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Home / Money / Personal Finance /  Life Insurance: This LIC policy can make you crorepati, here's how
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Having a backup in life is something widely and traditionally practiced in India. This term can also be called life insurance. There are a host of insurance policies available in India offered by many companies beneficial for both individuals and a group. LIC by far has maintained its dominance when it comes to being a one-stop life insurance solution for Indians. An investor can shop in through numerous LIC policies with attractive benefits. One such is LIC's Jeevan Shiromani plan which offers a basic sum assured of 1 crore.

The LIC Jeevan Shiromani plan is meant for High Net-worth Individuals (HNIs) offering a combination of protection and savings.

This plan offers financial support for the family in case of the unfortunate death of the policyholders during his or her policy term. Under the policy, periodic payments are also made on the survival of the policyholder at specified durations during the policy term, meanwhile, a lump sum payment to the surviving policyholder at the time of maturity.

Additionally, the policy also provides for payment of a lump sum amount equal to 10% of the chosen Basic Sum Assured on the diagnosis of any of the specified Critical Illnesses. Further, the plan takes care of liquidity needs through a loan facility.

The policy has a minimum basic sum assured of 1 crore with no maximum limit. It has a tenure of 14 years, 16 years, 18 years, and 20 years. However, its premium paying term is policy years minus 4 years.

The minimum age to opt for the policy is 18 years, while the maximum is 55 years.

Under the death benefit, the policy provides a sum assured higher than 125% of the basic sum assured or 7 times of annualised premium. However, the benefit is given after the completion of five policy years but before the date of maturity.

Notably, the death benefit will not be less than 105% of all the premiums paid up to the date of death.

Meanwhile, under the survival benefit, LIC will pay a fixed percentage of the basic sum assured after a certain period of time. These are:

For 14 years policy term, LIC will pay 30% of the basic sum assured on each of the 10th and 12th policy anniversary. In the case of 16 years term, 35% of the basic sum assured will be paid on each 12th and 14th policy anniversary. Furthermore, 40% of basic sum assured on each of 14th and 16th policy anniversary will be paid on 18 years of tenure. In regards to 20 years of tenure, 45% of basic sum assured will be paid on the 16th and 18h policy anniversary.

On maturity, LIC will pay the sum assured on the end of the tenure along with guaranteed additions and loyalty additions.

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