Shriram Fortune Builder Plan
- Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
- Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
- Do more with plans that offer pure protection, retirement planning and investment options
For those who do not want to go through the hassle of regular and periodical premium payments, the Shriram Fortune Builder Insurance Plan is just for them. The Shriram Fortune Builder Insurance Plan is a single premium unit linked insurance plan for those who travel frequently or do not want to bear the burden of regular premium payments. The Shriram Fortune Builder Insurance Plan gives customers the benefit of choosing to invest in different funds (depending on the risk) and also comes with maturity and death benefits over the lump sum contribution.
Eligibility - Who is the Shriram Fortune Builder Insurance Plan for?
To be eligible for the Shriram Fortune Builder Insurance Plan, customers need to meet certain criteria:
| Parameters | Details |
| Entry Age | Minimum: 0 Maximum: 65 years (as of last birthday) |
| Maturity Age | 75 years (as of last birthday) |
| Policy Term | 10 years, 15 years, 20 years |
| Premium frequency | Single Premium |
Sum Assured and Premium Range - What you get and what it costs?
Sum Assured: The sum assured depends on the contribution (premium) made by the policyholder as well if there have been any top-ups. Generally, the sum assured is 1.25X of the lump sum contribution for policyholders below the age of 45 years and 1.10X of the lump sum contribution over the premium paid for policyholder over the age of 45 years. There is no maximum sum assured.
Premium: The minimum lump sum premium is Rs.25,000 and there is no limit to how much a policyholder can invest in the Shriram Fortune Builder Insurance Plan.
| Parameters | Details |
| Policy Term | 10 years, 15 years or 20 years |
| Premium Frequency | Single (lump sum contribution) |
| Premium | Minimum: Rs.25,000 Maximum: No limit |
Plan Coverage - What the Shriram Fortune Builder Insurance Plan covers?
The Shriram Fortune Builder Insurance Plan comes with the benefit of maturity and death benefits. The details are listed below:
| Death Benefits | In case of untimely death of the policyholder, the nominee is liable to higher of the sum assured and the current price of the unit[s] the policyholder has invested in. |
| Maturity Benefits | Depending on the policy term chosen by the policyholder, at the point of maturity, the policyholder is liable to the complete fund value of his/her investment. |
Exclusions - What the Shriram Fortune Builder Insurance Plan doesn’t cover?
If the policyholder commits suicide within the first 12 months since the commencement of the policy, the nominee is granted the fund value at that point. No other benefits are applicable in this case.
Other Key Features – Free-look Period, Surrender Values, Grace Period etc
The Shriram Fortune Builder Insurance Plan has a number of key features which are listed below:
| Free-look period | On initiating the policy, the policyholder is given a free-look period of 15 days. If he/she does not agree with any of the terms and conditions of the policy, the policy can be returned and the contribution refunded. |
| Nominations | As per Section 38 and Section 39 of the Insurance Act, 1938, the policyholder can make nominations - who would receive the fund value in the case of untimely death. |
| Settlement option | At the point of maturity, the policyholder can make a complete withdrawal from any of the units he/she has invested in. The withdrawal has to be made within 5 years from the point of maturation and should be done within 5 installments. The price of the unit depends on the current Net Asset Value (NAV) at that point. |
| Auto-transfer option | If the policyholder is unsure of which units to invest in (depending on the risk), he/she can opt for the auto-transfer option, which will result in the unit being auto-shifted every 6 months to a year. This reduces the risk of the investment as a partial amount in the “preserver unit” (low-risk unit) will be transferred to a possible higher yielding, higher-risk unit. |
| Alterations | Policyholder can opt to reduce the sum assured or to add any riders (if available). |
| Partial withdrawals | Policyholder can make partial withdrawals only after the completion of five years of holding the policy. In the case of minors, partial withdrawals can be made only once they attain the age of 18 years. The minimum partial withdrawal is Rs.10,000. |
| Switching | Policyholder can switch from one fund to another. Policyholder are allowed 2 unit switches a year after which a switching fee of Rs.100 will be applicable. |
| Surrender | If the policyholder chooses to discontinue the policy within the lock-in period of 5 years, the fund value of the units at that time will be payable to the policyholder, along with the cancellation charges and the fund management charges. If he/she discontinues the policy after 5 years, the entire fund value will be paid without any penalty or cancellation charges. |
Tax Benefits – How you can save with the Shriram Fortune Builder Insurance Plan?
Policyholder enrolled with the Shriram Fortune Builder Insurance Plan are liable to tax benefits under the Income Tax Act of 1961. They can avail benefits under:
- Section 80C of the Income Tax Act, 1961, for contributions (premium) made towards the scheme.
- Section 10 (10D) of the Income Tax Act, 1961, for proceeds from the riders and the death maturity benefits.
Other Benefits – How you can save with the Shriram Fortune Builder Insurance Plan?
Policyholders have the option of choosing the fund they wish to invest in - depending on the risk of the investment, though higher the risk, higher the chances of a favorable return.
| Fund | Equity | Debt | Money Market | Objective | Risk |
| Preserver | 0% | 80%-100% | 0%-20% | Steady income | Low-risk |
| Defender | 0%-35% | 45%-100% | 0%-20% | Good returns | Low-risk |
| Balancer | 40%-60% | 20%-60% | 0%-20% | Good returns | Moderate-risk |
| Maximus | 0%-70% | 30%-100% | 0%-20% | High returns | High-risk |
| Accelerator | 90%-100% | 0% | 0%-10% | High returns | High-risk |
| Tyaseer | 90%-100% | 0% | 0%-10% | High returns from investments in NBFCs, stocks, shares, etc. | Very High-risk |
Why you should buy the Shriram Fortune Builder Insurance Plan from Shriram Life Insurance?
Headquartered in Chennai, Tamil Nadu, Shriram Life Insurance was formed following a joint venture between Shriram Group and South African financial services company, Sanlam. Having an employee base of more than 45,000, Shriram Life Insurance has over 500 offices spread across the country. This insurance group offers insurance products specific to individuals, groups, children, senior citizens and so on.
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