LIC Jeevan Shiromani is LIC's most premium savings plan - designed exclusively for high-net-worth individuals (HNIs) who want guaranteed additions, critical illness benefits, and a minimum sum assured of Rs 1 crore in a single policy.
What Makes Jeevan Shiromani Special?
Most LIC plans have a maximum sum assured limit. Jeevan Shiromani starts at Rs 1 crore - making it a niche product for senior professionals, business owners, and wealthy families in cities like Lucknow, Varanasi, Kanpur, and now increasingly in Gorakhpur's growing business community.
Key Features
- ▸Minimum Sum Assured: Rs 1 crore
- ▸Entry Age: 18 to 55 years
- ▸Policy Term: 14, 16, 18, or 20 years
- ▸Premium Payment: 10, 12, 14, or 16 years (limited pay)
- ▸Guaranteed Additions: Rs 50/1000 SA per year for the first 5 years, then Rs 55/1000 SA from year 6 onward
- ▸Loyalty Additions: Payable at end of premium payment term and at maturity
- ▸Critical Illness Benefit: Lump sum payment of 10% of sum assured on first diagnosis of any of 15 specified critical illnesses
- ▸Loan: Available after premium payment term ends
Financial Illustration
A 40-year-old business owner takes Rs 1 crore sum assured, 20-year term, 16-year premium payment:
- ▸Annual premium: approximately Rs 5.8-6.5 lakh
- ▸Guaranteed additions at end of 20 years: Rs 10.5 lakh (indicative)
- ▸Loyalty addition: announced annually by LIC board
- ▸Critical illness cover: Rs 10 lakh lump sum
- ▸Death benefit during term: Sum Assured + Guaranteed Additions + Loyalty Additions
This plan combines insurance, guaranteed savings, and a health safety net in one.
Tax Benefits
- ▸Section 80C: Premium deductible up to Rs 1.5 lakh (note: premium exceeds this, so only partial deduction)
- ▸Section 10(10D): Maturity amount is tax-free only if annual premium is less than 10% of sum assured. Since SA is Rs 1 crore and annual premium is Rs 5.8+ lakh (> 10% of SA), the maturity amount may be taxable. Consult your CA before investing.
Who Should Buy Jeevan Shiromani?
- ▸Business owners wanting to lock in guaranteed savings with insurance cover
- ▸Professionals looking for a high-sum-assured LIC policy with critical illness benefit
- ▸Families building an estate or succession corpus
- ▸Those who want the prestige and trust of LIC with HNI-level sum assured
For a detailed illustration and premium quote, call Ajay Kumar Poddar at 9415313434.