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Can the Shriram Life Golden Jubilee Plan take control of your financial future by offering both protection and wealth creation?
Is Shriram Life Golden Jubilee Plan the game-changer your portfolio needs, or just another ULIP among the crowd?”
Is Shriram Life Golden Jubilee Plan the key to achieving your long-term financial goals?
Let’s analyze its features, benefits, and drawbacks in detail. This review aims to help you make an informed decision.
Table of Contents:
What is the Shriram Life Golden Jubilee Plan?
What are the features of the Shriram Life Golden Jubilee Plan?
Who is eligible for the Shriram Life Golden Jubilee Plan?
What are the plan options and the benefits of the Shriram Life Golden Jubilee Plan?
What are the fund options in the Shriram Life Golden Jubilee Plan?
What are the charges of the Shriram Life Golden Jubilee Plan?
Grace Period, Discontinuance and Revival of Shriram Life Golden Jubilee Plan
Free Look Period of Shriram Life Golden Jubilee Plan
Surrendering the Shriram Life Golden Jubilee Plan
What are the advantages of the Shriram Life Golden Jubilee Plan?
What are the disadvantages of the Shriram Life Golden Jubilee Plan?
Research Methodology of Shriram Life Golden Jubilee Plan
Benefit Illustration – IRR Analysis of Shriram Life Golden Jubilee Plan
Shriram Life Golden Jubilee Plan Vs. Other Investments
Shriram Life Golden Jubilee Plan Vs. Pure-term + PPF/ELSS
Final Verdict on the Shriram Life Golden Jubilee Plan
What is the Shriram Life Golden Jubilee Plan?
Shriram Life Golden Jubilee Plan is a unit-linked non-participating life insurance plan. It combines protection with investments.
Stay invested for your whole life or for a specified period of time, choose the type and level of cover that suits you and get unmatched flexibility with options to alter your policy term, premium payment term, sum assured, and premium.
What are the features of the Shriram Life Golden Jubilee Plan?
- Customized Life Cover: Choose from two cover options and select your preferred coverage level within each option.
- Whole Life Option: Save for future generations or access funds whenever needed.
- Guaranteed Wealth Boosters: Enjoy additional benefits every five years.
- Return of Charges: Get back premium allocation and mortality charges.
- Financial Flexibility: Access multiple fund options with unlimited free switches and premium redirections.
- Auto Transfer Option (ATO): Manage market volatility seamlessly without any additional charges.
Who is eligible for the Shriram Life Golden Jubilee Plan?
What are the plan options and the benefits of the Shriram Life Golden Jubilee Plan?
1. Plan options
Life Goal
Life Goal allows policyholders to set and achieve specific financial goals during the Shriram Life Golden Jubilee Plan policy term and align their life insurance coverage with their financial aspirations.
Legacy
The legacy option allows policyholders to create a legacy for their loved ones by leaving behind a substantial wealth transfer and planning for the financial well-being of their future generations.
2. Death benefit
Option 1:
Sum Assured plus Top-up sum assured (if any) + Total base premium fund value + Top-up premium fund value (if any) (Available with Life Goal only)
Option 2:
Higher of Sum Assured (less partial withdrawals in the last two years preceding death) or Base premium fund value + Higher of Top-up Sum Assured or Top-up premium fund value
3. Maturity Benefit
On survival of the Life Assured up to the end of the Shriram Life Golden Jubilee Plan policy term, the fund value will be payable where fund value is the total base premium fund value and Top-up premium fund value, if any.
What are the fund options in the Shriram Life Golden Jubilee Plan?
Policyholder has the option to choose (except Discontinued policy fund) any one of the following funds or a combination of the funds chosen by the policyholder depending on their needs and risk appetite.
| S no | Fund Name | Asset Allocation | Risk Profile | ||
| Equity | Debt (Govt and Corporate bonds) | Money market/ Liquid/ Cash | |||
| 1 | Preserver fund | _ | 80%-100% | 0-20% | Low |
| 2 | Defender fund | 0-35% | 45%-100% | 0-20% | Low |
| 3 | Balancer fund | 40%-60% | 20%-60% | 0-20% | Moderately High |
| 4 | Maximus fund | 0-70% | 30%-100% | 0-20% | High |
| 5 | Accelerator fund | 90%-100% | _ | 0-10% | Very high |
| 6 | Tyasser fund | 90%-100% | _ | 0-10% | Very high |
| Govt. Securities | Money market/ Liquid/ Cash | ||||
| Discontinued Policy fund | 60%-100% | 0-40% | Low | ||
Auto Transfer Option (ATO)
ATO reduces the risk of investing the full premium into a fund with a volatile NAV, by allowing premiums to be invested in a low-risk fund “Preserver” and gradually transferring the money into the chosen investment portfolio.
What are the charges of the Shriram Life Golden Jubilee Plan?
i.) Premium Allocation Charge
This charge depends on the premium size and policy year. It will be deducted at the start of each Shriram Life Golden Jubilee Plan policy year for the first 5 years from the premium.
| Year | Annualized Premium < ₹ 3 Lakh | Annualized Premium from ₹ 3 Lakh and above |
| 01 to 05 | 3.5% of premium | 1.5% of premium |
| Above 5 | NIL | NIL |
ii.) Policy Administration Charge
This charge is expressed as a percentage of annualized/single premium. This charge will be deducted at the start of each policy month for the first 10 years proportionately from the unit funds
| Regular and Limited premium policies | Single premium policies |
| 0.21% of the annualised premium for both annual and monthly modes | 0.07% of single premium for first 9 years and nil thereafter |
iii.) Mortality Charge
Mortality charges will be charged on Sum at Risk at the beginning of each Shriram Life Golden Jubilee Plan policy month.
Sum at Risk= Death benefit minus total fund value
iv.) Fund Management Charges
These charges will be levied on a daily basis on the unit fund.
| S no | Fund Name | FMC |
| 1 | Preserver fund | 1.25% |
| 2 | Defender fund | 1.25% |
| 3 | Balancer fund | 1.35% |
| 4 | Maximus fund | 1.35% |
| 5 | Accelerator fund | 1.35% |
| 6 | Tyasser fund | 1.35% |
| Discontinued Policy fund | 0.50% |
v.) Fund Switching Charge
Nil
vi.) Premium Redirection Charge
Nil
vii.) Alteration Charge
Not Applicable
viii.) Top-up Charges
Nil
ix.) Discontinuance Charges
The discontinuance charges will be charged from the fund value on the date of discontinuance in case the policy is discontinued. It depends on the year of discontinuance, premium amount and fund value.
Impact of Charges: The charges mentioned above are additional expenses for investors, which are not typically found in other market-linked products. Over the long term, these charges can substantially diminish overall returns.
Grace Period, Discontinuance and Revival of Shriram Life Golden Jubilee Plan
Grace Period
The grace period is 30 days for payment of the yearly premium and 15 days for payment of the monthly premium from the due date of the premium.
Discontinuance
Discontinuance of a policy before the end of the lock-in period of 5 years: the policy shall be discontinued at the expiry of the grace period. The fund will be moved to the Discontinued Policy Fund after deducting the applicable discontinuance charges.
The proceeds of the discontinued policy fund shall be paid to the Shriram Life Golden Jubilee Plan policyholder at the end of the revival period or lock-in period whichever is later.
Discontinuance of a policy after a lock-in period of 5 years: the policy shall be converted into a reduced paid-up policy with the paid-up sum assured i.e. original sum assured multiplied by the total number of premiums paid to the original number of premiums payable.
At the end of the revival period the proceeds of the policy fund shall be paid to the Shriram Life Golden Jubilee Plan policyholder and the policy shall terminate.
Revival
The plan provides the option to revive the Shriram Life Golden Jubilee Plan policy within the revival period of three years from the date of the first unpaid premium (FUP).
Free Look Period of Shriram Life Golden Jubilee Plan
The policyholder has the option to review the terms and conditions of the policy.
If the insured disagrees with any of those terms or conditions, he has the option to return the policy within 30 days from the date of receipt of the policy document, whether received electronically or otherwise.
Surrendering the Shriram Life Golden Jubilee Plan
If the policyholder chooses complete withdrawal during the lock-in period of 5 years from the date of inception of the policy, the policyholder’s fund value will be transferred to the discontinued policy fund after deducting the applicable discontinuance charge and the proceeds of the discontinued policy shall become payable at the end of the lock-in period.
Upon surrender of the policy (after the lock-in period) the fund value as of the date of surrender will be paid to the Shriram Life Golden Jubilee Plan policyholder immediately and the policy will be terminated.
What are the advantages of the Shriram Life Golden Jubilee Plan?
- You can reduce the Sum Assured at any policy anniversary.
- Premium payments can be reduced by up to 50% of the original annualized premium.
- Flexibility to increase or decrease the policy term and premium payment term.
- Top-up premiums are permitted.
- Switch units between funds anytime during the policy term.
- Future premiums can be redirected to any of the available funds.
- Partial withdrawals are allowed after completing the fifth policy anniversary.
What are the disadvantages of the Shriram Life Golden Jubilee Plan?
- Loans are not available under this policy.
- Premiums are invested only after deducting applicable charges.
- The product lacks liquidity during the first five years of the policy term.
- While the plan refunds charges, it does not account for the time value of money.
- The sum assured is insufficient to meet the basic financial needs of a family.
Research Methodology of Shriram Life Golden Jubilee Plan
In this section, we will evaluate the potential returns of the Shriram Life Golden Jubilee Plan using the figures provided in the policy brochure.
Analysing the returns of market-linked products is crucial to making informed investment decisions. Let’s calculate the Internal Rate of Return (IRR) for this plan.
Benefit Illustration – IRR Analysis of Shriram Life Golden Jubilee Plan
Consider a 35-year-old male investing in the Shriram Life Golden Jubilee Plan with a sum assured of ₹30 lakhs. The policy term and premium paying term are 30 years, and the annual premium is ₹3 lakhs. He chooses the Life Goal option.
| Male | 35 years |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 30 years |
| Annualised Premium | ₹ 3,00,000 |
The maturity benefit is payable at the end of the policy term, with calculations based on assumed investment returns of 4% p.a. and 8% p.a. These values are illustrative, not guaranteed, and do not represent the upper or lower limits of returns.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 36 | 2 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 37 | 3 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 38 | 4 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 39 | 5 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 40 | 6 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 41 | 7 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 42 | 8 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 43 | 9 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 44 | 10 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 45 | 11 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 46 | 12 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 47 | 13 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 48 | 14 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 49 | 15 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 50 | 16 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 51 | 17 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 52 | 18 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 53 | 19 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 54 | 20 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 55 | 21 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 56 | 22 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 57 | 23 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 58 | 24 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 59 | 25 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 60 | 26 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 61 | 27 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 62 | 28 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 63 | 29 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 64 | 30 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 65 | 1,44,99,694 | 2,93,37,635 | |||
| IRR | 2.92% | 6.83% | |||
At 4% p.a. return: The fund value is ₹1.44 crores with an IRR of 2.92% as per the Shriram Life Golden Jubilee Plan maturity calculator.
At 8% p.a. return: The fund value is ₹2.93 crores with an IRR of 6.83% as per the Shriram Life Golden Jubilee Plan maturity calculator.
The results indicate that the plan’s returns are inadequate to substantially accelerate wealth accumulation, leading to a potential shortfall in achieving your financial goals.
Despite a 30-year policy term, the returns fail to outpace inflation. Therefore, the Shriram Life Golden Jubilee Plan may not be an ideal choice to meet your long-term objectives.
Shriram Life Golden Jubilee Plan Vs. Other Investments
As an investor, your primary objective is to ensure that your returns surpass inflation. Investing in low-return market instruments may not serve this purpose effectively.
Let’s explore an alternative investment strategy that offers higher yields, using the same parameters as the previous illustration.
Shriram Life Golden Jubilee Plan Vs. Pure-term + PPF/ELSS
In the previous scenario, the sum assured was ₹30 lakhs. However, for a pure-term insurance policy, the minimum sum assured is ₹50 lakhs, so we will assume the same here.
A pure-term life insurance policy with a ₹50 lakh sum assured costs an annual premium of ₹11,500 for a 30-year term.
By opting for a pure-term plan, you save ₹2.88 lakhs annually compared to the Shriram Life Golden Jubilee Plan. This saved amount can be invested based on your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 30 years |
| Annualised Premium | ₹ 11,500 |
| Investment | ₹ 2,88,500 |
You can either choose low-risk investments like a Public Provident Fund (PPF) or opt for market-linked investments such as Equity-Linked Savings Schemes (ELSS). The maximum annual investment in a PPF account is ₹1.50 lakhs.
While the saved amount of ₹2.88 lakhs exceeds this limit, we proceed with the calculation for illustration purposes.
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 36 | 2 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 37 | 3 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 38 | 4 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 39 | 5 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 40 | 6 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 41 | 7 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 42 | 8 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 43 | 9 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 44 | 10 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 45 | 11 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 46 | 12 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 47 | 13 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 48 | 14 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 49 | 15 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 50 | 16 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 51 | 17 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 52 | 18 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 53 | 19 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 54 | 20 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 55 | 21 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 56 | 22 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 57 | 23 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 58 | 24 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 59 | 25 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 60 | 26 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 61 | 27 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 62 | 28 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 63 | 29 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 64 | 30 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 65 | 2,97,17,251 | 6,93,29,490 | |||
| IRR | 6.89% | 11.22% | |||
PPF Investment: The final maturity value of a PPF account is ₹2.97 crores, with an IRR of 6.89%. This IRR matches the Shriram Life Golden Jubilee Plan’s returns in the 8% scenario.
However, unlike the market-linked nature of the Golden Jubilee Plan, PPF is a debt instrument.
ELSS Investment: The final maturity value under an ELSS fund is ₹7.79 crores, subject to capital gains tax. After-tax, the maturity value is ₹6.93 crores, resulting in a post-tax IRR of 11.22% when combined with the pure-term insurance premium.
| ELSS Tax Calculation | |
| Maturity value after 30 years | 7,79,79,417 |
| Purchase price | 86,55,000 |
| Long-Term Capital Gains | 6,93,24,417 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 6,91,99,417 |
| Tax paid on LTCG | 86,49,927 |
| Maturity value after tax | 6,93,29,490 |
Investing your savings based on your financial goals offers greater flexibility compared to standard ULIPs, while also delivering inflation-beating returns. Therefore, the Shriram Life Golden Jubilee Plan may not be the most suitable option for achieving your long-term financial objectives.
Final Verdict on the Shriram Life Golden Jubilee Plan
The Shriram Life Golden Jubilee Plan offers flexibility to customize your maturity proceeds based on your goals and needs, with options like the Life Goal or Legacy plan. Beyond this, it is a basic ULIP plan that combines market-linked investments with life cover protection.
However, an analysis of its potential returns reveals that the Shriram Life Golden Jubilee Plan is a low-yielding product with an insufficient sum assured to adequately safeguard your family.
Choosing this plan could hinder your investment journey and it also has a high agent commission.
To navigate the financial landscape more effectively, it is advisable to separate insurance and investment.
Opt for a pure-term life insurance policy for comprehensive protection and invest separately to achieve your financial goals. This approach provides better liquidity and higher returns compared to ULIPs.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Focus on building a diversified investment portfolio. For personalized guidance, consider consulting a Certified Financial Planner (CFP), who can create a tailored financial plan aligned with your risk appetite, investment horizon, and life goals.
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