LIC’s Jeevan Shiromani policy is designed for investors who want to pay premiums for a short period and receive a substantial payout later.
Under this plan, you pay premiums for just four years, and at the end of the policy term, you get a lump sum amount.
While premiums are higher than regular LIC plans, the returns and security make it a valuable investment.
This policy guarantees a minimum sum assured of ₹1 crore, with no upper limit.
Unlike market-linked policies, Jeevan Shiromani is a safe life insurance and savings plan.
Premiums can be paid monthly, quarterly, semiannually, or annually—for example, the monthly premium is around ₹94,000.
Who Can Invest?
The policy is available for adults aged 18 years and above.
The maximum age depends on the policy term:
14-year policy – up to 55 years
16-year policy – up to 51 years
18-year policy – up to 48 years
20-year policy – up to 45 years
Because it provides regular payouts during the term, Jeevan Shiromani is also considered a money-back plan.
How and When Do You Receive the Money?
The payouts depend on the policy term:
14-year plan: 30% of the sum assured in the 10th and 12th years
16-year plan: 35% in the 12th and 14th years
18-year plan: 40% in the 14th and 16th years
20-year plan: 45% in the 16th and 18th years
The remaining amount is paid as a lump sum at the end of the policy term.
Additionally, the policy offers a death benefit, and in case of a critical illness, a one-time payout of 10% of the sum assured is provided.
Extra Benefits: Loans and Security
Jeevan Shiromani also allows policyholders to take a loan against the policy’s surrender value after paying premiums for one year.
The interest rate is determined periodically.
This combination of high returns, safety, and periodic payouts makes Jeevan Shiromani an attractive option for those with a good income who want secure, short-term investments.
