Jeevan Shiromani Premium Plan 847 Calculator

LIC Jeevan Shiromani Plan 847 is a limited-premium money-back life insurance plan for policies with a high Basic Sum Assured. It provides two survival benefits before maturity and pays the remaining part of the Basic Sum Assured at the end of the policy term. Guaranteed Additions also build during eligible premium-paying years.

The LIC Jeevan Shiromani Plan 847 Calculator helps existing policyholders estimate their premium, survival benefits, Guaranteed Additions, maturity amount, basic death cover and inbuilt Critical Illness Benefit.

In this guide, we will get complete details of LIC Jeevan Shiromani Plan 847 with UIN 512N315V01. LIC lists this version under withdrawn plans, so it is not available for a new purchase. Existing policies continue according to their original terms. Plan 847 should not be confused with the later Plan 947.

Also Check:

• LIC Jeevan Shiromani Plan 947 Maturity Calculator
• LIC Jeevan Shiromani Calculator All in One

What Does the Calculator Show in Result?

After the policy details are entered, the calculator can show:

• Premium Paying Term
• Estimated annual and payment-mode premium
• Total scheduled base premium
• First and second survival benefits
• Basic maturity portion
• Accrued Guaranteed Additions
• Optional Loyalty Addition estimate
• Estimated maturity amount
• Basic Sum Assured on Death comparison
• Inbuilt Critical Illness Benefit

LIC Jeevan Shiromani Plan 847 Quick Overview

Jeevan Shiromani Plan 847 Eligibility and Policy Terms

The calculator must use the age at policy commencement, not the current age. Entry age was considered on a nearer-birthday basis. The calculation should stop when the entered age is not allowed for the selected term.

The Premium Paying Term is always four years shorter than the policy term:

Premium Paying Term = Policy Term − 4 years

For example, a 14-year policy requires premiums for 10 years, while a 20-year policy requires premiums for 16 years.

How to Use the Jeevan Shiromani Plan 847 Calculator?

Keep the original policy schedule or premium receipt nearby before starting.

1. Enter the age at policy commencement shown in the policy records.
2. Select the policy term: 14, 16, 18 or 20 years.
3. Enter the Basic Sum Assured. It must be at least ₹1 crore and in multiples of ₹5 lakh.
4. Choose yearly, half-yearly, quarterly or monthly premium mode.
5. Enter rider premium only when the rider appears in the policy schedule.
6. Keep tax separate from the base premium.
7. Enter Loyalty Addition only when testing an assumption or using a confirmed figure. Otherwise, leave it at zero.
8. Select Calculate to view the estimated premium and benefit schedule.

The calculator should display guaranteed amounts separately from Loyalty Addition because Loyalty Addition is not guaranteed.

Premium Calculation

LIC’s brochure provides sample annual tabular premium rates for selected ages. The rates are quoted for every ₹1,000 of Basic Sum Assured and exclude tax.

The premium formula is:

Annual Tabular Premium =
(Basic Sum Assured ÷ 1,000) × Applicable Tabular Rate

The brochure provides sample rates for only a few ages. A premium for another age should be labelled approximate unless the calculator contains LIC’s complete official age-wise rate table.

Premium-mode rebate

High Basic Sum Assured rebate

For a ₹2 crore Basic Sum Assured:

₹2,00,00,000 × 0.03 ÷ 1,000 = ₹600

These rebates reduce the base premium. Tax, rider premium and underwriting extras are added separately.

Guaranteed Additions

Guaranteed Additions accrue during the Premium Paying Term when the required premiums are paid.

For a ₹1 crore Basic Sum Assured:

₹1,00,00,000 ÷ 1,000 = 10,000 units

Yearly GA during first five years
= 10,000 × ₹50
= ₹5,00,000

Yearly GA from year 6 to end of PPT
= 10,000 × ₹55
= ₹5,50,000

Guaranteed Additions are not yearly cash payments. They accumulate and are included with an eligible maturity or death benefit according to the policy terms. Their treatment changes if the policy becomes paid-up or is surrendered.

Survival Benefits

The two survival benefits are payable when the life assured survives to the specified policy anniversaries and the policy meets the applicable conditions.

The maturity percentage already represents the remaining part of the Basic Sum Assured. For a 14-year policy, 60% is paid through survival benefits and 40% forms the basic maturity portion.

The policy also allowed eligible survival benefits to be deferred. The deferred amount earns interest at LIC’s applicable rate, subject to the policy conditions and a timely written request.

Maturity Benefit Formula

Maturity Benefit =
Sum Assured on Maturity
+ Accrued Guaranteed Additions
+ Loyalty Addition, if declared and payable

Loyalty Addition depends on LIC’s declaration and the policy satisfying its conditions. It must not be shown as a guaranteed return.

Real Calculation Example

In this calculation, we will use the following details.

Annual premium

Tabular Premium
= (₹1,00,00,000 ÷ 1,000) × ₹109.75
= ₹10,97,500

Yearly-mode rebate:

2% of ₹10,97,500 = ₹21,950

Estimated Yearly Base Premium
= ₹10,97,500 − ₹21,950
= ₹10,75,550 excluding tax

Total scheduled base premium:

₹10,75,550 × 10 = ₹1,07,55,500

Guaranteed Additions

First five years
= ₹5,00,000 × 5
= ₹25,00,000

Years 6 to 10
= ₹5,50,000 × 5
= ₹27,50,000

Total Guaranteed Additions
= ₹25,00,000 + ₹27,50,000
= ₹52,50,000

Survival and maturity benefits

The policy pays ₹30 lakh in year 10 and another ₹30 lakh in year 12.

Basic Maturity Portion
= 40% of ₹1 crore
= ₹40,00,000

Maturity Benefit Excluding Loyalty Addition
= ₹40,00,000 + ₹52,50,000
= ₹92,50,000

Total Scheduled Benefits
= ₹30,00,000 + ₹30,00,000 + ₹92,50,000
= ₹1,52,50,000

The ₹1.525 crore total combines payments received in policy years 10, 12 and 14. It is not paid as one maturity amount and should not be treated as investment profit. The example excludes tax, riders, extra premium and Loyalty Addition.

Death Benefit

For an in-force policy, the Sum Assured on Death is the highest of:

10 × Annualised Premium

or

Sum Assured on Maturity

or

125% of Basic Sum Assured

The death benefit cannot be less than 105% of eligible premiums paid up to the date of death. Tax, rider premium and underwriting extra premium are excluded.

For the ₹1 crore example:

The highest amount is ₹1.25 crore. Accrued Guaranteed Additions are added. After five policy years, Loyalty Addition may also be payable when declared and applicable.

Inbuilt Critical Illness Benefit

The inbuilt Critical Illness Benefit is 10% of the Basic Sum Assured. For a ₹1 crore policy, the benefit is ₹10 lakh.

It covers 15 specified illnesses, including certain cancers, heart conditions, kidney failure, stroke, major organ transplant, Primary Pulmonary Hypertension and other conditions listed in the policy document. Every illness must meet LIC’s exact medical definition.

A 90-day waiting period generally applies from risk commencement or revival, and a 30-day survival period applies after diagnosis. The benefit is payable once for the first admissible claim. Eligible premiums falling due within two years of an admitted claim may be deferred according to the policy terms.

Paid-Up, Revival and Surrender Rules

A policy does not acquire paid-up value if premiums stop before the required minimum period. After at least one full year’s premium has been paid and one policy year has been completed, it may continue with reduced paid-up benefits if later premiums are missed.

The basic paid-up ratio is:

Paid-Up Ratio =
Number of Full Years’ Premiums Paid
÷ Original Premium Paying Term

LIC applies this proportion through separate death, survival, maturity and Critical Illness Benefit formulas. Accrued Guaranteed Additions also have separate paid-up treatment. A calculator should not use one simple multiplication for every benefit unless all official formulas have been implemented.

Under Plan 847, a lapsed policy could be revived within two consecutive years from the first unpaid premium date, subject to arrears, interest, continued insurability and LIC’s approval.

Surrender becomes available after one full year’s premium has been paid and one policy year has been completed. LIC pays the higher of Guaranteed Surrender Value and Special Surrender Value. The final amount depends on eligible premiums, surrender factors, accrued Guaranteed Additions and any survival benefit already paid.

Policy Loan

A loan may be available after the policy acquires surrender value.

The applicable loan interest rate is decided by LIC. The 9.5% rate mentioned in the old brochure applied to loans sanctioned during a stated historical financial year and should not be treated as the current rate.

Tax Rule

Applicable tax is charged separately on the premium and does not increase policy benefits.

Plan 847 was withdrawn before the special rules introduced for certain non-ULIP policies issued on or after 1 April 2023. However, tax treatment still depends on the policy issue date, premium-to-Sum-Assured ratio and other conditions under the Income Tax Act.

Premium deduction under Section 80C and exemption under Section 10(10D) should be checked using the original policy records and applicable tax law. Individual tax advice should be obtained from a qualified professional.

Frequently Asked Questions

Is Plan 847 still available for purchase?

No. LIC lists it under withdrawn plans. This guide is intended for existing policies and historical policy records.

What is the minimum Basic Sum Assured?

The minimum is ₹1 crore. Higher amounts must be selected in multiples of ₹5 lakh.

Is the survival benefit included in the maturity benefit?

No. Survival benefits are paid during the policy term. The maturity percentage represents the remaining part of the Basic Sum Assured and is paid separately with eligible additions.

Is Loyalty Addition guaranteed?

No. It depends on LIC’s declaration and the policy satisfying the required conditions.

Are Guaranteed Additions paid every year?

No. They accrue during eligible policy years but are not paid as annual cash benefits.

Can the calculator show an exact surrender value?

Not without all applicable LIC factors and the complete policy history. The final surrender value must be confirmed with LIC.

Conclusion

LIC Jeevan Shiromani Plan 847 combines two scheduled money-back payments with a final maturity benefit, Guaranteed Additions, life cover and an inbuilt Critical Illness Benefit. The calculator makes the premium period and benefit schedule easier to understand.

Results should be treated as planning estimates. Premium, policy status, Loyalty Addition, surrender value, loan balance and claim amounts must be checked against the policy bond and LIC’s official records.