Reliance Life Insurance Company : Reliance Special Endowment Plan
Reliance Special Endowment Plan is key to all your financial needs. You get a desired lump sum after a specified period, however your life insurance protection continues for an extended period. If anything were to happen to you, your beneficiary will get another sum assured along with the bonuses. The policy comes with an added feature of a limited premium term, which is always 5 years less than the policy term.
Key Features
# Twin benefit of protection and savings
# Sum Assured is paid on survival, at the end of the premium paying term Life Cover for full Sum Assured continues beyond premium paying term Extended Life Cover for 5 years after premium paying term
# Wealth creation through bonus additions
# More value for your money by way of High Sum Assured Rebate
# Choose to add the benefit of two riders – Critical Illness Rider and Accidental Death Benefit & Total and Permanent Disablement Rider
# Choose to avail of a Policy Loan available after 3 full years’ of premium payment
# Policy participates in profits even after premium paying term
How does this Plan work?
You pay premium every year. The premium paying term is always 5 years less than the Policy term. On survival to the end of the premium paying term you get the Sum Assured. On survival, at maturity (i.e. at the end of the policy term) accumulated compounded bonuses are paid.
Benefits
Survival Benefit: On survival at the end of the premium paying term you get the Sum Assured.
Maturity Benefit: On survival to maturity you get accumulated bonuses.
Life Cover Benefit: Your Beneficiary will get Sum Assured plus accumulated bonuses in case of your unfortunate death at any time during the Policy term. This life cover benefit continues even after the payout of Sum Assured after premium paying term.
Rider Benefit: You also have the option to add 2 additional benefits to customize the Policy as per your needs
1. Accidental Death Benefit & Total and Permanent Disablement Rider
2. Critical Illness Rider
Tax Benefit:
Premiums paid are eligible for tax deduction under Section 80C & 80D of the Income Tax Act, 1961. Maturity & Death Benefit is 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)
Can I take a loan against my policy?
Yes, you can take loan against your Policy if there is an unexpected requirement of money. The Policy loan can be up to a maximum of 90% of the Surrender Value of the Policy at the time of taking the loan based on the terms and conditions at that time.
This facility is available after premium payment of 3 full years’ and after 3 years have elapsed from date of commencement of the 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.
If you discontinue paying premium after paying premium for three full years then your Policy will be converted into a paid up for a reduced Sum Assured determined in the same proportion as the amount of premiums actually paid bears to the total amount of premiums payable. The life insurance protection will continue to the extent of the paid-up value until the end of the Policy term.
Any accumulated bonuses attached to this Policy will remain attached in full. Once this Policy becomes “paid-up”, no further bonuses are payable. 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.
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 has been paid 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, plus the cash Surrender Value of any vested bonuses.
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 revived/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
Grace Period
One month or 30 days from the due date for the payment of premiums.
General Exclusion
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 of any reinstatement
15 Days FreeLook 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.