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Shriram Life Group Traditional Employee Benefit Plan

Shriram Life Group Traditional Employee Benefit Plan is a non-participating, non-linked group variable plan offered by Shriram Life Insurance for employers and employees. It helps employers meet their duties towards their employees with gratuity and leave encashment liability. And it helps the employees obtain financial security for their loved ones in case of loss of income.

The policy pays a lump sum to the nominee of the insured member in event of death of the policy member. It also pays a guaranteed return a minimum of 1% interest rate.

Eligibility - Who is the Shriram Life Group Traditional Employee Benefit Plan for?

Listed below are the eligibility factors you must meet to purchase Shriram Life Group Traditional Employee Benefit Plan:

Minimum Group Size 10 employees
Minimum Age at Entry 14 years
Maximum Age at Entry 74 years
Maximum Age at Maturity 76 years

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured:

Shriram Life Group Traditional Employee Benefit Plan is an easily obtainable and affordable net of financial security for the employers to make sure that benefit payments to the employees go smoothly. It also pays a fixed life insurance cover of Rs.1,000 for each member.

Premium Payment:

The contribution/premium amount, Policy Term and Sum Assured for Shriram Life Group Traditional Employee Benefit Plan are as follows:

Minimum Policy Term 1 year, renewable each year.
Premium Payment Mode Yearly.
Minimum Initial Contribution Rs.1 lakh per policy.
Maximum Contribution Based on the actuary's certificate that the group policyholder submits in keeping with AS-15 (Revised) for gratuity liability and according to leave encashment valuations liability.

Benefits:

  • Death Benefits: In the event of the death of the policy member, the following shall be payable to the group policyholder as death benefits:
    • Whatever sum requested by the group’s main policyholder that enables them to pay the employee benefits as the scheme dictates. This amount will be debited from the policy account subject to the maximum available in the policy account.
    • Rs.1,000 as cover for Life insurance.
  • Benefits payable for exits affected by circumstances other than death: If a group member exits the scheme for reasons other than their death, any amount as requested by the main policyholder will be payable to ensure that they are able to pay requisite employee benefits under the rules of the scheme. This amount will get debited from the main policy account, subject to the availability of the maximum amount of funds in the account.

Charges:

Listed below are the various charges applicable to Shriram Life Group Traditional Employee Benefit Plan:

  • Mortality Charge: A mortality charge of Re.1 per Rs.1,000 insurance cover will be charged per member on the life insurance.
  • Surrender Charge: 0.05% surrender charge of the policy account value will be levied, subject to a maximum of Rs.5 lakhs if the policy is surrendered within the 3rd renewal.
  • Fund Management Charge: This charge is determined based on the policy account value at the end of every quarter, time of death, retirement, surrender or withdrawal.
Policy Account Value Fund Management Charge
Rs.1 lakh to Rs.50 lakhs 0.75% p.a.
Above Rs.50 lakhs to Rs.1 crore 0.70% p.a.
Above Rs.1 crore to Rs.10 crores 0.65% p.a.
Above Rs.10 crores to Rs.50 crores 0.45% p.a.
Above Rs.50 crores to Rs.100 crores 0.35% p.a.
Above Rs.100 crores 0.30% p.a

Exclusions - What the Shriram Life Group Traditional Employee Benefit Plan doesn’t cover?

Suicide: If a policy member commits suicide during the term of the policy, whether regarded sane or insane at that point, the nominee of the policyholder forfeits all death benefits in such scenario.

Other Key Features of Shriram Life Group Traditional Employee Benefit Plan:

Listed below are the key features of Shriram Life Group Traditional Employee Benefit Plan:

  • Free-look period: From the date of receipt of the policy document, you are given 15 days to review the terms and conditions of the policy. If you have any objection to the terms and conditions, you have the option to return the policy.
  • Policy renewal: The master policyholder has to submit a written declaration on every annual renewal date about the funding status of the scheme. Zero contribution is acceptable only when the funding status of the scheme is in surplus. This has to be validated by an actuary's certificate.
  • Surrender: If the policy is surrendered before 3rd renewal, the surrender value will be paid (policy account value minus surrender charges and market value adjustment). No surrender charge is levied if policy is surrendered after 3 years.
  • Termination: Policy will be terminated upon mutual agreement by the insurer and the group policyholder or payment of surrender value.

Tax Benefits - How you can save with the Shriram Life Group Traditional Employee Benefit Plan?

Under Shriram Life Group Traditional Employee Benefit Plan, employers get the following tax benefits:

  • Tax deductions on contributions made by the members under Section 80C of the Income Tax Act, 1961.
  • Tax deductions on death benefit received by the nominees of the members under Section 10 (10D) of the Income Tax Act, 1961.

Other Benefits - How you can save with the Shriram Life Group Traditional Employee Benefit Plan?

There are several other benefits of purchasing group insurance plans from Shriram Life Insurance such as:

  • Online application: You can purchase insurance policies offered by Shriram Life Insurance online through the company website.
  • Customer support: You can mail to onlinesupport@shriramlife.in for insurance related queries.
  • Premium calculator: Online premium calculator available on the company website is useful for easy premium calculations.
  • Premium payment: Premium payments can be made via netbanking, credit or debit card.
  • Grievance redressal: For complaints and grievance redressal, the company has a dedicated grievance redressal cell, call toll-free number 1800 3000 6116.

Why should you buy Group Traditional Employee Benefit Plan from Shriram Life Insurance?

Following are the reasons why you should buy Group Traditional Employee Benefit Plan from Shriram Life Insurance:

  • Shriram Life Insurance won 'Best Life Insurance Company' award in private sector in 2016.
  • It also won 'The Indian Insurance Award' for best non-urban coverage in 2016.
  • The company has over 528 branches across the country and caters to over 14 million customers.
  • The company has experience in managing over Rs.1020 crores in revenue.

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