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 years 51 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 years 16 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

 

FAQs

1. What kind of documents is required for this plan?

Any kind of ID proof- Aadhar Card, Vota ID card, Driving license

Proof of Date of birth

Address proof

Latest photograph

Bank account details depending upon the frequency

2. Can I avail a loan?

The policyholder can be availed after the completion of one year of the policy provided that the premium is paid. The maximum loan that can be availed is 90% of the surrender value and 80% if the policy is paid up.

3. How can I avail this insurance online?

The policy can be purchased online by following the steps:

• Visit the website at licinida.in
• Provide the necessary information, that is your credentials
• Upload your financial parameters
• Pay for the premium online and complete the process.

4. Is there any exclusion under this policy?

The exclusions under this policy are mentioned below:

• The survival period is 30 days from the date of diagnosis of critical illness
• Self-injury or suicide
• Medical illness due to alcohol or substance abuse
• Pre-existing medical illness
• STDs and congenital disabilities
• Act of criminal nature

5. How does this policy provide for deferred survival and maturity benefits?

The policy can be deferred by invoking the settlement option under maturity benefit.

6. What happens if the policyholder commits suicide?

If the policyholder commits suicide within 12 months of the commencement of risk, no amount shall be payable.

7. What is the Guaranteed Addition accrual under this plan?

It is Rs. 50 per thousand for the first five years and rs. 55 per thousand for the rest of the policy period.

8. How does the profit of the company affect my policy?

This is through Loyalty addition provided that the premiums are successfully paid for 5 years

9. Does the new assurance term apply to maturity benefits?

The New term Assurance does not apply to maturity benefits. Only applicable to death benefits.

10. How can I pay my premiums?

Yearly, half-yearly, quarterly, and monthly. Checkout other policies as well.