LIC Jeevan Shiromani Yojana: ₹1 Crore Life Cover with Money-Back & Tax Benefits (2024)
Table of Contents
What Is LIC Jeevan Shiromani Yojana?
LIC Jeevan Shiromani Yojana is a high-value endowment plan tailored for high-net-worth individuals (HNIs) seeking a minimum ₹1 crore life cover with guaranteed returns. It combines life insurance protection with periodic money-back payouts, making it ideal for long-term wealth creation and legacy planning.
Key Features & Benefits
| Feature | Details |
|---|---|
| Sum Assured | ₹1 Crore (minimum), no upper limit |
| Policy Term | 14 or 16 years |
| Money-Back Frequency | 15% payout every 3 years (Years 3,6,9,12) |
| Maturity Benefit | 40% of sum assured + accrued bonuses |
| Death Benefit | Full sum assured (remaining) + bonuses |
Eligibility Criteria
| Parameter | Details |
|---|---|
| Entry Age | 18–55 years |
| Policy Term | 14 or 16 years |
| Minimum Sum Assured | ₹1 crore |
| Premium Payment Term | Single pay, 5, 7, 10 years |
Money-Back Payout Schedule (Example)
Scenario: 16-year term, ₹1 crore sum assured
| Policy Year | Payout | Amount (₹) |
|---|---|---|
| 3 | 15% of sum assured | 15,00,000 |
| 6 | 15% of sum assured | 15,00,000 |
| 9 | 15% of sum assured | 15,00,000 |
| 12 | 15% of sum assured | 15,00,000 |
| 16 (Maturity) | 40% + Bonuses | 40,00,000 + X* |
*Bonuses depend on LIC’s annual performance.
Bonuses Explained
| Bonus Type | Description | Payout Timing |
|---|---|---|
| Reversionary Bonus | Annual bonus declared by LIC | Paid at maturity/death |
| Terminal Bonus | One-time bonus at policy end | Paid at maturity |
Premium Payment Options
| Payment Term | Annual Premium (₹1 Cr Example) | Suitability |
|---|---|---|
| Single Pay | ₹30–35 lakh (one-time) | Lump-sum investors |
| 10 Years | ₹8–10 lakh/year | Long-term affordability |
Tax Benefits
| Benefit | Section | Limit |
|---|---|---|
| Premium Paid | 80C | Up to ₹1.5 lakh/year |
| Maturity/Death Benefit | 10(10D) | Tax-free* |
*Subject to prevailing tax laws.
Pros vs Cons
| Pros ✅ | Cons ❌ |
|---|---|
| Guaranteed ₹1 crore life cover | High premiums (₹8–10 lakh/year) |
| Money-back liquidity every 3 years | 14–16 year lock-in period |
| Tax-free maturity & death benefits | Bonus rates not guaranteed |
Claim Settlement Process
| Step | Action | Timeframe |
|---|---|---|
| 1. Intimation | Notify LIC via agent/website | Within 30 days |
| 2. Document Submission | Policy document, death certificate, ID proof | 15 days |
| 3. Settlement | LIC processes and disburses amount | 30–45 days |
Frequently Asked Questions (FAQs)
Q: Can I surrender the policy early?
Yes, but surrender value is payable only after 3 years. It’s calculated as 30% of premiums paid (minus first-year charges).
Q: Is a medical test mandatory?
Yes, for policies with a sum assured of ₹1 crore or more, LIC requires a thorough medical examination.
Q: Can I increase the sum assured later?
No. The sum assured is fixed at policy purchase and cannot be revised later.
Conclusion
LIC Jeevan Shiromani Yojana is a premium insurance-savings hybrid designed for affluent individuals seeking ₹1 crore+ life cover with periodic liquidity. While the high premiums make it unsuitable for average investors, it’s a strategic tool for HNIs prioritizing tax efficiency, legacy planning, and disciplined wealth growth.
Official LIC Jeevan Shiromani Bank of Baroda Fixed Deposit Scheme
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