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

 

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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)
Where,

• 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:-
Criteria:-
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:

At Maturity	2nd year	3rd year	4th year	5th year	Total
20% of the BSA + GA	20% of BSA	20% of BSA	20% of BSA	(20% of the BSA + GMA) * 132.76%	488,615
Amount (in Rs.)	49,854	49,854	49,854	199,462

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

Benefits		Amount
Death Benefit	50% as lump sum	214,372
	50 % of Death Benefit will be paid every year for next 10 years	27,740
	Total Death Benefit	491,772
Maturity Benefit for Career Starter Payout Option	At Maturity: 20% of the BSA + GA	139,591
	2nd Year: 20% of the BSA	49,854
	3rd Year: 20% of the BSA	49,854
	4th Year: 20% of the BSA	49,854
	5th Year: (20% of the BSA + GMA) * 132.76%	199,462
	Total Maturity Benefit	488,615
TOTAL BENEFIT AMOUNT		980,387

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

Particulars		Minimum		Maximum
Entry Age (in years)	Parent	20		50
	Child	0		18
Maturity Age (in years	Parent	29		65
	Child	9		30
Base Sum Assured (in Rs.)		50,000		No Limit
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)
	5	9	20
	7
	10	12
	Regular	9

 

Additional Features and Benefits of Reliance Education Plan

Riders - There are 6 additional riders in this plan

1. Reliance Term Life Insurance Benefit Rider 
2. Reliance Major Surgical Benefit Rider 
3. Reliance Critical Conditions (25) Rider
4. Reliance Family Income Benefit Rider
5. Reliance Accidental Death Benefit and Total and Permanent Disablement Rider (Regular Premium)
6. 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.