Shriram Life Term Plan

Shriram life term plan is a Non-Linked, Non- Participating online term life insurance which ensures complete financial safety to you and your loved ones during unfortunate uncertainties. The plan provides life coverage upto the age of 75 years with the flexibility to choose from various base options. There are 2 additional coverage options which are available at the inception of the policy and 3 base options for the payout of death benefit and other additional benefits. The plan also offers affordable premium rates even for INR 1 Crore sum assured. 

Moreover, the plan also provides a free-look period, during which if you are dissatisfied with the terms and conditions of the policy then you can return it  by stating the reasons for the disagreement. The free-look period is valid for 30 days from the date of policy receipt. The premium is refunded back  after deduction of proportionate risk premium for the period cover, stamp duty charges and medical examination charges.

Best Features of Shriram Life Term Plan

Below mentioned are some key features of Shriram Life Term Plan which makes it distinctive from its counterparts: 

• The assured is entitled to the benefit coverages upto the age 75.
• The plan offers 3 base options- lump sum, monthly income and  lump sum + monthly income.
• There are additional 2 riders to cover the uncertainties- Critical Illness and Accidental Death Benefit.
• Apart from death benefit,the  plan provides terminal illness benefit.
• The plan provides lower premium rates for non-smokers and a 3 years setback on the premium rate of female lives as compared to the male premium rate.
• Shriram Life Term Plan provides Total and Permanent Disability benefit where all the future premiums including the additional cover premiums are waived off and the plan continues for the remaining term plan.
• The plan provides a ‘High Sum Assured Discount’ which avails discount on the premium rates if you opt for a high sum assured.
• You have an option to pay premium payments monthly, half-yearly and quarterly and yearly.
• If your policy and riders lapse, you can revive them for full coverage within 5 years from the due date of the first unpaid premium.

Benefits of Shriram Life Term Plan 

Listed below are some of the noteworthy benefits that one gets upon choosing Aegon iTerm Plan:

• Death Benefits 

On the death of the assured, the nominee can get the death benefit in the form of lump sum , monthly income or lump sum + monthly income. The death sum assured is calculated after evaluating the following points, whichever is the highest :

1. 10 times of the all the annualised premiums for all ages.
2. Basic sum assured.
3. 105% of all the premiums paid till the date of death.

• Terminal Illness Benefit

In the Terminal Illness Benefit, the assured gets the base sum assured provided that the policy is active as lump sum , monthly income or lump sum + monthly income. The complete sum of amount is given to the assured on the date of diagnosis of the Terminal illness. The policy will be terminated once the payment is complete.  

• Preferential Premium Benefits

Shriram Life Term Plan promotes a healthy lifestyle, therefore, it provides less premium to the non-smokers as compared to smokers. The plan also provides a 3 year setback for the female assured  as compared to male lives.

• Optional Cover Benefits 

The plan provides 2 additional coverage options - Critical Illness and Accidental Death Benefit to secure the assured from any uncertainties. You can opt the right plan as per your requirements and budget. These coverage options are selected at the inception of the policy and after the payment of the sum assured of the optional cover, the additional plan terminates and the base plan continues.

What is Covered?

Shriram Life Term Plan provides coverage as per the plan variant you choose. The plan is available in the following 3  variants on the basis of the benefit payout method chosen-

1. Lump Sum 

This variant offers the following coverage:

• Death Benefit 

In case of the death of the assured, the nominee will be paid the sum assured immediately as lump sum. After the payment of the sum assured,  the policy will be terminated and no further benefits are payable to the nominee.

• Terminal Illness 

If the assured suffers a terminal illness within the term of the policy then the sum assured is payable to the assured on diagnosis of the illness.  After the payment of the sum assured the policy gets terminated and no future benefits are accrued.

How lump Sum variant works-

Example 

Benefit Payable 

1. If Mr. Chaudhary dies within the term of the policy then an immediate lump sum amount of INR 50 Lakh is released to the beneficiaries
2. If Mr. Chaudhary  suffers from a terminal illness, the base sum assured i.e INR 50 Lakh is payable to him. After payment of the benefit the policy terminates and no future benefits are payable.

2. Monthly Income

Under Monthly Income, following benefits are covered:

• Death Benefit

If the assured dies within the term of the policy, then the nominee is entitled to 1% of the base sum assured every month as monthly income.

• Terminal Illness 

If the assured suffers from a terminal illness then the assured will get 1% of the base sum assured every month as the monthly income.

How the monthly income variant works:

Example

Benefits payable 

1. If Mr. Chaudhary dies within the term of the policy then the benefit is payable to the nominee as 1% of the base sum assured i.e INR 0.5 Lakh every month.
2. If Mr. Chaudhary suffers from a terminal illness then he will receive INR 0.50 Lakh every month instead of a sum assured as lump sum.

3. Lump Sum + Monthly Income 

The following types of coverage benefits are offered under the  Lump Sum + Monthly Income 

Option:

• Death Benefit 

In case of death of the assured, the nominee is entitled to 50% of the base sum assured as lump sum and the other 50% as monthly income. The monthly income is calculated as 0.5% of the base sum assured.

• Terminal Illness 

In case the assured suffers a terminal illness then 50% of the base sum is assured as lump sum and 50% of the sum is payable as monthly income for coming years. 

Here’s how the Lump Sum + Monthly Income  works:

Example 

Benefits Payable

1. If Mr. Chaudhary dies within the term of the policy then his nominee will receive INR 25 Lakh as lump sum immediately and ₹ 25,000 as monthly income.
2. If Mr. Chaudhary suffers from a terminal illness then he will get INR 25 Lakh as lump sum immediately and ₹ 25,000 as monthly income until the policy matures.

What is not Covered?

The main exclusion under Shriram Life Term is death by suicide. In case the suicide occurs within the 12 months from the date of the commencement of risk under the policy then the nominee is entitled to 80% of the total premiums paid till the date of death.

Exclusions for Terminal Illness

• Any pre-existing disease which is not under the knowledge of the insurer.
• Disease in the presence of HIV infection and AIDS.
• Diseases caused due to the attempted suicide in the first year of the commencement of the risk under the policy or revival of the policy.

Exclusions for Accidental Death benefit 

• Any pre-existing disease which is not under the knowledge of the insurer.
• Disease in the presence of HIV infection.
• Self-inflicted injury, death or disability caused by suicide attempt.
• Death caused due to war, commotion, invasion, terrorism etc.
• If life assured has taken part in any hazardous activity such as hunting, racing, mountaineering and bungee jumping etc.
• Active participation by the life assured in riots, strikers and disputes.
• Accident or injury caused by flying an aircraft.
• Insured person being under the influence of drugs, alcohol, narcotics or psychotropics substances without prescription.
• Serving in any military, police, paramilitary or such organisations.
• Death due to engaging in criminal or illegal activity .
• Nuclear reaction, radiation or chemical contaminations.

Shriram Life Term Plan Eligibility 

* All the aforementioned ages (in years) are valid as on last birthday. 

Shriram Life Term Plan Claim Process

At Shriram Life Term Plan, a 3-step claim process has been designed to ease the customer’s troubles. The primary objective is to take up the least amount of time while settling all valid claims. 

The claim process is the same in Shriram Life Term Plan, however the documentation required differs for each claim type.

Claim Process:

1. To initiate the claims process in case of death, the nominee of the deceased has to inform the insurance company about the death of the assured.
2. You, as a nominee, can apply for a claim by filling up the relevant claims form properly and furnishing all the correct data.
3. Once the papers and documents are found in order and verified for authenticity,  Shriram Life ensures that the claims are settled at the earliest possible moment.

Documentation required for Death Claims

• Death certificate issued by a local government body like municipal corporation etc.
• Copy of hospital records such as admission notes, progress sheets, test reports, discharge etc.
• Original policy documents.
• Nominee’s photo ID with age proof and relationship with the assured along with the address and bank details.
• ID proof of assured along with address.
• Duty filled claim forms.

Documents required for Total Permanent Disability

• Disability intimation letter.
• Complete medical records of the assured.
• Age, address and ID of the assured.
• Disability certificate issued by the medical institute.
• Bank passbook of the assured.

Documents required for Critical Illness 

• Complete medical records.
• Age and ID of the assured.
• Critical illness intimation letter.
• Bank passbook of the assured.

Online Mode

You can provide intimation to the Shriram Life for your claim online by following the steps mentioned below:

• Click on the link https://shriramlife.in/SLP/SLDeathClaim.aspx to start the intimation process through the internet.
• Enter the policy number which was issued at the inception of the policy and date of birth of the assured.
• Enter the applicable claims details and follow the claim process for a hassle-free settlement.

Shriram Life Term Plan Riders

Shriram Life Term Plan offers 2 rider options to provide extra coverage for uncertain times. The details of the Riders are given below:

• Critical Illness Rider

This add-on rider protects the assured from any critical illness from conditions such as Open Chest CABG, Cancer, third degree burns and stroke etc. The sum assured is paid as a lump sum to the assured and the base plan continues. There are 23 major illnesses covered under this rider and the benefit is only payable if it is the first illness under the policy term.

• Accidental Death Benefit Rider 

This add-on rider offers extra coverage in case of an accidental death. The nominee is entitled to the sum assured as lump sum provided that the death is caused by an accident. After the payment of the sum assured to the nominee the rider benefit will terminate and the base policy will continue for the remaining policy terms. 

Shriram Life Term Plan Review 

Shriram Life Term Plan is a cost-effective protection plan which ensures total coverage against death, critical illness, terminal illness and total and permanent disability. The plan provides flexible payout options and coverage upto 75 years. The affordable premiums of the Shriram Life Term Plan ensures that no extra burden is put on the family in your absence. The claim settlement ratio registered by Shriram Life Term Plan in FY19 stands at 85.30%. 

Moreover, the plan comes with a grace period of 30 days (15 days if the payment mode is monthly), if you are not able to pay the premium payment on time. The grace period begins from the first non-payment of the premium due date. If the death of the assured occurs within the grace period then then the death benefit will be payable to the nominee after deducting the said unpaid premium. This plan is best suitable for the people who are interested in purchasing a life insurance plan that not only provides life cover but also provides coverage against accidental death and critical illness.