Reliance Cash Flow Plan

Reliance Cash Flow Plan is a Money Back Plan from Reliance Life Insurance Company. This is a non unit-linked insurance traditional plan where the money is paid as pre-decided intervals.

In this policy, if the Life Insured survives then he would receive percentage return at the end of the fourth year and then every 3^rd year till maturity. When the policy matures, the remaining amount along with accrued bonus is paid and the policy is terminated. However, if the Life Insured dies within the policy tenure, then the nominee would receive the full Sum Assured irrespective of how much has already been paid out before and Bonus being calculated on the full Sum Assured and the policy terminates.

§         Money back plan with both Death and Survival Benefits

§         Death benefit is full Sum Assured irrespective of the amount paid as Survival Benefit along with accrued bonuses

§         Survival Benefit is paid at the end of the 4^th year and then at the end of every 3 years

§         Option to add riders

§         Large Sum Assured Rebate offered in this policy

Death Benefit – In case of death of the Life Insured, the nominee receives the full Sum Assured irrespective of what payment has already been provided + accrued Bonus

Survival Benefit – The Life Insured would receive the first instalment at the end of the 4^th policy year and the others from the end of every 3 policy years.

Maturity Benefit – At the maturity of the policy, the insured will get the final Lumpsum Amount along with accrued Bonus

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and the amount for Critical Illness rider is deducted under Section 80D. The maturity proceeds are exempted from tax under Section 10 (10D)

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

Age = 30 years, 35 years and 40 years

Sum Assured = Rs 1,00,000  and Rs 5 lakhs

Policy Term = 25 years.

Riders- There are 3 additional riders in this plan

1. Critical Illness Rider

2. Accidental Death & Total & Permanent Disablement Rider

3. Family Income Benefit Rider

And there is an in-built rider

Premium Waiver Benefit rider - If the Life Assured becomes totally and permanently disabled, then the insurer will waive all future premiums up to a limit of Rs 40,000 p.a.

You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions. However, it can be revived anytime before the policy maturity.

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 not available under this policy