Lic Jeevan Shree Policy plan no -112 Review
Lic Jeevan Shree Policy was INTRODUCED ON – 16/01/1995 and WITHDRAWN ON- 01/02/2002. Jeevan Shree Policy is an Endowment plan with limited premium paying term which was designed to provide the needs for upper market segment.
It is mainly suitable for employers to effect insurance on the lives of key man ( important employee who is core to the business and his death ) etc., Each policy term is having different premium paying terms. However, jeevan shree plan has the insurance cover for longer period.
Jeevan Shree Policy will take part in profits with guaranteed addition @ 75/- per 1000 sum assured. Also Jeevan Shree plan includes Loyalty addition on maturity or death.
Lic Jeevan Shree policy Conditions
AGE AT ENTRY: Minimum: 18 years completed
Maximum: 60 years
65 years under key man
POLICY TERM AND PPT:
| POLICY TERM | PREMIUM PAYING TERM |
| 5 years | 1,2,3 |
| 10 years | 1,2,3,4,6 |
| 15 years | 1,2,3,4,6,8,10 |
| 20 years | 1,2,3,4,6,8,10,12 |
| 25 years | 1,2,3,4,6,8,10,12,16 |
MODE OF PAYMENTS: Single, Yearly, Half-yearly, Quarterly.
SSS is allowed where Premium Paying Term is more than 4 years
MAXIMUM MATURITY AGE: 70 years
75 years under key man
SUM ASSURED: Minimum: Rs. 5 lakh and in multiple of Rs. 1 lakh
- Accident benefit is not available in Jeevan Shree Plan but there is the availability of PDB.
- All female categories are allowed in Jeevan Shree plan.
Lic Jeevan Shree Policy Rebates
There are 2 types of Rebates,
- Sum assured rebate
- Mode rebate
Sum assured rebate:
In Jeevan Shree Policy, Sum assured rebate is similar for both single premium and regular premium.
| Sum assured | Rebate |
| Rs 5 lakhs to Rs 19 lakhs | Rs. 3.00 per 1000 sum assured |
| Rs 20 lakh to Rs 49 lakh | Rs. 4.00 per 1000 sum assured |
| Rs 50 lakh and above | Rs. 5.00 per 1000 sum assured |
Mode rebate:
| Mode | Percentage |
| Yearly mode | 3% of tabular premium |
| Half-yearly mode | 1.5% of tabular premium |
| Single, Quarterly and SSS | No Rebate |
Lic Jeevan Shree Policy Maturity Benefits
In case of Policies which are in full force as on maturity date or Fully paid up premiums or single premium policies, then on the date of maturity,
Maturity claim = Full Sum assured + Guaranteed addition as per policy term + Loyalty addition if any – outstanding recovery if any.
In case of Paid up policies,
Maturity claim = Paid up value + Guaranteed addition.
If any premiums have not been paid during the last policy year of PPT, then Maturity claim should be resolved for only paid up value and not for full sum assured.
Lic Jeevan Shree Policy Death Claims
If in case policies are in full force as on date of death, then
Death claim = full sum assured + Guaranteed addition – outstanding premiums
If death claim is calculated after applying claim concessions, further policy anniversary premiums and outstanding premiums with interest upto date of death should be deducted.
Accordingly bonus is to be calculated.
Lic Jeevan Shree Policy Additional Benefits
Guaranteed addition:
When the policy is in full force, Guaranteed additions are given at the rate of Rs. 75/- per 1000 sum assured, at the end of each policy anniversary.
For example,
If premiums have been paid for 3 years, and duration of policy for calculation of surrender or death is 2 years and 9 months, then guaranteed addition will be added for only 2 years.
In case of death claim, if there are any unpaid premiums, for the policy year in which death of the Life insured occurs, they are recovered from death claim proceeds. GA will be paid be paid for that policy year also.
In case of surrender & paid-up policies, the Guaranteed addition for the Last policy year will be added on corresponding basis.
Loyalty addition:
Jeevan shree policy may be eligible for loyalty addition at such rates as may be declared by the corporation, if at least 5 full years premiums have been paid, on the life insured surviving the specified maturity date or on earlier death and provided the policy is in full force on the maturity date or on date of death.
Loyalty addition will depend upon number of completed years of the policy has been in force on the maturity date or date of death. No loyalty addition will be payable in the event of policy being surrendered.
Riders Available in Lic Jeevan Shree Policy
Accident benefit / EPDB:
In Jeevan shree policy Double accident benefit and EPDB are not available. Still, there is availability of permanent disability benefit for first 20,000 sum assured on all policies held together in order of preference.
GUARANTEED SURRENDER VALUE:
After completion of 3 years Jeevan Shree Policy can be surrendered for cash, provided all premiums are paid under the policy with PPT of 2 years or less OR 3 years premiums are paid where PPT is 3 years or more.
In case of single premium policies, GSV is payable after completion of 3 policy years from
the starting date.
GSV = 90% (premiums paid) – extra premiums
Other than single premium policies,
GSV = 30% ( premiums paid ) – premiums for the 1st year and/or extra premiums.
PAID UP VALUE:
In case of single premium policies, paid up value will be always equal to sum assured.
Other than single premium policies paid up value will be calculated as,
Paid up value = sum assured x no of years premiums paid
No of years premiums payable as per PPT (not policy term)
SPECIAL SURRENDER VALUE:
In Jeevan Shree policy SSV will acquire after completion of 1 policy year. SSV is calculated by,
SSV = ( paid up value + guaranteed addition) x SV factor.
Additional Information about Lic Jeevan Shree Policy
LOAN:
- Loan is available under Jeevan Shree Policy.
- If policy has acquired SSV, loan can be granted after completion of 1 policy year.
- Rate of loan interest is 9% for all policies irrespective of date of granting the loan.
REVIVAL:
If policy is lapsed, all rules applicable to endowment policies are applied for revival of policies. To find out extra premium rates, outstanding PPT of policy term should be calculated.
Lic Jeevan Shree Policy Benefit illustration
Example:
Mr. Sharma have taken a Jeevan Shree policy with a annual premium of 24,763/-. The policy duration is for 25 years and Premium paying term is 16 years. In total he would be paying Rs. 3,96,208 /- premium, over the period of 16 years.
Unlike other policies, he is not paying the Sum Assured/ more than sum assured as premium. And also he gets Rs.75/- per 1000/- of sum assured as guaranteed bonus. i.e., for Rs. 24,763/- as premium every year he is getting Rs.37,500/- bonus ( 75/- per thousand X 500 thousands).This guaranteed additions are added at the end of each policy anniversary and will be payable when the sum assured becomes payable.If we assume that the policy is continued till end, i.e., 25 years, then we can get Rs.9,37,500/- plus the sum assured amount of Rs.500000/-. apart from these this policy is eligible for loyalty additions which are declared by LIC time to time.