Each organisation tries its best to provide its members amenities which are appreciated and utilised, helping build a stronger connect between all entities involved. The feeling of being protected can go a long way in strengthening ties, which is why most organisations/employers offer insurance protection to their members. The Shriram Life Group Term Life Insurance Plan is ideal for both, employer - employee groups as well as non-employer – employee groups. Non-employer – employee groups include groups dealing with farmers, lender associations, agriculturists, etc.
This is one year plan, which can be renewed as per the needs of the group, with the policy offering financial protection in the event of demise of a member.
Organisations looking to reap the benefits of this plan need to satisfy a few basic criteria, as highlighted below:
|Parameters||Criteria for eligibility|
|Minimum age at entry||14 years|
|Maximum age at entry||79 years|
|Maximum age at maturity||80 years|
|Minimum group size||Employer – employee groups: 20 members Other groups: 50 members|
In addition to these, Shriram Life expects members to be healthy at the time of entering a scheme. Also, a member shouldn’t have been on sick leave for more than a week in the six months preceding the entry date.
Sum Assured – An organisation looking to purchase this plan will expect financial support if any member meets with an unfortunate incident (death/total and permanent disability, etc.). The protection provided by the insurer is in the form of the sum assured, which is the amount payable if any member passes away during the policy term. This sum assured depends on the premium paid, and an organisation can choose to enhance/reduce the protection based on its resources. The table below indicates the minimum and maximum sum assured offered by this plan.
|Minimum Sum Assured||Rs.5,000 per member|
|Maximum Sum Assured||No upper limit|
Premium* - In order to avail protection under this plan, the master policyholder (typically the head of organisation) is expected to pay a certain sum as premium. This amount can be invested by the insurer into multiple avenues, thereby ensuring that the insurer is able to meet any financial commitment made to a group. The premium varies based on the number of members in a group, with the sum assured being directly proportional to the premium paid. Given the fact that this is a group plan, premiums for the entire group are cheaper compared to premiums for single policies. The table below highlights the various aspects related to the premium
|Minimum term of the policy||1 year|
|Maximum term of the policy||1 year|
|Premium Payment Mode||
|Minimum Single Premium Amount||NA|
|Maximum Single Premium Amount||NA|
|Minimum Monthly Premium Amount||NA|
|Maximum Monthly Premium Amount||NA|
|Minimum Quarterly Premium Amount||NA|
|Maximum Quarterly Premium Amount||NA|
|Minimum Half-yearly Premium Amount||NA|
|Maximum Half-yearly Premium Amount||NA|
|Minimum Yearly Premium Amount||NA|
|Maximum Yearly Premium Amount||NA|
*Premiums can vary depending on factors like the organisation, the type of work it does, reputation of the organisation, location of company, etc. Applicants should check the same with the insurance provider before purchasing a plan.
This plan is designed to offer protection to members of a group. It, however, should not be the only mode of protection, for the scheme offers limited benefits and protection. The plan essentially helps an employer/organisation provide basic support to the family of a deceased member, with protection offered for a period of one year. The cover provided by this plan is listed below:
|Death Benefit||In the event of demise of any member of the group, the sum assured will be paid to the nominee of said member. The policy will continue to provide protection to other members. The sum assured depends on the premium paid by an organisation.|
|Maturity Benefit||There is no maturity benefit provided under this policy.|
|Surrender Benefit||Being a group plan with a one year term, there is no provision for a surrender benefit under this scheme.|
An organisation can choose to enhance the protection offered under this plan by adding riders to it. Shriram Life currently offers one rider option with this scheme, the Accident Benefit Rider.
|Minimum age at entry||18 years|
|Maximum age at entry||65 years|
|Maximum age at maturity||75 years|
|Minimum sum assured (for rider)||Rs.50,000|
|Maximum sum assured (for rider)||Rs.25 lakh|
Most insurance plans have certain exclusions, under which the insurer pays a limited sum/does not pay any sum assured. In case of the Shriram Group Term Life Insurance Plan, the exclusion is suicide. This exclusion is limited to non-employer – employee groups, under which the insurer will pay only 80% of the premium paid if a member of a group commits suicide within a year of joining the policy. The mental state of the member will not be considered, with this applicable even if the member committed suicide in an insane frame of mind.
In case of employer – employee schemes, there is no suicide exclusion.
|Grace period||Shriram Life provides a 30 day grace period if the organisation pays the premiums every quarter/every six months. In case of premiums being paid every month, the grace period is limited to 15 days. Grace period doesn’t apply for yearly payments as this is an annually renewable plan.|
|Free look period||Organisations which have purchased the policy through distance marketing are given a 30 day free look period within which they can choose to return the policy. Organisations which purchase the policy through other means have a 15 day free look period.|
|Revival||Policies which have lapsed due to non-payment of premium can be revived by paying the premium before the completion of the policy term.|
|New members||In case a new member joins an organisation, he/she can be made a beneficiary under the plan. The employer/head of organisation should inform the insurer and pay the requisite premium for the period left in the term. Once premium is paid, the new members are protected under the plan.|
|Exit of members||In case a member quits an organisation/is removed, Shriram Life will refund the premium based on the term remaining in the policy. Such individual will no longer be protected under the scheme.|
Tax benefits can be availed as per the current provisions of the Income Tax Act.
It is imperative for organisations to provide additional incentives to their members/employees. With each employee looking to secure the future of his/her loved ones, purchasing this term insurance plan can go a long way in employee retention. Not only is this plan simple to purchase, it can be renewed annually, thereby giving the organisation freedom to decide if the plan suits their needs.
The premium amount one pays to insure a member is cheaper compared to single insurance plans, with it possible to cover all members in a group under the scheme. A master policyholder can also choose to enhance the protection by adding riders to the policy.
A number of different organisations can avail protection under this scheme, with it open to employer – employee groups as well as non-employer – employee groups. The master policyholder can opt to classify members based on their seniority, with different levels of protection accorded to different classifications.
In addition to the benefits provided by the plan, Shriram Life Insurance also has a reputation for being customer friendly, with it having a grievances solved ratio of 96.70 percent as of 2015-2016, thereby ensuring that an organisation does not face any hassles when it comes to any claims.
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