LIC’s Jeevan Shromani policy is specifically designed for High-net-worth individuals. It is a non-linked, participating plan which is rather a limited premium payment money back life insurance plan. The minimum Basic Sum Assured is no less than 1 Cr. There is a Guaranteed Addition which has a rate of Rs. 50 per thousand Basic Sum Assured for the first five years and Rs. 55 per thousand for the rest of the policy term.
Apart from this the plan also participates in Loyalty Additions. It serves under different payment modes and feasible policy terms. The plan has a detailed overview of the benefits and features of the plan.
Key Features
The plan comes with a bunch of key features for the convenience of the people to make an informed decision. They are as follows:
- It is an individual insurance and savings plan
- The profit is shared as Loyalty addition which is paid to the assured or beneficiary
- Specially designed for High-net-worth individuals
- 4 Policy term options
- The plan adheres to Section 80C and 10C under the Income Tax of India Act 1961
Benefits of the LIC Bima Siromani Plan
The plan comes with several attractive benefits. Below, the benefits are segregated into different sections which are cited below:
- Death benefit – In the event of death of the policyholder, the assured is payable provided that the policy active and the premiums are paid. However, there are two circumstances under which the death benefit is payable.
Within five years- If the policyholder suffers demise within five years of the policy, a guaranteed sum assured on death is provided to the nominee.
After completion of five years – If the assured suffers demise after the completion of five years from the date of the policy, the nominee shall receive the basic sum assured on death, plus guaranteed additions and loyalty additions (if any)
- Survival Benefit – If the policyholder survives the mentioned years on the policy term, he or she will receive a percentage of the basic sum assured on their respective completion. They are mentioned in the table below:
| Policy term | Percentage over the basic sum assured | Completion of policy term |
| 14 years | 30 | 12 |
| 16 years | 35 | 14 |
| 18 years | 40 | 16 |
| 20 years | 45 | 18 |
- Maturity Benefit – if the policyholder survives the end of the policy term then at the time of maturity, the assured will be paid based on a percentage over the basic sum assured which is explained in the table below:
| Policy term | Percentage over the basic sum assured |
| 14 years | 40 |
| 16 years | 30 |
| 18 years | 20 |
| 20 years | 10 |
- Inbuilt Critical Illness Benefit – If there is a scenario where the assured is diagnosed with a critical illness then he or she will be paid with a lump sum of 10% of the Basic Sum Assured. Deferred premium payment is allowed which is for two years from the date of acceptance of illness. Additionally, a second medical opinion will be provided which is allowed only once.
- Rider benefits – These benefits can be purchased at the time of buying the policy. They are as follows:
Accident al Benefit Rider- In case of an accident during the term of the policy, then the company shall pay an additional amount over the basic sum assured.
Accidental Death Benefit and Disability Benefit Rider – Should the assured suffer a demise due to an accident or suffers a permanent disability then the company will pay an amount over the basic sum assured to the nominee or the assured respectively.
New Critical Illness Rider- If the assured is diagnosed with a critical illness within the policy term, therefore he or she will be paid an additional coverage over the basic sum assured.
New Term Assurance Rider- This is applicable in the case of the death benefit only. In case of death of the assured the amount equal to the Term Assurance Rider will be paid to the nominee.
Eligibility
The plan can be accessed if the assured meets the following eligibility criteria mentioned in the following table:
| Minimum age of entry | 18 years |
| Maximum age of entry | 55 years for policy term of 14 years51 years for policy term of 16 years
48 years for policy term of 18 years 45 years for policy term of 20 years |
| Age of Maturity | 69 years for policy term 14 years 67 years for policy term 16 years 66 years for policy term 18 years 65 years for policy term 20 years |
| Policy term | 14 years16 years
18 years 20 years |
| Premium Paying Term | 4 years |
| Minimum Basic Sum Assured | Rs 1,00,00,000 |
| Maximum Basic Sum Assured | No limit |