LIC’s Jeevan Shikhar Policy 837 is a participating, non-linked with profit, single premium endowment plan wherein the risk cover is ten times of tabular Single Premium. LIC is planning to launch “LIC Jeevan Shikhar Plan No 837” on 11th January, 2016. This is second launch of LIC in year 2016, prior to this LIC has already launch LIC Jeevan Labh 836 policy. Jeevan Shikhar is limited period policy and available only for 120 days from launch date.
LIC Jeevan Shikhar is single premium payment plan with fix term of 15 years. It seems this plan is launched to attract benefit of Tax Saving season.
LIC Jeevan Shikhar Plan 837 Features
Minimum Entry Age -6 Years (Completed)
Maximum Entry Age -45 Years (Nearer Birthday)
Fixed Policy Term – 15 Years
Minimum Maturity Sum Assured – 1,00,000 Rs.
Maximum Maturity Sum Assured based on income, need and health – No Limit
Premium Payment – Single Premium Only
LIC Jeevan Shikhar Maturity Benefit
On Survival of Life Assured to the end of policy term-
Maturity Benefit = Maturity Sum Assured + Loyalty Addition if any
LIC Jeevan Shikhar Death Benefit
Death benefit under LIC Jeevan Shikhar plan is of two types and it depends on Risk Commencement date.
Date of commencement of risk in case the age at entry of the Life insured is more than 8 years or above, risk will commence immediately. For age less than 8 years, the risk commencement starts immediately after completion of age 8 years.
On Death during first 5 years of the policy
Before the date of Commencement of Risk: Single Premium without interest will be paid to the nominee.
After the date of Commencement of Risk: A Death Benefit of Sum Assured equal to 10 times the Tabular Single Premium is payable.
On Death after first 5 years of the policy but before maturity date
Sum Assured equal to 10 times the Tabular Single Premium along with Loyalty Additions, if any, is payable in a to the nominee.
LIC Jeevan Shikhar Example and Premium Detail
Example of this policy along with premium detail is given below.
If Mr. X age 25 years takes this policy for sum assured of 1 Lac.
Single Premium payable shall be 43004 Rs.
Risk Coverage – 415000 Rs.
Maturity Benefit – 1 Lac + 32000 Rs (Loyalty Addition) = 1.32 Lac
LIC Jeevan Shikhar – Should you buy this Policy?
Before reaching to any conclusion let’s look at positive and negatives of this policy.
- Ten times Risk coverage on single premium.
- Loan facility available after 3 months
- On event of death before commencement of risk only premium paid will be returned.
- Bonus is not payable on maturity.
- Expected Return provided by this policy is very low.
I could not find any good reason to buy this policy. If you are planning to buy this policy from risk coverage point of view it is better to plan term plan. If you are planning buy this policy from investment point of view it’s Big NO. It is better to invest in other investment option like PPF, ELSS etc. If you are happy with peanut returns of LIC Jeevan Shikhar you may purchase.
LIC Jeevan Shikhar is only gimmick by LIC to attract last minute tax saver for investment. You should stay away from Jeevan Shikhar.