Invest in Your Peace of Mind: The Early Cash Plan Explained

The Early Cash Plan Explained

Buying life insurance is more than just saving for the future; it's an investment in your peace of mind. In the unfortunate event of a family member's passing, it can assist in settling debts and enable your family to maintain financial independence. 

Why is Investing in Peace of Mind Important? 

The main objective of a life insurance product is to offer a guaranteed income, providing confidence that you have an emergency fund available for unforeseen situations or medical emergencies. 

Life is unpredictable, especially when one person is the primary earner in the family. In such cases, a life insurance plan becomes a valuable support system during unexpected events. If the breadwinner passes away, the fund can assist with debt payments, children's education, and maintaining the family's quality of life. 

Furthermore, life insurance contributes to a family's financial security, offering reassurance during emergencies. While it cannot provide emotional support in the event of a family member's demise, it does offer essential financial assistance, ensuring the family's long-term well-being.  

What is an Early Cash Plan?  

Early Cash Plan is an individual savings plan that offers the combined benefits of insurance and savings. It is a non-linked, participating policy that ensures guaranteed cash bonuses, set at a minimum of the sum assured, throughout the policy term, starting from the first anniversary. 

The Shriram Life Early Cash Plan offers the flexibility to accumulate cash bonuses at compounding rates. This plan helps you save for your future, and the cash bonus will give you financial freedom, allowing you to plan your responsibilities.   

The Early Cash Plan offers two cash bonus options from which you can choose. 

  • Early Cash Option 
  • Super Growth Option 

What is the Early Cash Option? 

The Early Cash Option ensures a consistent income throughout the policy's duration, commencing from the initial anniversary, provided through annual cash bonuses. Moreover, upon policy maturity, the policyholder receives a lump sum encompassing the assured amount and any declared terminal bonus. 

In insurance, a terminal bonus denotes a one-time payment disbursed to the policyholder upon the completion of the entire policy term or a specified period stipulated by the insurer. 

A guaranteed minimum Cash Bonus of 3.5% of the assured sum is provided. Any supplementary bonus, if announced, can be allocated for discretionary expenditures, contributing to the enhancement of life's quality. 

What is the Super Growth Option? 

The Super Growth Option in the Early Cash Plan aggregates annual Cash Bonuses disclosed from the initial policy anniversary, accruing annually at the stipulated cash bonus rate. Upon maturity, it disburses a lump sum inclusive of the assured amount, accumulated cash bonuses, and any terminal bonus declared. 

A guaranteed minimum cash bonus, established at 3.5% of the sum assured, is announced annually throughout the policy's duration. Therefore, for individuals contemplating significant life events such as marriage, parenthood or substantial travel, the Super Growth Option stands as a preferable choice, providing the assured sum and any declared Cash Bonus. 

Advantages of Early Cash Plan 

The key benefits of the Early Cash Plan are listed below. 

  • Life cover 
  • Guaranteed cash bonus 
  • Two Bonus options 
  • Guaranteed income from the first policy anniversary 
  • Compounding bonus 
  • Survival benefits 
  • Death benefits 

Advantages of having a Life Insurance Plan 

Possessing life insurance ensures your peace of mind, offering your family coverage in your absence. Furthermore, the right coverage serves as an effective savings plan, providing assistance during unforeseen emergencies. 

Guaranteed Protection 

Life insurance ensures guaranteed returns, serving as a safety net for the entire family, particularly if there are dependents. In the unfortunate event of the breadwinner's sudden demise, the policyholder's beneficiaries receive a lump sum. This essential protection provides a dependable source of support for your loved ones when it matters most. 

Tax-Free Benefit 

The lump sum from life insurance is exempt from taxes, providing a compelling reason to invest in life insurance. Life insurance proceeds are typically passed on free from federal income tax, making it a tax-free benefit. 

Income Replacement 

Imagine a situation where a family member sadly passes away. What will the family do for their everyday costs, and how will they manage their bills? In such situations, life insurance steps in to offer crucial assistance, acting as a substitute for lost income until the family gets back on their feet. It provides the essential financial backing needed for the family. 

Life insurance will help with the following expenses. 

Afford childcare, health care and other services 

  • Pay for mortgage 
  • Child’s education 
  • Preserve family business 
  • Help with debt repayment 

Guaranteed Cash Value Growth 

By consistently paying your premiums, your Life Insurance accumulates a guaranteed, tax-deferred cash value. This cash value can serve various financial objectives, such as: 

  • Enhancing retirement income 
  • Supporting a child or grandchild's education 
  • Settling a mortgage 
  • Safeguarding existing assets 
  • Creating an emergency fund 

Optional Riders 

You can customize your life insurance in various ways to suit your needs. For an extra cost, you can add features called riders. These riders allow you to get more protection without going through additional evaluations, cover your premiums if you become disabled, use some of the insurance amounts to deal with chronic illnesses or get coverage for your children.  

Risk Cover  

In today's unpredictable world, life is filled with uncertainties. In such a situation, Life Insurance guarantees that your family can maintain a good quality of life even in the face of unexpected events. 

Planning for Life Stage Needs  

Life insurance serves not just as a financial safety net in case of sudden demise but also functions as a long-term investment. It enables you to achieve various goals – whether it's funding your children's education or their marriage, constructing your dream home, or preparing for a comfortable retirement. 

Traditional life insurance policies, like traditional endowment plans, provide inherent assurances and well-defined maturity benefits. These include options such as Money Back, Guaranteed Cash Values and Guaranteed Maturity Values, tailored to different life stages and risk preferences. 

Safe and Profitable Long-Term Investment  

The life insurance industry is a highly regulated sector. The regulatory authority, IRDAI, establishes rules to ensure that safeguarding the policyholder's funds remains the foremost responsibility for all involved parties. As life insurance functions as a long-term savings tool, it emphasises that life insurers prioritize long-term returns and refrain from making risky investment choices for immediate profits. 


In conclusion, life insurance stands as a crucial financial tool that goes beyond providing a safety net for unforeseen events. It serves as a long-term investment, enabling individuals to achieve diverse financial goals at different life stages.  

The regulated nature of the industry, overseen by entities such as IRDAI, ensures the security of policyholder funds and encourages a focus on long-term returns. Life insurance, with its array of products and guarantees, remains a valuable instrument for securing one's financial future and providing peace of mind for individuals and their families. 


1. How does life insurance work? 

When you purchase a life insurance policy, you pay regular premiums. In the event of your death, the insurance company pays a predetermined sum, known as the death benefit, to your beneficiaries. 

2. Is life insurance taxable? 

Generally, life insurance proceeds are not subject to income tax. However, specific tax implications may vary, and it's advisable to consult with a tax professional for accurate information. 

3. Can I have multiple life insurance policies? 

Yes, it's possible to have multiple life insurance policies to tailor coverage to different needs. However, the total coverage amount should align with your financial situation and needs. 


For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale. 

IRDAI Regn No: 128 

CIN No.. of the Company 

The Trade Logo displayed above belongs to Shriram Value Services Limited (“SVS”) and used by Shriram Life Insurance Company Limited under a License agreement.” 


IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint. 


For more details on risk factors, terms, and conditions please read the sales brochure carefully before concluding a sale.  

*Tax Benefits:  
Tax benefits are as per Income Tax Laws & are subject to change from time to time. Please consult your Tax advisor for details.  
You are eligible for Income Tax benefits/exemptions as per the applicable income tax laws in India, which are subject to change from time to time.

IRDAI Regn No: 128  
CIN No : U66010TG2005PLC045616 of the Company

The Trade Logo displayed above belongs to Shriram Value Services Limited (“SVS”) and used by Shriram Life Insurance Company Limited under a License agreement.”


  • IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.