Shriram New Shri Raksha Plan

Death Benefit

In the event of death of the life insured during the policy tenure, the nominee will receive Sum assured on death plus Accrued Reversionary Bonuses plus Terminal Bonus. The policy will not accrue any future bonuses after death.

Sum assured on Death shall be higher of:

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

Maturity Benefit

In case of survival of life assured up to the end of the policy term, Sum Assured plus Accrued Reversionary Bonuses and Terminal Bonus, if any, will be paid.

Extended Benefit

After the completion of the policy term, the insurance cover will continue till the life assured attains age 100 years. In case of death during this period or survives to age 100, one basic sum assured will be paid.

This is an extended benefit payable after the policy term and the policy will not participate in profits after the policy term.

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 guaranteed special surrender value. Surrender value will generate if 3 full years premium is paid. The guaranteed surrender value is dependant on the policy term and year of surrender. The Guaranteed Surrender Value shall be the sum of guaranteed surrender value and the guaranteed surrender value of any subsisting bonus.

Tax Benefit

The 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: 32 years, Sum Assured: Rs. 5 Lacs, Policy Term:  15 years, regular pay.

Scenario 1: Ankit survives the policy term

Base sum assured of Rs 5 Lacs is payable as Maturity Benefit plus accrued Reversionary Bonuses and Terminal Bonus, are payable,if any.The extended term benefit will be applicable after the policy term. The insurance cover will continue till the Ankit attains age 100 years. In case of death during this period or survives to age 100, one basic sum assured of Rs 5 Lacs  will be paid.

Scenario 2: Ankit dies during the policy term

Sum Assured on death will be payable to the nominee, which is equal to the base sum assured of 5 lacs or death sum assured as specified in the policy. Along with that, the nominee will also receive accrued terminal and reversionary bonus till the date of death and the policy terminates.