Reliance Life Insurance Company : Reliance Cash Flow Plan
While most insurance plans block your money for a certain period of time, Reliance Cash Flow Plan gives you the double benefit of life insurance along with easy liquidity through lump sum cash. It provides money periodically when you need it.
It lets you live life to the fullest today and at the same time, helps you stay protected for tomorrow by giving you the flexibility of receiving a specified percentage of the Sum Assured at specified intervals.
Key Features
* Easy Liquidity – Get periodic cash flows at the end of the fourth year and thereafter at the end of every three years
* Wealth creation through bonus additions
* On maturity receive accumulated bonuses along with final lump sum payout
* More value for your money by way of High Sum Assured Rebate
* Full Sum Assured plus bonuses in case of your unfortunate death. This is over and above the Survival Benefits already paid
* Option to add two riders – Critical Illness Rider and Accidental Death Benefit & Total and Permanent Disablement Rider
How does this Plan work?
You pay premium every year for the entire term and get Survival Benefits at periodical intervals as mentioned below.
On death, your Beneficiary will get the full Sum Assured, plus accumulated bonuses, over and above the Survival Benefits already paid to you.
Benefits
Survival Benefit: Get a percentage of the Sum Assured on the fourth anniversary and on every third Policy Anniversary till maturity.
Maturity Benefit: On maturity you get the remaining percentage of the Sum Assured plus accumulated bonuses.
Life Cover Benefit: In the unfortunate event of loss of life, your Beneficiary will receive the full Sum Assured plus accumulated bonuses till that date.
Rider Benefit: You also have the option to add two additional benefits to customize the Policy as per your needs:
1. Accidental Death Benefit & Total and Permanent Disablement Rider
2. Critical Illness Ride
Can I take a loan against my Policy?
No loan is available under this Policy
What happens if I discontinue paying premium?
During the first three years, if premiums are not paid within the grace period the Policy will lapse.
After the first three years if premiums are not paid within the grace period the Policy will be made paid up and the Sum Assured will be reduced,
* firstly, in the proportion of completed duration to Original Policy Term and
* secondly, by the amount of periodic lump sum payments already made.
Any accumulated bonuses attached to this Policy will remain attached in full. Once this Policy becomes ‘paid-up’, no further bonuses are paid. You will receive the ‘paid-up’ Sum Assured plus bonuses on the maturity date of the Policy or in the event of loss of life. Once the Policy becomes paid-up no further Survival Benefits are paid.
What if I want to discontinue the Policy?
We provide you the option to surrender your Policy and receive the Surrender Value. If your Policy has accumulated any bonuses, then you will also receive the cash value of that total amount upon surrendering your Policy.
Your plan acquires a Surrender Value after 3 years’ premium payment and after three years have elapsed from date of commencement of Policy. We guarantee a minimum Surrender Value of 30% of the total premiums paid (excluding any extra premiums and premiums for additional benefits) subsequent to the first year premium, less the total of lump sum Survival Benefits already paid under this Policy.
On surrender, the insurance protection provided under the Policy will also cease.
Can I revive a Policy which is lapsed?
A lapsed Policy can be reinstated for full benefits anytime before the date of maturity at terms and conditions required by the Company.
Flexible Premium Payment Modes
1. Yearly
2. Half-Yearly
3. Quarterly
4. Monthly (with salary deduction schemes only)
Grace period
There is a grace period of 30 days for payment of premium.
Tax Benefit
Premiums paid are eligible for tax deduction under Section 80C & 80D of the Income Tax Act, 1961. Maturity & Death Benefit are tax free under Section 10(10) D of the Income Tax Act, 1961. Under Section 80C, premiums upto Rs 100,000 are allowed as deduction from your taxable income. Under Section 80 D premium upto Rs 10,000 (Rs 15,000 for senior citizens) are allowed as deduction from your taxable income.
(80 D – Applicable to Critical Conditions Premium)
General Exclusions
Reliance Life Insurance Company will not pay any claim on death if the life Assured, whether sane or insane, commits suicide within 12 months from the date of issue of this Policy or the date of any reinstatement of this Policy.
15 Days Free Look Period:
The Policyholder may cancel this Policy by returning it to the Reliance Life Insurance Company within 15 days of receiving it together with a letter requesting it be cancelled. The Reliance Life Insurance Company will refund the premium paid by the Policyholder less a deduction:
* of the proportionate premium for the time cover has been provided till cancellation
* of expenses incurred by the Company for medical examination of the Life Assured, Stamp Charges and expenses incurred in that connection.
Prohibition of Rebate: Section 41 of the Insurance Act, 1938 states:
1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the Policy, nor shall any person taking out or renewing or continuing a Policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.
2) Any person making default in complying with the provisions of this section shall be punishable with a fine which may extend to five hundred rupees.