Shriram Life Early Cash Plan

What is Shriram Life Early Cash Plan?

The Shriram Life Early Cash Plan is an investment policy designed to provide both protection and periodic cash benefits. It combines insurance protection with regular income, offering you the benefit of liquidity during the policy term. This best investment plan allows you to receive cash benefits at specific intervals, ensuring you have funds available for significant life events or unforeseen expenses.

Features of Shriram Life Early Cash Plan

• Flexible Premium Payments: The Shriram Life Early Cash Plan allows you to choose from multiple premium payment modes, making the process hassle-free.

• Power of Compounding: This investment option takes advantage of compounding, which means that the declared bonuses grow over time, increasing the overall value.

• Guaranteed Cash Bonus: The Shriram Life Early Cash Plan guarantees a cash bonus of at least 3.5% of the sum assured every year throughout the plan's term.

• 2 Bonus Options: The plan offers two bonus structures. 

  • The "Early Cash" option provides you with an annual income via cash bonuses.

  • The "Super Growth" option accumulates cash bonuses until the policy matures, offering a larger payout at the end.

• Insurance from Age 3: This plan offers life insurance coverage starting from just three years of age, providing comprehensive financial protection to minors.

• Life Cover: The plan provides a life cover, ensuring financial security for the beneficiaries in the event of the insured person's death.

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Eligibility Criteria of Shriram Life Early Cash Plan

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Benefits of Shriram Life Early Cash Plan

1. Death Benefits:

   If the policyholder passes away, the plan provides the death sum assured along with any cash and terminal bonuses. For those with the Early Cash option, there is also an annual income payout to beneficiaries.

2. Maturity Benefits:

   If the policyholder completes the term of the plan, they receive the sum assured, cash bonuses, and any terminal bonuses, effectively ending the policy.

3. Tax Deductions:

   Premiums paid into the Shriram Early Cash Plan can be deducted from your taxable income under Section 80C of the Income Tax Act, 1961. Maturity returns earned at the end of the policy term are tax-free under Section 10(10D) of the Income Tax Act, 1961.

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Rider Options in Shriram Life Early Cash Plan

Shriram Life Early Cash Plan offers several rider options to enhance your base policy coverage. These riders provide additional benefits for an extra premium amount. Following is the list of available rider options:

1. Accident Benefit Rider:

   This rider pays out a predetermined sum assured to your nominee in case of accidental death or permanent disability caused by an accident [Source 3].

2. Extra Insurance Cover Rider:

   This rider provides additional life cover in case of your demise. The sum assured amount will be paid to your nominee along with the base plan benefit [Source 3].

3. Family Income Benefit Rider:

   This rider offers financial support to your family in case of your accidental death or permanent disability. In such an event, your family will receive a monthly income of 1% of the sum assured throughout the remaining policy term [Source 3].

4. Critical Illness Plus Rider:

   This rider provides a lump sum benefit of 100% of the rider sum assured if you are diagnosed with any of the 24 critical illnesses covered under the policy terms [Source 3].

Policy Details of Shriram Life Early Cash Plan

1. Free Look Period

2. The time frame after buying a policy is when you can review its terms and conditions.

3. During this period, you can cancel the policy for any reason and receive a refund, typically within 15 days of receiving the policy document.

4. Grace Period

5. A set period after the premium due date, during which you can pay without penalty.

6. For the Shriram Life Early Cash Plan, this is usually 30 days for annual premiums and 15 days for monthly premiums.

7. Policy Surrender Value

8. The amount you receive if you choose to terminate the policy before it matures.

9. This value depends on factors like the policy's term, the number of premiums paid, and the duration for which it has been in force.

10. Policy Lapse

11. This occurs when you fail to pay the premium within the grace period.

12. A lapsed policy loses its benefits and coverage.

13. Policy Revival

14. A process to reactivate a lapsed policy.

15. Usually allowed within a specified timeframe, often up to two years from the date of lapse, subject to payment of all due premiums plus interest and sometimes medical underwriting.

16. Paid-up Value Criteria

17. If a policy lapses after a certain number of premium payments (typically two or three), it may become a paid-up policy.

18. A paid-up policy retains a reduced sum assured and continues until maturity with no need for further premiums.

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How Does the Shriram Life Early Cash Plan Work?

Step 1: Research the plan details in the brochure, focusing on cash benefits and sample illustrations. 

Step 2: Calculate potential returns considering maturity benefit, survival benefit impact, and fees. 

Step 3: Estimate the rate of return using online tools or Child Plan Calculator. 

Step 4: Compare with similar investment products based on your goals and risk tolerance. 

Step 5: Refer to the Policybazaar website and consult its financial advisors for personalized advice and risk assessment.

Suicide Exclusion under Shriram Life Early Cash Plan

The Shriram Life Early Cash Plan has a suicide exclusion clause, where if the policyholder dies by suicide within one year of the policy's start date, the beneficiaries will not receive the full benefit. Instead, the insurer will refund the premiums paid minus any expenses and costs incurred by the company. This clause is designed to prevent misuse of the insurance policy.