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Reliance Credit Guardian Plan

Objective

The plan aims to protect family members from the burden of paying any outstanding loan on demise of the bread earner.


What does it do?

This term insurance plan covers outstanding loans of the policyholder including housing loan, personal loan, outstanding loan on credit cards etc. It is a decreasing term plan where sum assured reduces as the loan is repaid. In case of unfortunate demise of the insured person, the sum assured equal to outstanding loan is paid to the nominee. The policy doesn’t offer any survival benefit.


Pros

Women can avail discount on premium and pay premium equal to 3 years younger male policyholder.
It has a longer policy revival time of 3 years from date of lapse of policy.
Single premium policies are available for a maximum term of 15 years only.
Premiums qualify for taxation benefits.


Cons

It doesnot consider increase in interest rates under floating rate loans.


Suited for

This policy is useful if you have an outstanding loan.


Our View

Loan protection cover is a good way to protect your family from the burden of liabilities in case something happens to you.
When buying such a policy, make sure to match the interest of your loan with the rate at which sum insured reduces under the policy. This ensures that you have the right cover and not one that is higher or lower than your needs.

Eligibility
Entry Age (years) 
Minimum21
Maximum55 for Regular premium policies and 60 for Single Premium policies
Maximum Maturity Age (years)64
Policy Term (years) 
Minimum10 fr Regular Premium policies and 3 for Single Premium policies
Maximum30 for Regular Premium policies and 15 for Single Premium policies
Sum Assured (Rs) 
Minimum250000
MaximumNo limit
Minimum Premium (Rs) 
Yearly1000
Single3000
Premium Payment FrequencySingle, Yearly, Half-yearly, Quarterly and Monthly (via ECS)
Premium Payment TermSingle, Limited, equal to policy term
Policy CoverPolicy Cover keeps decreasing as the loan is repaid
Other Features 
Free Look CancellationIn case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace PeriodYou are allowed to pay premiums within 30 days of premium due date for Yearly/ Half-yearly/Quarterly premium payment and 15 days from premium due date in case of Monthly premium payment. If a due premium is not received within the grace period, your policy will lapse and the life insurance cover will be terminated.
Lapsed Policy ReinstatementYou may reinstate your lapsed policy within 3 years from date of first unpaid premium by paying due premiums and undergoing underwriting requirements, if any.
Tax BenefitsSection 80C, 10(10D) of the Income Tax Act, 1961 would apply.
ExclusionsIn case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, if the Life Assured under the policy, whether medically sane or insane, commits suicide, within one year of exercising the option to increase the Sum Assured, then the amount of increased Sum Assured will not be considered in the calculation of the Death Benefit
Customer Service 
AddressReliance Life Insurance Company Limited Registered office: H Block, 1st floor, Dhirubhai Ambani Knowledge City, Navi Mumbai, Maharashtra 400710, India
Mail To[email protected]
Call On1800 300 08181 & 3033 8181
SMSINSURE' to 55454
Annual Premium Option for Male
Policy Term (in years)Age (in years)
25303540455055
105880616071609220130601940028320
1560206280732097601414020460NA
206500680079201102016460NANA
2573607700898013000NANANA
308580898010500NANANANA
Premium payment term is 2/3rd of policy term. Figures indicate premiums on a Rs 20 lakh policy with 10% rate of interest on laon for an age over different policy tenures exclusive of service tax
Annual Premium Option for Female
Policy Term (in years)Age (in years)
25303540455055
105780596064407820105601538022440
1559006080658081001130016720NA
20638065807120892012920NANA
2572207440806010300NANANA
30842086809420NANANANA
Premium payment term is 2/3rd of policy term. Figures indicate premiums on a Rs 20 lakh policy with 10% rate of interest on laon for an age over different policy tenures exclusive of service tax
Single Premium Option for Male
Policy Term (in years)Age (in years)
25303540455055
517320176201968024420323404738069560
10305203208037540481206692098560NA
1543680478405824077800110720NANA
Figures indicate premiums on a Rs 20 lakh policy with 10% rate of interest on laon for an age over different policy tenures exclusive of service tax
Single Premium Option for Female
Policy Term (in years)Age (in years)
25303540455055
517000174201812021240269003746055500
10300403090033680410405426078060NA
154248044880511006476088960NANA
Figures indicate premiums on a Rs 20 lakh policy with 10% rate of interest on laon for an age over different policy tenures exclusive of service tax