Reliance Special Credit Guardian Plan
Objective
This is a loan protection cover with an aim to protect family members from the burden of loan repayment, in case the insured member dies. The policy also refunds premiums if the policyholder survives to maturity.
What does it do?
This is a decreasing term cover where sum assured reduces in line with the outstanding loan. This term insurance plan covers outstanding loans of the policyholder including housing loan, personal loan, outstanding loan on credit cards etc. It helps repay loans in case of financial fallout due to death of the policyholder.
If insured person outlives the policy term, the insurance company refunds entire basic premium paid.
If premiums are not paid after first 3 years of taking the policy, it will not lapse but acquire a paid-up value. One can surrender the policy only after running the policy for 3 years.
This plan can increase coverage if one chooses the available riders along with the basic plan for some extra premium. These riders can be taken at the time of purchase or added at any policy anniversary.
Pros
Women can avail discount on premium and pay premium equal to 3 years younger male policyholder.
Policy can be surrendered in case of an emergency.
The policy refunds basic premiums if the policyholder survives to maturity.
Riders can be taken at the time of purchase or added at any policy anniversary.
Sum assured under critical illness rider can be increased or decreased by the policyholder.
Premiums qualify for taxation benefits.
Cons
It does not consider increase in interest rates under floating rate loans.
Suited for
Anyone with a loan overhead can take this policy.
Our View
The policy commands high premium for paying accumulated premium on survival of the policyholder. Buy a simple loan protection cover if you need one.
Eligibility
| Entry Age (years) | |
| Minimum | 21 |
| Maximum | 60 |
| Maximum Maturity Age (years) | 65 |
| Policy Term (years) | |
| Minimum | 10 for Regular Premium policies and 5 for Single Premium policies |
| Maximum | 30 for Regular premium policies and 15 for Single Premium policies |
| Sum Assured (Rs) | |
| Minimum | 250000 |
| Maximum | No limit |
| Minimum Premium (Rs) | |
| Yearly | 1000 |
| Single | 3000 |
| Premium Payment Frequency | Single, Yearly, Half-yearly, Quarterly and Monthly (via ECS) |
| Premium Payment Term | Single, Limited, equal to policy term |
| Policy Cover | Policy Cover keeps decreasing in line with decrease in outstanding loan |
| Other Features | |
| Free Look Cancellation | In 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 Period | You 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. |
| Tax Benefits | Section 80C, 10(10D) of the Income Tax Act, 1961 would apply. Premiums paid for Reliance Critical Illness Rider may qualify for deduction under Section 80D of the Income Tax Act, 1961. |
| Exclusions | In 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 |
| Maturity Value | The policy refunds basic premiums paid on survival at maturity |
| Surrender Value | Surrender is allowed provided premiums for first three policy years were paid in full and after three years have elapsed from date of commencement of the policy. Regular Premium Payment: 30%* {basic premiums(excluding ridre premiums or extra premiums apid if any) - first years's premium}. Single Premium Payment: 30%* Single Premium (excluding rider premiums or extra premiums paid if any) |
| Customer Service | |
| Address | Reliance Life Insurance Company Limited Registered office: H Block, 1st floor, Dhirubhai Ambani Knowledge City, Navi Mumbai, Maharashtra 400710, India |
| Mail To | [email protected] |
| Call On | 1800 300 08181 & 3033 8181 |
| SMS | INSURE' to 55454 |
| Available Rider(s) | Reliance Accidental Death & Total & Permanent Disablement Rider: covers Death due to an accident, Accidental dismemberment (loss of limbs and/or eye(s), Permanent total disability due to an accident. The Disablement benefit equal to the basic Sum Assured paid in ten equal annual installments. Inbuilt Waiver of Premium: In case of total and permanent disability, this inbuilt rider waives off all future premiums under the basic policy and riders upto a limit of Rs 40000 p.a. Reliance Critical Illness Rider: This rider covers 10 critical illnesses namely Cancer, Coronary Artery Bypass Surgery, Heart Attack, Stroke, Kidney Failure, Aorta Surgery, Coma, Heart Valve Replacement, Major Organ Transplant and Paralysis. There is a waiting period of 6 months and survival period of 30 days to claim benefit under this rider. Policyholder has a choice to increase or decrease Sum Assured under this rider subject to underwriting. Once decreased, increase in Sum Assured will not be allowed. |
| Rider Conditions | |
| Entry Age (years) | |
| Minimum | 18 |
| Maximum | 59 |
| Maximum Maturity Age (years) | 64 |
| Rider Term (years) | |
| Minimum | Critical Illness Benefit Rider: 5 |
| Sum Assured (Rs) | |
| Minimum | Accidental Death & Total & Permanent Disablement: 25000 Critical Illness Rider: 100000 |
| Maximum | Lower of Base plan insurance or 50 lakh |
| First Year Premium for Male | ||||||||
| Policy Term (in years) | Age (in years) | |||||||
| 25 | 30 | 35 | 40 | 45 | 50 | 55 | ||
| 10 | 23740 | 24600 | 27980 | 34460 | 44960 | 61140 | 80580 | |
| 15 | 14620 | 15660 | 18360 | 23360 | 31560 | 43540 | NA | |
| 20 | 10820 | 12040 | 14800 | 19540 | 26740 | NA | NA | |
| 25 | 9340 | 10860 | 13800 | 18640 | NA | NA | NA | |
| 30 | 8680 | 10043 | 13660 | NA | NA | NA | NA | |
| 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 | ||||||||
| First Year Premium for Female | ||||||||
| Policy Term (in years) | Age (in years) | |||||||
| 25 | 30 | 35 | 40 | 45 | 50 | 55 | ||
| 10 | 23420 | 23960 | 25580 | 30200 | 37960 | 50860 | 68680 | |
| 15 | 14300 | 14920 | 16500 | 20040 | 26120 | 35960 | NA | |
| 20 | 10420 | 11200 | 12920 | 16440 | 22080 | NA | NA | |
| 25 | 8840 | 9820 | 11820 | 15500 | NA | NA | NA | |
| 30 | 8040 | 9260 | 11540 | NA | NA | NA | NA | |
| 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 for Male | |||||||||
| Policy Term (in years) | Age (in years) | ||||||||
| 25 | 30 | 35 | 40 | 45 | 50 | 55 | 60 | ||
| 5 | 136000 | 137640 | 149180 | 175160 | 215920 | 286340 | 375400 | 479740 | |
| 10 | 104420 | 108680 | 123940 | 152580 | 200580 | 273940 | 364500 | NA | |
| 15 | 100680 | 109000 | 129420 | 166360 | 224940 | 307460 | NA | NA | |
| 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 for Female | |||||||||
| Policy Term (in years) | Age (in years) | ||||||||
| 25 | 30 | 35 | 40 | 45 | 50 | 55 | 60 | ||
| 5 | 134100 | 136600 | 140480 | 157900 | 188320 | 241100 | 320540 | 413060 | |
| 10 | 103000 | 105460 | 113180 | 133620 | 168520 | 227300 | 308140 | NA | |
| 15 | 98300 | 103040 | 115420 | 141940 | 186820 | 255300 | NA | NA | |
| 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 | |||||||||
