LIC’s Jeevan Shree – 1 (Plan 162) -Premium, maturity benefit and insurance calculator with all details you need to know. This plan was the successor of LIC’s popular plan, Jeevan Shree (112) specially designed for high net worth individuals. Jeevan Shree 1 was introduced in 1st September 2003 and varies widely when compared to the original Jeevan Shree plan.
Here at InsuranceFunda, we get a lot of queries on the benefit pattern of ‘Jeevan Shree -1’ plan and we see that many people get confused with the original Jeevan Shree (112) plan which was withdrawn on 1/02/2002. This post will give you a benefit pattern comparison of both these plans.
LIC’s Jeevan Shree – 1 (Plan 162)|Salient Features
- Limited Payment (Premium payment period shorter than term) Endowment Assurance Plan
- Guaranteed additions of Rs. 50 per 1000 Sum Assured for the first five policy years and bonuses (as per the declared rates ) thereafter.
- Accident Benefit shall be available up to a maximum sum assured of 50 lakhs.
- The policy will acquire special surrender value after payment of at least 1/10th of the premium paying term (Subject to the payment of one full year premium).
Eligibility conditions and restrictions
|Jeevan Shree-1 (162) Eligibility and restrictions|
|Age at entry||18 Years Completed||65 Years Nearer Birthday|
|Sum Assured||5 Lakh and multiple of 1 lakh there after||No Limit|
|Policy Term and Premium Paying Term|
|Term||Premium Paying Term|
|5||1, 2, 3|
|10||1, 2, 3, 4, 6|
|15||1,2, 3, 4, 6, 8,10|
|20||1, 2, 3, 4, 6, 8,10, 12|
|25||1, 2, 3, 4, 6, 8, 10,12, 16|
Jeevan Shree – 1 (Plan 162) Premium and Benefit Calculator
The online premium and benefit calculator for the plan can help you in understanding the benefit pattern of the plan easily. Just provide the details such as age,
Jeevan Shree – 1 (Plan 162) – Benefit Pattern
Guaranteed Additions for first 5 years
Unlike Jeevan Shree (Plan 112), which has guaranteed additions for its entire term, this plan has Guaranteed additions only up to the first five policy years. The rate of guaranteed additions will be Rs 50 per 1000 SA. Let us consider an example of 5,00,000 sum assured.
So the total guaranteed additions for a 5 lakh sum assured plan will be 1,25,000 only.
Bonus after 5 years, and rates applicable
As mentioned earlier, after the guaranteed addition period, the Life insurance corporation of India (LIC) will share its profits to the policy account in the form of Simple Reversionary Bonus, which is declared every year. The latest bonus rates applicable for the plan is given below.
|Bonus rates for Jeevan Shree -1 (Plan 162)|
|Term of the plan||2018 Valuation||2019 Valuation|
The maturity benefit of the plan includes following components.
- Sum Assured of the plan.
- Guaranteed Additions at the rate of Rs 50 per 1000 sum assured.
- Bonus accrued for the remaining years as per the rate declared by LIC of India.
In order to understand the plan better, let us consider an example of a person with following details taking the plan.
|Age||30 Years||Sum Assured||10,00,000|
|Term||25 Years||Premium Paying Term||16 Years|
|Maturity Benefit Calculation|
|Guaranteed Additions||(25000 X 5)||1,25,000|
|Bonus* (@ 53/1000 SA)||(53000 X 20)||10,60,000|
|Total (Expected Maturity Benefit*)||21,85,000|
|Total Premium Paid (in 16 Years)|
Insurance Coverage/Death Benefit
On death of the life assured during the term of the plan, provided the policy is in full force on the date of death, following benefits shall become payable.
- On death during the first 5 policy years: Basic sum assured + vested Guaranteed additions at the rate of Rs. 50 per 1000 sum assured shall become payable
- On death after the first five years: Basic sum assured + vested Guaranteed additions at the rate of Rs. 50 per 1000 sum assured for the first five years + reversionary bonus declared after 5th policy year.
Paid up value
The policy will acquire paid-up value after at least one full year premium has been paid where ever the premium paying term is 10 years or less. For premium paying terms of more than 10 years, the policy will acquire paid-up value after 2 full years premium have been paid.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.