Categories: Insurance Planning

LIC’s New Plan 2016-Jeevan Shikhar (Table No.837)-Feature and Review

As usual, LIC is launching a limited period plan called Jeevan Shikhar (Table No.837). This will be available from January, 2016 to the maximum period of 120 days.

You notice the LIC history, they always launch limited period endowment plans in January and closes in March. The reason is to trap the tax saving salaried individuals. The biggest loser in such unplanned blind tax saving investments are INVESTORS only but not agents or LIC. So to utilize this opportunity, every year LIC launches new plans during this tax saving season.

Below are the features of this plan

  • It is a single premium plan.
  • Insurance cover will be 10 times of your premium. If your premium is Rs.1,00,000, then the sum assured will be Rs.10,00,000.
  • It is a typical endowment plan.
  • Minimum maturity sum assured must be Rs.1,00,000. There is no maximum limit.
  • Minimum entry age is 6 years.
  • Maximum entry age is 45 years.
  • Premium paying mode-ONLY SINGLE.
  • Term of policy is 15 years.
  • You have an option to chose the Maturity Sum Assured (MSA). Based on this MSA and age, your premium will be fixed.
  • This plan offers a rebate in terms of a tabular premium on per Rs.1,000 MSA. This rebate is Rs.15 for MSA between Rs.2 lakh to Rs.4.8 lakh. Rs.20 for MSA between Rs.5 lakh to Rs.9.8 lakh. Rs.25 for MSA of Rs.10 lakh and above.
  • Agent’s commission will be 2% of the premium.
  • This plan offers loan facility but depends on how old the policy is and your age.

Benefits-

Survival Benefit-

If you survive till the policy period, then you will receive the MSA (Maturity Sum Assured)+Loyalty Addition.

Death Benefit-

a) If death occurs during first 5 policy years-Refund of single premium without interest.

b) If death occurs after 5th policy year-10 times of your single premium.

I tried to simplify the plan by explaining as below.

This is the plan which yet to be launched. But going by available features, I felt is one more worst plan LIC launching. I feel buying a term insurance and PPF is best. I am referring PPF again and again. Because PPF offers same tax benefit as that of LIC endowment products.

I will review it once I will get more updates of the same.

BasuNivesh

View Comments

  • Hi,
    I want to take insurance plan for my mother.she is 5o years old.
    I can invest 50 k.
    can u please suggest a insurance/Pension plan with a single premium which gives good money on maturity for my mother

    • Anil-Whether your purpose of investment is to reach your financial goals, tax saving or investing in LIC product?

  • I have an infant of 1 year 4 months. I would like to invest one time investment of Rs.1,00,000/- in LIC for future studies of my son. Hence, please advise.

    • Seshagiri-Do you feel LIC products are right? If your plan is to invest, then why you are looking for a product which is insurance also?

  • Dear sir

    my two child one 5 years old and 2nd 1 years I invest 10 lac suggest me what I do
    which type policy purchased I need money after 15 years both son in education or marriage my interest in kyc (post office) pls tell me

  • Dear,
    My cousin died in KSA where he was working, I am also working here, I want to get best plan for my cousin daughter aged 3 yrs which will get best results after 15 yrs, but I want to invest a maximum of Rs.2 Lakhs for 6 months to 1 year maximum.
    Pls. advise me.

    Thanks

    • Mubasheruddin-Try to avoid a product which combines insurance with investment.

      • Thanks for reply.
        I need only investment plan to get returns after 15 yrs for cousin daughter marriage expenses preferred LIC, if there is any other suitable plan in this situation pls. let me know.

        Thanks

        • Mubasheruddin-If your goal is around 15 years, then I suggest around 60% in equity fund and 40% in PPF.

          • Hi Basavaraj,

            I am also eager to Invest for my Childs Future, You were suggesting someone to Invest 60% in Mutual Fund and 40% in PPF. Can you please provide me some more details on this and links if possible to do some research.

          • Balram-Yes, even you can start investing in equity-oriented balanced fund like HDFC Balanced Fund.

  • Dear Sir

    I have gone ahead with LIC policy for 30 lacs and I wanted to split my policies between LIC and ICICI. I have applied for the lic policy and they are taking time.. Can I go ahead and apply for icici term insurance with declaring that my proposal with LIC is work in progress or should I wait till lic process is over...I am confused..Pls help

      • Sir

        The only problem is that LIC is going too slow. I think I have chosen the wrong agent - one who is not interested in the business at all. He is just too casual.. That is why I am a bit impatient to take the ICICI policy

        Since I have gone through the agent - I am unable to track the policy online and I feel helpless.

        • Bala-I understand that they are very slow. But at the same time hiding information with ICICI may cost you. Hence, I said to wait. But why you went for offline LIC policy where it is sold through an agent?

          • Sir,

            That was the mistake I did. I sent the agent a cheque on April 7th - nearly 2.5 months back...
            I didn't have faith in the online mode that time but I am regretting it now.

            I have a thought sir - If I apply for ICICI now, will it be a problem if I take either of their policies...ie whoever is able to issue the policy 1st and then reject the other..

          • Sir - to explain myself more clearly

            if ICICI is able to finalise 1st, then I will go ahead with ICICI and reject LIC
            if LIC is able to finalise 1st, then I will reject ICIC.

            That way, I would not have problem with disclosure towards LIC or ICICI.. Is my thinking correct, sir

            Sorry for the bother sir...please don't mind me asking these questions as I don't know to who to raise

          • Bala-If your decided to retain ONLY ONE, then go ahead with ICICI. No disclosure required.

  • Recently2013 my father expired he use lic policy but in between policy collapsed in 2012 .due to financial prblm.at that time if policy was running we get maturity amount. Incase of death..and know iwnt a lic policy for my mother.. My mom doesn't get term plan bec she is a housewife..for safety feature we should do lic or term plan. .for future we don't know what will be future but pls do a policy so that family can be secure thnk
    u

  • I am planning to buy an LIC plan. My age is 36 years, I have 2 childrens(Girl of 5 years & Boy of 1 year). Please suggest me some good LIC plan especially for my childrens within a range of 25k annual premium.

    Regards,
    Vijay

  • Hi Basu,

    I have SBI life Shubh Nivesh policy with sum assured 83000 , premium term and benefit term 9 year with below option
    SBI Life - Accidental Death Benefit Rider : 83000
    SBI Life - Shubh Nivesh Whole Life Plan Base Cover 83000
    with yearly premium 12000 rs. total accrued bonus 7470 and policy start date is : aug 2012.
    when I purchased this policy they say that your money will get double but i dont believe so
    should I continue with this or surrender. I have read many reviews about this policy over internet that I will get paid less than my deposited amount after 9 year (RS 108000).
    What I will get if I surrender this as of now.

    Thanks in advance

    • Vimal-Money doubles but after how many years? It is better to come out early.

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BasuNivesh

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