is a simple term insurance plan with a few added advantages. Being a traditional non-linked, non-participating policy, this plan is meant for providing a strong financial buffer for one’s family. It can be purchased offline at the branches of Shriram Life, but most of the required forms can be sorted out from the online portal.
Eligibility Criteria of Shriram Life Cash Back Term Plan
The eligibility criteria of this traditional Shriram Life term plan can be mentioned as follows -
- Age at Entry –
- Minimum – 12 years
- Maximum – 50 years
- Age at Maturity – 70 years
All ages mentioned are as per the last birthday.
Features of Shriram Life Cash Back Term Plan
The basic features of this policy are mentioned in the following points.
Policy Conditions –
- Term of Policy – The policy can be of 10 years, 15 years, 20 years or 25 years
- Premium payment term – Premium payment can be limited or regular for each of the policy term. Considering the policy term as the maximum premium payment term for each variant, one could pay premiums for 5 years, 7 years, 10 years, 15 years and 25 years
- Premium payment frequency – Premiums can be paid yearly, half-yearly, quarterly or monthly
- Sum assured –
- Minimum – INR 200000
- Maximum – INR 2000000
General Features –
- Return of premium achieved along with life cover
- No intense paperwork required for the policy
- Low premium rates
- Flexible premium payment terms
- Riders available for more
Benefits of Shriram Life Cash Back Term Plan
The benefits of this simple term insurance plan are listed as below –
- Death Benefit – Sum Assured on Death will be 10 times the annual premium in case age of insured is less than 45 years and will be 7 times the annual premium in case age of insured is more than 45 years. The Death benefit will at least be equal to 105% of all the premiums paid
- Maturity Benefit – Upon the survival of the insured till the policy maturity, one can get a return of all the premiums paid
- Tax Benefit – Premiums paid can avail tax benefit under Section 80C and the maturity benefits as well as the death benefits can avail tax exemptions and/or rebates under Section 10(10D)
Example of Shriram Life Cash Back Term Plan
By paying an annual premium of INR 3000, Mr. X drafted out a plan to have a sum assured of INR 200000. He has chosen a term of 25 years and a regular pay option. Thus, his maturity benefit would be INR 75000.
In case Mr. X passes way, the sum assured amount of INR 200000 will be given to the nominee. One should keep in mind that the rates and figures mentioned are examples only. The insurer will be responsible for any changes in the same.
Frequently Asked Questions about Shriram Life Cash Back Term Plan
- Does this plan have maturity benefits?
The maturity benefit under this plan is basically a return of premiums.
- What is the minimum sum assured under the policy?
The minimum sum assured should be INR 200000.
- What is the minimum policy term?
The minimum term of the policy is 10 years and the maximum is 25 years
- Are there any deductions or charges that have to be considered?
One might have to pay the cess and service tax and these might be separately charged by the insurer.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017