Shriram Life Assured Income Plan

What is the Shriram Life Assured Income Plan?

Shriram Life Assured Income Plan is a life insurance product offered by Shriram Life Insurance that combines aspects of life insurance and savings. This investment option is categorized as a non-linked, non-participating plan, where the returns are not linked to the market performance, and there are no bonus payouts.

This investment plan is designed for those seeking a balance between protection and regular income, which makes it an ideal choice for long-term financial planning.

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Features of Shriram Life Assured Income Plan

• Affordable Premiums and Enhanced Benefits: Shriram Life Assured Income Plan features low premium payments and enhanced benefits for those who opt for higher premiums, along with life insurance coverage.

• Financial Security for Your Family: This plan provides a financial safety net for you and your family in challenging times.

• Regular Income for Ongoing Expenses: It offers a regular income option to help with ongoing monthly expenses.

• Additional Protection with Affordable Riders: Additional riders are available at a low cost to give you and your family extra protection.

• Flexible Policy Terms: The plan's flexible policy terms allow you to tailor it to your financial goals.

• Multiple Payment Options: You can choose from different policy durations—8, 10, 12, or 15 years—with premium payment options that suit your budget, including monthly, quarterly, half-yearly, or annual payments.

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Eligibility Criteria of Shriram Life Assured Income Plan

Benefits of Shriram Life Assured Income Plan

The Shriram Life Assured Income Plan offers a combination of benefits, including:

1. Death Benefit

   • If the insured person dies during the policy term, the plan pays a Death Sum Assured, which is the greater of:

     • 8 times the annual premium for an 8-year term

     • 10 times the annual premium for a term of 10 years or more (if under 45 years old)

     • 7 times the annual premium for a term of 10 years or more (if 45 years old or over)

     • 105% of the total premiums paid by the time of death

2. Flexible Maturity Benefit

   • When your policy matures, and all premiums are paid, you can receive the payout either as a lump sum or as annual income, depending on your preference.

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3. Higher Income with Higher Terms and Premiums

   • The Shriram Life Assured Income Plan offers more assured income if you choose longer policy terms and higher premium amounts.

4. Additional Protection with Riders

   • You can add extra coverage to your policy with rider add-ons, such as accident benefits, critical illness coverage, family income benefits, and extra life insurance.

   • It offers protection against accidents and health risks even after the policy term ends.

5. Policy Loans

   • You can borrow up to 85% of the surrender value. Outstanding loans and accrued interest are deducted from policy proceeds before other benefits are paid. 

   • If the loans and accrued interest exceed the surrender value, the policy terminates without value.

6. Tax Benefits

   • Save on Taxes: Deduct premiums up to Rs. 1.5 lakh annually under Section 80C.

   • Tax-Free Maturity: Maturity benefits and bonuses may be tax-free under Section 10(10D) if premiums are less than Rs. 2.5 lakhs.

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Rider Options under Shriram Life Assured Income Plan

Shriram Life Assured Income Plan offers a few rider options to enhance your base policy coverage. These riders provide additional benefits for a nominal extra cost. The available rider options are mentioned below:

1. Accident Benefit Rider

   • In case of death or total and permanent disability due to an accident during the rider term, you get 100% of the rider sum assured.

   • If you become totally and permanently disabled from an accident, all future policy premiums are waived.

2. Family Income Benefit Rider

   • If you die or become totally and permanently disabled due to an accident during the rider term, 1% of the rider sum assured is paid monthly for 10 years or until the end of the rider term, whichever is longer.

3. Shriram Extra Insurance Cover Rider

   • If you die during the rider term, the sum assured under this rider is paid to your nominated beneficiaries.

4. Shriram Life Critical Illness Plus Rider

   • If you are diagnosed with one of the 24 specified critical illnesses and survive 30 days from the diagnosis, you receive 100% of the rider sum assured.

   • This rider may also offer increases in the sum assured over time through a loyalty bonus.

Policy Details of Shriram Life Assured Income Plan

The key policy details of this investment plan offered by Shriram Life Insurance Company are as follows:

1. Grace Period:

   • A 30-day grace period applies for yearly, half-yearly, and quarterly premium payments; 15 days for monthly.

   • If the insured dies during the grace period but before the premium is paid, the death benefit is still paid after deducting the unpaid premium.

   • If the premium is not paid by the end of the grace period, the policy will lapse unless it has acquired a paid-up value.

2. Lapse Conditions:

   • If at least two years of full premiums have not been paid and the premium is not paid by the end of the grace period, the policy lapses and no benefits are available.

3. Paid-Up Value:

   • If the policy has acquired a paid-up value (after two years of full premiums), it won't lapse but continues with reduced benefits.

   • Paid-Up Sum Assured is calculated as (Total Premiums Paid / Total Premiums Payable) × Sum Assured.

   • A policy in paid-up status pays out upon death or after the policy term ends, with survival benefits paid in five equal annual instalments.

   • A paid-up policy can be surrendered at any time during its term.

4. Revival of Policies:

   • A lapsed or paid-up policy can be revived within five years of the first unpaid premium by paying all outstanding premiums with 9% annual interest.

5. Surrender Value:

   • A policy acquires a surrender value if at least two full years of premiums have been paid.

   • On surrender, you receive the higher Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).

6. Free Look Period:

   • You have 15 days to review your policy. If dissatisfied, you can return it and get a refund, minus the risk premium for the coverage period, medical exam fees (if any), and stamp duty charges.

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How Does the Shriram Life Assured Income Plan Work?

Step 1- Choose Your Policy Term: Select a duration for your policy. You can choose between 8, 10, 12, or 15 years. This is the period during which you'll be paying premiums.

Step 2- Select Your Premium Payment Schedule: Decide the premium payment frequency of your premiums as per your budget. You can pay monthly, quarterly, every six months, or once a year.

Step 3- Maturity Benefit: If you complete the policy term and make all premium payments, you will start receiving annual income payouts.

Step 4- Death Benefit: If you die during the policy term, the beneficiary receives a lump sum payment, provided that all premiums have been paid.

Step 5- Optional Rider Benefits: You can add extra coverage to your policy for an additional cost. These benefits could include critical illness coverage or accidental death benefits.

Step 6- Income Payout Options: After maturity, you can choose how to receive your income. Options include a lump sum, regular monthly payouts, or a combination of both.

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Suicide Exclusion Criteria of Shriram Life Assured Income Plan

The Shriram Life Assured Income Plan has a suicide exclusion clause, which means the full death benefit is not paid to the beneficiary if the insured person dies by suicide within a certain period. Here is a breakdown of the exclusion criteria:

• Exclusion Period: The exclusion applies for the first year from the policy commencement date.

• Benefit payout: There are two scenarios:

  • If suicide occurs within this period, the beneficiary receives 80% of the total premiums paid.

  • Additionally, an exclusion clause is applicable upon policy revival. If suicide happens within one year from the date of revival, the beneficiary receives the higher amount between 80% of the paid premiums and the surrender value (if any).