Reliance Credit Guardian Plan

As the name suggests, Reliance Credit Guardian Plan is a decreasing Term Plan to ensure that the burden of any of your loans do not befall on your family in case of your unfortunate demise.

This is a Decreasing Term Insurance Policy with regular, limited and single premium options. In this plan, the premium needs to be paid as chosen, i.e. with single, limited or regular.

If Limited Premium Payment Option has been selected, then premium has to be paid for a limited period as specified but the cover continues till the end of the policy tenure. For example, for 20 years tenure, only 13 years premium needs to be paid. The remaining 7 years the policy continues without having to pay any premium for the same.

However, for Regular Premium Paying Option, premium needs to be paid till the end of the Policy Term else the policy would lapse and all benefits would cease.

The Sum Assured keeps decreasing every year as specified in the Policy Document. Thus, if the life Insured dies within the policy tenure, then the corresponding Sum Assured, according to the year of death, is paid to the nominee and the policy terminates. There is no Maturity or Surrender Benefits in this plan and also no Loan facility.

•  It is a pure Decreasing Term Insurance Policy with Death Benefit only
• This plan has single, limited and regular premium paying options
• The Sum Assured in this plan keeps decreasing every year as specified in the Policy Document.
• This plan covers all types of loans namely Housing Loans, Personal Loan, outstanding on credit cards, etc.
• This plan provides discount is provided to woman policyholders.

Have any doubts that need to be clarified?

Death Benefit – If the Life Insured dies within the policy tenure, the Nominee would get the corresponding Sum Assured according to the year of death as Death Benefit. The Sum Assured decreases every year since the principle of the loan outstanding also decreases every year and thus the liability of the Life Insured decreases every year.

Maturity Benefit – Being a pure Term Plan, this plan has no Maturity Benefit.

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.

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 10 and 15 lakhs and Policy Term = 20 years

Riders – There are NO Additional Riders available in this plan.

You stop paying the premium - If the policy holder stops paying the premium, then the policy lapses and the life coverage ceases to exist after the grace period ends. However, the policy can be re-instated within 3 years of expiry provided it is within the policy tenure.

You want to surrender the policy – Being a pure Term Plan, this policy does not provide any surrender benefits.

You want a loan against your policy – Being a pure Term Plan, loan facility is also not available under this policy.