Shriram Life Wealth Plus Plan

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.

Eligibility - Who is the Shriram Life Wealth Plus Plan for?

In order to buy the Shriram Life Wealth Plus Plan, a customer has to fulfill the following eligibility conditions:

Parameter	Eligibility
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	For Regular Premium (RP) - Equal to policy term For Short Premium Paying Term (SPPT) - 5, 10, 15, or 20 years

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured:

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

Premium:

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.)
Annually	12,000
Half-yearly	7,500
Quarterly	5,000
Monthly	2,000

Plan Coverage - What the Shriram Life Wealth Plus Plan covers?

The Shriram Life Wealth Plus Plan works in the following manner:

• The policyholder first chooses the premium amount, mode of premium payment, and premium paying term.
• The policy term is then chosen to meet the policyholder’s investment or savings objectives.
• The funds into which the premium is invested are selected next.
• At policy maturity, the accumulated fund value is paid out to the policyholder. If the life assured dies within the policy term, the nominee receives the death benefit plus the fund value.
• The coverage of the Shriram Life Wealth Plus Plan is as detailed below:

Maturity Benefit

If the life assured survives till the end of the policy term, the amount payable is: The value of units in the life assured’s unit account, plus, The top-up fund value, if applicable

Death Benefit

If the life assured faces death within the policy term: If the policy is in force, the death benefit payable to the nominee is the sum of the following: Basic sum assured The value of units in the life assured’s unit account Top-up sum assured, if applicable Top-up fund value, if applicable The death benefit will be at least 105% of all the paid premiums, including top-up premiums. If the policy was discontinued before death, the death benefit payable to the nominee is the discontinued fund value under the plan, subject to a minimum guaranteed interest.

Exclusions - What the Shriram Life Wealth Plus Plan doesn’t cover?

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.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

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: Preserver - Very low risk with a steady flow of returns Defender - Low risk with good returns Balancer - Moderate risk with better returns than low risk funds Maximus - High risk with high returns Accelerator - Very high risk with higher returns Tyaseer - Very high risk fund with significantly high returns Apart from these, a Discontinued Policy Fund also operates.
Charges under the plan	The Shriram Life Wealth Plus Plan is associated with the following charges: Policy Administration Charge Fund Management Charge Premium Allocation Charge Discontinuance Charge Mortality Charge Service Tax Charge
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: Reduction of the sum assured Addition of riders during the term of the policy The sum assured can be reduced up to the following values: For entry age less than 45 years, maximum of: 10 times the annualised premium, or 0.5 * annualised premium * policy term For entry age of 45 years and above, maximum of: 7 times annualised premium, or 0.25 * annualised premium * policy term Once the sum assured is reduced, it cannot be increased again. The basic premium can also not be altered. Riders can be added to the plan when a minor life assured attains majority during the term of the policy. An alteration fee of Rs.200 will be charged for the same through cancellation of units from the fund.
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.
Policy discontinuance	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 Complete withdrawal from the plan, without risk coverage During this time, the life coverage under the plan remains unchanged. If the policyholder decides to revive the policy, it will be done according to approved underwriting policy. If the policyholder does not choose any option within 45 days of expiry of the grace period, he/she is deemed to have completely withdrawn from the policy. The life cover ceases to exist in this case. The fund value and the top-up fund value is transferred to the discontinued policy fund after discontinuance charges are deducted. At the end of the lock-in period, the discontinued policy fund value is paid to the policyholder. If the life assured dies before the end of the lock-in period, the discontinued policy fund value is paid to the nominee. Discontinuance after 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. The policyholder is then expected to exercise any one of the following options within 30 days: Revival of policy Complete withdrawal from the plan without any risk cover Convert the policy to paid-up status. The paid-up sum assured in this case is as follows: Paid-up sum assured = Sum assured * (Number of premiums paid / Total number of premiums payable)
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 Benefits – How you can save with the Shriram Life Wealth Plus Plan?

• Premiums paid towards the Shriram Life Wealth Plus Plan are eligible for tax benefits under Section 80C of the Income Tax Act.
• The payouts from the policy are eligible for tax benefits under Section 10(10D) of the Income Tax Act.

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.

Other Benefits – How you can save with the Shriram Life Wealth Plus Plan?

Additional benefits of buying the Shriram Life Wealth Plus Plan from the insurer include:

• Online application: Shriram Life Insurance offers you the option to purchase insurance policies online through the company’s official website.
• Customer support: All insurance-related queries can be emailed to onlinesupport@shriramlife.in for immediate clarification.
• Premium calculator: It is possible to calculate the premiums that you would be required to pay towards a policy using the online premium calculator at the insurer’s website.
• Premium payment: Premium payments can be done through net banking, debit cards, or credit cards.
• Grievance redressal: Grievances and complaints can be raised at the company’s toll-free number, 1800 3000 6116.

Why you should buy the Shriram Life Wealth Plus Plan from Shriram Life Insurance?

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:

• 'Best Life Insurance Company' award in the private sector in 2016.
• 'The Indian Insurance Award' for best non-urban coverage in 2016.