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Should you consider investing in Shriram Life Wealth Pro Plan to secure your loved one’s future?
How good are the Features and Returns of the Shriram Life Wealth Pro Plan?
If you wish to secure your loved one’s future for that you should be prudent in choosing the avenues to grow your savings. Meanwhile, a life insurance policy can be a guard to protect your loved one in your absence.
Considering these aspects Shriram Life Insurance is offering you ‘Shriram Life Wealth Pro’ a unit-linked insurance plan that protects your loved ones and also helps your investments grow.
In this research article, let us analyze the Shriram Life Wealth Pro Plan’s Advantages (Pros) & Disadvantages (Cons) in detail to find out whether this plan suits you. This Review analysis helps you in understanding the workings of ULIP plans.
Let’s get started!
Table of Contents:
1.)What is Shriram Life Wealth Pro Plan?
2.)What are the Features of the Shriram Life Wealth Pro Plan?
3.)Who is Eligible to invest in the Shriram Life Wealth Pro Plan?
4.)Shriram Life Wealth Pro Plan Benefits in detail
i)Shriram Life Wealth Pro Plan Death benefit
ii)Shriram Life Wealth Pro Plan Maturity benefit
5.)Shriram Life Wealth Pro Plan Fund Options & Investment Strategies
6.)Various Charges under the Shriram Life Wealth Pro Plan
7.)Shriram Life Wealth Pro Plan Grace period, Discontinued Policy & Revival
8.)Shriram Life Wealth Pro Plan Free Look Period
9.)Surrendering Shriram Life Wealth Pro Plan
10.)What are the Advantages of the Shriram Life Wealth Pro Plan?
11.)What are the Disadvantages of the Shriram Life Wealth Pro Plan?
12.)Final Verdict on Shriram Life Wealth Pro Plan
1.)What is Shriram Life Wealth Pro Plan?
Shriram Early Life is a Unit-Linked Insurance Plan. It offers both savings and protection under a single plan. It protects your loved ones and ensures they are protected financially even when you are not around.
2.)What are the Features of the Shriram Life Wealth Pro Plan?
- Choice of Policy Term – 10 to 30 years
- Two cover options to choose from & option to customise the choice of cover level within each cover option.
- Multiple funds and investment strategies to choose from.
- Additional protection through Riders.
- Settlement Option available with Maturity/ Death benefit to tackle market volatility during redemption.
3.)Who is Eligible to invest in the Shriram Life Wealth Pro Plan?
| Minimum age at entry | 30 days |
| Maximum age at entry | Option 1: 55 years Option 2: 65 years |
| Maximum age at maturity | 75 years |
| Policy term | 10 -30 years |
| Premium Paying term | Regular – Same as policy term Limited: 5/10/15/20/25 years |
| Mode of premium payment | Yearly, Half-yearly, Quarterly & Monthly |
| Minimum Sum Assured | 7 * Annualised premium |
| Maximum Sum Assured | 10 * Annualised Premium |
4.)Shriram Life Wealth Pro Plan Benefits in detail
i)Shriram Life Wealth Pro Plan Death benefit
Option 1:
Sum Assured along with top-up sum assured (if any), top-up premium fund value (if any), and base premium fund value will be paid to the nominee then the policy will be terminated.
Option 2:
Higher of
- Sum Assured (less partial withdrawals) or
- Base premium fund value
+
Higher of
- Top-up Sum Assured or
- Top-up premium fund value
The policy comes to an end after the nominee or beneficiary has received the death benefits.
ii)Shriram Life Wealth Pro Plan: Maturity benefit
If the life assured survives till the end of the policy term, the total fund value will be payable.
5.)Shriram Life Wealth Pro Plan: Fund Options & Investment Strategies
The policyholder has the option to choose any one of the following funds or a combination of the funds in a fixed percentage. The Asset allocation varies in each fund option & the risk profile depends on the underlying asset. Choose a fund option that correlates with your risk profile.
| Asset Allocation | ||||
| Fund Name | Equity | Debt (Govt. & Corp. Bonds) | Money Market / Liquid / Cash | Risk Profile |
| Maximus | 0%-70% | 30%-100% | 0-20% | High |
| Accelerator | 90%-100% | – | 0%-10% | Very High |
| Tyaseer | 90%-100% | – | 0%-10% | Very High |
| Preserver | – | 80%-100% | 0-20% | Very Low |
| Defender | 0%-35% | 45%-100% | 0%-20% | Low |
| Balancer | 40%-60% | 20%-60% | 0%-20% | Moderate |
| Discontinued Policy Fund | – | 60%-100% | 0%-40% | Very Low |
Auto transfer Strategy
This option allows you to invest the premium in a low-risk fund “Preserver” and gradually transfer the money into your chosen investment portfolio. Policyholders can either choose a 6- or 12-month Auto Transfer Option to invest regular premiums
6.)Various Charges under the Shriram Life Wealth Pro Plan
Premium Allocation Charge
This charge depends on the premium size and will apply only on premiums of the first 5 years.
| Year | All premium Bands |
| 1 | 12% of premium |
| 2 to 5 | 4% of premium |
| 6+ | NIL |
Policy Administration Charge
This charge is expressed as a percentage of the annualised premium
| Year | Annual premium < 30,000 | Annual premium >= 30,000 |
| 1 to 5 | 0.10% | 0.10% |
| 6 to 10 | 0.36% | 0.29% |
| 11+ | NIL | NIL |
Mortality Charges
Mortality charges are levied based on the Sum at Risk at the start of every policy month.
Sum at Risk = Death benefit less the total fund value
Fund Management Charges
| Name of the Fund | FMC p.a. |
| Preserver, Defender | 1.25% |
| Balancer, Maximus, Accelerator, Tyaseer | 1.35% |
| Discontinued Policy Fund | 0.50% |
Discontinuance charge
It depends on the year of discontinuance & premium amount.
Partial withdrawal charge
Only one partial withdrawal is allowed free of charge during the policy term. For every subsequent partial withdrawal ₹ 250 will be levied
Switching Charges – Nil
Premium Redirection Charges – Nil
Alteration Charge – Nil
Top-up Charge – 2% of the top-up premium will be levied.
Inference from the charge:
The plan levies numerous charges as discussed above. The premium is invested after the deduction of aforesaid charges. You may not be aware of the impact of these charges on your investment. This will affect your returns in the long run.
7.)Shriram Life Wealth Pro Plan Grace period, Discontinued Policy & Revival
Grace period
A grace period of one month (30 days) is allowed for premium payment for yearly, half-yearly, and quarterly modes and is reduced to half a month (15 days) for monthly modes.
Discontinued Policy
If the policyholder stops paying premiums during the lock-in period, the policy shall be discontinued with immediate effect at the expiry of the grace period. Funds will shall be shifted to the Discontinued Policy Fund after consuming the applicable discontinuance charges.
The proceeds of the discontinued policy shall be payable at the end of the lock-in period or date of surrender whichever is later.
In case of discontinuance of the policy after the lock-in period, the policy shall be converted into a paid-up policy and continued on a paid-up basis with the paid-up sum assured.
Revival
The policyholder can revive the policy within the revival period of three years.
8.)Shriram Life Wealth Pro Plan Free Look Period
If the policyholder disagrees with any of those terms or conditions, then he has the option to return the policy within 15 days from the date of receipt of the policy document.
For further Clarification regarding the policy you can refer to Shriram Life Wealth Pro Plan Policy Brochure
9.)Surrendering Shriram Life Wealth Pro Plan
If the policy is surrendered (before the lock-in period) Fund will be moved to the Discontinued Policy Fund. The proceeds of the discontinued policy shall be payable at the end of the lock-in period.
If the policy is surrendered (after the lock-in period) the fund value as of the date of surrender will be paid to the policyholder immediately.
10.)What are the Advantages of the Shriram Life Wealth Pro Plan?
- Return of Premium Allocation Charges.
- Wealth Boosters are guaranteed every 5 years.
- Option to increase/decrease policy term, premium payment term, decrease sum assured, and premium.
- Top-up premium is allowed.
- Unlimited Switching, Premium Redirection, and Auto transfer option (ATO) free of cost.
11.)What are the Disadvantages of the Shriram Life Wealth Pro Plan?
-
- Only one free partial withdrawal is allowed in a policy year & thereafter charges will apply.
- No loans are granted under the policy.
- The plan does not offer any liquidity during the first five years.
12.)Final Verdict on Shriram Life Wealth Pro Plan
Shriram Life Wealth Pro Plan allows you to invest your savings in the market. Throughout the policy term, you get a life cover and the fund value is payable at maturity. The minimum policy term is 10 years, which means this is a long-term investment.
To favour the long-term investor, the investment return must beat the inflation rate, in the long run. But, Shriram Life Wealth Pro fails to do so.
The hefty charge is the hindrance that affects your potential return. Analysing the plan reveals that, the potential return from this plan would not be higher than the inflation rate. Also, the sum assured is too low along with the High Agent Commission. So, investing in Shriram Life Wealth Pro is not favourable for an investor.
To get better risk-adjusted returns, it is wise to invest in other market-related products where there is transparency in investing. Apart from that, have a pure term life cover. This way, you can tackle all your future uncertainties.
Never combine investment & insurance under one plan.
Instead of wondering on and on in Digital Platforms like Facebook, Twitter, Quora, etc for best investments instead choose the plan that suits you the best.
Consult a Certified Financial Planner (CFP) who will draft a tailor-made investment plan for you. The insurance plan should support your investment plan.
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