Shriram Life Sujana Plan

Eligibility Criteria for the Shriram Life Sujana Plan

Features of Shriram Life Sujana Plan

Here are the defining features of this micro-insurance plan:

• Insurance Protection on Borrowers and their families.: This plan guarantees that the unpaid loan is discharged in case of the death of the borrower to avoid financial pressure on the family members and dependents.
• Coverage Up To Age 75 Years: The plan is provided with long-term protection where members are covered until 75 years, thus useful in long term loan plans.
• Minimal Minimum Group Size 5 and above: The plan can be used by small groups, including self-help groups and microfinance borrowers, since the minimum group size is only five.
• Several Cover Plans to choose from: Depending on the nature of their loan repayment, policyholders are given the option of level cover, annually reducing cover, or monthly reducing cover.
• Premium Flexibility of Online Payments: The scheme encourages single, limited, and regular premium payment options, which have flexibility according to affordability and the loan borrowing period.
• Affordable Premium Structure: Being a micro-insurance product, the premiums are affordable and fit in the low-income or informal category of the population.
• Coverage Aligned With Loan Tenure: The insurance cover is designed in such a way that it covers the term of the loan and as long as the financial obligation remains, they are insured.

These features make Shriram Life Sujana a focused protection tool rather than a savings product among the best investment plans.

Benefits of the Shriram Life Sujana Plan

Here are the benefits that ensure financial protection under this plan.

• Death Benefit: The following are the specifics of the core advantage:

• Paid-Up Benefit: Under the single premium option, the policy is fully paid up instantly since the entire premium is paid in one lump sum. In the case of the limited premium option, the policy becomes paid up after completing premium payments for a specified period, typically at the end of one year. However, with the regular premium option, there is no paid-up benefit, and premiums must be paid continuously to keep the policy active.
• Surrender Benefit: Single premium plans offer instantaneous availability, as the benefits come into effect immediately after a one-time payment is made. In contrast, limited premium plans come into place after one year or once the initial premium-paying period is completed. However, under frequent premium options, this benefit is not available, meaning the policy does not provide the same paid-up or immediate activation advantage.

This benefit structure aligns well with the offerings under Shriram Life Investment Plans.

Policy Details of the Shriram Life Sujana Plan

Here are the key policy details you should know:

1. Grace Period

   Payment of premiums beyond the due date is allowed during a 30-day grace period (15 days for the monthly mode). The policy is also still effective, and it has not stopped covering at this time. This gives policyholders the flexibility to make payments without immediate lapse.

2. Revival

   In case of non-payment of the policy, the policy will lapse, but it will be resumed within three years of the date of the initial premium that was not paid. Revival will entail payment of all the outstanding premiums plus any charges imposed on the policy, depending on the terms of the policy. This assists in reviving the policy benefits and coverage.

3. Free Look Period

   It has a 30-day free look period since the inception of the policy document delivery. At this time, the policyholders are able to go through the policy terms and conditions and withdraw the policy in case they are not satisfied with the policy. All refunds will be made under appropriate deductions.

4. Surrender

   The surrender period is permitted only after the five-year lock-in period. If the policy is surrendered before this period, the fund value is rolled over to a discontinued policy fund and paid out upon the expiration of the lock-in. This will make it in line with the ULIP requirements.

This benefit structure aligns well with the offerings under Shriram Life Investment Plans.

Exclusions Under the Shriram Life Sujana Plan

Here are situations where benefits may not be payable:

Suicidal Cover

• In case death is because of suicide within one year:
• There is a 80% payment of premiums paid or surrender value.
• There are special regulations for joint and co-borrowers.