Shriram Life New Akshay Nidhi is a plan that helps you fulfill your financial commitments and goals by providing income at regular intervals. The plan also offers maturity and death benefits. Bonuses are declared each year, and these increase the life coverage under the plan and the maturity value. Attractive sum assured rebates are offered by the insurer to eligible customers. Shriram Life Insurance also offers you the facility to pay premiums in advance along with a discount. You can enhance the coverage under the policy by adding optional riders that can be purchased from the insurer at a nominal cost.
A customer has to fulfill certain eligibility conditions in order to buy the Shriram Life New Akshay Nidhi plan. These factors are listed in the table below:
|Minimum Entry Age||30 days|
|Maximum Entry Age||60 years|
|Minimum Maturity Age||18 years|
|Maximum Maturity Age||75 years|
|Policy Term||15, 20, or 25 years|
|Premium Payment Term||Equal to policy term|
The policyholder receives maturity benefit, regular survival benefits, and death benefit under the Shriram Life New Akshay Nidhi plan. The minimum sum assured is Rs.1,50,000. Maximum sum assured under the policy is subject to underwriting considerations.
The premium depends on the age of the customer, sum assured, and policy term. Premiums can be paid on a yearly, half-yearly, quarterly, or monthly basis. When premiums are paid in frequencies other than the annual mode, the installment premium is the annual premium multiplied by modal factors, as mentioned below:
The coverage of the Shriram Life New Akshay Nidhi plan is as detailed below:
|Death Benefit||The sum assured at death is the higher among the following:
|Maturity Benefit||If the life assured survives till the end of the policy term, the accrued reversionary bonus plus terminal bonus will be paid as maturity benefit.|
|Survival Benefit||If the life assured survives till the end of every five years, periodical payments are made. These payments are a percentage of the basic sum assured and depends on the policy term.
Suicide Exclusion - Irrespective of the sanity of the life assured, if he/she commits suicide within 1 year from the inception date of the policy, 80% of the paid premiums is offered to the nominee. If the life assured commits suicide within 1 year from the revival date of the policy, the payout is the highest among 80% of the paid premiums till death or the surrender value.
The key features of the Shriram Life New Akshay Nidhi plan are described below:
|Reversionary bonus||The company may declare simple reversionary bonuses, including interim bonuses, attached to the policy. Future bonuses are not guaranteed and will depend on the expected economic conditions.|
|Terminal bonus||The insurer may pay a terminal bonus at death and maturity. This bonus depends on the prevailing economic conditions and the participating business. The policyholder will receive maximum benefits from the policy if he/she pays all premiums for the entire premium paying term.|
|Rider protection||For regular premium policies, the plan can be enhanced using additional riders at the payment of rider premium. The riders that can be attached to the plan are:|
|Sum assured rebate||If the sum assured under the plan is more than Rs.5 lakh, a premium rebate is offered as described below:
|Grace period||If the policyholder has not paid due premiums, he/she receives a grace period of 30 days for the payment. During the grace period, the life cover is active. If the life assured dies during this period, the death benefit minus outstanding premiums is paid to the nominee.|
|Discontinuance of premiums||If the due premiums have not been paid before the grace period ends, the policy will lapse. In this scenario, no further benefits under the plan are payable. If the premiums for at least 3 full years have been paid and then the premium payment is discontinued, the policy will not lapse. It will continue on a reduced paid-up basis, and the sum assured is reduced to the following: Paid-up sum assured = Sum assured * (No. of paid premiums/No. of total premiums payable) Survival benefits that have already been paid will be deducted from the paid-up sum assured. Accrued reversionary bonuses till the premium discontinuance date are not reduced. But if there are bonuses payable in the premium discontinuance year, these shall be reduced in proportion to the unpaid premiums in that policy year. After a policy become paid-up, no further bonuses are accrued. The accrued reversionary bonuses and reduced paid-up sum assured are paid at death or maturity, whichever is earlier. No further survival benefits are paid under the plan.|
|Policy revival||The policyholder can revive a lapsed or paid-up policy within the 2-year revival period. He/she would have to pay all outstanding premiums and interest for the same. Once the policy is revived, the benefits will be restored to the original value.|
|Policy surrender||The policy acquires surrender value after the premiums for a minimum of 3 years have been paid. The guaranteed surrender value is a percentage of the premiums paid. The policy will also accrue a non-guaranteed surrender value. Once the surrender value is paid out, the policy will terminate.|
|Policy loan||Loans of up to 90% of the surrender value can be availed under the policy. Interest will accrue on the outstanding loan balance at IRDAI-approved rates. If there is an outstanding loan balance at the time of payout, it will be reduced from the benefits payable.|
|Alterations||It is possible to reduce the policy sum assured and change the mode, as per the terms and conditions. The sum assured after the alteration will comply with the minimum sum assured at death.|
|Minor life assured||When the policy is issued on a minor life, the risk starts from the first policy anniversary. If the minor life assured dies during the first policy year, the premiums paid will be refunded after deduction of taxes. The policy vests when the minor life assured attains majority.|
|Payment of advance premiums||The policyholder can pay premiums in advance, if required. The premiums for the same financial year can be paid this way at a premium discount, as per IRDAI approval.|
|Free-look period||If the policyholder is not satisfied with the terms and conditions mentioned in the policy document, he/she can return the policy back to the insurer within 15 days from the receipt of the document. This is referred to as the free-look period. For policies that were bought through distance marketing (emails, telephonic sales, etc.), the free-look period is 30 days. The policyholder is expected to cite relevant reasons for the return of policy. He/she will then receive a refund of premiums from the insurer, after deduction of the stamp duty charges and medical examination costs.|
Since tax rules are subject to change from time to time, it is advisable to consult a tax advisor for the latest provisions.
Additional benefits of buying the Shriram Life New Akshay Nidhi plan from the insurer include:
Shriram Life Insurance is a prominent insurance provider in India with an extensive network of over 528 branches across the country. The company has managed above Rs.1,020 crores in revenue, and has a large customer base as well.
The claim settlement process of the company is highly efficient and customer issues/queries are resolved within the shortest turnaround time. The products offered by Shriram Life Insurance range from basic term insurance plans to ULIPs, group plans and insurance policies for rural customers.
Shriram Life Insurance has also received multiple awards for its effective marketing strategies and customer service. The company received:
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