Shriram Life Child Plans

New Shri Vidya is a non-linked participating plan which offers survival benefits in line with your child's education needs in addition to an insurance cover in the event of your unfortunate demise.

Benefits of New Shri Vidya

1. 25% of basic sum assured for each of the last four years will be paid as survival benefit
2. In the unfortunate event of your death during the policy term, your nominee will receive death benefits as listed below:  
   1. Sum assured on death
   2. Reversionary Bonuses in addition to terminal bonus. The death benefit will be 105% of premiums paid till death sans rider premiums
3. Sum assured on death is higher of the following:
   1. Under 45 years: 10X the annual premium
   2. Above 45 years: 7X the annual premium
   3. Basic sum assured and additional death benefit of 25% of basic sum assured and family income benefit (1% of basic sum assured every month following demise of the life assured). The additional death benefit can be taken as a lump sum as well.
4. Accrued reversionary bonuses and  terminal bonus will be paid as maturity benefit
5. This plan provides three riders, namely, accident benefit rider, extra insurance cover and critical illness cover

New Shri Vivah

New Shri Vivah is a non-linked participating plan which offers double besides maturity benefits. This plan offers monthly income to your loved one in case of your unfortunate death.

Benefits of New Shri Vivah

1. Basic sum assured in addition to terminal bonus and accrued reversionary bonuses will be paid as maturity benefit, subject to payment of all premiums without fail  
2. Sum assured on death is higher of the following:
   1. Under 45 years: 10X annual premium
   2. Above 45 years: 7X annual premium
   3. Basic sum assured and additional death benefit of basic sum assured at the end of the policy term and family income benefit (1.5% of basic sum assured every month following demise of the life assured). The additional death benefit can be taken as a lump sum as well.
3. This plan provides three riders, namely, accident benefit rider, extra insurance cover and critical illness cover
4. In the unfortunate event of your death during the policy term, your nominee will receive death benefits as listed below:  
   1. Sum assured on death
   2. Reversionary Bonuses in addition to terminal bonus will be paid immediately after death. The death benefit will be 105% of premiums paid till death sans rider premiums

Example

Anuradha Gupta, a 31-year-old software development engineer, opted for the New Shri Vivah insurance plan for her child for a policy term of 15 years. Upon her death, her nominee got the accrued reversionary bonuses, terminal bonus and basic sum assured in addition to the additional death benefit.

Useful Tips

You should consider various factors such as your current income, inflation and financial requirements of your child  before choosing a child insurance plan. Shriram Life offers two child insurance plan which are non-linked participating plans. You would do well to weigh the pros and cons of both plans offered by Shriram Life to make an informed decision. Both plans offer various advantages. For instance, New Shri Vivah plan offers tax benefits under section 80C of the IT act and the flexibility of altering your sum assured and make advance premiums while New Shri Vidya offers loan facility and rebates for high sum assured among others.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017