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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
  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 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
 
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