Shriram Life Insurance Pension Plans

• Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
• Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
• Do more with plans that offer pure protection, retirement planning and investment options

Keeping in mind the increase in life expectancy and soaring medical expenses, Shriram Life Insurance has launched Retirement/Pension plans to help customers accumulate a retirement corpus that would benefit them in their retirement age. With such plans, customers have the benefit of structuring an annuity plan (fixed income), can make partial (33%) tax-free withdrawals or can make a complete withdrawal in the case of a medical emergency, etc.

Benefits of Shriram Life Insurance Retirement/Pension Plans:

• Customers can choose a premium mode - annual, half-yearly, quarterly or monthly.
• Customers have a free-look period to see if the plan actually suits their needs.
• Most Shriram Life Insurance Retirement/Pension Plans have the option of regular, single, or limited premium payment facility.
• Shriram Life Insurance Retirement/Pension Plans come with guaranteed maturity and death benefits.
• Issuance of insurance plans online.
• Customers even have the option of a top-up premium - to increase sum insured and the benefits the plan comes with.

List of Retirement/Pension Plans provided by Shriram Life Insurance:

Listed below are the Retirement/Pension plans offered by Shriram Life Insurance:

Shriram Life Pension Plus:

With the goal of accumulating wealth or a retirement corpus, Shriram Life Insurance has launched the Shriram Life Pension Plus. The Shriram Life Pension plans comes with several benefits such as death benefits, maturity benefits, free-look period, loyalty additions and gives customers the option of investing in four different funds.

Features and Benefits of the Shriram Life Pension Plus:

• Customers have the option of choosing their premium payment frequency - annually, half-yearly, quarterly or monthly.
• Death benefit - In case of untimely death of the policyholder, the nominee is liable to higher of the total fund value of the policy and 105% of the premiums paid till date. The nominee also has the option of making a complete withdrawal of the retirement corpus or can structure an annuity plan.
• Vesting benefit - At the point of maturation of the policy, the policyholder is liable to the total fund value of the plan as well as 101% of the total premiums paid. If the policyholder is below the age of 55 years, he/she can extend the investment period till the age of 80 years. Policyholders also have the option of purchasing an annuity plan or a deferred pension plan with the accumulated fund.
• Loyalty Additions - Policyholders are liable for loyalty additions from the 5th year onwards. The loyalty addition increases in percentage every five years from that point on till 30 years (maximum policy term).
• Policyholders have four fund options to invest in when initiating the policy. The fund options are listed below:
  • Pension Protector: Here, policyholder have the option of investing in fixed-income securities. This low-risk investment guarantees the customer with a return on investment.

    Asset Allocation
    Debt (Government and Corporate bonds)	60% to 100%
    Money market/Liquid/Cash	0% to 40%
    Risk	Low

  • Pension Balancer: Policyholder have the option of investing in equities and fixed-income securities.

    Asset Allocation
    Equities	20% to 40%
    Debt (Government and Corporate bonds)	60% to 100%
    Money market/Liquid/Cash	0% to 40%
    Risk	Medium

  • Pension Maximiser: Policyholder can make moderately high-risk investments with the Pension Maximiser. Here too, customers can invest in equities and fixed-income securities.

    Asset Allocation
    Equities	30% to 70%
    Debt (Government and Corporate bonds)	20% to 50%
    Money market/Liquid/Cash	0% to 40%
    Risk	Moderately high-risk

  • Pension Multi Cap Aggressive Fund: Policyholder can make high-risk investments by investing in this fund.

    Asset Allocation
    Equities	60% to 100%
    Money market/Liquid/Cash	0% to 40%
    Risk	High-risk

• Policyholders have the option of a top-up premium. A top-up of the premium can be made at irregular intervals with a minimum top-up of Rs.5,000.
• Surrender value - If the policyholder surrenders the policy after the 5-year lock-in period, he/she is liable to the complete fund value and the premiums paid.
• Discontinuance - If the policyholder discontinues the policy before the lock-in period of 5 years, he/she will receive the premiums paid till date but no other benefits.
• Policyholders are granted a grace period of 30 days for the annual, half-yearly and quarterly premium paying modes and a grace period of 15 days for the monthly mode. All benefits are applicable during the grace period.
• If a policyholder commits suicide within the first 12 months of initiating the plan, the nominee is liable to the fund value till that point. No other benefits are applicable in the case of suicide.
• Policyholders can make nominations as per Section 39 of The Insurance Act, 1938.
• During the course of the plans, policyholders have the option of switching their investments from one unit to another.
• Policyholders can revive the policy within 2 years of the first unpaid premium.
• Policyholders are granted a free-look period of 15 days from the commencement of the policy. During this period, policyholders can return the policy if they disagree with the terms and conditions. The premium in this case will be refunded.

Shriram Life Immediate Annuity Plus:

This non-linked non-participating insurance plan offers a whole life annuity plan. Following the single premium per year mode, the Immediate Annuity Plus has a number of annuity options for its customers.

Features and Benefits of the Immediate Annuity Plus:

• The Immediate Annuity Plus has 8 annuity options for its customers:
  • Annuity for life

    Here, annuity will be paid uniformly till the death of the policyholder. There are no death benefits with this annuity option.

  • Annuity for Life with return of 100% purchase price on death

    Along with the regular annuity that will be paid to the policyholder, in the case of untimely death of the policyholder, 100% of the purchase price will be passed on to the nominee.

  • Annuity for life increasing @ 3% p.a. compound rate

    Here, the compound interest of the annuity increases every single year.

  • Annuity for life increasing @ 3% p.a. simple rate

    The annuity increases at 3% per annum with this option. The increase in annuity percentage kicks in after the completion of the first year of the plan. The plan ceases with the death of the policyholder.

  • Annuity certain for 5/10/15/20 years and thereafter for life

    With the minimum age to be enrolled in this annuity option being 18 years of age, policyholders have the option of choosing the years they wish to receive annuity - between 5 to 20 years. In case of joint annuity plans, only the spouse of the policyholder can be the second party.

  • Joint life last survivor annuity with 50% annuity to last survivor on the death of the annuitant

    For this annuity option, the annuity is spread evenly across the tenure of the policy and 50% annuity payout is given to the second party in the case of untimely death of the policyholder.

  • Joint life last survivor annuity with 100% annuity to last survivor on the death of the annuitant

    Here, 100% of the annuity is passed on to the second party in the case of untimely death of the policyholder. After the payout, the policy is terminated.

  • Joint life last survivor annuity with 100% annuity to last survivor on the death of the annuitant with return of 100% purchase price on death of the last survivor

    Here, 100% annuity is granted to the second party in the case of untimely death of the policyholder. If the second party dies as well, 100% return purchase is granted to the nominee. After this, the annuity plan is terminated.

• The policyholder can make nominations as per Section 39 of The Insurance Act, 1938.
• The policyholder can also make assignments as per Section 38 of Insurance Act 1938.
• If the policyholder commits suicide within 12 months of the commencement of the policy, 90% of the premium paid will be passed on to the nominee. No other benefits will be applicable in this case.
• Policyholders have a free-look period of 15 days. If he/she disagrees with the terms and condi tions of the policy, the policy can be returned and the premium returned during the free-look period.
• Policyholders can avail tax benefits under the provisions of the Income Tax Act, 1961.

Why do you need Shriram Life Insurance Retirement/Pension Plans?

Shriram Life Insurance pension plans provide you life insurance protection and investment benefits to financially secure your retirement years. These plans also provide tax benefits, as mentioned below:

• Premiums paid towards the policies get tax benefits under Section 80CCC of the Income Tax Act.
• The commutation amount is also eligible for tax rebates under Section 10(10A) of the Income Tax Act.

In addition, it is possible to alter the premium payment frequency of the policy, as long as the existing and requested premium frequencies are in alignment.

At affordable premiums, the Shriram Life Pension Plus and the Immediate Annuity Plus offers customers with financial solutions for retirement. Customers can invest in equities, fixed-income securities, debt bonds and so on, as well as structure an annuity plan to benefit from the nature of a fixed income during their retirement years. A high return on investment is assured depending on the risk chosen by the policyholder.