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Shriram Wealth Plus Plan

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Shriram Wealth Plus Plan

 

Shriram Wealth Plus Plan is a Unit Linked Insurance Plan. Thus, it is a Market Linked Insurance Plan without Bonus facility.

 

How it works – In this plan, premium can be paid for a Limited Period of 5, 10 or 15 years under Short Premium Paying Term or for the entire policy tenure as chosen at the policy inception under Regular Premium Paying Term. The premium, net of charges is allocated in any of the 6 available Investment Funds, according to the risk appetite and the choice of the customer. There is also an Auto Transfer facility available in this plan where premiums are initially allocated in a low risk fund Preserver and 1/12th the Fund is automatically transferred to the chosen fund every month so as to average out the volatility of the NAV.

 

On survival till the end of the policy tenure, the Fund Value is paid to the policyholder as Maturity Benefit. However, if the Life Insured dies within the Policy Tenure, the Sum Assured + the Fund Value would be paid to the nominee as Death Benefit and the policy would be terminated.

 

There is 1 additional rider available in this plan- Accident Shield Rider and Critical Illness Benefit Rider.

 

 

Key Features of Shriram Wealth Plus Insurance Plan

 

  • This is a Unit Linked Insurance Plan
  • There is Limited Premium Paying facility in this plan
  • This is Double Death Benefit Plan since Sum Assured + Fund Value is paid to the nominee in case the Life Insured dies within the Policy Tenure
  • On survival till the end of the policy tenure, the Fund Value is paid to the policyholder as Maturity Benefit
  • There are 6 funds available for Investment
  • There is Auto Transfer Facility available in this plan
  • Sum Assured can be reduced during the policy tenure
  • There is 1 additional rider available in this plan

 

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Benefits you get from Shriram Wealth Plus Insurance Policy

 

Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets the Sum Assured + the Fund Value as Death Benefit and the policy terminates.

 

Maturity Benefit – On survival till the end of the policy tenure, the Fund Value is paid to the policyholder as Maturity Benefit and the policy terminates.

 

Income Tax Benefit - 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

 

 

Eligibility conditions & other restrictions in Shriram Wealth Plus Policy                       

 

 

Minimum

Maximum

Sum Assured (in Rs.)

For age <45, SA=higher of (10 X Annualized Premium) or (0.5 X Annualized Premium X Policy Term)

For age>=45, SA= higher of (7 X Annualized Premium) or (0.25 X Annualized Premium X Policy Term)

No Limit

Policy Term (in years)

10, 15

20

Premium Payment Term (in years)

5 / 10 / 15

Equal to Policy Tenure

Entry Age of Life Insured (in years)

7

65

Age at Maturity (in years)

-

75

Annual Premium (in Rs.)

12,000

No Limit

Payment modes

Yearly, Half-Yearly, Quarterly and Monthly

 

 

Additional Features and Benefits of Shriram Wealth Plus Plan

 

Riders – There are 1 Additional Rider in this plan:

Accident Shield Rider

 

Investment Fund Options - In this plan, there are 6 funds available for investment:

  1. Preserver
  2. Defender
  3. Balancer
  4. Maximus
  5. Accelerator
  6. Tyaseer

There is also an Auto Transfer facility available in this plan where premiums are initially allocated in a low risk fund Preserver and 1/12th the Fund is automatically transferred to the chosen fund every month so as to average out the volatility of the NAV.

 

Top-up – Premium can be paid anytime except in the last five policy years. The minimum top-up premium is Rs. 5000 per instalment. The Sum Assured increases by 125% of the Top Up Premium subject to underwriting conditions.  Each Top Up Premium is also locked in for a period of 5 years.

 

Switching – Switching is allowed from any fund to another except in the Settlement Period. There are 2 free switches allowed every year post which there is a fee of Rs 100 for each additional switch.

 

Partial Withdrawal - Partial withdrawals are allowed only after completion of 5 policy years or after completion of 18 years of the Life Insured. The minimum partial withdrawal is Rs 10,000 subject to at least 3 times the Annual Premium should remain in the Fund Value. Each Partial Withdrawal is chargeable for Rs 100 per transaction.

 

 

Charges in Shriram Wealth Plus Plan

 

Premium Allocation Charge – This charge is deducted from the Premium Paid by you

Policy Year

Premium Allocation Charge

1st

7.5% of Annualized Premium

2nd to 10th

6% of Annualized Premium

11th onwards

3.5% of Annualized Premium

Top Up Premium

2% of Top Up Premium

 

 

Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

Policy Year

Policy Administration Charge

1st to 5th

Rs 10 p.m.

6th onwards

Rs 20 p.m. with an increase of 4% p.a. from 7th year

 

 

Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

Type

Charge

Preserver Fund

1.25% p.a.

Defender Fund

1.25% p.a.

Balancer Fund

1.35% p.a.

Maximus Fund

1.35% p.a.

Accelerator Fund

1.35% p.a.

Tyaseer Fund

1.35% p.a.

 

 

Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

Year of Discontinuation

Annual Premium <= Rs 25,000 p.a.

Annual Premium > Rs 25,000 p.a.

1st

Lower of  20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000

Lower of  6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000

2nd

Lower of  15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000

Lower of  4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000

3rd

Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500

Lower of  3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000

4th

Lower of  5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000

Lower of  2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000

5th onwards

NIL

NIL

 

 

Alterations Charge – Change in Sum Assured or Addition of riders is allowed any time during the policy tenure for a fee of Rs 200 per alteration which is levied from Fund Value by cancellation of units.

 

Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.

 

Service Tax would be applicable on the charges depending on the applicable rates.

 

 

What happens if?

 

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.

The policy can be revived as well but within a period of 5 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.

 

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.

 

You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

 

If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.

 

You want a loan against your policy - There is no loan available under this plan.

 

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