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
2% of base sum assured at the end of each policy year
In case of demise of parent
Premiums paid under life insurance policy are exempted from tax under Section 80 C
Benefits
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
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
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).
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)
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.
How it works
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
| 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 | |||
FAQs
You stop paying the premiumIf the premium is not paid within 30 days from the premium due date, the policy will be lapsed
You want to revive the policyThe policy can be revived within 2 years from the date of first unpaid premium.
You want to surrender the policyIf 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 policyLoan facility is available under this policy.
