Shriram Life Insurance Company has launched a new plan named ‘Shriram Life New Money Back Term Plan’. It is a non-linked, non-participating assurance plan designed to provide an affordable life cover while returning all the premiums to the policyholder at the completion of the policy term.
Company already has a money back term plan in its portfolio. In this new plan company has made few changes to it such as reducing the surrender charges and lowering the entry age.
The new money back term plan offers to pay a lump sum payment on the unfortunate death of the life assured during the policy term. On survival, all basic premiums paid during the policy term will be returned.
The minimum annual premium for the plan is Rs 3,000. The sum assured under the plan is between Rs 2 lakhs and 20 lakhs. The premium payment frequency can be yearly, half-yearly, quarterly or monthly. Minimum entry age for the plan is 12 years while maximum is 60 years. The maximum maturity age is 70 years.
You can also choose from four different rider options available under this plan – accident benefit, critical illness, total and permanent disability and family income benefit riders.
Family income benefit rider is a unique rider which provides one per cent of the sum assured every month till the end of the policy term or for ten years, whichever is higher, if a life assured dies in an accident. For example, if the sum assured is Rs 20 lakhs, the nominee will be entitled to receive Rs 20,000 every month (in addition to the lump sum Rs 20 lakhs sum assured) for at least ten years after the death of the life assured. A rider like this helps in maintaining the stream of income even after the death of the breadwinner and it is important for a customer to take this rider, especially if he is earning.