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The product aims to provide financial security to the families of members of groups having lender-borrower relationship, in case of death.
Shriram Life Sujana
ABOUT THE PLAN
Shriram Life Sujana is a non-linked and non-participating group credit life micro insurance product. The product aims to provide financial security to the families of members of groups having lender-borrower relationship, in case of death.
HOW IT WORKS
1. Any lending organization like Micro Finance Institution (MFI), Self-Help Group (SHG), Co-operative Banks, Non-Government Organizations (NGO) can be a master policyholder.
2. On receipt of an application with the details of members of group to be covered along with the full premium and if the same is accepted by the Company, the master policy is issued by the Company to the master policyholder.
3. The cover shall reflect the pattern of the loan schedule.
4. The insurance cover shall not exceed the loan amount granted/loan outstanding at the time of proposal.
5. The policy term shall be equal to the loan tenure/outstanding loan tenure as applicable.
KEY FEATURES
1. The product offers cover on the following basis - Single life, Joint Life and Multiple Borrowers
2. Plan available in 3 types of premium paying terms - Single, Regular and Limited
3. Plan offers cover in 3 options -
Level cover, Annually Reducing cover and Monthly Reducing cover
4. Discounting in premium available for Joint life and Multiple life cover; based on age
KEY BENEFITS
Maturity Benefits
1. No maturity benefit is available
Death Benefits
1. Level Cover: Insurance cover chosen at inception
2. Annual Reducing Cover: Insurance cover as applicable in the year of death
3. Monthly Reducing Cover: Insurance cover as applicable in the year of death
Apart from the benefit mentioned above, the plan offers another benefit -
Surrender Benefit:
1. Regular Premium - Nil
2. Single Premium: 75% *Single Premium*(1-t/T)*(Current cover amount/ Initial cover amount)
3. Limited Premium: 70%*Total Premiums paid*(Npaid / Npayable-t/T)*(Current cover amount/ Initial cover amount)
Where,
t - No. of months elapsed
T - Cover term in months
Npaid - No. of months for which premium is paid
Npayable - No. of months for which premium is payable
Covered
Level Cover: Insurance cover chosen at inception. Annual Reducing Cover: Insurance cover as applicable in the year of death. Monthly Reducing Cover: Insurance cover as applicable in the year of death.
Not Covered
No maturity benefit is available
