LIC Jeevan Shikhar Insurance plan – Should you opt it?
LIC Jeevan Shikhar Insurance plan Review
Last week, LIC has launched Jeevan Labh insurance plan. Today, LIC of India is launching a single premium insurance plan, LIC Jeevan Shikhar – Table no.837. Jeevan Shikhar from LIC is a non linked endowment insurance plan which would be opened only for 4 months. Generally LIC launches insurance plans during tax season i.e. Jan to Mar. In this season this is the second insurance plan from LIC in 2016. What are the features of LIC Jeevan Shikhar Insurance plan? What are the benefits of LIC’s Jeevan Shikhar Plan? Should you consider such endowment plans?
Features of LIC Jeevan Shikhar Insurance Plan
- Plan is being launched today i.e. 11th January, 2016.
- It is non linked endowment plan.
- This is a single premium insurance plan.
- This insurance plan comes with 15 years tenure.
- This scheme would be opened for subscription only for 120 days from date of launch.
- Min age of entry is 8 years and maximum age of entry is 45 years.
- Maximum age at maturity is 60 years.
- Minimum maturity sum assured is Rs 1 Lakh.
- Maximum maturity sum assured – No upper limit
- Loan facility available in this plan.
What are the benefits available in this plan?
On the survival of the policy holder on maturity, policy holder would get minimum maturity sum assured + Loyality Additions (if any).
In case of death of policy holder, the death benefit is paid based on date of commencement of risk.
Date of commencement of risk: If life insured is > 8 years of age, date of commencement is immediately; else it would be after attaining 8 years of age.
Death happened < 5 years from policy date
Before commencement of risk – Single premium without any interest would be paid.
After date of commencement of risk – Death benefit of Maturity Sum assured which is equal to 10 times of tabular single premium is paid to nominee.
Death happened >= 5 years from policy date
Sum Assured equal to 10 times the Tabular Single Premium along with Loyalty Additions, if any, is payable in a to the nominee in a case of the Life assured dies after first five years of the policy.
Are there any Riders available in LIC Jeevan Shikhar?
LIC Jeevan Labh had 2 riders. There are no riders available in Jeevan Shikhar of LIC.
What are the rebates available in Jeevan Shikhar of LIC?
There are two rebates available. High Basic Sum Assured Rebate and Corporate Employee’s Insurance Scheme (CEIS) Rebate
High Basic Sum Assured Rebate
Corporate Employee’s Insurance Scheme (CEIS) Rebate
The Assured will be eligible for Corporate Employee’s Insurance Scheme (CEIS) Rebate of 2% of the Tabular Single Premium.
Let me explain with an example
Mr.Ravi aged 25 years takes Rs 1 Lakh Policy, his single premium would be Rs 44,124.
- In case of death, his nominee would get Rs Rs 4.4 Lakhs (10 times of tabular single premium).
- On survival of Mr.Ravi, he would get Rs 1 Lakh + Loyality additions (if any). Currently, such bonus or loyality additions are ranging between Rs 1 to Rs 6 for every 1,000 sum assured.
Should you consider LIC Jeevan Shikhar?
Like I indicated earlier, I am against money back plans or endowment plans or single premium plans. Plans from LIC would give approx returns of 4% to 6% per annum. On top of it, if a life insured is < 8 years and died before 5 years from policy date, nominee would get single premium back without any interest. Means risk coverage is zero You should take term insurance plan and balance savings can be invested in a bank FD or mutual fund which would yield better returns. On other hand, if you are low risk taker and does not believe in financial markets or does not willing to take risk from stock markets, it is always safe to invest in such single premium plans from LIC. This would also useful for tax saving purpose.
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LIC Jeevan Shikhar Insurance plan Review
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