Shriram Life Insurance launches new Money Back Term Plan

Shriram Life Insurance today announced the launch of ‘Shriram Life New Money Back Term Plan’. It is a non-linked, non-participating assurance plan designed to provide an affordable life cover while returning all the premiums to the policyholder at the completion of the policy term.

“We already have a fairly successful money back term plan in our portfolio. We made a few changes to it such as reducing the surrender charges and lowering the age at entry. The minimum annualized premium is kept as low as Rs.3000”, said Manoj Jain, CEO of Shriram Life.

The New Money Back Term plan offers to pay a lumpsum payment on the unfortunate death of the life assured during the policy term. On survival, all basic premiums paid during the policy term will be returned.

The sum assured one gets is between Rs 2 lakhs and Rs 20 lakhs. And the premium payment frequency can be yearly, half-yearly, quarterly or monthly. The minimum age of entry is fixed at 12 years and the maximum age of entry is 60 years.

The maximum age at maturity is 70 years. The customer can also choose from four different rider options available under this plan – accident benefit, critical illness, total and permanent disability and family income benefit riders.

Family Income Benefit rider is a unique rider which provides one per cent of the sum assured every month till the end of the policy term or for 10 years, whichever is higher, if the life assured dies in an accident.

 For example, if the sum assured is Rs 20 lakhs, the nominee will be entitled to receive Rs 20,000 every month (in addition to the lumpsum 20 lakhs sum assured) for at least 10 years after the death of the life assured.

“A rider like this helps in maintaining the stream of income even after the death of the breadwinner and it is important for a customer to take this rider, especially if he is earning” said Jain.