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Reliance Fixed Savings Plan
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Reliance Fixed Savings Plan Review
Reliance Fixed Savings is a non-linked endowment plan. Under this plan, the policyholder gets Guaranteed Benefits + Fixed regular additions + Guaranteed Sum Assured at Maturity + Life Cover. To sum-up, it offers, Survival, Maturity and Death benefit through systematic savings for a period of time.
Sample Case Study
Criteria
Male, Age 30
Premium – Rs. 50,000
Premium Payment Term – 7 years
Policy Term – 20 years Benefits as follows: Fixed Regular Additions (as a percentage of Annualised Premium) accumulated within the policy, immediately on premium payment
- 8% during first policy year
- 9% during second policy year and,
- 10% p.a. from third policy year onwards On Survival till the start of the last policy year, Rahul receives the Accrued Fixed Regular Additions At Maturity Rahul gets Guaranteed Sum Assured at maturity which is equal to:
- Annualised Premium x Premium payment term (PPT)
- Fixed Maturity Addition = Maturity Factor x Annualised Premium Benefits computed as below:
Maturity Benefit
Amount
Annualised Premium * PPT
3,50,000
Fixed Maturity Addition
2,67,025
Total benefit
6,17,025
Fixed Regular Additions
Amount
Accrued Fixed Regular Additions
98,500
Key Features of Reliance Fixed Savings Plan
Fixed Regular Additions of 10%
Guaranteed Sum Assured on Maturity
Tax Benefits u/s Section 80C and 10(10D) of Income Tax Act
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS
Benefits you get from Reliance Fixed Savings Plan
Fixed Regular Additions – If the life assured survives till the start of the last policy year, he will get survival benefit as a percentage of annualized premium as below
Policy Year
Fixed Regular Additions (as a % of Annualized Premium)
1
8
2
9
3 onwards
10
Maturity Benefit - If the life assured survives till the end of the policy term, Guaranteed Sum Assured is payable which is equal to:
Annualised Premium x Premium payment term (PPT)
Fixed Maturity Addition = Maturity Factor x Annualised Premium
Where, Maturity is a percentage of the Annualised Premium, depends on the age of the Life Assured at inception of the policy, premium payment term, policy term and the death benefit option chosen.
Death Benefit – If the life assured dies during the policy tenure, the nominee will get
- Sum Assured on death
- 105% of the premiums paid
- Fixed Regular additions (if not availed during the term)
Where, Sum assured of death is higher of:
- Annualised Premium x Death benefit multiple as per the death benefit option chosen
- Guaranteed Sum Assured on maturity
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C. The maturity proceeds are exempted from tax under Section 10 (10D)
Eligibility conditions and other restrictions in Reliance Fixed Savings Plan
Parameters
Minimum
Maximum
Entry Age (in years)
8
60
Maturity Age (in years)
20
80
Annual Premium (in Rs.)
25,000
No limit
Policy Term (in years)
12,15,20
Premium Payment Terms (in years)
5,7,10
Premium Payment modes
Yearly, Half-yearly, Quarterly and Monthly
Additional Benefits of Reliance Fixed Savings Plan
Riders - There 5 riders available under 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 and Total and Permanent Disablement Rider
What happens if?
You stop paying the premium – If you discontinue the payment of premiums, your Policy will either lapse or become Paid-up. Policy turns paid up, if it has acquired some surrender value.
You want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years. Guaranteed Surrender Value = Total premiums paid
You want a loan against your policy – Loan facility is not available under this policy
Exclusions
If the Life assured commits suicide within 12 months:
- From the date of policy start, the beneficiary will get 80% of the premiums paid.
- From the date of policy revival, the beneficiary of the policyholder will get an amount higher of 80% of premiums paid till the date of death or the Surrender Value, as available on the date of death
