Life Insurance Corporation (LIC) of India has launched another endowment plan Jeevan Shikhar, just days after launching Jeevan Labh on January 4. Jeevan Shikhar launched on January 11, is a limited period closed-ended plan, available for 120 days from the launch date i.e till March 31, 2016. This is a participating, non-linked, savings cum protection single premium plan wherein the risk cover is ten times of tabular single premium. Those in the age of 6-45 bracket can opt for this plan. You can choose the maturity sum assured and your single premium payable will depend on this amount and your age. Minimum sum assured is Rs 100,000 with no upper limit. The policy term is 15 years and maturity sum assured will be in multiples of Rs 20,000. A loan facility is also available on this plan.
How it Works?
On surviving the policy term, the policy holder gets maturity sum assured along with loyalty addition (applicable, if any). In case of death before the date of commencement of risks, single premium (not including any extra amount if charged under the policy due to underwriting decision and taxes) without interest will be refunded. However, after the date of commencement of risk, sum assured on death equal to 10 times the tabular single premium shall be payable. For those aged 8 years or more at entry, risk will commence immediately from the date of issuance of policy. However, if the age of life assured is less than 8 years, the risk under this plan will commence on policy anniversary coinciding with or immediately following the age of 8 years.
Age at entry (Nearest Birthday)
Tabular Single Premium Rates (Rs.)
Key Features of LIC Jeevan Shikhar
Death Benefit: On death during first five policy years: Before the date of commencement of risk, single premium without interest is refunded. After the date of commencement of risk: Sum Assured on Death equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but before the stipulated date of Maturity: Sum Assured on Death equal to 10 times the tabular single premium along with Loyalty Addition, if any, shall be payable.
Maturity Benefit: if policyholder survives the term, maturity sum assured along with loyalty addition, if any, shall be payable.
Loyalty Addition: Depending upon the corporation's experience, the policy shall participate in the profits in the form of Loyalty Addition. The loyalty addition, if any, shall be payable on death or surrender, provided the policy has run for at least five policy years, or on policyholder surviving to the maturity, at such rate and on such terms as may be declared by the Corporation
Rebate on premium: The plan also offers a rebate in tabular premium on per Rs.1,000 maturity assured amount.
For maturity assured amount between Rs.2 lakh-Rs.4.8 lakh, rebate is Rs 15
For MSA between Rs.5 lakh-Rs.9.8 lakh, rebate is Rs.20
For MSA of Rs.10 lakh and above, this amount is Rs.25
Loan facility: Can be availed during the policy term after 3 months from the date of issuance or after the expiry of the free-look period, whichever is later. Depending on the age at entry, the maximum loan that can be granted as a percentage of surrender value for different policy terms are as under:
Maximum Loan Amount as a % of surrender value for age at entry <=35
Maximum Loan Amount as a % of surrender value for age at entry >35 years.
* 3 month to 3rd
4th to 6th
7th to 9th
10th to 12th
13th to 15th
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS
Eligibility conditions and other restrictions in LIC JEEVAN SHIKHAR
Minimum: 6 years (completed)
Maximum: 45 years (nearer birthday)
Minimum Maturity Sum Assured:
Maximum Maturity Sum Assured:
Premium Payment Mode:
Maturity Sum Assured:
Multiple of Rs. 20,000/-.
What happens if?
Want to surrender your policy: The Guaranteed Surrender Value shall be as under:
If policy is surrendered in first year: 70% of the single premium
Thereafter: 90% of the single premium
(This will not include any extra amount if charged under the policy due to underwriting decision and taxes)
If the policy is surrendered after completion of five policy years applicable loyalty addition (if any) will also be paid.