The Life Insurance Corporation of India (LIC) offers a variety of insurance plans to cater to different needs. Among them, LIC Jeevan Shiromani (Plan No. 947) stands out as a premium savings and protection plan, especially designed for high-income individuals. This is not just a regular insurance plan — it’s a combination of life protection, guaranteed returns, survival benefits, and loyalty additions.
Launched as a non-linked, with-profit, limited premium payment plan, LIC Jeevan Shiromani targets those who seek both financial growth and strong insurance coverage. In this article, we’ll discuss the key features, benefits, eligibility and also provide a realistic example of policy maturity so you can understand how it works in real life.
What Makes LIC Jeevan Shiromani Unique?
Unlike regular endowment or money-back plans, Jeevan Shiromani has been designed with a premium segment in mind. It offers high assured benefits, loyalty additions, and survival payouts at specific intervals during the policy term. Here’s why this plan is different from others:
- Guaranteed Additions every year till maturity
- Survival Benefits during the term
- Loyalty Additions after completion of a certain duration
- Critical Illness Cover without extra premium
- Policy loans available after one year
- Option to choose policy terms of 14, 16, 18, or 20 years
- Minimum Sum Assured of Rs. 1 crore
Key Features of LIC Jeevan Shiromani Policy
1. Eligibility Criteria
| Parameter | Details |
| Minimum Sum Assured | Rs. 1 Crore |
| Maximum Sum Assured | No Limit |
| Entry Age | 18 years (completed) |
| Maximum Age at Entry | Varies with policy term: |
| Policy Term | 14, 16, 18, or 20 years |
| Premium Paying Term | Policy Term minus 4 years |
| Premium Mode | Yearly, Half-Yearly, Quarterly |
For example:
If you select a 20-year policy term, you will pay premiums only for 16 years.
2. Death Benefit
If the policyholder dies during the policy term (after the commencement of risk), the nominee will receive:
- Sum Assured on Death, which is higher of:
- 10 times the annual premium
- 125% of Basic Sum Assured
Plus, guaranteed additions and loyalty additions are also paid. This benefit ensures that the family of the policyholder is financially protected in case of any unfortunate event.
3. Survival Benefits (Money-Back)
LIC Jeevan Shiromani offers periodic survival payouts depending on the policy term. These are paid before maturity if the policyholder is alive:
- For 14-Year Policy: 30% of Basic Sum Assured at end of 10th and 12th year
- For 16-Year Policy: 35% of Basic Sum Assured at end of 12th and 14th year
- For 18-Year Policy: 40% of Basic Sum Assured at end of 14th and 16th year
- For 20-Year Policy: 45% of Basic Sum Assured at end of 16th and 18th year
These benefits help meet large financial needs like child’s education or marriage before the plan matures.
4. Maturity Benefit
If the policyholder survives till the end of the policy term, they will receive:
- Remaining percentage of Basic Sum Assured (as per plan term)
- Guaranteed Additions @ Rs. 50 per Rs. 1,000 of Sum Assured per year
- Loyalty Additions (declared by LIC, based on performance)
Example: LIC Jeevan Shiromani Policy Maturity Illustration
Let’s take a realistic case to understand how this plan works.
Example Details:
- Policyholder Age: 35 years
- Policy Term: 20 years
- Basic Sum Assured: Rs. 1 Crore
- Premium Paying Term: 16 years
- Annual Premium: Rs. 4,90,000 (approximate, excluding GST)
- Guaranteed Additions: Rs. 50,000 per year (Rs. 50 × Rs. 1,00,000 Sum Assured)
Now, let’s calculate:
1. Total Premium Paid
Rs. 4.90 lakhs x 16 years = Rs. 78,40,000
2. Survival Benefits
- At the end of 16th year: 45% of Rs. 1 Cr = Rs. 45 Lakhs
- At the end of 18th year: 45% of Rs. 1 Cr = Rs. 45 Lakhs
- Total Survival Benefits Received = Rs. 90 Lakhs
3. Maturity Benefit at the End of 20th Year
- Remaining 10% of Basic Sum Assured = Rs. 10 Lakhs
- Guaranteed Additions = Rs. 50,000 × 20 = Rs. 10 Lakhs
- Loyalty Addition (estimated) = Rs. 15 Lakhs (variable)
- Total Maturity Benefit = Rs. 10L + Rs. 10L + Rs. 15L = Rs. 35 Lakhs
4. Total Returns from Policy
- Survival Benefits = Rs. 90 Lakhs
- Maturity = Rs. 35 Lakhs
- Total Return = Rs. 1.25 Crore
Against a premium payment of Rs. 78.4 Lakhs over 16 years, the policyholder gets Rs. 1.25 Crore, along with full life cover for 20 years and added critical illness cover.
Critical Illness Benefit at No Extra Cost
This is a very unique part of the Jeevan Shiromani plan. LIC offers critical illness cover for 15 listed diseases, like:
- Cancer
- Kidney failure
- Open heart surgery
- Stroke
- Organ transplant
If the policyholder is diagnosed with any of these, they receive:
- 10% of Basic Sum Assured as lump sum
- Premium waiver for the next 2 years
- Option to get medical second opinion from LIC-approved specialists
Tax Benefits
- Premium paid is eligible for tax deduction under Section 80C
- Maturity and death proceeds are tax-free under Section 10(10D) (as per current tax laws)
Who Should Buy LIC Jeevan Shiromani?
This plan is ideal for:
- High-net-worth individuals
- Business owners
- Professionals (Doctors, CA, Lawyers, etc.)
- People looking for guaranteed returns with life cover
- Parents planning long-term wealth for children’s future
