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Shriram Life Pension Plans

When you think of retirement, the first concern you have is income. You might have retired from your active service, but how will you meet the expenses post retirement?

If you want to enjoy a stress-free life after retirement and do not wish to compromise on your lifestyle, then pension plans from Shriram Life would be your best choice.

Whether you want to plan for retirement at the beginning of your career or want to invest a lump sum that you have received as superannuation benefits post retirement, Shriram Life has options for both categories.

Types of Retirement Plans offered by Shriram Life

Shriram Life Pension Plus

This is a unit-linked non-participating pension plan.

Product Benefits

  • Death Benefit: Higher of

    1. Total fund value (sum of base premium fund value with top-up fund value). The base premium fund value comprises the total value of the base premiums paid. Top-up premium fund value comprises the total value of the top up premiums paid. Total premiums = Total base premiums + total top-up premiums.
    2. Assured death benefit: Assured death benefit is 105% of the total premiums paid.
    3. Nominee can either use the entire proceeds to purchase an annuity from Shriram Life at the prevailing annuity/pension rates OR withdraw the entire proceeds of the policy.
  • Vesting Benefit: If you survive till the end of the policy term, you will receive the higher of:

    1. Total fund value.
    2. Assured Vesting Benefit: This is 101% of total premiums paid.
    3. The policy holder can either commute (withdraw) part of the proceeds and purchase an annuity from Shriram Life at the prevailing annuity/pension rates with the remaining amount OR use the entire proceeds to buy a single premium immediate annuity plan from Shriram Life OR if you are under 55, the policy term can be extended to the maximum vesting age of 80 years.
  • Loyalty additions: Loyalty additions will be added to the base premium fund value as additional units subject to all premiums being paid. These are added at the end of the 5th policy year as a percentage of average value of daily base premium fund values of the past 2 years. The rate of loyalty additions varies according to the annualised/single premium slab.
  • Flexibility in investment options: You can choose from any of the funds or combination of funds for investment:
    1. Pension Protector (Mostly debt funds)
    2. Pension Balancer (Higher Debt, Lower equity)
    3. Pension Maximiser (Equal proportions of equity and debt funds)
    4. Pension Multicap Aggressive Fund (Mostly equity funds)
    5. Preserver (Mostly debt)
    6. Balancer (Equal proportions of equity and debt funds)
    7. Maximus (Mostly equity, less debt)
    8. Accelerator (Mostly equity)
    9. Tyaseer (Mostly equity)
    10. Defender (Less equity, more debt)
  • Tax Benefits: Under Section 80C of the Income Tax Act

Eligibility Details

MinimumMaximum
Entry Age20 years65 years
Vesting Age40 years80 years
Policy Term10/15 to 35 years-
Premium payment frequency (PT)Regular/Limited: Yearly & Monthly (ECS mode)-
Premium Paying Term (PPT)Regular: Same as policy term Limited: PT (10) - PPT 6 PT (15-19) - PPT 6/10 PT (20-35) - PPT 6/10/15 Single -
Minimum PremiumRegular: Yearly – 25000 Monthly - 4000 Limited: Yearly - 48000 Monthly - 4000 Single: 100000 No limit

How does the Plan work

  • Select investment option/options.
  • Select policy term.
  • Select premium payment frequency.
  • On maturity get the higher of Total fund value or Assured Vesting benefit.

Shriram Life Immediate Annuity Plus

This is a non-linked, non participating single premium immediate annuity plan.

Product Benefits

  • Multiple annuity options:
    1. Annuity for life.
    2. Annuity for life with return of 100% purchase price on death.
    3. Annuity for life increasing at 3% per annum simple interest rate.
    4. Annuity for life increasing at 3% per annum compound interest rate.
    5. Annuity certain for 5/10/15/20 years and thereafter for life.
    6. Joint life last survivor annuity with 50% annuity to last survivor on death of the primary annuitant.
    7. Joint life last survivor annuity with 100% annuity to last survivor on death of the primary annuitant.
    8. Joint life last survivor annuity with 100% annuity to last survivor on death of the primary annuitant with 100% return of purchase price on death of last survivor.
  • Maturity Benefit: There is no maturity benefit.
  • Incentive for higher purchase price: Incentive starts at a purchase price over Rs. 5 lacs and you will get an incentive in terms of a higher annuity at a rate of 1.25% for purchase price over Rs. 1 crore.
  • Flexibility in annuity payment: You can opt for half yearly, quarterly, and monthly mode of receiving annuity.
  • Tax Benefit: You will get tax benefits for the premium paid under section 80C of the Income Tax Act.

Eligibility Details

MinimumMaximum
Entry age0 18 (joint life options) 85
Exit AgeNone-
Policy TermWhole Life-
Premium Paying TermSingle-
Annuity ModeYearly, half yearly, quarterly, monthly-
Minimum Annuity Per annum
  • Option 1 - 20340
  • Option 2 - 20106
  • Option 3 - 14415
  • Option 4 - 12407
  • Option 5 - Annuity Certain
  • 5 years - 20328
  • 10 years - 20313
  • 15 years - 20292
  • 20 years - 20274
  • and for life thereafter
  • Option 6 - 20208
  • Option 7 - 20109
  • Option 8 – 20085
-
Minimum Purchase PriceRs. 3 lacs No limit
Annuity modal factor
  • Half yearly - 0.491
  • Quarterly - 0.2433
  • Monthly - 0.0806
-

How Plan works

  • Find out the annuity income required on a monthly, quarterly, half-yearly, or annual basis. or
  • Select the purchase price.
  • Annuity paid half-yearly, quarterly and monthly will be discounted by the modal factor.
  • Annuity payout will depend on the prevailing annuity/pension rate.

How to Apply for Shriram Life Pension Plans

You can apply for Shriram Life pension plans online or through intermediaries like brokers, banks, and so on.

FAQs on Shriram Life Pension Plans

Which is the best pension plan that ShriramLife Insurance Company offers?

The best pension plan from Shriram Life Pension Plans would be Shriram Life Pension Plus if you are below 25 years of age and Shriram Life Immediate Annuity Plus if you are over 60 years of age. This is because you need to create a retirement corpus when you start your career and you need regular income when you are retired.

Which is the best pension plan of Shriram Life Pension Plans 2018?

The best pension plan 2018 from Shriram Life Pension Plans would depend on your age. If you are starting your career, you need to create a corpus for retirement. Hence, Shriram Pension Plus with numerous investment options including debt and equity would be the right choice. When you are over 60, you would need a pension plan that provides regular income. In this case, Shriram Life Immediate Annuity Plus would be the right choice.

Which is the best Shriram Life Pension Plan for long term?

The best pension plan from Shriram Life would depend on your age:

  1. If your age is below 25 years: If you have just started your career, then you should opt for Shriram Life Pension Plus as this helps in wealth creation being a unit-linked non-participating pension plan. That means if you choose any pension plan with equity exposure like Pension Balancer, Pension Maximiser, Pension Multicap Aggressive Fund, Balancer, Maximus, Accelerator, Tyaseer, or Defender there will be fluctuation in the policy fund value. There are various charges like premium allocation charge, mortality charges, and policy administration charges to be paid. Premium allocation charges are lowest from the 11th policy year onwards. When you go for the 35-year policy term, then you maximise the maturity benefit. The reason for this is equity as an asset class gives you the highest return in the long run.

  2. Age 60 and above: At this stage in your life, you would need to invest a lump sum amount to get an assured regular income to enjoy your retired life. The best Shriram Life Policy here would be the Shriram Life Immediate Annuity Plus. You have multiple pension options to choose from. So, determine the pension amount you need monthly and then purchase the required annuity. You need to remember that you can only change the annuity option during the free-look period (15 days from receipt of the policy) as no option for changing the policy is available after vesting.

Why should I buy Shriram Life Pension Plans?

Shriram Life is a renowned life insurer in India and provides various plans starting right from unit-linked insurance plans to pension plans. They offer policies at affordable premiums. They have a high claim settlement ratio. If you need an effective pension plan for regular income during retirement, then Shriram Life Pension Plans are an excellent choice.

How to pay premium? What are the modes of payment available?

You can pay your premium either by cheque, cash, credit, or debit card. The cheque or demand draft should be drawn in favour of Shriram Life Insurance Company Ltd. You need to mention your policy number, name, contact number, and email id on the reverse side of the cheque. You could also pay at Axis Bank, common service center, online, national electronic fund transfer (NEFT), ECS, Paytm or ICICI Bank.

How can I check policy status for Shriram Life Pension Plans?

To check your policy status, log on to the e-portal of Shriram Life Pension Plans with your id and password.

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