Reliance Child Plan is a Traditional Money Back Child Plan where 25% of the Sum Assured is returned every year in the last 4 years. In this plan, the life of the parent is insured for the benefit of the child. The premium needs to be paid for the entire tenure and 25% of the Sum Assured is paid in the last 4 years of the policy along with Bonus on maturity. However, if the parent dies or becomes totally and permanently disabled within the policy tenure, the entire Sum Assured is paid as immediate benefit. The future premiums in this child plan are waived to ensure that the Maturity Benefit is paid either ways.
Key Features of Reliance Child Plan
- This is a Traditional Money Back Plan where 25% of the Sum Assured is paid every year in the last 4 years
- Maturity Benefit is paid under all circumstances, even in case of unfortunate loss of parent.
- This policy provides high sum assured rebate
- Accumulated Bonus is payable on maturity
- There are 3 riders available in this plan- Critical Illness Rider, Accidental Death & Total & Permanent Disablement Rider and Family Income Benefit Rider
Benefits you get from Reliance Child Plan
Death Benefit – In case of death of the Life Insured, i.e. the parent, the entire Sum Assured is paid for immediate expenses; the future premiums are waived and paid by the insurer such that the Survival Benefits are either ways paid.
Survival Benefit – Is provided as below:
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Years before Marurity
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% of Payout
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3 years before Maturity
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25% of Sum Assured
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2 years before Maturity
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25% of Sum Assured
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Maturity Benefit – On maturity the remaining 25% of Sum Assured + Bonus
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
Eligibility conditions and other restrictions in Reliance Child Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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25,000
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No Limit
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Policy Term (in years)
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5
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20
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Premium Payment Term (in years)
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Equal to PT
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Entry Age of Policyholder (in years)
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20
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60
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Age at Maturity (in years)
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25
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70
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Payment modes
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Yearly, Half-yearly, Quarterly and Monthly
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Sample illustration of premium of Reliance Child Plan
Age of Policyholder = 30, 35 and 40 years
Policy Tenure = 18 years
Sum Assured= Rs.5,00,000
Guaranteed Benefits:
3 years before maturity = 25% of Sum Assured is paid = Rs 1,25,000
2 years before maturity = 25% of Sum Assured is paid = Rs 1,25,000
1 year before maturity = 25% of Sum Assured is paid = Rs 1,25,000
On Maturity = 25% of Sum Assured is paid = Rs 1,25,000 + Bonus
Additional Features and Benefits of Reliance Child Plan
Riders – There are 3 additional riders available in this policy
§ Critical Illness Rider
§ Accidental Death & Total & Permanent Disablement Rider and
§ Family Income Benefit Rider
And 1 in-built rider available in this plan
§ Premium Waiver Benefit Rider- premium will be paid by the insurer upto a maximum of Rs 40,000 per annum
You stop paying the premium within the first 3 years– The policy will lapse if the premium has not been paid within the grace period and the policy benefits stop.
You stop paying the premium after the first 3 years– If the premium has not been paid within the grace period, the policy will made 'Paid up' and the Sum Assured will be reduced proportionately.
You want to surrender the policy – If premiums for 3 years have been paid up, then surrender of policy is allowed.
Guaranteed Surrender Value = 30% of basic premiums paid – 1st year’s premium and additional premium paid (if any).
You want a loan against your policy - There is loan available under this plan but only after 3 policy years and upto a maximum of 90% of the Surrender Value of the policy at the time of availing the loan.
Alternate Child Money Back Plans from different insurance companies
1. LIC Komal Jeevan
2. Met Junior Money Back
3. Bajaj Allianz Child Gain
