Shriram Life Child Plans

Shriram Life Insurance Company is a joint venture between the Shriram Group with its headquarters in Chennai and Sanlam which is a leading financial services group based out of Cape Town, South Africa. While Shriram holds a stake of 74% of the company, the Sanlam Group has a 26% holding of the insurer. Founded in 2005, the company started its operations from 2006 and made a record of earning a profit for a consecutive period of 3 years. The company is more focused in meeting the insurance requirements of the lower segment of the society to benefit them. The products designed and offered by the company are of high quality at affordable rates to meet the pocket and the requirement of the common man.

Shriram Life Child Plans

Shriram Life Insurance Company deals in two types of child insurance plans which are both traditional plans in nature. The child education plan with their complete details are listed below:

Shriram New Shri Vidya Plan

The plan is a money-back child plan and has the listed benefit structure:

• The plan qualifies for bonus declarations
• The premiums can be paid either for the entire duration of the plan under the Regular Pay option or for a limited tenure under the Limited Pay option of premium payment.
• 25% of Sum Assured is paid during the last 4 years of the term as money-back benefits if the insured survives till that period
• On maturity of the policy, the total vested reversionary bonuses and Terminal Bonus, if available, is payable to the policyholder
• If death occurs, the benefit paid will be the higher of basic Sum Assured plus the Additional Death Benefit or 10/7 times the premium payable annually including the vested reversionary bonuses and any Terminal Bonus.
• The Additional Death Benefit is calculated by adding up the discounted value of the money-back benefits payable in the last 4 years of the policy and the inbuilt Family Income Benefit
• The Family Income Benefit pays 1% of Sum Assured every month after the insured dies and till the completion of the policy tenure
• The nominee can avail the death benefit in lump sum or choose to receive the money-back benefits as and when they accrue, i.e. in the last 4 years of the plan and the monthly Family Income Benefit of 1% of the Sum Assured following the date of death till the end of the tenure.
• Loan can be availed under the plan which can be a maximum limit of 90% of Surrender Value
• The plan can be customized by availing additional riders like Accident Benefit Rider, Shriram Extra Insurance Cover and Shriram Critical Illness Cover Rider.
• Discounts are allowed to policyholders if the premiums are paid in advance
• Rebates in premium is also allowed for opting for Sum Assured levels of Rs.5 lakhs and above

Eligibility Details

Shriram New Shri Vivah Plan

A plan designed especially to take care of the expenses occurred during the marriage of the child. The features and benefits of the plan are as follows:

• The plan The plan participates in the profits of the company by way of earning bonuses
• The premiums under the plan can be paid either for the entire duration of the plan under the Regular Pay option or for a limited tenure under the Limited Pay option of premium payment.
• On maturity of the policy, the basic Sum Assured and the vested reversionary bonuses and any Terminal Bonus is paid to the policyholder.
• In case of the insured dying when the plan is running, the benefit paid will be higher of the basic Sum Assured plus the Additional Death Benefit or 10/7 times the annual premium paid along with the vested reversionary bonuses and any Terminal Bonus subject to a minimum of 105% of the premiums which were paid until death
• The Additional Death Benefit is calculated by adding up the discounted value of the basic Sum Assured payable on maturity of the policy and the inbuilt Family Income Benefit
• The Family Income Benefit pays 1.5% of the Sum Assured every month after the death of the insured till the end of the policy tenure
• The nominee can avail the death benefit in lump sum or choose to receive the monthly Family Income Benefit of 1.5% of the Sum Assured as and when it accrues, i.e. following the date of death of the insured till the end of the tenure.
• Loan can be availed under the plan up to a maximum of 90% of the Surrender Value
• The plan can be customized by availing additional riders like Accident Benefit Rider, Shriram Extra Insurance Cover and Shriram Critical Illness Cover Rider.
• Discounts are allowed to policyholders if the premiums are paid in advance
• Rebates in premium is also allowed for opting for Sum Assured levels of Rs.5 lakhs and above

Eligibility Details

Applying for a Child Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Applying For Child Plans through PolicyBazaar

1. On the PolicyBazaar homepage, click on Child Plans under the Personal tab.
2. Click New Quotes to compare and choose from top insurance providers.
3. Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
4. Fill in your name, email address, city, country code, and mobile number. Click Continue.
5. You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
6. After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
7. You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
8. This will take you to the insurer’s website. Fill in the necessary details to buy the plan.

Who needs a Child Plan?

A child plan is an insurance policy that insures the parents to ensure that the child’s financial needs are looked after. A child plan can be customized to get payments at important milestones of the child’s life. As a result, every modern day parent and their children need to be protected with a child insurance plan. These plans are specially needed for people who have tall ambitions for their children and wish to educate them in the top schools and college, in India and abroad. The plans are also very beneficial for parents who do not have a huge income but want their children to have a smooth education and lavish wedding later on. Child plans help in building up funds that make all these dreams come true.

Does a mid-level wage earner need a child plan?

Perhaps, people with mid-level earnings most require the child plans. And since the majority of the urban Indian population fall in this category, we see more and more people opting for child plans every day. A child plan helps you to build up a corpus for the future education costs of your child. Since a middle class person would find it difficult to arrange a huge fund at one go, building a fund over time helps. Then, a child plan also covers the life of the parent and if he or she dies, the plan remains active. The premium is waived but the child still receives the funds when needed. So this makes it very suitable for the middle class, who usually do not have a lot of money to fall back on in a testing financial situation.

Does a successful businessman need a child plan?

A successful businessman may have a huge bank balance and may think that the funds will suffice for his child’s future educational costs. While that is probable, in the modern day life we cannot predict anything. In an unfortunate situation, the tide may turn and the business may plunge into severe losses, eating away all the funds in the bank. As a result, even a rich and successful businessman needs to have a child plan to ensure that if he ever faces a challenging economical situation, his child’s education and future will remain unaffected.

Does a single parent need a child plan?

A single parent most definitely needs a child plan! Normally, if one parent dies, the other may be able to work and provide for the child. But when the child has only one parent, the risks are too high and under all circumstances does his/her future need to be secured.

Does a person with a sufficient life insurance policy need a child plan?

Even if you have a sufficient and large life insurance policy, you need to have a child plan. This is because the life insurance policy will pay the death benefit as soon as you die, in one lump sum and the policy will terminate. You must remember, that after your death, not only your child but the other members of your family like your spouse and parents will also require financial assistance. So the life insurance fund can get exhausted quickly. As a result you need a child plan that will continue even after your death and will guide the child till the time he/she is financially independent.

Thus, anyone with a child needs a child plan so that he can plan for his future expenses with a more clear mind and be financially aware of his future expenses and can thus plan accordingly. Each and every parent surely plans to do something for the child but opting for a child insurance plan is the first step taken towards a proper financial planning towards a better and a brighter future for the child. Thus opting for a child plan will not only help a child but a parent as well towards a healthy financial planning for the child’s future educational expenses.

Shriram Life Child Plans - FAQ

1. How to pay a premium? What are the modes of payment available?

Shriram Life Insurance Company offers 6 modes of premium payment namely:

• Cash payment at the branch
• Payment at the Axis Bank
• Online Payment
• NEFT
• ECS
• Pay Via Mobile

For the online payment mode, the policyholder can pay via;

• Credit Card,
• Debit Card
• Net banking

2. How can I check policy status for Shriram Life child plans?

To check policy status you can log into the e-portal with your valid credentials.

3. What is the policy renewal process for Shriram Life child plans?

The Shriram Life Insurance company provides facility to renew the policy online.

Step 1: Sign into the e-Portal with policy details

Step 2: Select payment option (Bank, Debit/credit Card) to pay

Step 3: Save/print e-receipt

You can renew your policy via Mobile, please visit e-portal

4. What is the company’s process to settle claim for Shriram Life child plans?

For the claim, the nominee must submit the valid documents along with the claims form at the nearest branch. Upon successful validation of documents the claim is fully settlled within a few days.

5. What is the policy cancellation process for Shriram Life child plans?

Walk into the nearest branch of the Shriram Life insurance company with the policy documents. Surrender them and within a couple of days the refund will be directly credited into your bank.