{"id":6759,"date":"2016-01-13T10:32:09","date_gmt":"2016-01-13T05:02:09","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=6759"},"modified":"2016-01-18T10:50:55","modified_gmt":"2016-01-18T05:20:55","slug":"lic-jeevan-shikhar-review","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/lic-jeevan-shikhar-review\/","title":{"rendered":"LIC Jeevan Shikhar Review"},"content":{"rendered":"
\"LIC
LIC Jeevan Shikhar – Review<\/strong><\/figcaption><\/figure>\n

LIC has launched Jeevan Shikhar Plan\u00a0(Plan 837 – UIN 512N305V01)<\/strong> which is participating, non-linked, saving cum protection single premium plan. This is especially targeted for the unplanned tax saving investment that people do in the month of January to March.<\/strong> The plan would be open till March 31,\u00a02016.<\/p>\n

We review LIC Jeevan Shikhar Plan in the post and tell you why you should not invest!<\/strong><\/span><\/p>\n

Features & Eligibility Criteria:<\/h2>\n

Minimum Entry Age:<\/strong> 6 years (completed)<\/p>\n

Maximum Entry Age:<\/strong> 45 years (nearer birthday)<\/p>\n

Sum Assured on Death:<\/strong> 10 times of tabular single premium<\/p>\n

Minimum Maturity Sum Assured:<\/strong> Rs. 1,00,000<\/p>\n

Maximum Maturity Sum Assured:<\/strong> No Limit (Maturity Sum Assured shall be in multiple of Rs. 20,000 only)<\/p>\n

Policy Term:<\/strong> 15 years<\/p>\n

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Also Read:<\/strong>\u00a0Whats the best Tax Saving Investments u\/s 80C?<\/a><\/p>\n<\/blockquote>\n

Determining Premium:<\/h3>\n

In case of LIC Jeevan Shikhar, you need to first choose the sum assured (minimum Rs 1 lakh) and the premium is calculated based on your age (referred as Tabular Single Premium<\/strong> in the policy document<\/em>). For e.g. For sum assured of Rs 1 Lakh, the premium is Rs 42,580 for 30 year healthy person.<\/p>\n

Death Benefit:<\/h3>\n

If death occurs in first 5 years of policy \u2013 10 times the single premium paid<\/p>\n

If death after 5 years of taking policy \u2013 10 times the single premium paid and loyalty additions, if any<\/p>\n

If the insured is less than 8 years of age, the death risk coverage would start only after the insured turns 8. If the death occurs before commencement of this risk, only the premium paid would be returned.<\/em><\/p>\n

Maturity Benefit:<\/h3>\n

On maturity, you get the sum assured with loyalty additions, if any.<\/p>\n

Surrender Value:<\/h3>\n

The plan can be surrendered anytime.<\/p>\n

In case it\u2019s surrendered in the First year, 70% of the premium paid is returned; thereafter 90% of the premium paid.<\/p>\n

Loyalty Addition:<\/h3>\n

The loyalty addition will be paid in case of death or surrender of your policy for atleast five years. This addition is also applicable on maturity sum assured of the insurer.<\/p>\n

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Also Read:<\/strong> 13 Investments to Generate Regular Income<\/a><\/p>\n<\/blockquote>\n

Loan:<\/h3>\n

Loan is available against the policy after 3 months of purchase. The loan amount varies from 35% to 85% of the surrender value depending on the age of policy holder and number of policy years completed.<\/p>\n

LIC Jeevan Shikhar \u2013 Returns Calculation<\/h2>\n

We take the example which LIC has as its benefit illustration.<\/p>\n

Age at entry: 30 Years<\/p>\n

Policy Term: 15 years<\/p>\n

Sum Assured (at Maturity): Rs 1,00,000<\/p>\n

Loyalty Additions: 10% of Rs 1,00,000 = Rs 10,000<\/p>\n

Total sum payable at maturity = Rs 1,00,000 + Rs 10,000 = Rs 1,10,000<\/strong><\/p>\n

Single Premium: Rs 42,580<\/p>\n

Service Tax: 3.625% of Rs 42,580 = Rs 1,543.5<\/p>\n

Total Premium = Rs 44,124<\/strong><\/p>\n

Taking IRR function in Excel, the return comes out to be 6.28%<\/strong><\/p>\n

Points to Note:<\/span><\/strong><\/p>\n