Shriraksha Insurance Plan
ShriRaksha Insurance Plan is a Limited Payment Participating Whole Life Plan. Thus, it is a Traditional Plan with Bonus facility.
Key Features
There are 5 additional riders possible in this plan:
- Accident Benefit Rider
- Family Income Benefit Rider
- Extra Insurance Cover Rider
- Critical Illness Cover Rider
- All Causes Total and Permanent Disability Rider
Benefits
In case of death of the Life Insured:
- Within the Premium Paying Term, the nominee would receive TWICE the Sum Assured + vested Bonus as Death Benefit and the policy will terminate
- After the Premium Paying Term, the nominee would receive the Sum Assured as Death Benefit and the policy would terminate
On survival till the end of the premium paying term, the Sum Assured + the vested Bonus would be paid as Survival Benefit to the policyholder and the policy would continue.
Being a Whole Life Plan, there is no Maturity Benefit in this plan.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
How it works
In this plan, premium needs to be paid for a Limited Period while the policy continues as long as the Life Insured is alive.
This is a Double Benefit Plan. If the Life Insured dies within the Premium Paying Term of the plan, Twice the Sum Assured along with Vested Bonus is paid to the nominee as Death Benefit and the policy terminates.
However, on survival till the end of the Premium Paying Term, Survival Benefit of Sum Assured + Vested Bonus would be paid to the policyholder and the policy continues. Whenever the Life Insured dies after the Premium Paying Term, the entire Sum Assured is paid to the nominee as Death Benefit and the policy terminates.
There are 5 additional riders in this plan.
Eligibility
| Minimum | Maximum | |
| Sum Assured (in Rs.) | 50,000 | No Limit |
| Policy Term (in years) | 10 | 25 |
| Premium Payment Term (in years) | Equal to Policy Term | |
| Entry Age of Life Insured (in years) | 12 | 65 |
| Age at End of Premium Paying Term (in years) | 18 | 75 |
| Payment modes | Quarterly, Half-Yearly and Yearly | |
FAQs
You stop paying the premiumIf the policy holder stops paying the premium, the policy lapses and all benefits cease. However, if at least 3 years premiums have been paid, then the policy gets converted to Paid Up Value and continues with reduced benefits. The policy can however be revived within 5 policy years from the due date of the first unpaid premium.
You want to surrender the policyThere are surrender benefits under this plan after completion of 3 years.
Guaranteed Surrender Value= 30% of Total Premiums paid – 1st year’s premium
You want a loan against your policyLoan facility is available under this plan upto 90% of Surrender Value.
