The Family Income Benefit Rider from Shriram Life is an add-on insurance policy, which offers policyholders and their families an extra layer of financial protection. This plan can be added onto the base plan at the time of buying the base policy as long as an individual is willing to pay a nominal premium. The only limitation to this plan is the premiums for this rider should in no case exceed the premiums of the base plan.
In order for people to avail the Family Income Benefit Rider, they need to meet the eligibility criteria set by the company. Here a list of requirements that need to be met:
|Minimum Age||18 years|
|Maximum Age||65 years|
|Maximum Age at Maturity||75|
Sum Assured: This is the amount payable if a person insured meets an untimely death or the policy reaches maturity. Sum Assured under this rider is as follows:
|Minimum Sum Assured||Rs.50,000|
|Maximum Sum Assured||Rs.25 lakhs|
Premiums for this rider will be Rs.1.5 per Rs.1,000 sum assured. For example, if you are opting for a sum assured of Rs.10 lakhs, the annual premium would be around Rs.1,500.
As this is only a rider plan and not a comprehensive insurance policy, the coverage this add-on provides isn’t as extensive. You will find the coverage offered by this policy mentioned below:
|Death Benefit||If the policyholder meets their death due to an accident, their nominees - as mentioned in the base policy - will be paid 1% of the sum assured every month for a period of either 10 years and till the end of the rider term.|
|Disability Benefit||If the policyholder becomes totally and permanently disabled due to the accident, the same 1% of the total sum assured will be paid for a period of 10 years or till the end of the rider term.|
There are a few conditions under this rider, which, if met will render the policy void. Void in this context means that the insurer will not be liable to pay any benefits. Here are the exclusions as specified by the company.
Below are some of the other key features of the Family Income Benefit Rider:
|Grace Period||As this is a rider policy, grace period as mentioned in the base policy will be applicable.|
|Surrender Value||There is no surrender value as such under this rider.|
|Free Look Period||If the policyholder is not satisfied with the terms and conditions of this rider, they can choose to return the policy within the free look period, which is 15 days (30 days in case the policy is bought through distance means). However, before returning the premiums paid, the insurer will deduct the premium applicable for days rider was active. The insurer will also recoup any money spent on medical examination. Once all the deductions are made, the remaining amount will be paid to the customer.|
|Policy Loan||As this is a rider policy, no loans are available for the policyholder.|
The Shriram Life Family Income Benefit Rider offers tax benefits based on the following provisions of the Income Tax Act:
Note: The actual tax benefit applicable will depend on the prevailing laws and structures.
Shriram Life Insurance is one of the leading insurance providers in the country with a distinct plan to suit the needs and requirements of all demographic. Besides this, the company has a number of plans which can be bought and serviced digitally without ever needing to step out to a physical office and meeting an agent. The firm also has a customer care number which is dedicated to solve the queries of its customers. Another advantage of buying this plan is that it allows people to pay premiums online through credit/debit cards as well.
Here are a few reasons why you should buy this rider from Shriram Life:
Policyholders can secure their family’s future through the sum assured under this rider. While the minimum sum assured is Rs.50,000, the maximum available stands at Rs.25 lakh, which if anything, will help cover a child’s entire education.
Shriram Life is one of the fastest-growing insurance companies in the country with over 500+ dedicated offices in and around the country. If you are not one of those who’d like to visit an office, you can instead choose to go online and buy the policy it on the internet. You can also get digital coverage where you have any grievances addressed completely online.
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