Reliance Nippon Life Education Plan is a non-participating, non-linked, child insurance plan that ensures that you do not compromise on the goals for your child’s future, and offers you funds as and when you need them. The plan offers guaranteed benefits when the policy matures; this will protect your child even in your absence.
The policyholder can choose from four benefit payout options, to suit his/her insurance requirements:
It is also possible to select between two death benefit options. At the death of the policyholder, the future premiums are waived off and the plan benefits continue as usual. The policyholder can enhance protection through riders that can be purchased from the insurer at a minimal cost.
Other features of the plan include the ability to choose your premium payment term and frequency. The scheme also enables you to avail a policy loan.
If a customer wishes to purchase the Reliance Nippon Life Education Plan, he/she will have to fulfill certain eligibility conditions with respect to his/her age and the amount of coverage required. The eligibility criteria is as detailed below:
|Minimum Entry Age||Parent - 20 Child - 0|
|Maximum Entry Age||Parent - 50 years Child - 18 years|
|Minimum Maturity Age||Parent - 29 years Child - 9 years|
|Maximum Maturity Age||Parent - 65 years Child - 30 years|
|Premium Payment Term (PPT)||For limited pay - 5, 7, or 10 For regular pay - Equal to policy term|
|Minimum Policy Term||When PPT is 5 or 7 years, minimum policy term is 9 years When PPT is 10 years, minimum policy term is 12 years For regular premium payment option, minimum policy term is 9 years|
|Maximum Policy Term||20 years|
The policy offers benefits such as Maturity Benefit, Death Benefit, etc. The minimum Base Sum Assured (BSA) under the plan is Rs.50,000. There is no limit on the maximum Base Sum Assured.
The policyholder has to pay premiums towards the policy at regular intervals. The premium payment can be done annually, semi-annually, quarterly, or monthly.
|Parameter||PPT = 5 and 7 years||PPT = 9 and 10 years||PPT = Above 11 years|
|Maximum premium||No limit|
Based on the child’s future education requirements, the policyholder can choose any one of the four payout options when the policy is in the inception stage. Once this choice is made, it cannot be modified. The payouts vary by the payout option chosen, as shown below:
|Payout / Payout Option selected||Self Starter||Post Graduation Degree||Professional Degree||Career Starter|
|At maturity||(100% * BSA) + GA + GMA||(50% * BSA) + GA||(25% * BSA) + GA||(20% * BSA) + GA|
|At the end of the 2nd year||(50% * BSA + GMA) * MDF||25% * BSA||20% * BSA|
|At the end of the 3rd year||25% * BSA||20% * BSA|
|At the end of the 4th year||(25% * BSA + GMA) * MDF||20% * BSA|
|At the end of the 5th year||(20% * BSA + GMA) * MDF|
Here, BSA = Base Sum Assured, GA = Guaranteed Additions, GMA = Guaranteed Maturity Additions, MDF = Maturity Deferment Factor
This implies that when the policyholder selects the Self Starter option, he/she receives a single lump sum payout to fund the child’s education. If the Post Graduation Degree option is chosen, he/she receives two annual payouts for the child’s post graduation course. If the Professional Degree option is selected, the policyholder receives four annual payouts for the child’s professional degree course. If the Career Starter option is chosen, he/she will receive five annual payouts that funds the child’s education and offers a career launchpad as well.
The Reliance Nippon Life Education Plan provides the following coverage:
|Maturity Benefit||When the policy term ends, irrespective of the survival, the plan provides a Guaranteed Maturity Benefit (GMB) based on the payout option selected at the inception of the policy. GMB = BSA + Sum of GAs + Guaranteed Maturity Additions (GMA) where, Base Sum Assured (BSA) - This is the minimum benefit that the policyholder selects at the policy inception stage. Guaranteed Addition (GA) - The policy accrues GA of 2% of the Base Sum Assured at the end of each policy year. This continues till the end of the policy term, as long as the policy is in-force. Guaranteed Maturity Addition (GMA) - GMA is paid when the policy matures, as long as it is in-force. GMA = 2% * BSA * Policy Term|
|Death Benefit||The main purpose of the Reliance Nippon Life Education Plan is to fund the future education of the child. If the policyholder passes away while the policy is in-force, an immediate lump sum benefit will be paid out to the nominee, according to the Death Benefit option selected at policy inception. Payment of the future premiums will stop and all benefits under the plan will continue according to the payout option selected. Death Benefit Payout Options - At the inception of the policy the policyholder selects any one of the Death Benefit Payout options mentioned below:
The Sum Assured at Death is provided as follows:
|Policy Term / Entry Age||Less than 45 years||45 years and above|
|Less than 10 years||Highest among the following:
||Highest among the following:
|Equal to 10 years or more||Highest among the following:
||Highest among the following:
Suicide Exclusion - If the life assured dies within 12 months from the commencement of risk under the plan or from the revival date, the nominee will receive the highest amount among the following:
The key features of the Reliance Nippon Life Education Plan are described below:
|Policy loan||The policyholder can avail a loan under the Reliance Nippon Life Education Plan. The loan amount can be up to 80% of the surrender value under the policy. The interest on the loan will be at the prevailing rate.|
|Riders||The policyholder can enhance the plan coverage using riders that can be purchased from the insurer at a nominal cost. The riders that can be attached to the Reliance Nippon Life Education Plan are:
|Flexible premium payment options||The policyholder can pay premiums annually, semi-annually, quarterly, or monthly. The quarterly and monthly modes of premium payment are allowed only for electronic premium payments. Additionally, for the monthly mode, the premiums for the first two months will be collected in advance when the policy is being issued.|
|Grace period||If the policyholder does not pay the premiums within the due date, he/she will be given a grace period of 30 days within which it can be done. For monthly mode of premium payment, the grace period is 15 days. During the grace period, the policy will be in-force with all benefits.|
|Discontinuance of premiums||The policy will acquire a surrender value when:
|Policy surrender||If the policy has reached surrender value and the policyholder opts to discontinue the policy, he/she will be provided the surrender value. This amount will be the higher of the Special Surrender Value (SSV) or the Guaranteed Surrender Value (GSV). Once the policy is surrendered, it is terminated and cannot be reinstated.|
|Policy revival||The policyholder can choose to revive a paid-up or lapsed policy and riders within 2 years from the due date of the unpaid premium and before policy maturity. This can be done by paying all outstanding premiums along with interest. The life assured may have to undergo medical tests as well.|
|Alterations||The policyholder can choose to change the sum assured, PPT, policy term, maturity benefit payout option, and death benefit payout option at any time.|
|Free-look period||If the policyholder disagrees with any of the terms and conditions in the policy documentation, he/she can return the policy back to the insurer within 15 days of receipt of the document. He/she would have to state the reasons for the objection, as well. The customer is then liable to receive a refund of the paid premiums minus the expenses incurred by the insurer. The free-look period for policies that were bought through distance marketing channels like online sales, telephonic purchase, etc. is 30 days.|
Premiums paid towards the Reliance Nippon Life Education Plan and riders are eligible for tax exemptions under Section 80C of the Income Tax Act. However, the tax rules are subject to change; so it is advisable to consult a tax advisor for the latest tax laws.
Reliance Nippon Life Education Plan offers a customer the following additional benefits:
|Customer service team||The insurance company has an efficient customer service team that assists policyholders in getting clarifications to their queries and resolving issues.|
|Callback facility||The website of Reliance Nippon Life Insurance allows a customer to request for a callback from a customer care executive.|
|Email communication||Customers can also contact the insurer through the email address, firstname.lastname@example.org|
|Group insurance concerns||The website of the insurer enables group policyholders to raise concerns regarding their policies. An online form is available at the insurer’s website for the same.|
|Online insurance plans||Reliance Nippon Life Insurance offers insurance products that can be bought through the website of the insurer. Payments for the same can be fulfilled through debit or credit cards, e-Wallets, or Net Banking.|
Reliance Nippon Life Insurance Company is a prominent private player in the Indian insurance domain. It is one of the leaders in the industry with respect to individual Weighted Received Premium (WRP) and new business WRP. The insurer has an extensive distribution network across the country with more than 800 offices and 1 lakh insurance advisors. The company currently offers insurance solutions to more than 10 million policyholders.
Reliance Nippon Life Insurance Company has received the accolade of being one of the Top 3 Most Trusted Life Insurance Service Brands by the ‘Most Trusted Brands Survey’ from Brand Equity in 2015. The insurance products offered by the company range from retirement plans to child schemes, health insurance and savings/investment plans. The company offers both group and individual insurance products to customers.
Reliance Nippon Life Insurance Company currently has one of the most robust claim settlement ratios in the industry. The ratio for the insurer is 95.01% as on 31st March, 2016. The company has also received multiple awards and honours for its digital marketing initiatives, user-friendly website, and the exhaustive coverage options available under its products.
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