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Shriram New Shri Vidya Plan

A good education can go a long way for a child as this basically forms the foundation of the child’s future. The Shriram New Shri Vidya Plan is a non-linked, participating plan that is specifically designed to meet your child’s ever rising educational fees and to make their aspirations and dreams comes true. This plan is traditional in nature and comes with a bonus facility. Shriram New Shri Vidya Plan offers coverage by offering survival benefits that adjust with accordance to your child’s educational needs. The plan also offers insurance cover for the policyholder in case he/she meets with an unfortunate event where they lose their life. Some of the key features of this plan are:

  • Death benefit payout is quite substantial with a stream of income provided on a monthly basis plus sum assured
  • Additional sum assured is provided in equal instalments at the end of the last four years of the policy term
  • This plan provides a high sum assured rebate to the policyholder

Eligibility – Who is the Shriram New Shri Vidya Plan for?

An individual will have to meet the eligibility criteria listed below to avail the Shriram New Shri Vidya Plan:

Parameters Details
Minimum Age of Entry 18 years
Maximum Age of Entry 50 years
Maximum Maturity Age 70 years
Minimum Policy Term 7 years
Maximum Policy Term 25 years

Sum Assured and Premium Range – What you get and what is costs?

Sum Assured:

The sum assured is based completely on the premiums that you will be required to pay to avail the benefits of the policy. The sum assured for Shriram New Shri Vidya Plan is listed below:

Parameters Details
Minimum Sum Assured Rs.1 lakh
Maximum Sum Assured This is subject to the underwriting considerations that has been approved by the Board
Rebates for Sum Assured of Rs.5 lakhs and above
  • Rs.5 lakhs to Rs.9.99 lakhs: 3% of the basic premium
  • Rs.10 lakhs and above: 4% of basic premium

Premium*:

Premiums are paid to the insurer to purchase a policy from them so that the individual can come under the benefits and coverage of the Shriram New Shri Vidya Plan. The premiums that a policyholder will have to pay towards a Shriram New Shri Vidya Plan is listed below:

Parameters Details
Premium Paying Term Policy Term 25 20 15 10
Premium Paying Term 7, 10, 15, 25 7, 10, 20 7, 10, 15 10
Policy Term
  • Regular Pay (Fixed Terms): 10/15/20/25 years
  • Limited Pay (Fixed Terms): 15/20/25 years
Mode of Premium Payments
  • Monthly
  • Quarterly
  • Half-Yearly
  • Yearly
Maximum Premium No Limit
Advance Premium Premiums can be paid in after availing the discount that is approved by the IRDAI.

*Premiums paid vary based on age, location, plan term and other factors

Premiums paid in instalments, apart from the yearly mode, will be calculated by multiplying the annual premium with the modal factor. This has been illustrated below:

Mode Factor
Monthly 0.090
Quarterly 0.265
Half-Yearly 0.520

Premiums for Shriram New Shri Vidya Plan can be made using any of the following ways:

  • ECS/Direct Debit/Salary Deduction Scheme
  • With a cheque or demand draft
  • Through the use of debit or credit cards
  • Payment in cash at the insurer’s branch office
  • Using payment gateways or internet banking

Plan Coverage – What the Shriram New Shri Vidya Plan covers?

The New Shri Vidya Plan offered by Shriram Life Insurance offers a number of benefits and these are listed in the tabular column below:

Parameters Details
Maturity Benefit Terminal Bonus plus Accrued Reversionary Bonuses will be paid to the life insured if applicable.
Death Benefit Sum assured and Terminal Bonus plus Accrued Reversionary Bonuses will be paid. Death benefit of at least 105% of the premiums paid will be paid out to the nominee of the policy.
Survival Benefit The life assured will receive 25% of the sum assured at the end of each of the last for years of the policy.

Riders/Add-On Plans - Additional coverage under the Shriram New Shri Vidya Plan:

A rider is an add-on that you can club with your basic plan that provides additional features and benefits to the policyholder after paying an additional cost. There three riders that are available which you can add to your Shriram New Shri Vidya Plan and these are:

  • Shriram Accidental Benefit Rider: This rider provides a sum assured to the policyholder in the event of the death or permanent disability of the policyholder due to an accident. Any future premiums that need to be paid shall be waived from the date of the accident to the end of the rider term.
  • Shriram Extra Insurance Cover: This rider provides additional insurance cover to help fulfil any financial commitments in the event of the policyholder’s death.
  • Shriram Critical Illness Cover: The rider provides a benefit that helps cover any medical expense or rehabilitation costs that a policyholder might incur due to a critical illness. The rider covers the following six illnesses:
  • Heart Attack
  • Cancer
  • Kidney Failure
  • Stroke
  • Major Organ Transplant
  • Coronary Artery Bypass Surgery

Exclusions – What the Shriram New Shri Vidya Plan doesn’t cover?

If a policyholder commits suicide within a year from the date of inception of the policy, whether sane or insane, the insurer will pay the nominee 80% of the premiums paid which would exclude any extra premiums paid for riders.

If the policyholder commits suicide within a year from the date of revival of the policy, whether sane or insane, the insurer will pay the nominee the surrender value or 80% of the premiums paid which would exclude any extra premiums paid for riders.

Other Key Features of Shriram New Shri Vidya Plan:

Parameters Details
Nomination As per prevailing tax laws under Section 39 of the Insurance Act, 1938, the life assured can nominate an individual to receive the benefits of the policy in the event of his/her death.
Assignment The title of the policy can be transferred as per prevailing tax laws under Section 38 of the Insurance Act, 1938.
Loan Facility A policyholder can avail loans under this plan. A loan of up to 90% of the Surrender Value can be sanctioned by the insurer. Interest rates will be decided on by the IRDAI. Loan balance will be recovered from any policy proceeds prior to any benefit that is paid on the policy.
Alterations A policyholder is entitled to make changes to the policy like reducing the sum assured or changing the mode of payment of premiums.
Free Look Period The policyholder gets a total of 15 days (30 days in the case of distance marketing) from the date of receipt of the policy to read and understand the “Terms and Conditions” of the policy. If the policyholder is not satisfied with the policy, he/she can return the same within this period without any major repercussions. The insurer will return any premiums that have been paid after deducting any rider or proportionate risk premium, stamp duty charges and medical expenses, if any.
Revival A lapsed policy can be revived within two years from the date of the very first unpaid premium. All outstanding premiums will have to be paid with interest. Once all accounts have been cleared and you have made all payments, your benefits will be restored.
Grace Period 30 days is provided by the insurer as grace period for the payment of premiums and this is applicable for all modes. Death benefit will be payable if the life insured meets with an unfortunate event that leads to the loss of his/her life during the grace period.

Surrender Value

A Surrender Value will be awarded to your policy after you have paid any and all premiums that were due for a minimum of three full years. If the paying term for the premium is 7 years, then the minimum time period required is two years.

The Surrender Value is expressed in the form of a percentage and this has been listed below:

Polity Term 10 years 15 years 20 years 25 years
1 0.0% 0.0% 0.0% 0.0%
2* 30.0% 30.0% 30.0% 30.0%
3 30.0% 30.0% 30.0% 30.0%
4 50.0% 50.0% 50.0% 50.0%
5 50.0% 50.0% 50.0% 50.0%
6 50.0% 50.0% 50.0% 50.0%
7 50.0% 50.0% 50.0% 50.0%
8 63.0% 55.0% 53.0% 52.0%
9 76.0% 60.0% 56.0% 54.0%
10 90.0% 65.0% 59.0% 56.0%
11   70.0% 62.0% 58.0%
12   75.0% 65.0% 60.0%
13   80.0% 68.0% 62.0%
14   85.0% 71.0% 64.0%
15   90.0% 74.0% 66.0%
16     77.0% 68.0%
17     80.0% 70.0%
18     83.0% 72.0%
19     86.0% 74.0%
20     90.0% 76.0%
21       78.0%
22       80.0%
23       82.0%
24       84.0%
25       90.0%

*The guaranteed surrender value is applicable in the second year if the term for paying the premium is 7 years.

Tax Benefits – How you can save with the Shriram New Shri Vidya Plan?

Tax Benefits under this plan are applicable as per prevailing laws of the Income Tax Act. Tax benefits can change at any time according to tax laws. It is advisable to consult a tax advisor get a clearer idea on these details.

Why you should buy the New Shri Vidya Plan from Shriram Life Insurance?

With over 528 branches located around India, Shriram Life Insurance has been a frontrunner in the insurance field providing quality products and services. The company strives to provide products that are tailored to the needs and requirements of its customers. The company has a large customer base which is made up of over 14 million customers.

Shriram New Shri Vidya Plan is available at a nominal price which even the common man can afford. This facility is easy to obtain and provides a financial safety net for you and your family. A lump sum of money is paid out to the policyholder’s nominee in the case the policyholder dies. This payout can be used by the family members to help them with their financial needs and reduce their debts.

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