Shriram Life Growth Plus Plan

The Shriram Life Growth Plus is a unit-linked, non-participating life insurance plan that offers policyholders life coverage as well as a chance to build their wealth through market-linked returns. Policyholders can choose to invest in a range of funds to maximise their returns, thus increasing their returns at policy maturity. Additionally, the policy cover can be extended to cover the main holder’s spouse, child or grandchild, making it ideal for those who are looking for family coverage without needing multiple policies.

Policyholders can choose their policy term based on their requirement as well as their premium paying term. The policy also offers flexibility with regard to the class of funds invested.

Eligibility - Who is the Shriram Life Growth Plus for?

The Shriram Life Growth Plus is an ideal plan for individuals who are looking for life coverage as well as returns from their life insurance policy. The policy’s eligibility criteria are as follows:

Parameters	Eligibility
Minimum entry age	30 days
Maximum entry age	60 years
Maturity age	70 years
Policy term	10, 15-20 years
Premium paying term	Limited pay- 6 years Regular pay- same as the policy term selected Single pay- single

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

Sum Assured:

The sum assured is the amount that the insurer is liable to pay to the policyholder, excluding benefits and add-ons. The minimum sum assured amount under this policy would depend on the premium paying type as well as the age of the policyholder at policy inception. The minimum sum assured is as follows:

Policy type	Age of policyholder	Minimum sum assured
Single premium	Less than 45 years	1.25 times the single premium
Single premium	45 years and above	1.10 times the single premium
Regular and limited premium	Less than 45 years	10 times annualised premium
Regular and limited premium	45 years and above	7 times annualised premium

The maximum sum assured under the policy would depend on the type of premium selected as well as the age of the policyholder at the time of policy inception. In the case of single premiums, the maximum sum assured is as follows:

Age band	Maximum sum assured
Up to 30 years	10 times annualised premium
31-40 years	5 times annualised premium
41-50 years	2 times annualised premium
51-60 years	1.25 times annualised premium

In the case of regular or limited premiums, the maximum sum assured payable is 10 times the annualised premium.

Plan Coverage - What the Shriram Life Growth Plus Plan covers?

The Shriram Life Growth Plus plan coverage is as follows:

• The policyholder chooses the sum assured amount as well as the policy tenure.
• Following this, the policyholder chooses the premium paying term, based on which the premium amount payable would be computed.
• The policyholder is also required to select the funds he/she wishes to invest in, taking into account the risk and returns associated with each fund.
• The premium amount would be payable based on the premium term and payment mode selected.
• Funds can be switched based on existing policy rules governing the switches.

The following are the benefits associated with the plan:

Death benefit	On the policyholder’s death, the policyholder can choose one of the two options provided below, based on which the nominees will receive benefits: Sum assured plus top-up: Under this option the sum assured on death as well as any top-up sum assured will be paid out along with the fund value. higher of: sum assured and top-up sum assured base premium value and top-up premium find value.
Maturity benefit	On the policy reaching maturity and the policyholder’s survival till policy term, the fund value (the total of the base premium and top-up premium) would be payable.
Loyalty additions	The policy provides for loyalty additions, which are credited to the base premium on payment of all due premiums. The loyalty additions are additional units added to the base premium fund following the 6th policy year and range between 0.10% to 1% based on the policy year and the sum assured amount.

 

Riders/ Add-on Plans - Additional coverage under the Shriram Life Growth Plus Plan:

Policyholders who are looking to enhance their coverage under the Shriram Life Growth Plus plan can do so by opting to add riders to their existing plan. The riders can be chosen based on requirement and at an additional charge. The riders available with this plan are as follows:

• Shriram Accidental Death and Disability Rider: This rider provides a sum assured amount in the event of the policyholder’s death due to an accident or if the policyholder is permanently disabled due to an accident.
• Shriram Accidental Death and Disability Income Rider: This rider provides a fixed income of 1% of the sum assured every month in the event of the policyholder’s death due to an accident or the permanent disablement of the policyholder due to an accident. The monthly income would be payable for a period of 10 years or till the rider term ends, whichever is longer.
• Shriram Critical Illness Rider: This rider pays out 100% of the sum assured in the event of the policyholder being diagnosed with any of the following diseases after a period of 90 days from the date of rider inception:

• First heart attack of specified severity
• Kidney failure requiring regular dialysis
• Stroke resulting in permanent symptoms
• Open chest CABG
• Major organ/bone marrow transplant.

Exclusions - What the Shriram Life Growth Plus Plan doesn’t cover?

The exclusions under the Shriram Life Growth Plus plan are as mentioned below:

In the event of the policyholder committing suicide within 12 months of the policy coming into force or from the date of policy revival, no death benefit will be paid. The nominee will instead receive the fund value available on the date of death.

Fund options:

The Shriram Life Growth Plus plan offers policyholders 7 funds from which they can build their investment portfolio. The funds can be chosen individually or in combination in a fixed percentage.

Fund name	Objective	Asset allocation	Risk
Preserver	Income provided through fixed income securities	Debt- 80% to 100% Money market- 0% to 20%	Low
Guard Fund	Income provided through fixed income as well as equity	Debt- 60% to 80% Equity- 0% to 20% Money market- 0% to 20%	Low
Maximus	Combination of equity and income securities	Equity- 0% to70% Debt- 30% to 100% Money market- 0% to 20%	High
Accelerator	Equity-based	Equity- 90% to 100% Money market- 0% to 10%	Very high
Dynamic Asset Allocation	Equity as well as fixed income securities	Equity- 10% to 100% Debt- 0% to 90% Money market- 0% to 40%	Very high
Tyaseer	Pure equity	Equity- 90% to 100% Money market- 0% to 10%	Very high
Multi-cap Aggressive Fund	Capital stock investments	Equity- 60% to 100& Money market- 0% to 40%	Very high

Plan Charges:

The following are the list of charges under the Shriram Life Growth Plus plan:

• Premium allocation charge: This charge is payable depending on the policy year and size of the premium when it comes to regular and limited premium policies. The charge is fixed for single premium policies and is also governed by the premium amount.
• Policy administration charge: This is a monthly deductible charge that is linked to the annualised premium amount. The charge is deducted from unit funds at a rate of 0.09% for single premium policies and 0.10% for regular and limited premium policies.
• Fund management charge: This is a fee that is levied daily based on the NAV and would depend on the funds chosen by the policyholder.
• Mortality charge: This is charged on the sum at risk at the start of a policy month. The sum at risk is the death benefit minus the fund’s total value and the charge is age specific, increasing as the policyholder gets older.
• Top-up charges: Policyholders who wish to top up their premium will be charged 2% of the top-up amount before units are allotted.
• Discontinuance charges: Policyholders who wish to exit the policy will be charged discontinuance charges based on the year the policy is discontinued. The amount levied as charge would depend on the fund value and the type of premium option selected (single/regular/limited).

Other Key Features - Freelook Period, Surrender Value, Grace Period etc.

Other features and benefits associated with the Shriram Life Growth Plus plan are mentioned in the table below:

Free look period	If the policyholder is dissatisfied with any of the provisions of the policy, he/she may return it along with a reason behind the return within the free look period to avoid any cancellation charges or fees. The free look period is 15 days from the date of receipt of the policy document and 30 days in case of distance marketing policies.
Top-up premium	Policyholders can choose to increase their premium amount at a later date to increase the wealth created. The top-up premium can be added only if existing premiums have been paid. The top-up premium is to be a minimum of Rs.10,000 and can be paid at specific intervals as mentioned in the policy document. The top-up premium amounts are locked in for 5 years and are not permitted in the last 5 years of a policy term. Top-up premiums cannot exceed the total of the regular premium amount being paid at any time.
Switching	The policy allows for the moving of units among funds during the policy term. All switches done are free of charge.
Premium re-direction	The policyholder can choose to redirect future premiums to any fund, which could differ from the ones chosen at the start of the policy.
Partial withdrawal	The policy allows for the partial withdrawal of funds after the 5th policy year as long as the policy is still in force. The minimum amount for withdrawal is Rs.10,000 and a policyholder is allowed one free withdrawal during the policy term. Partial withdrawals are not permitted for polices taken out in minors’ names.
Surrender value	If the policy is surrendered after the end of the lock-in period (which is 5 years), the fund value at the time of surrender would be payable to the policyholder and the policy would be terminated.
Settlement	The policyholder can choose to receive the maturity benefit as a lump sum or in instalments. Instalments can be paid either monthly, quarterly, half-yearly or yearly for a period of 5 years following maturity.
Nomination and assignment	Nominations and assignments are permitted under this policy subject to prevailing laws governing the same.
Discontinuation of single premium policy	The policyholder can choose to withdraw from the policy completely in the case of single premium policies without any risk cover. If the policyholder withdraws from the policy during the 5 year lock-in period, the funds will be transferred to a discontinued policy fund and the amount will be payable at the end of the lock-in period.
Discontinuance of regular/limited premium policy	If the policy is discontinued during the lock-in period, the policyholder can choose (in writing) to revive the policy within two years or choose to withdraw from the policy without any risk cover. If the policyholder chooses to withdraw completely or chooses to revive the policy within 2 years, the fund value would be transferred to a discontinued policy fund and paid at the end of the lock-in period/made available at the time of revival.
Policy revival	The policyholder can choose to revive the policy within a period of 2 years from the date of discontinuance. All pending premiums and charges will be collected interest-free to activate the policy.
Grace period	If the policyholder is unable to pay a scheduled premium within the deadline, a grace period of 15 days for monthly premiums and 30 days for yearly premiums would be provided. No charge or penalty would be levied on payments made within the grace period.

Tax Benefits - How you can save with the Shriram Life Growth Plus Plan?

The Shriram Life Growth Plus Plan offers policyholders tax benefits through investing in the policy as well as a chance to build their wealth through investing in mutual funds. In addition to these benefits, policyholders can also receive tax benefits by virtue of owning a life insurance policy. The tax benefits offered to policyholders are as listed below:

• The policyholder can avail tax benefits on insurance premiums paid under Section 80C of the Income Tax Act of 1961.
• Under Section 10(10D) of the Income Tax Act of 1961, all benefits received from a life insurance policy such as maturity benefit, death benefit, survival benefit etc. are eligible for tax deductions.

It is to be noted that tax exemptions are subject to change. It is advisable to consult with a tax advisor for information on current exemptions.

Other Benefits - How You Can Save With Shriram Life Growth Plus Plan?

The Shriram Life Growth Plus Plan provides life cover along with associated benefits and features. In addition to the perks offered by the policy, Shriram Life offers policyholders a number of other features.

Shriram Life policyholders can go through the company’s product range online, with the policy brochure and all relevant information available on the company’s website. Policyholders can also compare and choose a policy best suited to their needs by consulting with a company representative through their online chat feature.

Individuals can calculate the premium payable for particular policies by using the online premium calculator. Additional tools such as the human life calculator are also available.

Policyholders can also pay premiums online, saving them the hassle of visiting a branch office or waiting for cheques to clear. Policyholders looking to pay online can do so through NEFT, standing instructions as well as through debit/credit cards.

Why you should buy the Shriram Life Growth Plus Plan from Shriram Life?

Shriram Life Insurance is a life insurance joint venture between the Shriram Group and the South Africa-based company Sanlam. Established in the year 2005, the private insurance company has sought to reach out to sectors that have been overlooked by the insurance sector by providing them with insurance options.

The company provides a range of insurance products that cover everything from ULIP plans to retirement and savings plans, providing every individual with an insurance solution that caters to his or her individual needs.

In addition to a quick claims processing facility as well as round the clock assistance and support, the company has a large presence across the country.