Reliance means trust and that is exactly what this company providing insurance plans to people rests upon. Formerly known as Reliance Life Insurance Company, this insurance providers strives upon diversity and quality. It has policies for almost every type, thus suiting needs of individuals, families, companies etc. alike. And when it comes to protection for your children, Reliance life child plans won’t fail to satisfy you.
Why do I need Reliance child plans?
Reliance Nippon Life Insurance is known for the quality over quantity and the same is visible in one of the best child plans by Reliance. Both of the plans introduces by Reliance Life for children have the following three-fold benefits:
Protection – Ultimate financial protection for your children in your presence and even more in your absence.
Investment – The premiums paid by you during the policy term are invested in market funds, thus earning profits on the same.
Tax Saver – Reliance child plans not only help in investment and protection but also promote savings in the form of tax deductions. The premiums you pay for the smooth working of these policies is deductible under Income Tax Act, 1961.
Types of Reliance Life Child Plans
There are two child plans offered by Reliance Nippon Life Insurance and these two are comprehensive enough to provide coverage to all your children’s needs.
1.Reliance Nippon Life Education Plan
A specialist plan to suit your child’s special needs, this is one of the best child plans you’ll find in the pool of insurance policies. As the name says, it is a perfect plan for those who are specifically looking for a plan to support their child’s education, because let’s face it, educational expenses are touching the skies and it’s only in dreams that we stumble upon a bunch of doubloons.
Benefits and Features:
- Guaranteed Benefits
At the time of maturity, be assured of the benefits to be credited to the nominee of the policy (child), irrespective of the fact you are around or not. So in case of unfortunate death of the life insured, future of the child will not hang in the middle of nowhere but will bloom on the solid financial foundation set with this plan.
- Benefit Payout Option
Reliance child plan comes with as many as four options to choose from w.r.t. benefit payment (how you to receive the sum assured). These are:
- Self Starter: In this plan, the entire amount will be paid at once as lump sum and you can use the amount whenever you like.
- Post-graduation Degree: This option should be picked if your child has plans for post graduation and because the course has a span of 2 years, policy benefit is paid in two annual installments to support the same.
- Professional Degree: Most of the professional courses run for a period of 4 years and to manage the fees for the same, this option is provided. The sum assured is divided into 4 equal annual installments so as to manage for the educational expenses accordingly.
- Career Starter: You’ll be paid with 5 annual installments so that you can provide your child a robust foundation to build their career on.
- Two death benefit options
Under this Reliance child plan, you’ll be provided with two options regarding death benefit.
Death Benefit is the amount your child will receive in case you don’t survive the policy term.
Option I : 100% of the death benefit will be paid immediately in the form of lump sum.
Option II: 50% of the death benefit will be paid to your child immediately at the time of death and the remaining 50% will be paid equally for the next 10 years in the form of regular income so as to manage financial expenses optimally.
- Flexible Premium Paying
You (the policyholder) have the option of choosing from different slots of payment terms starting fro a minimum of 5 years, moving on to 7 years and to a maximum of 10 years for limited payment option. For those who don’t want to confine in such a period, they can go for regular payment option which means payment of premium for the entire policy term.
- Loan Facility
You can avail the facility of loan when enrolled in this Reliance child plan. Thus with financial protection, you are given the benefit of liquidity too at times of need.
- Beneficial for tax payers
For all the tax payers, Reliance Nippon Life Education Plan is there to aid you in saving tax too as per the Deductions under the Income Tax Act, 1961.
Eligibility
| Parameters | Details |
| Policy Term | 5, 7, 10 ears / Regular Payment |
| Entry Age | 20 – 50 years (Parent)
0 – 18 years (Child) |
| Maturity Age | 29 – 65 years (Parent)
9 – 35 years (Child) |
| Basic Sum Assured | Rs.50,000 – No Limit |
| Modes of Premium Payment | Yearly,Half-Yearly, Quarterly, Monthly |
2.Reliance Nippon Life Child Plan
A perfect life insurance plan to safeguard the future of your child, irrespective of uncertainties life shoots you with, Reliance Nippon Life Child Plan is undoubtedly an investment worth making. Unlike the previous child pan by Reliance Nippon, this plan is there not only to support your child’s educational needs but also for other needs like business set-up, wedding expenses and more.
Features & Benefits
- Non-linked; participating
For those of you who don’t want to worry about market funds positions and the uncertainties of the same, this feature is no less than a boon. No risk factor is involved and yet you get the benefits in the form of dividends paid by the insurer.
- Higher education funding
Nowadays even the nursery admission have the calibre of burning holes in our pockets, let alone the expenses to be occurred in higher education. That is why, this child plan is designed to make sure your child’s big dreams are never hampered due to lack of finances.
- Guaranteed Benefits, periodically
Whether the policyholder survives the policy term or suffers an unfortunate death, the periodic benefits will be credited to the nominee or the policyholder. 25% of the Sum Assured* will be paid on the last 3 years of the policy term.
- Family Protection
Although this is a child plan by Reliance Nippon, but it covers the entire family if the policyholder does not survive the policy term. There are multiple additional riders such as Accidental Death Benefit Rider, Accidental Death and Disability Rider, etc. that are specially offered to amp up the protection cover for your family in your absence.
- Maturity Benefit
Once the entire policy term is completed, with all the premium paid and settled, the policyholder will be given the entire maturity benefit which will include 25% of Sum Assured + bonuses accrued every year + non-negative capital, if any.
- Flexibility
You can choose the term of the child plan either 10 years or 20 years. Along with policy term, one can also choose which mode they wish to pay their premium in: monthly, quarterly, half-yearly or yearly. This offers the policyholder with flexibility to shape their child plan as per the needs of their child.
- Tax Benefits
As per the applicable tax laws under the Income Tax Act, 1961, the policyholder is entitled to earn the benefit of deductions while filing the ITR (Income Tax Return).
Eligibility
| Parameters | Details |
| Entry Age | 20 – 60 years |
| Maturity Age | 30- 70 years |
| Policy Term | 10 or 20 years |
| Sum Assured | Rs. 25,000 – Limit subject to the terms of the policy |
| Premium Payment Term | Same as the policy term |
FAQs
Q1. Does Reliance child plans get lapsed if premium is not paid?
It depends. If you have not paid 3 annual premiums continuously and have surpassed the grace period too, then the policy will lapse and any riders or benefits will immediately cease to exist.
Q2. How and where do I contact Reliance Nippon for my queries?
If you have any queries regarding the life insurance policies or any other policies offered by Reliance Nippon, you can use following options for the same:
- Via Call: : 1800 102 1010 (Toll Free) from Monday to Saturday between 9am to 6 pm.
- Via Fax: +91 22 3303 5662
- Via Email: customerservice@relianceada.com