Everything You Need To Know About Reliance Increasing Money Back Plan

In modern times, it is essential to cover the risk of one’s life by taking insurance policies. Insurance policies provide safety and security to us and our loved ones in the event of injury or death. There are a plethora of insurance policies available that cover different elements of risk caused by injury or death. Picking the right policy is of the utmost importance.

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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Let us look at the new Reliance Increasing Money Back Policy has been introduced by Reliance Nippon Life Insurance, which is a part of Reliance Capital. This Reliance money back policy is a non-linked, non-participating Life Insurance plan that provides the insured with periodic pay-outs that allow them to upgrade their lifestyle and also their life insurance cover to safeguard their family against unforeseen circumstances. This plan also provides the insured with regular pay-outs that increase at different stages in life, and ensures protection for their families while giving them the option of choosing additional riders and flexible premium paying terms.

Eligibility of Reliance Increasing Money Back Policy

This Reliance life insurance increasing money back policy has a minimum entry age of 15 years and a maximum age of 55 years. The minimum age at maturity is 30 years while the maximum age is 70 years.

Policy Details

Policy Details	Minimum	Maximum
*Base Sum Assured*	INR 1,00,000	Any Amount
*Premium excluding taxes*	INR 18,000	Any Amount
*Policy Term*	15 years	15 years
*Premium Paying Term*	7 years	15 years

The policy term for this Reliance life insurance policy is fixed at 15 years, while the premium paying term is flexible and can vary between 7 or 15 years. The Base Sum Assured for the policy is INR 1,00,000; while there is no maximum limit. The minimum premium amount payable is INR 18,000; while there is no maximum limit. The premium payment modes are monthly, quarterly, half-yearly and yearly. However, loading is applicable on half-yearly, quarterly and monthly payment terms.

Benefits of Reliance Increasing Money Back Policy

This Reliance money back policy provides the insured with benefits on maturity, at death and at regular intervals of three years starting from the third year of the policy. All of these benefits are payable if and only if all premiums have been paid in full during the policy term and the policy is still in force.

Maturity Benefit: The maturity benefit is paid on the survival of the insured individual till the policy term has ended, i.e. for 15 years. The Sum Assured paid on maturity will be equal to the Base Sum Assured.
Death Benefit: Reliance life insurance pays the death benefit to the nominee, in the unfortunate event that the insured individual expires. The death benefit will be the higher of any of the following.

Sum Assured at Death

105% of all the premiums paid. This excludes any extra premiums, rider premiums, service tax or cess paid. Further the Sum Assured can only be the highest of the following:

Ten times the Annualised premiums
Guaranteed Sum Assured at Maturity
The base Sum Assured

Inflation Protection

The Reliance money back policy provides a measure of protection against inflation. This is due to the fact that the money back benefits are paid out in increasing amounts once the policy has completed three years from inception. As compared to the fixed income provided by PPF’s or Fixed Deposits, these increasing returns are a better measure of protection against inflation. The pay-outs made after three yearly intervals are as follows:

End of Policy Year	3	6	9	12
Percentage of the Sum Assured	10%	20%	30%	50%

Examples of the Benefits

Let us take the case of Sangeeta as an example of this Reliance life insurance plan. Suppose Sangeeta, begins working at 25, and invests in a plan with s Sum Assured of INR 2,50,000. She chooses to pay premiums for the entire term of 15 years. Being healthy and fit, she has to pay a premium of INR 28,578 per year excluding taxes. If Sangeeta lives till the plan matures, she will receive these benefits.

Year of Policy Ended	Benefit Type	Benefit Amount
3	Money Back Benefit	INR 25,000
6	Money Back Benefit	INR, 50,000
9	Money Back Benefit	INR 75,000
12	Money Back Benefit	INR 1,25,000
15	Maturity Benefit	INR 2,50,000
Total Pay Out Received		INR 5,25,000

Suppose on the other hand, Sangeeta passes away in the 11^th year of the Reliance money back policy. She will have already received the first three pay-outs till then.Her husband or nominee will receive the death benefit and the policy will be terminated. In this instance, the pay-outs will be as follows.

Year of Policy Ended	Benefit Type	Benefit Amount
3	Money Back Benefit	INR 25,000
6	Money Back Benefit	INR, 50,000
9	Money Back Benefit	INR 75,000
11	Death Benefit	INR 3,30,076
Total Pay Out Received		INR 4,80,076

Further, depending on the riders that Sangeetga has opted for under this Reliance life insurance policy, she will receive additional benefits.

Riders Available with the Policy

There are five riders available with the Reliance life insurance policy at a nominal cost that the insured can choose from. All of these riders provide added protection to the insured and benefits to them or their nominees.

Reliance Term Life Insurance Benefit Rider

This rider provides an additional death benefit depending on the Sum Assured chosen by the insured.

Reliance Major Surgical Rider Benefit

This rider provides the insured with a lump sum amount that will cover surgical expenses from a list of 33 different types. Some of these are kidney transplant, open heart surgery, lung transplant, cornea transplant, etc.

Reliance Critical Conditions (25) Rider

This Reliance money back policy rider provides the insured with a lump sum amount that will cover 25 different critical illnesses. Some of these are heart attack, paralysis, cancer, major organ transplants, etc.

Reliance Family Income Benefit Rider

In the event of death, or total or permanent disablement of the insured due to accident or sickness, this rider provides the insured of the nominee with a monthly benefit of 15 of the sum assured. This equates to 12% per annum. The amount is payable by Reliance life insurance either for 10 years or until the end of the rider term.

Reliance Accidental Death and Total and Permanent Disablement Rider

If the insured has been injured or expires as a result of an accident, this rider provides an additional death or disability benefit to the nominee or the insured. This rider also has premium waiver benefits in case of disability.

Features of Reliance Increasing Money Back Policy

Tax benefits can be claimed on premiums, maturity and money back pay-outs as applicable under the Income Tax Act. This reduces the amount of tax payable by the insured or increases the amount of tax rebate that can be claimed for investing in Reliance money back policy.
Individuals choosing higher Sum Assured will receive fixed discounts on the premium payable, depending on the amount. Hence, it is beneficial to cover oneself for a greater amount, which in turn provides added protection.
Loans against the policy are available at 80% of the surrender value. The current loan rate for FY 16-17 is 9%
Flexibility to pay premiums only for either seven or the entire policy term of 15 years. Paying for the entire term naturally has added benefits.
Protection against unforeseen events and the option to increase cover by choosing optional riders. Thus, Reliance life insurance also protects the insured against illnesses, diseases, and injuries.
Another important feature is the Suicide Exclusion. Most companies would not pay anything in the event of the insured committing suicide within twelve months from the date of inception of the policy. However, this policy pays out an amount that is 80% of the premiums paid to the nominees.
Guaranteed liquidity via money back benefits every three years, after the policy has completed three years of existence. Reliance envisions this as something that the insured will use to upgrade their family lifestyle.
Reliance money back policy provides increasing money back benefits every three years. This provides a measure of protection against inflation and can be used as a contribution to lifestyle upgrades.
The policy also has a free look period of 15 days and a grace period of 30 days.

Over to You!

This Reliance Increasing Money Back plan has a lot of good features. It provides guaranteed benefits in the event of death, disability or survival till maturity, and is a sound investment.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-12-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).