Reliance Life Online Income Protect Plan
Reliance Online Income Protect Plan is a mix of protection + income replacement in the form of monthly income. It’s a term plan that protects family with a lump sum to pay off large liabilities and a monthly income till retirement. Thus, it ensures that the dependants maintain the same standard of living even in the absence of policyholder.
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Rewards for healthy lifestyle through lower premiums
In the unfortunate event of demise of the Life Assured during the policy term, the nominee will receive the below:-
Sum assured: - Sum Assured on Death is the highest of:
- 10 times Annualised Premium, or
- Base Sum Assured
0.50% of the Base Sum Assured every month that starts from the subsequent policy month from the date of death. This benefit is payable for the remaining policy term or for a period of 10 years, whichever is higher. The monthly income cannot be converted into lump sum benefit.
There are no maturity benefits under this plan as it is a pure protection plan.
Life Insurance premiums paid up to Rs. 1, 50,000 are allowed as a deduction from the taxable income each year under section 80C. The Death Benefit is also Tax Free.
No riders are available in this policy.
The Base Sum Assured, policy term and premium payment term cannot be altered after commencement of the policy.
If the policyholder is not convinced with the terms and conditions of the policy s/he can cancel the same within 15 days from the date of receipt of the policy document.
How it works
The plan covers liabilities and provides financial support to policyholder’s family for the loss of income in case of any unfortunate circumstances. Let’s understand with an example illustrated below:-
Sum Assured: 1 crore
Policy Term: 30 years
Premium: Rs. 13,734 annually
Monthly Income: Rs. 50,000
Dependants: Spouse and Child
If after 13 years, policyholder dies the beneficiary will get the below benefit:-
- Lump sum benefit of 1 Crore, which spouse can use to close the home loan or any other liability and keep some amount aside for child’s future; and thereafter
- Monthly income of Rs. 50,000 for the remaining policy term of 17 years can be utilized to meet day-to-day expenses.
Of course the emotional vacuum of our loved ones can never filled, however, the dependants can at least be rest assured that the immediate financial liabilities are taken care of and the monthly income provides the necessary financial support to the dependants to meet various regular expenses.
|Entry age (in years)||18||55|
|Maturity Age (in years)||28||75|
|Sum Assured (in Rs.)||35,00,000||No limit|
|Annual Premium (in Rs.)||3,500||No limit|
|Premium Payment Frequency||Annual|
|Policy Term (in years)||10,15,20,25,30,35|
|Death Benefit||Sum Assured on Death, Monthly Income Benefit|
|Maturity Benefit||No Maturity Benefit is payable under this plan.|
|Loan||Loan facility not available under this plan|
|Surrender Benefit||Since it’s a term plan, it does not acquire any surrender value|
|Riders||Not available under this plan|
If the policy holder stops paying the premium, then all benefits of the policy will cease after the expiry of the grace period. It can however be re-instated the policy within 2 years of lapsation by paying up all due premiums with interest.
There are no surrender benefits under this term plan. No paid Up Value is acquired under this plan.
Loan facility is not available under this policy.