What are the add-ons available with a Super Income Plan?
- Posted on: 17 January 2023
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- 4 min read
You can rest easy knowing that the insurance cover of the Super Income Plan will protect your family. The coverage of a Super Income Plan can be enhanced by purchasing add-ons for a nominal fee. In addition to enjoying tax-free maturity benefits, a Ssuper Income Plan also entitles you to tax advantages. You will receive a payment of five times the annualised premium when the bond matures.
Did you know that additional coverage can be purchased to enhance a Super Income Plan?
The Super Income Plan offers a wide range of excellent advantages and life insurance protection. Your long-term financial objectives can also be established using the Super Income Plan. For individuals looking for an alternate source on income post-retirement, it is an excellent policy.
While a SIP may have many features and benefits that make it an attractive investment option. There are multiple ways in which you can customise the policy. The options may be few, but they are significant enough to help make the policy better when customised to the investor’s needs. Let’s look at what plan options are available:
What are the Additional Coverages Available?
A rider is a provision that improves or changes the terms of a standard insurance policy. Adding riders to your base insurance normally entails paying an extra charge. A rider provides greater safety and coverage against hazards. You can choose from a variety of affordable enhancements to your life insurance policy known as insurance riders.
Accident Benefit Rider
During the term of the rider, 100% of the rider sum assured shall be paid in the event of death or total and permanent disability resulting from an accident. In addition, all future premium payments will be waived if an accident renders the life assured totally and permanently incapacitated. The benefit under this rider is available only once during the rider's term.
Shriram Critical Illness Plus Rider
If an individual is diagnosed with any of the 24 Critical Illnesses, 100% of the rider Sum Assured will be paid if they survive 30 days from the date of first confirmed diagnosis. Additionally, this rider offers the potential to increase their loyalty additions-based rider sum.
Family Income Benefit Rider
For a guaranteed period of 10 years or until the end of the rider term, whichever is higher, 1% of the rider sum assured is payable each month starting from the month of the accident. This rider is also applicable in the event of accidental demise or if the life assured becomes totally and permanently disabled due to an accident within the rider term.
Extra Insurance Cover Rider
If the policy holder suffers an unfortunate demise during the rider’s term, the sum assured under the rider will be paid to the nominee.
What are the Advantages of the Super Income Plan?
If an investor requires more funds for the short term, a policy loan can be taken with the surrender value. The policy holder can only take a loan amount lower than the policy's value. The loan interest is approximately 9% per annum, compounding half-yearly. If the loan is availed during the premium payment term, the maximum amount permissible is 80% of the surrender value. If a loan is availed after the premium payment term, it shall be lower than 60% of the surrender value.
The Super Income Plan can be claimed in taxes according to Section 80C of the Income Tax Act of 1961. Tax benefits are subject to change according to the tax laws. It is advisable to keep yourself updated before investing. Tax benefits may be available as per the prevailing tax laws.
If the policy holder passes away during the policy term, "Death Sum Assured" or “Surrender Benefit” as applicable on the date of death will be paid up in lump sum to the nominee or beneficiary. Any Super Income Benefit will not be recovered from the death benefit.
Super Income Benefit:
Suppose the policy holder survives till the maturity of the premium payment term. In that case, the Super Income Benefit of a fixed monthly amount will be paid from the end of the premium payment term till the end of the policy. To calculate the Super Income Benefit, you need to multiply the annualised premium, super income benefit factor and applicable percent for Higher Premiums.
In case of the survival of the life assured till the end of the policy, the "Guaranteed Maturity Sum Assured" will be paid and the policy will be terminated. This sum will be 5 times the annualised premium.
Why Super Income Plan may be a great investment for you
The Super Income Plan has a flexible tenure and extra coverages making it an amazing investment opportunity. An individual can plan for their future and ensure the safety of their family as well. The features of a SIP are easy to understand and cater to your needs and requirements.
Invest in a Shriram Life Super Income Plan to secure a safe and happy future. The SIP also includes life insurance for the policy holder and additional covers to help customise the policy according to your requirements. Upon completion of the tenure, you will also receive maturity benefits, which will be 5 times the annualised premium.
1.What are the types of Super Income Plan?
There is only one type of Super Income Plan. However, the policy has a flexible timeline for the investor to decide. You can also customise the policy by purchasing additional rider covers to get more benefits.
2.Which is the best plan for monthly income?
The Super Income Plan is one of the best investment options for a monthly income. After paying the premiums for a set number of years, the investor will receive a monthly income till the maturity of the policy.
3.Which is the Best Plan under SIP?
The best plan under the Super Income Plan will be one that you have set according to your financial goals. Understanding how a Super Income Plan works will help you determine ways in which you can use the policy to get maximum benefits.
- Additional covers can be purchased to enhance a Super Income Plan.
- A Super Income Plan helps an investor assured benefits through monthly pay-outs.
- An individual can adjust the length of the premium payment according to their requirements and financial goals.
- Tax benefits are available on the Super Income Plan.