What coverages are offered in the Shriram Life Assured Savings Plan?

The death benefit depends on the plan option chosen and is paid to the nominee(s) or beneficiary(ies), provided the policy is in force, as indicated in the table below:

Option 1 (Life Cover)

1. The death benefit equal to one “Death Sum Assured” will be payable to the nominee(s) or beneficiary(ies), provided the policy is in force.

Option 2 (Life Cover with in-built accidental death cover)

In case of death of the life assured due to accident anytime during the policy time, an additional benefit equal to one more “Death Sum Assured” will be paid to the nominee(s) or beneficiary(ies), provided the policy is in force. 
This benefit will be payable in addition to the death benefit payable under option 1 (Life Cover).

The policy will terminate on payment of the death benefit.

“Death Sum Assured” is defined as the higher of

• 10 times annualized premium if the age at entry is less than or equal to 45 years & 7 times annualized premium if the age at entry is above 45 years
• 105% of the Total Premiums Paid till the date of death

• Surrender Value on the date of death
  
  ‘Annualized premium’ means the premium amount payable in a year chosen by the policyholder excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if any.

  ‘Total Premiums Paid’ is the total of all premiums paid under base policy excluding any extra premium, and taxes, if collected explicitly.

  ‘Accidental death’: Death due to an accident where an accident is defined as that which is a sudden, unforeseen and involuntary event caused by external, visible and violent means. Accidental injuries, solely, directly and independently of all other causes resulting in the death of the life assured within 180 days from the date of occurrence of an accident, shall be considered as death due to accident.

In case of survival of the life assured up to the end of the policy term, provided the policy is in force, the Guaranteed Maturity Sum Assured will be payable immediately in a lump sum and the policy will be terminated.

Guaranteed Maturity Sum Assured = Maturity Benefit Factor * Basic Sum Assured

Where, Basic Sum Assured = Premium Paying Term * Annualized premium

For each payment through NACH mode, policyholders will be eligible to receive 1% of premium as the discount i.e. each premium paid through NACH will be 99% of the original annual premium.

As mentioned above in Lapse section that even if you discontinue paying your premiums and have paid at least one year premium in full, your policy will get converted into a paid-up policy. Under paid-up policy, all your benefits (i.e. Death Benefit and Maturity Benefit) will reduce proportionately.

Option 1 (Life Cover):

• In case of death of the life assured within the policy term, “Paid-up Death Sum Assured” will be payable in lump sum to the nominee(s) or beneficiary(ies) and the policy will be terminated.

Option 2 (Life Cover with in-built accidental death cover)

• In case of death of the life assured due to other than an accident within the policy term, “Paid-up Death Sum Assured” will be paid in lump sum to the nominee(s) or beneficiary(ies) and the policy will be terminated.
• In case of death of the life assured due to an accident within the policy term, two “Paid-up Death Sum Assured” will be payable in lump sum to the nominee(s) or beneficiary(ies) and the policy will be terminated.

Paid-up death sum assured = Death Sum Assured *(No of premiums paid/Total no. of premiums payable)

In case of survival of the life assured up to the end of the policy term, “Paid-up Maturity Sum Assured” shall be paid on the maturity date to the life assured. This is applicable for both the options. 

Paid-up Maturity Sum Assured = Guaranteed Maturity Sum Assured *(No of premiums paid/Total no. of premiums payable)

We also provide you the option of restoring the full benefits in case of both a lapsed or a paid-up policy. A policy can be revived anytime within five years from the date of the first unpaid premium by paying all outstanding premiums (from the date of the first unpaid premium to the date of revival) with accrued interest at a rate approved by IRDAI along with revival requirements as per Board approved underwriting policy. 

The revival interest rate is determined by adding a margin of 1.5% to the 10- year annualised G Sec rate on 31st March of each financial year and applicable for all policy revivals during 1st May to 30th April of the following financial year. The interest rate derived as above shall be rounded down to 0.5%. 

No fee will be charged towards processing of revivals. 

For example, the revival interest rate is 8% p.a. during FY 1st May 2025- 30th April 2026