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Shriram Money Back Term Plan

Objective

Besides paying sum assured, this term policy also returns premiums paid by the policyholder either on death during policy term or survival of policyholder. One can also convert the policy into a whole life plan during fifth last year of the policy term.


What does it do?

This is a money back term insurance plan which refunds all basic premiums along with sum assured on demise of the life insured. In case, policyholder outlives the policy term, the policy refunds all basic premiums paid, excluding rider premiums or any extra premiums.
The insurance company also allows one to surrender the policy after completing 3 years, provided premiums for first 3 years have been paid regularly. The surrender value will be calculated as per the predefined formula.
The policy can be converted into a whole life one on fifth last policy anniversary  without undergoing any medical test. The whole life policy commences immediately from the year of conversion. After conversion, the premiums rates will change, however, the sum assured will remain the same.
For whole life policy, premiums will have to be paid only upto 65 years of age on an annual basis or as a single payment. The choice to continue or terminate the existing riders lies with the policyholder at the time of conversion. Survival benefit is paid as a sum of all basic premiums paid till the date of conversion. The percentage of premiums to be refunded by the insurance company will depend on policy term elapsed.
It also offers optional riders to increase the scope of coverage.


Pros

It allows to convert the policy into a whole life policy at 15th policy anniversary, without any medical check-ups.
The policy grants a premium rebate on high sum assured. These rebates apply to the premiums paid prior to conversion only.
It offers a range of rider options for an added protection.
The policy can be surrendered.
Premiums qualify for taxation benefits.


Cons

Maximum sum assured is limited to Rs 20 lakh, making it unsuitable for those in need of a higher cover.
Critical illness rider covers only 6 dreaded diseases.


Suited for

It is suitable for those who would like to receive some amount on survival.


Our View

This is a complicated policy that returns premiums as either death benefit along with sum assured or survival benefit on maturity. Other options like surrender, whole life plan conversion and return-of-premium make the policy costly as compared to others in its category. Avoid such complications when buying insurance. We recommend pure term plans that offer life cover at much cheaper rates.

Eligibility
Entry Age (years) 
Minimum18
Maximum50
Maximum Maturity Age (years)65
Policy Term (years) 
Minimum10
Maximum47
Sum Assured (Rs) 
Minimum200000
Maximum2000000
Minimum Premium (Rs) 
Yearly5000
Half-Yearly3000
Quarterly2000
Monthly600
Single11570
Premium Payment FrequencySingle, Yearly, Half-Yearly, Quarterly, Monthly
Premium Payment TermSingle, equal to policy term
Policy CoverCover remains fixed for the tenure of the policy
Other Features 
Free Look CancellationIn case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace PeriodYou are allowed to pay premiums within 15 days of premium due date for monthly premium payment mode and within 30 days for all other premium payment modes . If a due premium is not received within the grace period, your policy will lapse and the life insurance cover will be terminated.
Lapsed Policy ReinstatementYou may reinstate your lapsed policy within 2 years from date of first unpaid premium by paying due premiums and undergoing underwriting requirements, if any.
Tax BenefitsSection 80C, 10(10D) of the Income Tax Act, 1961 would apply. Premiums paid for Critical Illness Rider may qualify for deduction under Section 80D of the Income Tax Act, 1961.
ExclusionsIn case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, no death benefit becomes payable in case insured event takes place while being engaged in any hazardous occupation such as sea diving, mountaineering, hunting etc.
Surrender ValueAllowed after first three policy premiums were paid on time and 3 policy years have elapsed. Guaranteed Surrender Value = 70% * (t/n)*P, where,
t = number of years for which premiums have been paid till date of surrender (for regular premium mode) or the policy duration elapsed till date of surrender (for Single Premium mode)
n = Original policy term
P= Sum of all premiums paid (excluding extra premiums) till date/ Single Premium
Customer Service 
AddressShriram Life Insurance Company Limited 3-6-478, 3rd floor, Ananad Estates, Liberty Road, Himayat Nagar, Hyderabad - 500 029 India
Mail To[email protected]
Call On1800 3000 6116, +91 40 2343 4466
Available Rider(s)Accident benefit Rider (for Regular and Single premium Policies): covers Death due to accident within 180 days of the accident.
Shriram Critical Illness Rider: It pays the rider sum assured on confirm diagnosis of any of the 6 critical illnesses namely: Cancer, Heart Attack, Stroke, Kidney failure, Coronary Artery Bypass Surgery and Major organ transplant.
Shriram All Cause Total and Permanent Disability Rider: This rider benefit becomes payable in case the policyholder becomes total and permanent disable due to any reason such as illness, disease, injury or surgical operation. The disability should last for a minimum of 180 days to claim the Sum Assured under this rider. It can be opted for at the time of purchasing the cover or at any time during the policy term but the cover will begin from subsequent policy anniversary. This rider Sum Assured will be equal to basic Sum Assured subject to maximum of Rs 25 lakhs.
Rider Conditions 
Entry Age (years) 
Minimum18
MaximumAccident Benefit Rider and Critical Illness Rider: 65 All Cause Total and Permanent Disability Rider: 55
Maximum Maturity Age (years)Accident Benefit Rider and Critical Illness Rider: 70 All Cause Total and Permanent Disability Rider: 65
Rider Term (years) 
MinimumAccident Benefit Rider: 6 All Cause Total and Permanent Disability Rider and Critical Illness Rider: 5
MaximumAccident Benefit Rider and Critical Illness Rider: 25 All Cause Total and Permanent Disability Rider: 45
Sum Assured (Rs) 
MaximumShriram All Cause Total and Permanent Disability Rider: Lower of Base plan insurance or 25 lakh
Rider Premium (Rs)Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the Accident Benefit Rider for Rs 5 lakh, the annual premium works to Rs 625 and for Critical Illness rider for Rs 5 lakh the premium works to Rs 1300 and Rs 1020 for All Cause Total and Permanent Disability Rider.
Annual Premium
Policy term (in years)Age (in years)
253035404550
10650507329792988128348191129295560
152793833299445356505098864153914
201979424948351545257680823NA
2517010226803268049381NANA
30163922237132783NANANA
351670123196NANANANA
4017526NANANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures
Single Premium
Policy term (in years)Age (in years)
253035404550
10129791144739184944259272391124602355
15125976149584200407293807445349682766
20133502166388232778344218519780NA
25148038193191274117404629NANA
30169377226077321847NANANA
35195150263292NANANANA
40224118NANANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures