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Reliance Education Plan
Reliance Education Plan
Reliance Education Plan is a non unit-linked insurance plan, designed to cater to child’s needs, in absence of the parent. The product offers Guaranteed Maturity Benefit and lump sum amount, in case of death of parent, also the future premium is waived off, and so the child can reap the uninterrupted benefits. Additionally, riders can be attached for double protection.
Key Features of Reliance Education Plan
Guaranteed additions – 2% of base sum assured at the end of each policy year
Future premium waiver – in case of demise of parent
2 death benefit options
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C
COMPARE THIS PLAN WITH OTHER CHILD PLANS
Benefits you get from Reliance Education Plan
Death Benefit – In case of death of the Life Insured, the nominee receives the benefit as per the death option selected:
Option I – 100% of Death Benefit amount is paid immediately, to the nominee, on death of the Life Assured
Option II – 50% of total Death Benefit amount is paid immediately on death and the balance amount is paid yearly in equal instalments over the period of next 10 years starting from the date of death.
Where, Death Benefit payout is higher of
Sum assured on Death or
105% of premiums paid till date
Maturity Benefit – The Life Insured would receive the following benefits, as per the payout option selected, which is, Guaranteed Maturity Benefit =Base Sum Assured (BSA) + Sum of Guaranteed Additions (GA’s) + Guaranteed Maturity Additions (GMA)
BSA – is the minimum benefit amount opted at inception
GA’s - GA of 2% of the Base Sum Assured will be accrued to your Policy at the end of each policy year till the end of the policy term.
GMA – Payable at maturity, which is, 2%*BSA*Policy Term
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).
How does the plan work?
All the benefits illustrated with an example below:-
Life Insured Age – 30 years
Policy Term – 18 years
Premium Payment Term – 7 years
Base Sum Assured – Rs. 249,270 Death Benefit Option II – 50% of total Death Benefit amount is paid immediately on death and the balance amount is paid yearly in equal instalments over the period of next 10 years starting from the date of death. Payout Option – Career Starter MATURITY BENEFIT – Life Assured survives till maturity and child turns 18 years. Below is the benefit payable with Career Starter Option. Maturity Payout:
20% of the BSA + GA
20% of BSA
20% of BSA
20% of BSA
(20% of the BSA + GMA) * 132.76%
Amount (in Rs.)
Need Taken Care: Life Assured’s dream of his child studying in a reputed university for a 5 years Degree course
DEATH BENEFIT (before Maturity): Upon Life Assured’s unfortunate demise during the 5th policy year, Death Benefit amount payable is Rs.428,744
50% as lump sum
50 % of Death Benefit will be paid every year for next 10 years
Total Death Benefit
Maturity Benefit for Career Starter Payout Option
At Maturity: 20% of the BSA + GA
2nd Year: 20% of the BSA
3rd Year: 20% of the BSA
4th Year: 20% of the BSA
5th Year: (20% of the BSA + GMA) * 132.76%
Total Maturity Benefit
TOTAL BENEFIT AMOUNT
Anxiety Taken Care: even if parent is not alive, child continues to get the interrupted benefits. Also, in case of death before maturity, the maturity amount is still paid.
Eligibility conditions & other restrictions in Reliance Education Plan
Entry Age (in years)
Maturity Age (in years
Base Sum Assured (in Rs.)
Premium Payment Term (in years) (PPT)
Limited Pay – 5/7/10
Regular Pay – equal to policy term
Premium (in Rs.)
PPT 5 & 7 – 35,000
PPT 9 & 10 - 30,000
PPT over 11 years+ - 20,000
Premium Payment modes
Yearly, Half-yearly, Quarterly, Monthly
Policy Term (in years)
Premium Paying Term (in years)
Additional Features and Benefits of Reliance Education Plan
Riders - There are 6 additional riders in this plan
Reliance Term Life Insurance Benefit Rider
Reliance Major Surgical Benefit Rider
Reliance Critical Conditions (25) Rider
Reliance Family Income Benefit Rider
Reliance Accidental Death Benefit and Total and Permanent Disablement Rider (Regular Premium)
Reliance Accidental Death Benefit and Total and Permanent Disablement Rider (Limited Premium)
Free look – In case the policy holder is not convinced with terms and conditions of the policy, s/he can surrender the policy within 15 days of receipt of policy document.
What happens if?
You stop paying the premium – If the premium is not paid within 30 days from the premium due date, the policy will be lapsed
You want to revive the policy – the policy can be revived within 2 years from the date of first unpaid premium.
You want to surrender the policy – If your Policy has acquired a Surrender Value and you choose to discontinue your Policy, the higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) will be paid and the policy will terminate.
You want a loan against your policy – Loan facility is available under this policy.