Jeevan Shiromani Plan 847 Calculator

If looking for a high-value life insurance plan with attractive money-back options, guaranteed additions, and critical illness benefits, then LIC’s Jeevan Shiromani Plan 847 is worth considering. This plan has been designed especially for High Net Worth Individuals (HNIs) who want secure insurance coverage along with steady returns over a long term.

What is Jeevan Shiromani Plan 847?

LIC Jeevan Shiromani (Plan No. 847) is a non-linked, money-back life insurance plan. It offers life protection along with periodic money-back payments during the policy term and a lump sum amount on maturity. It’s tailored to provide financial support over the years with the added advantage of guaranteed additions and loyalty additions, which boost the overall returns.

• Target Audience: It is mainly for high-net-worth individuals since the minimum basic sum assured starts from Rs. 1 Crore (₹1,00,00,000).
• Policy Term Options: The plan offers flexible policy terms of 14, 16, 18, or 20 years, with the premium paying term being 4 years less than the policy term you choose.
• Unique Features: It has an inbuilt critical illness benefit covering 15 major diseases like cancer and kidney failure, which is not common in many other LIC plans.

Key Features of Jeevan Shiromani Plan 847

Understanding the key features will clarify why this plan stands out.

• Guaranteed Additions: Fixed guaranteed additions accrue during the premium paying term at Rs. 50 per thousand sum assured for the first 5 years, and Rs. 55 per thousand sum assured for the remaining years. This adds a steady increase to your sum assured amount.
• Loyalty Additions: At the end of the policy term (on maturity or death), you get an additional loyalty addition based on LIC’s profits, rewarding you for your commitment over the years.
• Money Back Benefits: The plan pays fixed survival benefits (money back) at specified policy years, which vary depending on the policy term chosen. For example, if you choose 14 years, you get 30% of the sum assured at the 10th and 12th policy years as money back.
• Critical Illness Cover: The plan covers 15 critical illnesses, providing financial support in difficult times.
• Policy Term & Premium Paying Term: You can select a policy term of 14, 16, 18, or 20 years. The premium paying term is 4 years less than the policy term.
• Settlement Options: On maturity or death, you can choose to receive benefits as lump sum or via settlement options spread over 5, 10 or 15 years for added flexibility.

How Does Jeevan Shiromani Plan 847 Work?

Premium and Money Back Schedule

You pay premiums for the premium-paying term (policy term minus 4 years). During the policy tenure, LIC pays you fixed survival benefits as percentages of the sum assured, according to the term chosen. These money backs provide liquidity during your lifetime.

Death Benefit

If the unfortunate happens, the nominee receives:

• During first 5 years: 125% of the basic sum assured + guaranteed additions at the rate of Rs. 50 per thousand per year.
• After 5 years till maturity: 125% of the basic sum assured + guaranteed additions at Rs. 55 per thousand + loyalty additions.

Maturity Benefits

If you survive the full policy term, you receive:

• Remaining percentage of the sum assured as per policy term
• Accrued guaranteed additions
• Loyalty additions

Understanding the Jeevan Shiromani Plan 847 Calculator

Using the Jeevan Shiromani Plan 847 calculator lets you estimate premiums and benefits before buying. This helps in planning finances and understanding what returns to expect.

Inputs Required

• Age of the policyholder
• Basic sum assured (minimum ₹1 Crore)
• Policy term (14, 16, 18 or 20 years)

Outputs Provided

• Total premium payable (yearly, half-yearly, quarterly, or monthly)
• Survival benefits (money back payments during policy)
• Maturity amount including guaranteed and loyalty additions
• Death benefit amounts

How to Use the Calculator

Simply input your age, the sum assured you desire, and choose the policy term. The calculator provides a detailed year-wise schedule of premiums paid, money backs received, and final maturity value.

Guide to Calculate Jeevan Shiromani Plan 847 Benefits

Let’s break down the calculation process using a simple example.

Step 1: Select Policy Details

• Age: 29 years
• Sum Assured: ₹1 Crore (₹10,000,000)
• Policy Term: 20 years (Premium paying term is 16 years)

Step 2: Calculate Guaranteed Additions

• For the first 5 years, guaranteed additions = Rs. 50 per 1000 sum assured annually = Rs. 50 x 10,000 (since sum assured is 10 Million) = ₹5,00,000 per year.
• For the next 11 years (6th to 16th year), guaranteed additions increase to Rs. 55 per 1000 sum assured = ₹5,50,000 annually.

Step 3: Money Back Payments

• For a 20-year term:
  • 45% of the sum assured is paid at the 16th year
  • Another 45% is paid at the 18th year
  • Final 10% + guaranteed additions, and loyalty additions form the maturity benefit.

Step 4: Calculate Premium

Using the calculator, you get the exact premium payable per year, which is adjusted for GST. For example, for the above details, the premium (without GST) might be approximately ₹6,91,390 per year.

Step 5: Maturity Amount

At maturity (end of 20 years), the maturity amount will be

• 10% of the sum assured + all guaranteed additions accrued + loyalty additions declared by LIC.

Benefits of Jeevan Shiromani Plan 847

This plan offers several advantages, especially for those looking for a long-term, high-value life insurance plan.

• Security for the Family: In case of death, your nominee receives a substantial amount, including the sum assured plus guaranteed and loyalty additions.
• Money Back Benefits: Regular survival benefits improve liquidity and provide financial support during the policy term.
• Critical Illness Cover: Provides protection against 15 serious illnesses, adding an extra safety net.
• Tax Benefits: Premiums paid under this plan are eligible for deductions under Section 80C of the Income Tax Act, and money back/maturity proceeds are tax-free under Section 10(10D).
• Flexible Settlement Options: Ability to receive maturity/death benefits in installments over 5, 10, or 15 years, as per your choice.
• Loyalty Additions: Enhance total returns by participating in LIC’s profit sharing.

Frequently Asked Questions (FAQs)

Conclusion

Jeevan Shiromani Plan 847 is a powerful insurance-cum-investment plan, tailored for those seeking a high-value life cover with benefits paid back periodically and attractive bonuses. Its unique critical illness cover and flexible settlement options make it a comprehensive plan for financial security and wealth creation.