of premiums if there is a critical illness claim
If LIC accepted critical illness claim, then you no need to pay premiums for next two years. LIC will not charge any interest on such delayed payment. However, if there is survival benefit dues to be payable to policyholder during this 2 years period, then LIC will pay the survival benefit by deducting premiums due.
Medical Second view
Under this benefit, policyholder has choice to take second opinion from LIC empanelled healthcare providers or through reputed hospitals in India based on arrangement made by LIC. Do remember that this facility is available during policy period only once, for which you no need to pay cost. Policyholder can take this second opinion immediately after informing LIC about illness.
However, such second opinion not involves any test. If you do test, then you have to bear cost of that. Also, such second opinion is based on facilities and recommendations LIC provide. Also read LIC other policy benefits.
Illustration of LIC Jeevan Shiromani Insurance Plan 847
Let us consider that Mr. X whose age is 30 years opted for Rs.1 cr LIC Jeevan Shiromani Insurance Plan 847 with 20 years terms, and premium payable is approx Rs. 7.3 lakhs per annum. You notice that Mr. X will pay premium up to 16 years only. However, you receive survival benefit of Rs. 45 Lakh on 16th Year and 18th year.
On maturity, you will receive remaining 10% of Sum Assured + GA+LA will be paid. Means, Mr. X will get Rs. 45 lakhs on 16th year, Rs 45 lakhs on 18th year and on maturity Rs 1.4 cr. Also Read, comparison of some of best health Insurance Plans for Diabetic Patients.