LIC Jeevan Shikhar Plan 837
UIN: 512N305V01
Single Premium Participating Saving cum Protection Plan
Plan Information
Premium Calculation Results
Single Premium (Before GST)
GST Amount
Total Premium Payable
Sum Assured on Death
Premium Breakdown
Yearly Premium Equivalent
• Death Benefit: 10 times of Tabular Single Premium
• Maturity Benefit: Maturity Sum Assured + Loyalty Additions (if any)
• Risk cover commences from date of policy issuance (if age ≥8 years)
• Loan facility available after 3 months from policy issuance
• Surrender Value: 70% in 1st year, 90% thereafter (of Single Premium excluding GST)
• Loyalty Additions are non-guaranteed and depend on LIC's performance
Life Insurance Corporation of India (LIC) has been India’s most trusted insurance provider for decades. Among its many insurance plans, LIC Jeevan Shikhar Plan 837 gained popularity for its unique features, single premium structure, and a combination of saving with protection benefits. To help prospective buyers understand this plan better, a LIC Jeevan Shikhar Plan 837 calculator is a valuable tool.
Introduction to LIC Jeevan Shikhar Plan 837
LIC Jeevan Shikhar Plan 837 is a participating, non-linked, endowment insurance plan. It is a single premium plan designed to provide savings along with life cover benefits. The policyholder pays a one-time premium and enjoys risk coverage along with the opportunity to earn loyalty additions based on LIC’s profits.
Launch Date and Withdraw Date
- Launch Date: January 11, 2016
- Withdraw Date: The plan was available for sale for 120 days from the launch date, i.e., the last date was around March 31, 2016.
The plan was offered for a limited period, making it a closed plan. It is no longer available for new purchases but remains an important reference for existing policyholders and those studying LIC products.
Who Can Buy Jeevan Shikhar Plan?
LIC Jeevan Shikhar Plan was targeted towards individuals who wanted a combination of savings and protection in a simple, one-time premium payment form.
- Age Eligibility: Entry age varied from 6 years to 45 years.
- Policy Term: The policy term was flexible, typically between 15 to 20 years.
- Minimum Maturity Sum Assured: Rs. 1 lakh (with no fixed upper limit).
This plan allowed policyholders to select the maturity sum assured based on their financial goals, which directly impacted the single premium amount payable.
Key Features of LIC Jeevan Shikhar Plan
Single Premium Payment
Unlike regular premium policies, LIC Jeevan Shikhar required a one-time premium payment at the time of policy purchase, making it suitable for those who prefer to pay once and get long-term benefits.
Death Benefit
- During First 5 Years (Before Commencement of Risk): Refund of single premium without interest if death occurs.
- After Commencement of Risk: Sum Assured on Death equal to 10 times the tabular single premium is payable.
- After 5 Years: Death benefit includes the sum assured plus any loyalty addition declared.
This coverage provided significant financial protection to the nominee in case of the policyholder’s untimely demise.
Maturity Benefit
On surviving till maturity, the policyholder receives the maturity sum assured along with any declared loyalty additions, which adds to the overall return on investment.
Loyalty Addition
Depending on LIC’s performance, the plan participates in profits and pays loyalty additions to policyholders. Loyalty additions are payable upon death, surrender (after 5 years), or maturity, enhancing the benefit amount.
Loan Facility
The plan provides liquidity options by allowing policyholders to take loans against their policy after a certain vesting period, addressing short-term cash needs without surrendering the policy.
Surrender Value
Policyholders can surrender the plan at any time during the policy term. The guaranteed surrender value depends on the number of years completed:
- 70% of single premium (excluding taxes and extra premium, if any) in the first policy year.
- 90% of single premium thereafter.
- Loyalty addition is payable on surrender if the policy has run for at least 5 years.
LIC Jeevan Shikhar Plan 837 Benefits Summary
| Benefit Type | Description |
|---|---|
| Premium | Single premium payment at policy start |
| Risk Cover | Death benefit of 10 times the tabular premium |
| Maturity Benefit | Maturity sum assured + loyalty additions |
| Loan Facility | Available after vesting period |
| Surrender Value | Minimum guaranteed based on policy years completed |
Understanding the LIC Jeevan Shikhar Plan 837 Calculator
A LIC Jeevan Shikhar Plan 837 calculator helps potential buyers estimate the premium payable and the maturity amount they can expect under different scenarios such as survival or death during the policy term.
What the Calculator Does
- Calculates the single premium payable based on the desired maturity sum assured, age of the policyholder, and policy term.
- Estimates the maturity benefit (sum assured + loyalty additions).
- Provides projected death benefits.
- Shows possible surrender values.
- Displays policy launch and withdrawal dates for clarity.
How to Use the Calculator
- Enter Age: Your current age at the time of policy purchase.
- Choose Maturity Sum Assured: The amount you want to receive at maturity.
- Select Policy Term: Number of years you want the policy to run (typically 15-20 years).
- Get Single Premium: The calculator will display the one-time premium amount you need to pay.
- View Maturity and Death Benefits: Get estimates for maturity value and death claims based on your inputs.
This tool simplifies the decision-making process by eliminating guesswork and showing financial expectations clearly.
Sample Calculation Example
Suppose a person aged 28 decides to buy the Jeevan Shikhar Plan with a maturity sum assured of Rs. 5,00,000 for a 15-year term.
- Single premium calculated: Rs. 2,07,405 (approximate with statutory taxes).
- On maturity, the total return would be maturity sum assured plus loyalty addition (say Rs. 16,000), totaling Rs. 5,16,000.
- If death occurs before maturity but after commencement of risk, the nominee will get 10 times the single premium plus loyalty additions (if applicable).
This example clarifies how the plan works for both survival and death scenarios.
Advantages of LIC Jeevan Shikhar Plan
- One-Time Payment: Convenience of single premium, no recurring premiums.
- High Death Cover: Sum assured on death is 10 times the single premium.
- Guaranteed Returns: Maturity benefits are assured along with potential loyalty additions.
- Liquidity: Loan facility available against the policy.
- Surrender Value: Policyholders can opt for surrender if their needs change.
Limitations of LIC Jeevan Shikhar Plan
- Limited Sale Period: The plan was available only for 120 days from the launch and is now withdrawn.
- Single Premium: Not suitable for those preferring periodic payments.
- No Flexibility Post-Purchase: Once bought, terms cannot be changed.
- Not Currently Available: New buyers cannot purchase this plan today; it remains relevant for existing policyholders or reference.
How to Make the Most of the Calculator?
While the plan is withdrawn, users can use the LIC Jeevan Shikhar Plan 837 calculator for:
- Understanding the relationship between premium and maturity sum assured.
- Planning finances with similar LIC endowment plans.
- Comparing single premium plans from LIC and other insurers.
- Estimating historical returns for educational purposes.
Frequently Asked Questions
What is LIC Jeevan Shikhar Plan 837?
It is a single premium, non-linked, participating endowment insurance plan offered by LIC, designed to provide savings and protection. The policyholder pays a one-time premium and gets life insurance cover along with maturity benefits and loyalty additions.
Who could buy Jeevan Shikhar Plan 837?
Any individual between the ages of 6 years (completed) and 45 years (nearest birthday) was eligible to purchase this plan while it was available.
What is the risk cover in Jeevan Shikhar Plan?
The risk cover or death benefit under this plan is 10 times the tabular single premium, which is paid to the nominee in case of policyholder’s death after commencement of risk.
What happens if the policyholder dies within the first 5 policy years?
If death occurs before risk starts, LIC refunds only the single premium (excluding taxes and extra charges). After the date of risk commencement but within the first five years, the death benefit is 10 times the single premium.
What is the maturity benefit in LIC Jeevan Shikhar 837?
On surviving till maturity, the policyholder receives the maturity sum assured plus any loyalty addition declared by LIC at that time.
Is there any bonus or additional benefit with this plan?
This plan offers “loyalty additions,” which are extra amounts paid based on LIC’s profits, payable on maturity, death after 5 years, or eligible surrender, if the policy has run for at least 5 years.
Conclusion
LIC Jeevan Shikhar Plan 837 was a unique and attractive single premium endowment plan offering a blend of protection and savings. Though it was available for a limited period from January to March 2016, learning about its structure, benefits, and using the associated calculator can provide useful insights into LIC’s plan design and help policyholders better understand their investments.
Using the LIC Jeevan Shikhar Plan calculator allows potential investors and existing policyholders to simulate their benefits, premium payments, and returns before making important financial decisions. It is always recommended to carefully assess all plan details and consult with LIC agents or financial advisors to choose the best insurance plan for your needs.