Reliance launches new life insurance policy
Posted on Jan 28 2014 | IBNS
New Delhi, Jan 28 : Reliance Life Insurance, part of Reliance Capital, has launched its new offering 'Reliance Super Money Back Plan', a traditional non-participating plan that provides periodic guaranteed money back pay-outs and a monthly income along with life cover.
The plan offers guaranteed money back benefits to policyholders every five years throughout the policy period along with an increasing monthly income that starts after the premium payment term.
Reliance Super Money back Plan also provides life insurance cover for the full policy term by paying premiums for half of the selected policy tenure.
For a 50 year policy, the policyholder has to pay premium for 25 years. The guaranteed money back payouts start from the 5th year and are paid every five years for the policy term. At the end of the premium payment term of 25 years, the policyholder enjoys a guaranteed increasing regular monthly income till the end of the policy term, the company said in a statement.
Announcing the launch of the product, Anup Rau, Chief Executive Officer, Reliance Life Insurance said, "Reliance Super Money Back Plan is designed to help policyholders provide a guaranteed regular income and security for the family. Even as the guaranteed periodic lump sums ensure financial support at crucial junctures of life, the increasing guaranteed monthly income provides the additional support to take care of increasing expenses and to fulfill the goals for family."
This new plan is available for customers in the age group 18-55 years with a minimum sum assured of Rs. 1,00,000 and the policyholder can opt for policy terms - 10, 20, 30, 40 or 50 years.
Apart from offering guaranteed money back benefits to policyholders, it also provides guaranteed loyalty addition at the end of premium payment term and guaranteed maturity benefits at the end of the policy term.
A feature of this offering is the regular monthly pay-out after the end of premium payment term that increases every year at 3 per cent and is paid till maturity or death of the life insured, whichever is earlier.
For the 50 year policy, the policyholder starts getting 1 per cent of sum assured every month as regular income from 26th policy year and earns 12 per cent of the sum assured as total income during the year.
The monthly income for the year will go up to 84 per cent of sum assured in the 50th policy year on the back of annual increment of 3 per cent.
In the unfortunate event of death of the policyholder during the premium payment term, provided the policy is in full force, the sum assured or 105 per cent of all the premiums paid or 10 times of annualized premium is payable depending on the case.
In the unfortunate event of the death of the policyholder within the policy term, the nominee would receive the full death benefit, irrespective of the survival benefits already paid.
"Reliance Super Money Back Plan is ideal for people who want to limit their premium payment commitment period but would like to enjoy life protection and regular income for their families' financial future and need financial aid periodically during the policy term for achieving different life goals," Rau said.