Shriram New Shri Life Plan

Death Benefit

The death benefit is payable if the life insured dies during the term of the policy. The benefits payable to the nominee are Sum assured on death plus accrued reversionary bonus, if any, plus terminal bonus, If any will be paid. Death benefit will be at least 105% of all the premiums paid excluding any extra, rider premium and taxes.

Sum Assured on death shall be higher of

• 10 times the annual premium -if age is less than 45 years or 7 times the annual premium- if age is 45 years and above
• Twice the basic sum assured

Maturity Benefit

Maturity benefit is payable on  the survival of the Life Assured till the completion of the policy term. Maturity benefit is payable is the base Sum Assured plus accrued bonus and Terminal Bonus, (if any) and the policy terminates.

Settlement Option

Maturity benefits can be taken as installments spread over a period of 5 years with an addition of interest at a rate approved by IRDAI. Nominee can also choose to receive the death proceeds in installments over a period of five years with an addition of interest at a rate approved by IRDAI.

Bonus

Compounded Reversionary Bonus and Terminal Bonus are paid in the event of death or maturity as accrued in the policy.

Loan Benefit

Loan facility is available under this plan.The maximum loan amount which can be taken under this plan is 90% of the surrender value.Any outstanding loan amount is deducted from the policy proceeds of the policy.

Surrender Value

Policy is eligible for a non guaranteed special surrender value.Surrender value will generate if 3 full years premium are paid under regular pay and 2 years premium are paid for 5/7 pay options.

Tax Benefit

Plan offers tax benefits under section 80C  and section 10 (10D) of the Income Tax Act,1961.

Following riders are available with this plan

• Accident Benefit Rider
• Extra insurance cover
• Critical Illness cover
• Family income benefit

Let us understand the plan benefits  with the help of an example:

Life Insured: Ankit , Age: 38 years, Sum Assured: Rs. 5 Lacs, Policy Term:  15 years, Limited pay option: 10 years

Scenario 1: Ankit survives the policy term

Base sum assured of Rs 5 Lacs is payable to Ankit along with accrued reversionary and terminal bonus, if any. Under settlement option, maturity benefits can also be taken as installments spread over a period of 5 years with an addition of interest at a rate approved by IRDAI.

Scenario 2: Ankit dies during the policy term

Sum Assured on death shall be higher of 10 times the annual premium (if age is less than 45 years or 7 times the annual premium- if age is 45 years and above) or twice the basic sum assured. Along with the death sum assured, accrued bonus amount is payable to the nominee.Nominee can also choose to receive the death proceeds in installments over a period of five years with an addition of interest at a rate approved by IRDAI.

Illustrative premiums for sample ages/terms of sum assured of Rs 1,000are given below:
 

Premiums illustrated are exclusive of service tax and education cess.