Shriram Life Wealth Plus is a unit linked insurance plan that provides you savings and financial protection under a single product. The policyholder has the choice of opting for a short premium payment term. Top-up premiums, surrenders, and partial withdrawals are allowed under the policy. The plan also offers a settlement option to reduce the risk of market volatility and benefit from flexi returns.
In order to buy the Shriram Life Wealth Plus Plan, a customer has to fulfill the following eligibility conditions:
|Minimum Entry Age||7 years|
|Maximum Entry Age||65 years|
|Maximum Maturity Age||75 years|
|Policy Term||10 years or (15 to 25) years|
|Premium Payment Term||
The policy offers various benefits such as death benefit, maturity benefit, surrender benefit, etc. The minimum sum assured under the plan varies as follows:
|Entry age||Minimum sum assured (Rs.)|
|Below 45 years||Maximum of: 10 times the annualised premium, or, 0.5 * annualised premium * policy term|
|45 years and above||Maximum of: 7 times the annualised premium, or, 0.25 * annualised premium * policy term|
At the inception of the policy, the policyholder decides the premium payment frequency and the corresponding premium at each installment. The minimum installment premium is as follows:
|Premium payment frequency||Premium (Rs.)|
The Shriram Life Wealth Plus Plan works in the following manner:
|Maturity Benefit||If the life assured survives till the end of the policy term, the amount payable is:
|Death Benefit||If the life assured faces death within the policy term:
Suicide Exclusion - If the life assured commits suicide within 1 year from the inception or revival date of the policy, irrespective of his/her sanity, the fund value as on the date of death is paid to the nominee. No other benefits are payable.
The salient features of the Shriram Life Wealth Plus Plan are described below:
|Fund Options||The policyholder can choose to invest in any one or a combination of the following funds:
|Charges under the plan||The Shriram Life Wealth Plus Plan is associated with the following charges:
|Auto Transfer Option (ATO)||This option enables the policyholder to reduce the risk associated with investment in a fund with a volatile NAV. Initially, premiums will be invested in a low risk fund, the Preserver. The money will then be gradually transferred into the chosen investment portfolio. The policyholder can choose the 6-month or 12-month Auto Transfer Option for investment of the regular premiums. If the 12-month Auto Transfer Option is selected, 1/12 of the allocated premium is invested in the chosen fund and the rest is invested in the Preserver fund. After a month, 1/11th of the fund in Preserver is moved to the chosen fund. This process continues till all the funds in the Preserver fund are transferred. The process is repeated whenever the premium is received. The policyholder can choose to cancel this option during the policy tenure, if required. When ATO is opted for, the policyholder can withdraw partially and switch between funds. Switching from the existing fund to the Preserver fund, is however, not allowed. ATO facility is available absolutely free of cost with the Shriram Life Wealth Plus Plan.|
|Settlement Options||When the policyholder survives till the end of the term, instead of receiving the maturity benefit, the policyholder can opt to withdraw either fully or partly any number of units from the fund, within a period of 5 years from the maturity date (settlement period). During this time, the fund management charge will be deducted as usual. The death benefit during this time is only the fund value. The policyholder will bear all investment risks during the settlement period. Fund switching and partial withdrawals are not allowed during the settlement period.|
|Alterations||The following alterations are allowed under the Shriram Life Wealth Plus Plan:
|Partial withdrawals||Partial withdrawals are possible only after the fifth policy anniversary, if all due premiums have been paid. In the case of a minor life assured, partial withdrawals are allowed when he/she reaches majority. The minimum amount of withdrawal each time is Rs.10,000. A partial withdrawal charge of Rs.100 is levied each time. Partial withdrawals are made first from the unit fund built up from the top-up premiums. Following this, partial withdrawals are made from the unit fund built up from the basic premiums.|
|Fund switching||The policyholder can choose to switch from one fund to another anytime during the policy term. Fund switching can be done twice a year without attracting any charges. For each subsequent switch, Rs.100 will be charged.|
|Top-up premiums||The policyholder can choose to pay an additional premium to enhance the fund value. Each lump sum payment should be at least Rs.5,000. A premium allocation charge of 2% of the top-up premium is deducted from the lump sum and the balance amount is allocated for units. Top-up premiums cannot be withdrawn from the unit fund for a period of 5 years after payment, except in the event of policy surrender. Top-up premiums are also not allowed during the last 5 years of the policy. No discontinuance charges are levied on top-up premiums.|
Discontinuance during the lock-in period:
If the policyholder does not pay due premiums within the grace period, a notice is sent to him/her within 15 days from the expiry of the grace period. He/she is required to choose any one of the following options within 30 days of receipt of the notice:
|Policy revival||A discontinued policy can be revived within 2 years from the date of discontinuance. The policyholder will have to pay all the unpaid premiums for the same.|
|Non-negative claw-back additions||In order to comply with reduction in yield, the insurance company may decide on non-negative claw-back additions to be added to the unit fund value from time to time.|
|Free-look period||If the policyholder is not in agreement with the terms and conditions within the policy documentation, he/she can return the policy back to the insurer within 15 days of receipt of the documents. The reasons for the return should be clearly mentioned. The insurer will then refund the paid premiums after deducting the charges and expenses incurred for stamp duty and medical examination.|
Tax rules are subject to change from time to time. Hence, it is advisable to check the latest provisions with a tax consultant before investing in the plan.
Additional benefits of buying the Shriram Life Wealth Plus Plan from the insurer include:
Shriram Life Insurance has an extensive network of over 528 branches, catering to more than 14 million customers today. The company has managed more than Rs.1,020 crores in revenue as well.
The insurer is known to settle claims within the shortest turnaround time. The products offered by the insurance company range from basic term insurance plans to ULIPs, group plans and products targeting financial inclusion.
Shriram Life Insurance has also been conferred with the following awards in the past:
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