Reliance Connect 2 Life

Reliance Connect 2 Life Plan is an Endowment Plan. This is a non unit-linked insurance traditional plan with Bonus facility.

In this policy, the premium is to be paid till the end of the Policy Term.

This plan has 2 variants- Gold Plan with an initial Sum assured of Rs 2 lacs and Silver Plan with an initial Sum Assured of Rs 1 lac. This plan has a unique option. At the end of the Policy Year 1, this plan offers to the policyholder to enhance his Life Coverage without any further underwriting by purchasing an additional Reliance Connect 2 Life Plan. However, the maximum amount of Life Coverage Enhancement that he can do at the end of Year 1 depends on the Policy Variant. For Gold Plans, the maximum Life Cover Enhancement at the end of Year 1 is Rs 3 lacs and for Silver Plans, the maximum Life Cover Enhancement at the end of Year 1 is Rs 2 lacs.

Now, if the Life Cover is enhanced at the end of the Year 1 by purchasing an additional Reliance Connect 2 Life Plan, then at the end of Year 2 there is another opportunity to enhance the Life Coverage again by purchasing an additional Reliance Connect 2 Life Plan. For Gold Plans, the maximum Life Cover Enhancement at the end of Year 2 is Rs 5 lacs such that the Total Maximum Sum Assured for Gold Plan is Rs 10 lacs. For Silver Plans, the maximum Life Cover Enhancement at the end of Year 2 is again Rs 2 lacs such that the Total Maximum Sum Assured for Silver Plan is Rs 5 lacs. 

However, if the Life Insured dies within the policy tenure, then the nominee would receive the full Sum Assured along with accrued Bonus and the policy is terminated.

• This is an Endowment Plan with both Death and Maturity Benefit.
• There are No Medical requirement under this plan. Medical Underwriting is done by simply filling up the relevant questions in the proposal form.
• Sum Assured + accrued Bonus is paid on Maturity or on earlier death.
• This plan has 2 variants
  • Gold- This plan offers an Initial Life Cover of Rs 2 lacs which can be enhanced upto Rs 10 lacs
  • Silver- This plan offers an Initial Life Cover of Rs 1 lacs which can be enhanced upto Rs 5 lacs
• At the end of Policy Year 1 of Gold and Silver Plan, Life Cover can be enhanced by purchasing an additional Reliance Connect 2 Life Plan
• If the option of life cover enhancement has been opted for at the end of Policy Year 1, then it can again be enhanced till the maximum limit by purchasing another additional Reliance Connect 2 Life Plan
• This plan is a with profit plan
• There is Large Sum Assured Rebate in this policy.

Death Benefit – In case of death of the Life Insured at anytime during the entire Policy Term, the nominee receives the Sum Assured + accrued Bonus and the policy terminates.

Survival Benefit – At the end of Policy Year 1 of Gold and Silver Plan, Life Cover can be enhanced by purchasing an additional Reliance Connect 2 Life Plan. If the option of life cover enhancement has been opted for at the end of Policy Year 1, then it can again be enhanced till the maximum limit by purchasing another additional Reliance.

Maturity Benefit – On survival till the maturity of the policy, the insured will get the Sum Assured along with the accrued Simple Bonus.

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C. The maturity proceeds are exempted from tax under Section 10 (10D)

The below illustration is for a healthy Male (non-tobacco user)

Age = 30 years, 35 years and 40 years

Sum Assured = Rs 1,00,000  for Silver Plan and Rs 2 lakhs for Gold Plan.

Riders- There is NO additional rider in this plan

You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy would lapse and all benefits would cease. Then the policyholder would have an option to convert the plan into a Paid Up Policy and continue the life coverage for a Reduced Sum Assured.

You want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years
Guaranteed Surrender Value = 30% of all premiums paid – 1st year’s premium

You want a loan against your policy – Loan facility is available under this policy after completion of 3 policy years up to a maximum of 90% of the Surrender Value.

·         HDFC Life Sampoorn Samridhi Insurance Plan

·         ING Safal Jeevan Endowment Plan

·         LIC Jeevan Mitra Plan

·         Reliance Life Money Multiplier Plan

·         Reliance Endowment Plan

·         Reliance Super 5 Plus Plan