Shriram Life Micro Insurance Plans

Microinsurance is a product that is relatively new to the insurance domain. It is specifically designed to cater to the needs of individuals with low income. Microinsurance schemes offer life coverage to the economically weaker sections of the country, in addition to providing assistance for systematic savings throughout the policy tenure.

Shriram Life Insurance has an extensive coverage network across India with multiple distribution partners in the rural regions. The insurance agents focus on reaching the remote areas in an organised and comprehensive way.

Benefits of Shriram Life Insurance Micro Plans:

• The micro insurance plans offered by Shriram Life Insurance provide protection to the lower income groups in the country.
• The premium for these plans is lower than that for the conventional life insurance policies.
• The sum assured under these products are usually Rs.50,000 or less.
• The life assured can also avail other facilities, such as partial disability benefit, protection against accidents, etc. apart from the death benefit.
• Microinsurance is leveraged through Non-Government Organisations, Micro-Finance Institutions, and Self-Help Groups.
• Microinsurance plans usually offer both life and general insurance coverage under the same product.
• Microinsurance products are generally simple to understand, and most of these plans offer a sum assured at maturity.
• Medical examinations are not mandated when buying a microinsurance plan.
• Microinsurance plans can be offered on an individual basis or for a group.
• Apart from personal accident coverage, some of these plans offer protection to the belongings of the policyholder, such as livestock, huts, instruments, etc.

List of Micro Insurance Plans provided by Shriram Life Insurance:

The Micro Insurance Plans from Shriram Life Insurance are the following:

Shriram Jana Sahay Plan:

Shriram Jana Sahay is a non-participating, non-linked, yearly renewable group term insurance plan that aims at providing financial security to the families of the group members in the event of death. If the life assured dies within the policy tenure, the plan provides a lump sum payout, helping the family in reducing their financial obligations.

Benefits and Features of Shriram Jana Sahay Plan:

1. The plan will be offered to the following parties:
   1. Self-Help Groups (SHG)
   2. Non-Government Organisations (NGOs)
   3. Micro Finance Institutions, NBFCs
   4. Regional Rural Banks
   5. RBI regulated NBFC-MFIs
   6. Urban cooperative banks
   7. District cooperative banks licensed by the RBI
   8. State cooperative banks
   9. Housing finance companies
   10. Small finance banks, PSU and private banks, and payment banks regulated by the RBI
   11. Primary agricultural cooperative societies
   12. Any other credit societies that offer loans to groups
   13. Registered cooperative societies
   14. Lender-borrower groups
2. The plan provides the following benefits:
   1. Death Benefit - At the death of a group member during the policy term, the sum assured will be paid to the nominee. The sum assured is a guaranteed constant amount for the entire policy term of 1 year.
   2. Maturity/Surrender Benefit - There is no surrender or maturity benefit payable under the Shriram Jana Sahay plan.
   3. Easy policy renewal - It is possible to renew the policy online at the insurer’s website. Payments can be made through debit/credit cards or Netbanking.

Plan Name	Entry Age (yrs)	Sum Assured	Premium
Shriram Jana Sahay	Minimum - 18 Maximum - 65	Minimum - Rs.5,000 Maximum - Rs.2 lakh	The premium payable towards the plan is dependent on the age of the member, the sum assured, and the group to which the member belongs. Premium payment can be done annually, semi-annually, quarterly, or monthly.

Shriram Shri Sahay (AP) Plan:

Shri Sahay (AP) is an annual premium group insurance product that provides life coverage to the economically weaker sections of the society. Self-employed workers such as carpenters, bidi workers, agricultural labourers, etc. have benefitted largely from this product. The plan is also offered to individuals below the poverty line.

Benefits and Features of Shri Sahay (AP) Plan:

1. Premiums - Premiums are paid towards the policy annually and life coverage is available throughout the policy tenure.
2. Death Benefit - If the life assured faces death during the policy term, the sum assured is paid as death benefit.
3. Sum Assured - Sum assured under the plan is only available as multiples of Rs.1,000.
4. Accident Benefit Rider - The life assured can opt for an Accident Benefit Rider to enhance the coverage of the plan. If the life assured faces accidental death, or if he/she becomes permanently and totally disabled in an accident during the policy term, an additional sum assured is paid.

Plan Name	Entry Age (yrs)	Maturity Age (yrs)	Sum Assured
Shri Sahay (AP)	Minimum - 18 Maximum - 60	Maximum - 65	Minimum - Rs.5,000 Maximum - Rs.50,000

Shriram Shri Sahay (SP) Plan:

Shri Sahay (SP) is a micro insurance product that provides life cover to socially weaker sections of the society, such as self-employed workers below the poverty line. The premium needs to be paid only once, but the life cover will be available throughout the policy tenure.

Benefits and Features of Shri Sahay (SP) Plan:

1. Death Benefit - If the life assured dies during the policy tenure, the sum assured under the plan is paid as death benefit.
2. Policy Term - The minimum policy term is 5 years.
3. Rider - The policyholder can opt to attach the Accident Benefit Rider (SP) to the policy. Once this is done, the life assured can avail additional benefits if he/she meets with an accident.
4. Rider Benefit - If the life assured faces accidental death or becomes totally and permanently disabled in an accident during the policy tenure, an additional sum assured is paid.

Plan Name	Entry Age (yrs)	Maturity Age (yrs)	Sum Assured
Shri Sahay (SP)	Minimum - 18 Maximum - 60	Maximum - 65	Minimum - Rs.5,000 Maximum - Rs.50,000

Shriram Grameena Suraksha Plan:

Shriram Grameena Suraksha is a non-linked, non-participating, micro term insurance product that provides life coverage at a low premium to the socially weaker sections. The plan provides life cover in two variants:

• Option 1 - Pure term assurance
• Option 2 - Term assurance with return of premiums at maturity

Benefits and Features of Shriram Grameena Suraksha Plan:

1. Death Benefit - For options 1 and 2, the sum assured at death is the highest among the following amounts:
   1. 10 times the annualised premium when the age is less than 45 years. 7 times the annualised premium when the age is 45 years and above.
   2. 105% of the paid premiums till the death of the life assured.
   3. Basic sum assured.
   4. Maturity sum assured.
2. Maturity Benefit - For option 1, the maturity benefit is nil. For option 2, the maturity sum assured is paid to the policyholder. This amount is equal to the sum of all paid premiums.
3. Surrender Benefit - For option 1, the policy does not acquire any surrender value. For option 2, the policy reaches surrender value when the premiums for 3 years have been paid. The Guaranteed Surrender Value, which is a percentage of the paid premiums, is payable to the policyholder.
4. Paid-up Value - For option 1, the policy does not acquire a paid-up value. For option 2, if the policyholder has paid premiums for at least 3 years, the policy will become paid-up and have reduced benefits.
5. Premium Payment Frequency - Premiums can be paid annually, semi-annually, quarterly, or monthly.
6. Policy Term - Policy term can be chosen to be 10 or 15 years.
7. Premium Payment Term (PPT) - The PPT is the same as policy term.
8. Sum Assured - The minimum sum assured under the plan is as follows:
   1. For option 1, Rs.25,000
   2. For option 2, Rs.17,000

The maximum sum assured for both options is Rs.50,000.

Plan Name	Entry Age (yrs)	Maturity Age (yrs)	Premium
Shriram Grameena Suraksha	Minimum - 18 Maximum - 50	Minimum - 28 Maximum - 65	Minimum annualised premium: For Option 1, Rs.750 For Option 2, Rs.1,400 Maximum annualised premium: For Option 1, Rs.1,680 For Option 2, Rs.4,425

Why do you need Shriram Life Insurance Micro Plans?

Shriram Life Insurance Micro Plans offer the customer life insurance coverage and savings to secure the financial future of his/her family. These plans also provide tax benefits, as mentioned below:

• Premiums paid towards the policies get tax benefits under Section 80C of the Income Tax Act.
• The benefits paid out from the policy are eligible for tax rebates under Section 10(10D) of the Income Tax Act, subject to certain provisions.

Since tax rules are subject to change, it is advisable to consult a tax advisor for the latest provisions before investing.