A family will benefit from the Super Income Plan’s death benefit after the policyholder has passed away. The beneficiary or nominee will receive a guaranteed amount as the death benefit. A Super Income Plan is eligible for tax benefits under the legislation established by the Indian government. The Super Income and maturity benefits are other significant benefits of the Super Income Plan.
Did you know that most life insurance plans have a death benefit?
Super Income Plan (SIP) is an investment opportunity through which an individual can earn an assured benefit during the plan's tenure. The death benefit is one of the features of the policy that ensures the investor's family gets the most from the plan. In case of an unfortunate demise, the nominee or beneficiary is entitled to receive the benefit and claim other perks applicable.
Shriram Life Super Income plan ensures that even after the policy holder passes away, the family will benefit from the policy before it is terminated. The flexible tenure of the SIP can help an investor plan according to their investment goals and dreams. Additional rider covers on the Super Income Plan can be purchased for a nominal rate to enhance the features of the policy.
The death benefit is available with most life insurance plans. A death benefit is included in a policy to cover the loved ones if the policy holder is met with an unfortunate demise. A nominee or beneficiary can claim the death benefit upon producing the death certificate of the policy holder. Deciding and registering the details of a nominee is essential while applying for a policy.
According to the purpose of the policy, the death benefit will change. If the policy holder passes away during the policy term, provided all premiums are paid, the death sum assured will be paid to the nominee. The death benefit can be received in three ways: income payouts, lump sum payout or 50% as a lump sum and 50% as regular payouts.
In a Super Income Plan, the death benefit is defined as 10 times the annualised premium or 105% of all premiums paid until death. This means that if the policy holder invested Rs. 1 lakh per year, in the event of demise, the nominee or beneficiary will receive approximately Rs. 10 lakhs. Let us further understand this with an example:
Mr. Jayan Vishwakumar, who is 35 years old, has invested in a Super Income Plan and is paying Rs. 30,000 as the annualised premiums. Suppose Mr. Vishwakumar suffers a sudden demise during the premium payment term of the Super Income Plan. In this case, the death sum assured will be paid to the nominee or beneficiary and the policy will be terminated. The death sum assured is defined as 10 times the annualised premium or 105% of all premiums paid till policy holder’s demise, whichever is higher.
If it is considered to be 10 times the annualised premium, the nominee or beneficiary can calculate the amount like this (assuming all premiums have been paid):
Annualised premium amount x 10 = Death sum assured
Rs. 30,000 x 10 = Rs. 3,00,000
This means that the nominee or beneficiary will get approximately Rs. 3 lakhs after the policy holder's demise.
The policy holder’s family is covered in this way, making it an attractive investment option for those worried about the future.
The Super Income Plan is a unique investment option with benefits that cover the investor and their family. The super income benefit, maturity benefit and death benefit are the main advantages that make the policy attractive. Besides these benefits, there are also rider covers that can enhance the benefits of your insurance.
Invest in a Shriram Life Super Income Plan to get the best benefits and add-ons to help you rest easy and plan for the retirement. A loan can be claimed against the Super Income Plan to access emergency funds for a short term.
1. What is the death benefit of SIP?
The death benefit of a Super Income Plan is a guaranteed bonus given to the nominee or beneficiary in the event the policy holder suffers an unfortunate demise.
2.Who benefits from the death benefit?
The policy holder's family is entitled to get the death benefit if the policy holder passes away. In this way, the family will be protected from any sudden expenses.
3.How is death benefit calculated in the Super Income Plan?
The death benefit is 10 times the annualised premiums or 105% of the premiums paid until the day of death.