Reliance Child Plan
Reliance Child Plan
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.
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.
Is provided as below:
|Years before Marurity||% of Payout|
|3 years before Maturity||25% of Sum Assured|
|2 years before Maturity||25% of Sum Assured|
On maturity the remaining 25% of Sum Assured + Bonus
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
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
The policy will lapse if the premium has not been paid within the grace period and the policy benefits stop.
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.
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).
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.