Reliance Special Credit Guardian Plan

Reliance Special Credit Guardian Plan is a decreasing Term Plan to ensure that the burden of any of your loans do not befall on your family in case of your unfortunate demise.

This is a unique Decreasing Term Insurance Policy with regular, limited and single premium options. In this plan, the premium needs to be paid as chosen, i.e. with single, limited or regular.

The Sum Assured keeps decreasing every year as specified in the Policy Document. Thus, if the life Insured dies within the policy tenure, then the corresponding Sum Assured, according to the year of death, is paid to the nominee and the policy terminates. This plan is a unique decreasing Term Plan since it has Maturity Benefit. The basic premiums paid towards this plan are returned on policy maturity as Maturity Benefit. There are Surrender Benefits also available along with 2 additional riders and 1 in-built rider benefits. 

•  It is a Decreasing Term Insurance Policy with Death Benefit
• However, this plan has Maturity Benefit also.
• This plan has single, limited and regular premium paying options
• The Sum Assured in this plan keeps decreasing every year as specified in the Policy Document.
• This plan covers all types of loans namely Housing Loans, Personal Loan, outstanding on credit cards, etc.
• This plan provides discount is provided to woman policyholders.
• There are 2 additional riders in this plan and 1 inbuilt rider in this plan

Death Benefit – If the Life Insured dies within the policy tenure, the Nominee would get the corresponding Sum Assured according to the year of death as Death Benefit. The Sum Assured decreases every year since the principle of the loan outstanding also decreases every year and thus the liability of the Life Insured decreases every year.

Maturity Benefit – All premiums paid for this policy is returned on maturity as Maturity Benefit.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C.

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 10 and 15 lakhs and Policy Term = 20 years

Riders – There are 2 Additional Riders available in this plan:

·         Critical Illness Rider and

·         Accidental Death & Total & Permanent Disablement Rider

And 1 in-built rider:

·         Premium Waiver Benefit- if the Life Assured becomes totally and permanently disabled, then the insurer will waive all future premiums up to a limit of Rs 40,000 p.a.

You stop paying the premium - If the policy holder stops paying the premium after 3 policy years, then the policy lapses and the life coverage ceases to exist after the grace period ends. If 3 years’ premiums have been paid, then the policy becomes Paid Up and it continues till the end of the Policy Term but with reduced coverage.

However, the policy can be re-instated within 3 years of expiry provided it is within the policy tenure.

You want to surrender the policy – Surrender of the Policy is allowed only after 3 policy years.

Guaranteed Surrender Value=30% of Total Premiums Paid till date – 1^st years’ Premium (except Single Premium cases)

You want a loan against your policy – Loan is not available under this policy.