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Is the Shriram Life Super Income Plan the key to a worry-free financial future, or should you explore better options?
Does the Shriram Life Super Income Plan truly deliver on its promises, or is it just another overhyped policy?
Will the Shriram Life Super Income Plan help you achieve your financial goals, or could it leave you wanting more?
This review examines its features, benefits, and drawbacks with detailed calculations.
Table of Contents
What is the Shriram Life Super Income Plan?
What are the features of the Shriram Life Super Income Plan?
Who is eligible for the Shriram Life Super Income Plan?
What are the benefits of the Shriram Life Super Income Plan?
Grace Period, Lapsed & Paid-up Policy and Revival of Shriram Life Super Income Plan
Free Look Period for Shriram Life Super Income Plan
Surrendering Shriram Life Super Income Plan
What are the advantages of the Shriram Life Super Income Plan?
What are the disadvantages of the Shriram Life Super Income Plan?
Research Methodology of Shriram Life Super Income Plan
Benefit Illustration – IRR Analysis of the Shriram Life Super Income Plan
Shriram Life Super Income Plan Vs. Other Investments
Shriram Life Super Income Plan Vs. Pure-term + PPF / ELSS
Final Verdict on Shriram Life Super Income Plan
What is the Shriram Life Super Income Plan?
Shriram Life Super Income Plan is a Non-Linked Non-Participating Endowment Life Insurance Plan. It is specially designed to cater to the long-term financial needs of an Individual and his family. This plan gives you protection and guaranteed income till age 75.
What are the features of the Shriram Life Super Income Plan?
- Provides life cover up to the age of 75.
- Offers flexibility to choose the income payout term.
- Ensures a guaranteed monthly income until the age of 75.
- Allows flexibility to extend the premium payment term.
- Offers a guaranteed lump sum payout on maturity.
- Provides additional protection through optional riders.
Who is eligible for the Shriram Life Super Income Plan?
| Age Criteria | 25 years to 50 years |
| Maximum Maturity | 75 years |
| Policy Term | 75 years minus age at entry |
| Premium Paying Term | 10 years to 25 years |
| Premium Mode | Yearly, half-yearly, quarterly, monthly |
| Annual Premium | Minimum ₹30,000 per annum |
| Sum Assured | 10 times the annualised premium |
What are the benefits of the Shriram Life Super Income Plan?
1. Death benefit
Death during the premium paying term: an amount equal to the higher of “Death Sum Assured” or Surrender Benefit as applicable on the date of death will be paid in a lump sum to the nominee(s) and the policy is terminated.
Death after the premium paying term: an amount equal to the higher of “Death Sum Assured” or Surrender Benefit as applicable on the date of death will be paid in a lump sum to the nominee(s) and the policy is terminated.
Any Super Income Benefit paid will not be recovered from the death benefit.
2. Super Income Benefit
In case of survival of the life assured till the end of the premium paying term, provided the Shriram Life Super Income Plan policy is in force, a Super Income Benefit of a fixed monthly amount will be paid from the end of the premium paying term till the end of the policy term or till death, whichever is earlier.
Super Income Benefit = Annualized Premium X Super Income Benefit Factor X Applicable % for Higher Premiums
3. Maturity Benefit
In case of the survival of the life assured till the end of the policy term provided the policy is in force, “Guaranteed Maturity Sum Assured” will be paid and the policy is terminated.
“Guaranteed Maturity Sum Assured” is equal to 5 times the Annualized Premium
Grace Period, Lapsed & Paid-up Policy and Revival of Shriram Life Super Income Plan
Grace Period
A grace period of 30 days is allowed for payment of due premium for non-monthly modes and 15 days for monthly mode
Lapsed Policy
In case the premium remains unpaid at the expiry of the Grace Period during the first year, the policy will lapse if it has not acquired a Surrender Value and no further benefits shall be paid.
Paid-up Policy
If you discontinue paying your premiums but have paid at least one-year premium in full and after completion of the first policy year, your policy will get converted into a paid-up policy.
Revival
A lapsed policy can be revived within a revival period of five years from the date of the first unpaid premium.
Free Look Period for Shriram Life Super Income Plan
If the policyholder disagrees with any of the terms or conditions, he/she has the option to return the policy within 30 days from the beginning of the date of receipt of the policy document, whether received electronically or otherwise.
Surrendering Shriram Life Super Income Plan
To surrender the Shriram Life Super Income Plan policy, the policyholder must have paid at least the first full policy year’s premium(s) and have completed the first policy year.
On surrendering thepolicy, you will receive a Surrender Value, that is higher than the Special Surrender Value (SSV) and the Guaranteed Surrender Value (GSV).
The Shriram Life Super Income Plan policy acquires guaranteed surrender value provided premiums for at least two full years have been paid. The Special Surrender Value (SSV) becomes payable after completion of the first policy year, provided one full year’s premium has been received.
What are the advantages of the Shriram Life Super Income Plan?
- You can avail a loan of up to 80% of the surrender value.
- Optional riders provide additional protection.
- Flexibility to choose when the monthly income begins.
- Higher premiums result in a higher monthly income.
What are the disadvantages of the Shriram Life Super Income Plan?
- The income benefit is typically used for discretionary expenses.
- While the income benefits are guaranteed, the returns are relatively low.
- The sum assured may not be sufficient.
Research Methodology of Shriram Life Super Income Plan
The Shriram Life Super Income Plan offers a monthly income benefit, which begins after the completion of the premium payment term.
To assess whether this income is truly beneficial, we analyse a benefit illustration from the policy brochure to understand its cash flow pattern and overall value.
Benefit Illustration – IRR Analysis of the Shriram Life Super Income Plan
Let’s consider a 30-year-old male who opts for this plan with a sum assured of ₹10 lakhs. The premium payment term is 15 years, followed by an income benefit period of 30 years, lasting until the age of 75. This results in a total policy term of 45 years.
| Male | 30 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 45 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 1,00,000 |
Upon completing the premium payments, the policy provides a fixed monthly income of ₹11,888 along with a maturity benefit of ₹5 lakhs. However, the Internal Rate of Return (IRR) for this cash flow is just 5.33% as per the Shriram Life Super Income Plan maturity calculator, which is significantly lower than returns from debt instruments.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -1,00,000 | 10,00,000 |
| 31 | 2 | -1,00,000 | 10,00,000 |
| 32 | 3 | -1,00,000 | 10,00,000 |
| 33 | 4 | -1,00,000 | 10,00,000 |
| 34 | 5 | -1,00,000 | 10,00,000 |
| 35 | 6 | -1,00,000 | 10,00,000 |
| 36 | 7 | -1,00,000 | 10,00,000 |
| 37 | 8 | -1,00,000 | 10,00,000 |
| 38 | 9 | -1,00,000 | 10,00,000 |
| 39 | 10 | -1,00,000 | 10,00,000 |
| 40 | 11 | -1,00,000 | 10,00,000 |
| 41 | 12 | -1,00,000 | 10,00,000 |
| 42 | 13 | -1,00,000 | 10,00,000 |
| 43 | 14 | -1,00,000 | 10,00,000 |
| 44 | 15 | -1,00,000 | 10,00,000 |
| 45 | 16 | 1,42,656 | 10,00,000 |
| 46 | 17 | 1,42,656 | 10,00,000 |
| 47 | 18 | 1,42,656 | 10,00,000 |
| 48 | 19 | 1,42,656 | 10,00,000 |
| 49 | 20 | 1,42,656 | 10,00,000 |
| 50 | 21 | 1,42,656 | 10,00,000 |
| 51 | 22 | 1,42,656 | 10,00,000 |
| 52 | 23 | 1,42,656 | 10,00,000 |
| 53 | 24 | 1,42,656 | 10,00,000 |
| 54 | 25 | 1,42,656 | 10,00,000 |
| 55 | 26 | 1,42,656 | 10,00,000 |
| 56 | 27 | 1,42,656 | 10,00,000 |
| 57 | 28 | 1,42,656 | 10,00,000 |
| 58 | 29 | 1,42,656 | 10,00,000 |
| 59 | 30 | 1,42,656 | 10,00,000 |
| 60 | 31 | 1,42,656 | 10,00,000 |
| 61 | 32 | 1,42,656 | 10,00,000 |
| 62 | 33 | 1,42,656 | 10,00,000 |
| 63 | 34 | 1,42,656 | 10,00,000 |
| 64 | 35 | 1,42,656 | 10,00,000 |
| 65 | 36 | 1,42,656 | 10,00,000 |
| 66 | 37 | 1,42,656 | 10,00,000 |
| 67 | 38 | 1,42,656 | 10,00,000 |
| 68 | 39 | 1,42,656 | 10,00,000 |
| 69 | 40 | 1,42,656 | 10,00,000 |
| 70 | 41 | 1,42,656 | 10,00,000 |
| 71 | 42 | 1,42,656 | 10,00,000 |
| 72 | 43 | 1,42,656 | 10,00,000 |
| 73 | 44 | 1,42,656 | 10,00,000 |
| 74 | 45 | 1,42,656 | 10,00,000 |
| 75 | 5,00,000 | ||
| IRR | 5.33% |
Moreover, both the fixed income and the sum assured are inadequate. Given the long policy duration, the income fails to keep pace with inflation, making the Shriram Life Super Income Plan an unsuitable choice for a well-balanced portfolio.
Shriram Life Super Income Plan Vs. Other Investments
Analysing cash flow and comparing returns with other investment options is essential for making informed financial decisions. To ensure a fair comparison, it’s important to use consistent metrics, meaning the same evaluation approach applied earlier is used here as well.
The Shriram Life Super Income Plan combines life cover with a monthly income benefit. To evaluate its effectiveness, we separate these components.
Shriram Life Super Income Plan Vs. Pure-term + PPF / ELSS
A pure-term life insurance policy with a ₹10 lakh sum assured costs an annual premium of ₹13,300, with a 10-year premium payment term and a 40-year policy term.
The remaining ₹86,700 can be invested based on individual risk preferences, allowing the accumulated corpus to be used for systematic monthly withdrawals, similar to the income benefits of the Shriram Life Super Income Plan.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 40 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 13,300 |
| Investment | ₹ 86,700 |
Let us analyse the following two scenarios: savings are invested in a PPF (debt) or an ELSS fund (equity).
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 30 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 31 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 32 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 33 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 34 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 35 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 11 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 12 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 13 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 14 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 15 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 16 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 46 | 17 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 47 | 18 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 48 | 19 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 49 | 20 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 50 | 21 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 51 | 22 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 52 | 23 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 53 | 24 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 54 | 25 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 55 | 26 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 56 | 27 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 57 | 28 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 58 | 29 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 59 | 30 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 60 | 31 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 61 | 32 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 62 | 33 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 63 | 34 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 64 | 35 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 65 | 36 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 66 | 37 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 67 | 38 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 68 | 39 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 69 | 40 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 70 | 41 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 71 | 42 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 72 | 43 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 73 | 44 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 74 | 45 | 1,42,656 | 10,00,000 | 1,42,656 | 10,00,000 |
| 75 | 41,05,776 | 1,12,67,442 | |||
| IRR | 6.55% | 7.89% |
In a PPF account, the corpus grows to ₹24.33 lakhs. When reinvested in an instrument yielding 7%, it allows for monthly withdrawals, leaving a final balance of ₹41.05 lakhs. This results in an IRR of 6.55%.
In an ELSS fund, the corpus accumulates to ₹37.14 lakhs. After capital gains tax, the post-tax value is ₹33.74 lakhs. Reinvesting this amount in a 7% return instrument enables systematic withdrawals, leaving a final balance of ₹1.12 crores, yielding an IRR of 7.89%.
| ELSS Tax Calculation | |
| Maturity value after 15 years | 37,14,641 |
| Purchase price | 8,67,000 |
| Long-Term Capital Gains | 28,47,641 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 27,22,641 |
| Tax paid on LTCG | 3,40,330 |
| Maturity value after tax | 33,74,311 |
This alternative approach not only outpaces inflation but also provides greater flexibility to adjust withdrawals based on financial needs. Comparing these outcomes, it becomes clear that more effective strategies exist for generating monthly income.
The Shriram Life Super Income Plan falls short as an optimal investment choice.
Final Verdict on Shriram Life Super Income Plan
The Shriram Life Super Income Plan allows you to pay premiums for a limited period and start receiving a fixed monthly income after the premium payment term. This income continues until the age of 75.
While the idea of guaranteed regular income may seem appealing to those seeking steady cash flow, a closer look at the returns reveals that this plan may not be a compelling investment option.
Moreover, the income benefit cannot be deferred or accumulated to receive as a lump sum, limiting flexibility.
The plan’s restricted liquidity and subpar investment returns further reduce its effectiveness, making it an unsuitable choice for a well-balanced investment portfolio and it also has a high agent commission.
For regular income needs, a better approach is to build a sufficient corpus through investments aligned with your risk tolerance. This strategy not only ensures better returns and liquidity but also allows for appropriate life coverage to safeguard your family.
A pure-term life insurance policy provides the necessary financial protection, while a diversified investment portfolio enables you to grow wealth efficiently.
Since a standard monthly withdrawal plan may not suit everyone’s needs, it’s advisable to consult a certified financial planner.
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