News India Live, Digital Desk: Even today, a large section of the country trusts the schemes of Life Insurance Corporation of India (LIC). LIC brings policies for every income group, but there are some plans which are specially designed for high earning people (High Net-worth Individuals). Such a powerful plan LIC Jeevan Shiromani Policy,
It is often heard about this policy that one has to invest in it only for 4 years and in return one gets Rs 1 crore. Is this really true? Let us understand the reality of this scheme in simple words.
What is the truth about “1 crore in 4 years”?
First of all, it is important to know that this claim is not completely correct, rather there is a slight mistake in understanding it.
- What is 1 crore? – In this policy, there is no amount to be received on maturity of Rs 1 crore. Actually, this policy Minimum Basic Sum Assured Is. That is, this policy can be taken only by the person who wants an insurance cover of at least Rs 1 crore. Less than this is not insured in this plan.
- What does 4 years mean? The specialty of this policy is that it is a ‘Limited Premium Payment’ plan. This means that you do not have to pay the premium for the entire policy term (say 16, 18 or 20 years). The premium paying term is 4 years less than the total term of your policy.
- For example: If you take a policy for 16 years, you will have to pay the premium only for (16 – 4) = 12 years. You will not have to pay any premium for the remaining 4 years, but your insurance cover will continue.
So, the claim of “1 crore in 4 years” is actually a misleading line created by combining two features of this policy.
Why is Jeevan Shiromani Policy special?
This policy does not just provide an insurance cover, but has many more benefits:
- Savings with Security: This is a non-linked, money-back policy with guaranteed addition. That is, there is no risk in the stock market and you are sure to get fixed returns.
- Money is also available during the policy term (Money-back): If the policy holder survives, he gets a part of the sum assured as ‘survival benefit’ after a fixed period of time.
- Critical illness cover: This policy already includes cover for 15 critical illnesses. If the policyholder suffers from any of these diseases, 10% of the sum insured is given immediately for the treatment.
- Death Benefit: In case of death of the policyholder during the policy term, the sum assured along with guaranteed returns are paid to the nominee.
- Big amount on maturity: On completion of the policy, a lump sum amount consisting of the remaining sum assured and the accumulated guaranteed additions is paid.
- Loan facility: You can also take a loan against this policy at the time of need.
Who can buy this policy?
- Minimum Sum Assured: 1 crore rupees
- Maximum Sum Assured: no limit
- Policy Period: 14, 16, 18 and 20 years
- Minimum age for admission: 18 years
This policy is a great option for those who want a big protection cover for their family and also want to save with guaranteed returns.
