OTP Verification
Please Enter OTP that has been sent to your registered
mobile number +91
FAQ's for Shriram Life Premier Assured Benefit Plan
What is a Non - Participating Plan? Is Premier Assured Benefit Plan a Non - Participating plan?
Non-Participating insurance plans provide guaranteed benefits to the policyholder, unlike the Participating plans. For Non-Participating plans, the sum assured is payable on the policyholder's demise, or the survival/maturity benefits are payable as per the benefits mentioned in the policy document. In a Participating policy, the benefits are not guaranteed as the policyholders gets a share in the profits of the insurance company.
Do we have to pay any additional premium if we opt for any riders?
Yes, the policyholder has to pay an additional premium for each rider chosen.
What if we miss paying the premiums?
In case the premium remains unpaid at the expiry of the Grace Period during the first two years, the policy will lapse and no benefits will be paid. In case the premium remains unpaid at the expiry of the Grace Period after the first two policy years, provided that the premiums of the first two years have been paid in full, the policy status will change to paid up. This paid-up policy will then continue up to the expiry of the Policy Term or till the death of the Life Assured, whichever is earlier.
What benefits do we get in case we surrender the policy?
You have an option to surrender the policy before its maturity after premium has been paid for at least 1 year. On surrendering the policy, you will receive a Surrender Value, which is higher of the Special Surrender Value (SSV) or the Guaranteed Surrender Value (GSV).
What is the minimum period to surrender the policy?
The policy will acquire the surrender value provided premiums for at least one year is paid.
Can we avail loan under this plan?
Yes, upto 80% of the Surrender value is allowed as a loan on this policy. Interest will accrue on the outstanding loan amount at a rate declared by the company from time to time.
Do we have any tax benefits under this plan?
You can avail the tax benefits for Limited pay option only, and tax benefits are not applicable for Single pay option.
Following are the tax benefits under Limited pay option;
100% tax deduction on premiums paid up to 1.5 Lakhs in a year
Income/Maturity/Death benefits are also tax exempted.
Can we revive the paid-up policy, and what is the max period to revive the policy?
Yes, the Lapsed or Paid-up policies can be revived within 5 years from the date of the first unpaid premium as per the board-approved underwriting policy, by paying all outstanding premiums together with interest payable as applicable.
What is the difference between two life cover options in Premier Assured Benefit?
Life: Death Sum Assured is paid immediately in Lump sum to your family in case of anything unfortunate happens to you and the policy will be terminated.
Life Plus : Death Sum Assured is paid to your family in equal
monthly instalments starting from the month of death till the end of the policy term or for a minimum of 36 instalments in case of anything unfortunate happens to you
+
In addition to the above, the income/maturity benefits according to the pay-out option chosen by you will continue to be paid, as and when due.
What are the benefits paid under this plan?
The following benefits are paid under this plan;
1) Death benefit
2) Survival benefit
3) Maturity benefit
Describe the different pay out options in this plan?
Income Option: Regular Annual Income payouts as a percentage of annualised premium are paid as survival benefits on each policy anniversary following the end
of the premium payment term and continue till the last policy year. At the end of the policy term, the maturity sum assured is paid in a lump sum.
Settlement Option:
Settlement in Instalments - Maturity benefit is paid in four equal annual instalments starting from the date of maturity.
Settlement in Lump sum - If the life assured opts to receive the Settlement in Instalments benefit as a lump sum, 88.85% of the total benefit payable will be paid in a lump sum on the date of maturity.
Are all the payout options available under both Life and Life plus options?
Yes, One can choose any payout option irrespective of the Life cover chosen
Do you have any benefits for higher premiums paid?
For higher premium policies, the maturity benefit shall be increased by adding certain percentages to the maturity benefit factor. The percentage varies as per the Premium mode (i.e. Limited/Single pay) chosen and the premium band.
What benefits are paid at the time of Maturity?
If the life assured survives till the end of the policy term, provided the policy is in force, then the Maturity Sum Assured is paid as follows;
For Income/ Settlement in Lump Sum : Maturity Sum Assured is paid in a lump sum on the date of maturity and the policy will be terminated.
For Settlement in instalments : Maturity Sum Assured is paid in four equal annual instalments. The first instalment payment starts on the date of maturity.
Maturity Sum Assured (MSA) = Maturity benefit factor X Annualised Premium / Single Premium
What is the death benefit paid if the life assured opts for Life option?
Death Sum Assured is paid in Lump sum and the policy will be terminated.
Death Sum Assured is highest of the following;
11 times the annualised premium for Limited pay (OR)
1.25 times the Single Premium for Single pay (OR)
105% of Total Premiums paid till date of death (OR)
Surrender Value
What is the death benefit paid if the life assured opts for Life Plus option?
Death Sum Assured is paid to your family in equal monthly instalments starting from the month of death till the end of the policy term or for a minimum of 36 instalments in case of anything unfortunate happens to you. In addition to the above, the income/maturity benefits according to the pay-out option chosen by you will continue to be paid, as and when due.
Death Sum Assured is highest of the following;
11 times the annualised premium for Limited pay (OR)
1.25 times the Single Premium for Single pay (OR)
105% of Total Premiums paid till date of death (OR)
Surrender Value
Are the Maturity and Survival benefits same for Life and Life Plus options?
The Survivals benefits are same irrespective of the Life cover option chosen, but the Maturity benefit varies as per the Life cover chosen.
Can we change the payout option during the policy term?
No, the Payout option cannot be altered anytime before the benefit payout starts.
Do we need to pay any extra premium if we choose Life plus option?
No, the premium payable remains the same irrespective of the Life cover option chosen.
Do you have any optional riders under this plan and what is the eligibility to opt for the riders?
Yes, we have 4 optional riders under this plan.
Limited Pay: Riders will be offered only if the outstanding premium term is at least 5 years.
Single Pay: Riders will be offered at the inception of the plan only.
Do we have to pay any extra premium if opted for riders?
Yes, you can opt for riders by paying some additional premium
Is this plan available under POS & CPSC-SPV sale?
Yes, this plan is available for sale through POS & CPSC-SPV
Can we opt for riders under POS & CPSC -SPV sales?
No, Riders are not allowed for POS & CPSC - SPV sales
Can we alter the Life cover option during the policy term or after the inception of the policy?
No, the Life cover option once chosen cannot be altered subsequently during the policy term.
I have a school-going kid, I need a financial plan which helps to meet my child's graduation expenses. Can the Premier Assured Benefit suffice my needs?
You can choose the Premier Assured Benefit with Settlement in instalments option, to plan for your child's education. As you receive the Maturity benefit in 4 equal annual instalments from the date of maturity . which can be used for the child's graduation expenses.
I have a 3 yr old kid, I need a financial plan which helps to pay for his school and college fees which is a recurring expense. I also need an insurance plan to protect my family / my child's education in case of my death. What should I do?
You can choose the Premier Assured Benefit - Life Plus cover with Income Option , where you start receiving the pay-outs from the end of the PPT, which can be used to pay the child's education expenses. In Case death occurs during or after the PPT, the outstanding pay-outs and Maturity benefit is paid as per the schedule in addition to the death benefit paid as Monthly income for a minimum of 3 yrs or till policy Maturity, whichever is later. So that your child can have financial support for education.
I want to plan for my retirement, How will this plan help me in planning it?
You can choose the Premier Assured Benefit with the Lump Sum option. The Lump Sum amount which you receive as a Maturity benefit at the end of the PT can be used to purchase an annuity plan, which provides a regular source of income till death.
I have a dream of buying a house in my hometown, Can the Premier Assured Benefit help me to achieve it?
Yes, you can choose the Settlement in Lump Sum option, which gives you the Maturity benefit in Lump Sum, which you can use to fulfil a large financial goal.
I am a Business man; I am looking for a hedging tool to protect my family financially from any volatile business outcomes? Where should I invest?
You can take the Premier Assured Benefit - Life Plus cover with Income option that gives Capital Guarantee with Guaranteed returns. Even if you incur loss in your business, the Premier Assured Benefit protects your family financially and acts as secondary source of income to fulfill your families basic needs and the Lump sum amount received on Maturity can be used for financial security or a front money to purchase a house.
I am a Business man; Since my income is unstable I want to secure my child's education irrespective of my income ? Where should I invest?
You can opt for Premier Assured Benefit Single Pay with Income option, where you pay once and reap the income benefits from the next policy anniversary till end of the policy term, which can be used for your child's education and other recurring expenses of the family, and the Lump sum benefit received at the end of the policy term can be used for child's higher education or to purchase a house.
