LIC Jeevan Shagun Review
On the Completion of 58 years, LIC has launched a new single premium plan “Jeevan Shagun” which is a non-market linked, with-profit money-back plan. This policy is quite similar to the “Jeevan Raksha” but it is a close ended plan which means this plan is open to buy only for 90 days starting from 1st September, 2014. The risk in Jeevan Shagun is a minimum of 10 times of single premium.
Eligibility for LIC Jeevan Shagun Policy:
- Minimum Entry Age is 8 Years (Completed).
- Maximum Entry Age is 45 Years.
- Single Premium Payment i.e. One Time Payment.
- Minimum Maturity Sum Assured (MSA) is Rs. 60,000/-.
- No Limit of Maximum Maturity Sum Assured (MSA)
- Policy Term is of 12 Years.
LIC Jeevan Shagun Policy Rebates:
|Maturity Sum Assured (MSA)||Rebates per 1000 Rs MSA|
|Up to Rs. 1,50,000 /-||Nil|
|Rs. 1,50,000 /- to Rs. 3,95,000 /-||Rs. 15 /-|
|Rs. 4,00,000 and above||Rs. 20 /-|
For example: If a 25 years old person bought a policy for MSA of Rs.3,00,000 than the premium payable would be (Rs.512. 20-Rs.15)*(3,00,000/1000) = Rs.1,49,160 (excluding service tax).
LIC Jeevan Shagun Benefits:
- If the insured died during the first 5 Years from the date of taking Policy than the amount receivable would be Basic Sum Assured which will be 10 times of the single Premium paid.
- If the insured died after the first 5 Years from the date of taking Policy than the amount receivable would be Basic Sum Assured which will be 10 times of the single Premium paid plus the Loyalty Addition.
If Policy Holder Survives till the end of the specific Periods, Survival Benefits are Payables like below.
- At the end of 10th Policy year insured will receive 15% of the Maturity Sum Assured.
- At the end of 10th Policy year insured will receive 20% of the Maturity Sum Assured.
At end of the Policy Term i.e. 12 years, remaining 65% of Maturity Sum Assured along with Loyalty Addition becomes payable.
LIC Jeevan Shagun Surrender Value:
Policy can be surrendered at any time during the term of the Policy.
Guaranteed Surrender value
- If the Policy is surrendered during the first year from the date of taking the Policy only 75% of Single Premium is paid back excluding taxes and extra premium paid.
- If the Policy is Surrendered after first year from the date of taking the Policy then 90 % of Single Premium is Paid Back excluding any survival benefits paid and taxes.
- Insured can also opt for a special Surrender Value which will be discounted factor of Maturity Sum Assured less of any survival benefits paid.
LIC Jeevan Shagun Loan Value:
Loan is available under this plan after completion of one Policy Year which will be given based on Surrender value and Policy Year.
|Policy Year||Loan given as % of Surrender Value|
|2nd to 3rd year||50%|
|4th to 6th year||60%|
|7th to 9th year||70%|
|10th to 12th year||90%|
Examples of Premium Payable:
|Age||MSA||Premium Payable less rebate if any (excluding tax)||Taxes payable @ 3.09%||Total Premium Payable including Tax|
|8 years||₹ 100,000||₹ 49,355||₹ 1,525||₹ 50,880|
|₹ 300,000||₹ 143,565||₹ 4,436||₹ 148,001|
|₹ 500,000||₹ 236,775||₹ 7,316||₹ 244,091|
|20 years||₹ 100,000||₹ 50,820||₹ 1,570||₹ 52,390|
|₹ 300,000||₹ 147,960||₹ 4,572||₹ 152,532|
|₹ 500,000||₹ 244,100||₹ 7,543||₹ 251,643|
|25 years||₹ 100,000||₹ 51,220||₹ 1,583||₹ 52,803|
|₹ 300,000||₹ 149,160||₹ 4,609||₹ 153,769|
|₹ 500,000||₹ 246,100||₹ 7,604||₹ 253,704|
|30 years||₹ 100,000||₹ 52,125||₹ 1,611||₹ 53,736|
|₹ 300,000||₹ 151,875||₹ 4,693||₹ 156,568|
|₹ 500,000||₹ 250,625||₹ 7,744||₹ 258,369|
|35 years||₹ 100,000||₹ 54,340||₹ 1,679||₹ 56,019|
|₹ 300,000||₹ 158,520||₹ 4,898||₹ 163,418|
|₹ 500,000||₹ 261,700||₹ 8,087||₹ 269,787|
|40 years||₹ 100,000||₹ 59,540||₹ 1,840||₹ 61,380|
|₹ 300,000||₹ 174,120||₹ 5,380||₹ 179,500|
|₹ 500,000||₹ 287,700||₹ 8,890||₹ 296,590|
|45 years||₹ 100,000||₹ 71,885||₹ 2,221||₹ 74,106|
|₹ 300,000||₹ 211,155||₹ 6,525||₹ 217,680|
|₹ 500,000||₹ 349,425||₹ 10,797||₹ 360,222|
LIC Jeevan Shagun Average Return
The returns are calculated considering MSA as Rs.1 lakh and the policy holder completes the full tenure of 12 years.
You may use the below online calculator to find out the expected returns. (If you are unable to view the below calculator then try again after refreshing your browser)
Is it worth buying LIC Jeevan Shagun?
LIC Jeevan Shagun is a saving cum investment plan. It is a one-time investment plan but should not be taken as a pure investment instrument since it gives you additional benefit of risk cover. With an average return of 7% to 8% LIC Jeevan Shagun is a good option for the person having low risk appetite. One should also go for fixed deposit account which gives an approx return of 9% but the return from fixed deposit is taxable while return from LIC Jeevan Shagun is tax-free.