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  • Shriram Group Term Life Insurance in lieu of EDLI

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    Insurance coverage from Employee Provident Fund Organization (EPFO) is linked to an employee’s total service and average provident fund balance before death. The employer contributes 0.51% of the employee’s salary towards EDLI coverage. The Shriram Group Term Life Insurance in lieu of EDLI plan is a better alternative, as it provides more life insurance benefit to employees, irrespective of their salaries, PF balances, and service. Premiums may also be lower than the employer contributions towards EDLI when the group is young and the employee’s salary is high.

    Under this plan, a single master policy is issued to the employer and this provides life insurance coverage to all employees (group members). The plan provides a uniform level of coverage that starts at Rs.3,62,000. The basic life cover under the plan can be enhanced through the use of the Accident Benefit Rider.

    Eligibility - Who is the Shriram Group Term Life Insurance in lieu of EDLI plan for?

    The eligibility conditions pertaining to the Shriram Group Term Life Insurance in lieu of EDLI plan are as detailed below:

    Parameter Eligibility
    Minimum Entry Age 14 years
    Maximum Entry Age 74 years
    Maximum Maturity Age 75 years
    Policy Term 1 year, can be renewed annually
    Nature of the scheme Statutory
    Minimum group size 20

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

    Sum Assured:

    The minimum sum assured under the plan is Rs.3,62,000. The maximum sum assured is Rs.15 lakh.

    Premium:

    Premiums can be paid towards the plan annually, semi-annually, quarterly, or monthly. The premium varies based on several factors such as the industry to which the group belongs, region where it is located, etc. When the premium is paid at a frequency other than yearly, the effective premium will be the annual premium multiplied by a modal factor, as shown below:

    Mode Factor
    Half-yearly 0.5085
    Quarterly 0.2564
    Monthly 0.0859

    Plan Coverage - What the Shriram Group Term Life Insurance in lieu of EDLI plan covers?

    The insurability condition is that the member should be an employee of the company that holds the policy. The member should also be a part of the Employee Provident Fund Scheme.

    In order to set up the scheme, the employer should first notify the employees of the intention to purchase the plan. The data pertaining to employees and the master proposal form should be sent to the insurer. The employer is also expected to pay the premium towards the policy.

    The benefits offered by the Shriram Group Term Life Insurance in lieu of EDLI plan are listed below:

    Benefits to the employee
    • If the member passes away during the policy term, the sum assured under the plan is paid as death benefit.
    • The premium paid by the employer is not considered to be a perquisite to the employee.
    • Claim payments are free of taxes.
    Benefits to the employer
    • The employer can consider the premiums as business expenses.
    • The policy is easy to set up and administer.
    • Irrespective of the employee’s service and salary, the policy offers higher insurance coverage than that provided by EDLI.

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

    Additional features of the Shriram Group Term Life Insurance in lieu of EDLI plan are described below:

    Accident Benefit Rider This rider can be added to the base plan to enhance its coverage. The sum assured under the rider is paid at death or total and permanent disability of the member in an accident. The rider is allowed only when members are aged between 18 and 65 years at the inception or renewal of the policy.
    Member exit When a member exits from the plan, the employer must inform the insurance company of it so that the insurance coverage offered to him/her is ceased. The insurer will refund the premium received from those members for the remaining coverage period. Also the employer should inform the insurance company when a new member enters the group. The proportionate premium for the remaining term should also be determined on a monthly basis.
    Policy renewal The policy can be renewed annually by paying the premium. The employer has to maintain the records of premium payments and keep this information available to the insurer for inspection at any time. If the benefits under the EDLI scheme are altered by the EPFO, the employer should take necessary steps to modify the insurance benefits as well. This should be done in consultation with the insurer.
    Grace period The grace period allowed for outstanding premium payment is as follows:
    • When the premium payment frequency is yearly, there is no grace period.
    • When the premium payment frequency is half-yearly, the grace period is 30 days.
    • When the premium payment frequency is quarterly, the grace period is 30 days.
    • When the premium payment frequency is monthly, the grace period is 15 days.
    During the grace period, the life cover is active and the death benefit will be payable in the event of death of the insured member. The outstanding premium will, however, be deducted from the death benefit.
    Policy revival If the renewal premium is not paid before the grace period ends, the policy will move into lapsed status. The lapsed policy can be revived within the policy term by paying the outstanding premiums. There may be other requirements for policy revival based on the approved underwriting policy of the insurer.
    Free-look period The policyholder will have a 15-day free-look period during which he/she can review the policy terms and conditions. If the policyholder is not satisfied with the same, the policy can be returned to the insurer, stating relevant reasons. The insurance company will then refund the paid premiums after deducting the medical examination costs and stamp duty charges. Policies that were bought through distance marketing have free-look period of 30 days.

    Tax Benefits – How you can save with the Shriram Group Term Life Insurance in lieu of EDLI Plan?

    The Shriram Group Term Life Insurance in lieu of EDLI plan offers tax benefits as applicable.

    Other Benefits – How you can save with the Shriram Group Term Life Insurance in lieu of EDLI Plan?

    Additional benefits of buying the Shriram Group Term Life Insurance in lieu of EDLI plan from the insurer include:

    • Online application: Customers can buy insurance policies online through the insurer’s website.
    • Customer support: The insurance company has an efficient customer service team that provides clarifications to customer queries and resolution to issues. The team can be contacted through email at onlinesupport@shriramlife.in.
    • Grievance redressal: Complaints and grievances can be raised to the customer service team that can be contacted at the insurance company’s toll-free number, 1800 3000 6116.
    • Premium calculator: The Shriram Life insurance website has an online premium calculator using which customers can identify the amount of premium that needs to be paid towards each plan.
    • Premium payment: Premiums can be paid online through debit/credit cards or the customer’s net banking account.

    Why you should buy the Shriram Group Term Life Insurance in lieu of EDLI plan from Shriram Life Insurance?

    A leading insurance provider in India, Shriram Life Insurance has a wide network of 528 branch offices throughout the country. The company has managed more than Rs.1,020 crores in revenue in the past.

    The claim settlement process of the insurer is very efficient and issues/queries raised by customers are resolved within the shortest time. Shriram Life Insurance also offers an extensive range of insurance products that cater to the varied needs of customers. These include term plans, group policies, child plans, ULIPs, etc.

    The insurer has received several awards for its efficient customer service and marketing strategies. Some these include:

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

    This Insurance Company has not partnered with BankBazaarInsurance.com. For more details, please visit its website/branch office. The trademarks, logos and other subject matters of intellectual property belong to their respective owners.