Shriram Life Cash Back Term Plan

The Cash Back Term Plan from Shriram Life is a non-linked, non-participating policy which is designed to provide peace of mind and financial security to policyholders. It is ideal for those looking to invest in a policy which not only offers financial protection against death, but also returns the money invested after a specific period of time. This plan provides comprehensive protection at affordable prices, with all premiums returned on maturity. One can also choose to enhance the policy by adding riders.

Eligibility – Who is the Shriram Life Cash Back Term Plan for?

An individual looking to purchase the Shriram Life Cash Back Term Plan needs to satisfy these basic eligibility criteria:

Parameters	Criteria for eligibility
Minimum age at entry	12 years
Maximum age at entry	50 years
Maximum age at maturity	70 years

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

Sum Assured – The sum assured is the amount which the insurer will pay the nominee/policyholder depending on the circumstance. A policyholder can choose a sum assured based on his/her requirements. The table below highlights the limits under the Shriram Life Cash Back Term Plan:

Minimum Sum Assured	Rs.2 lakh
Maximum Sum Assured	Rs.20 lakh

Premium* – A policyholder is expected to pay a certain amount at regular intervals to maintain a policy. This amount is called the premium, with it determining the sum assured one is entitled to. The premium amount depends on the policy term, premium payment term, age of policyholder, etc.

A policyholder can also choose to pay the premium in advance, with Shriram Life offering a discount for such premiums. Listed below are the different parameters associated with the premium:

Minimum term of the policy	10 years
Maximum term of the policy	25 years
Premium Payment Term (PPT)	Policy term (years) PPT (years) 10 5, 10 15 5, 7, 10, 15 20 5, 7, 10, 15, 20 25 5, 7, 10, 15, 25
Premium Payment Modes	Monthly Quarterly Half-yearly Yearly
Minimum Single Premium Amount	Single premium unavailable
Maximum Single Premium Amount	Single premium unavailable
Minimum premium	Rs.3,000 per year (annualised)

*Premiums can vary depending on factors like the age of policyholder, location of individual, policy term, etc. Applicants should check the same with the insurance provider before purchasing a plan.

Plan Coverage – What the Shriram Life Cash Back Term Plan covers?

The Cash Back Term Plan from Shriram Life offers protection against any unforeseen event, ensuring that the financial security of a policyholder’s family is not compromised. The different benefits offered by this plan are highlighted below:

Death Benefit	If a policyholder passes away during the policy term, a death benefit will be paid to his/her nominee. This amount is the higher of: 105% the premiums paid 10 times the annualised premium (entry age less than 45 years) 7 times the annualised premium (entry age more than 45 years) Base sum assured
Maturity Benefit	On completion of the policy term, the policyholder will be paid a maturity benefit equivalent to all the premiums paid during the term.

 

Riders/Add-on Plans – Additional coverage under the Shriram Life Cash Back Term Plan:

A policyholder can choose to enhance the protection offered by the Shriram Life Cash Back Term Plan by adding riders to the policy. The following rider options are offered by Shriram Life:

• Shriram Accident Benefit Rider – Opting for this rider provides enhanced protection to the life assured. Under this rider, the nominee of a policyholder will be paid the rider sum assured if the policyholder passes away due to an accident. This benefit is also payable if the policyholder meets with an accident which leads to total and permanent disability.
• Shriram Family Income Benefit Rider – If a policyholder chooses this rider, his family will be paid 1% of the sum assured each month in case he/she meets with an accidental death/an incident which lead to total and permanent disability. This amount is paid for a minimum of 10 years or the rider period, whichever is longer.
• Shriram Critical Illness Cover Rider – This rider provides protection against critical illnesses, with a benefit paid to the policyholder if he/she is diagnosed with a critical illness.

Exclusions – What the Shriram Life Cash Back Term Plan does not cover?

The Shriram Life Cash Back Term Plan does not cover suicide. The insurer will pay the nominee 80% of all premiums paid if the policyholder commits suicide within a year of purchasing the policy. The mental state of the policyholder is not taken into account, with this amount payable even if he/she committed suicide in an insane frame of mind. If the policyholder commits suicide within a year of renewing the policy, the nominee will be paid the higher of the surrender value or 80% of premiums paid.

Other Key Features of Shriram Life Cash Back Term Plan:

The other features of this plan are highlighted below:

Grace period	A policyholder is provided a 30 day grace period to pay the premium. This grace period is accorded to all premium payment modes.
Free look period	A policyholder can choose to return a policy if he/she is not happy with the policy terms. The company offers a 30 day free look period for policies purchased through distance marketing. All other policies have a 15 day free look period.
Surrender	Policies which have been active for a minimum of three years (two years for 5/7 year PPT) can be surrendered. A surrender value will be paid based on the premiums paid.
Revival	Policies which have lapsed can be revived by paying all unpaid dues (with interest, if any) within two years of first missed payment.
Loans	There is no loan facility under this scheme.

Tax Benefits – How you can save with the Shriram Life Cash Back Term Plan?

This plan offers the following tax benefits:

• A policyholder can avail tax benefits on the premium paid under Section 80C of the Income Tax Act.
• The money received as maturity/death benefit is eligible for tax saving under Section 10(10D) of the Income Tax Act.

Note that the tax benefits depend on the current tax laws prevalent in the country and are subject to change.

Why you should buy the Shriram Life Cash Back Term Plan?

We all worry about the future, wondering what will happen to our loved ones if something were to happen to us. Purchasing the Shriram Life Cash Back Term Plan can help reduce some of this worry, for we can be rest assured that the financial future of our loved ones is taken care of. In addition to security, the plan also returns the money paid as premium, ensuring that there is no financial loss even after the policy term. This plan can be enhanced with additional riders, ensuring that one can customise it based on current needs and future requirements.

This policy also offers tax savings to individuals, doubling as an instrument to save money. Affordability is another key factor, with premiums for this plan starting as low as Rs.3,000 per year. In addition to this, one can choose the policy term and the premium payment term based on his/her financial capacity.

The wide customer base of the insurer is another bonus, with Shriram Life Insurance catering to over 1.4 crore customers, with a revenue in excess of Rs.1,000 crore. The comspany also had a high grievances solved ratio of 96.70% in 2015-2016, indicating attention to customer needs.