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As is evident from the name itself, Reliance Nippon Life’s Guaranteed Money Back Plan is a traditional money-back plan which pays the Sum Assured in instalments during the term of the plan. Apart from the survival benefits, the plan also pays Guaranteed additions to enhance the corpus. Two inbuilt riders also increase the scope of coverage extended by the plan.
Step 1 – the policyholder chooses the Sum Assured, the plan term, the premium paying term and frequency. Based on the insured’s age and the above factors, the premiums are calculated.
Step 2 – money back benefits are paid in the last 5 years of the plan @ 15% of Sum Assured.
Step 3 – if the insured survives the plan tenure, the maturity benefit is paid which is 40% of Sum Assured and accrued Guaranteed Loyalty Additions and a Guaranteed Maturity Addition.
Step 4 – if the insured dies during the plan tenure, higher of the Sum Assured, 10 times the annual premium or 105% of premiums paid is paid as death benefit irrespective of the money back benefits already paid. In case of accidental death an additional Sum Assured is paid. The future premiums are waived off while the plan continues. On maturity, the maturity benefit is paid.
Rishika, aged 30 years, buys the plan for a term of 20 years choosing a Sum Assured of Rs.5 lakhs.
Option 1 – guaranteed Loyalty Additions @ 2% of Sum Assured which is Rs.10, 000 accrues every year of the term. Money back benefits of Rs.75, 000 are paid every year from the 16th policy year. On maturity, Rs.2 lakhs is paid along with the accumulated loyalty additions of Rs.2 lakhs (Rs.10, 000*20) and guaranteed maturity addition of Rs.1lakhs.
Option 2 – Rishika dies accidentally in the 6th policy year. The Sum Assured of Rs.5 lakhs is paid immediately along with accidental Sum Assured of Rs.5 lakhs. Premiums are waived off. Money back benefits are paid in the last 5 years. On maturity, the promised maturity benefit is paid.
|Age at entry (in completed years)||18 years||Policy term 15 years – 58 years
Policy term 20 years – 55 years
|Age at maturity (in completed years)||33 years||75 years|
|Term of the plan||15 years||20 years|
|Premium paying options||Limited pay or Regular Pay|
|Premium Paying term||Policy term 15 years:
Age 18-43 years – equal to plan term
Age 44-53 years – 10 years
Age 54-55 years – 7 years
Age 56-58 years – 5 years
Policy term 20 years:
Age 18-47 years – equal to plan term
Age 48-53 years – 15 years
Age 54-55 years – 10 years
|Premium amount||Depends on the Sum Assured, policy term, premium payment term and frequency and age of the life insured.|
|Sum Assured||Rs.5,000||No limit|
Below are the sample rates of premium payable by a non-tobacco user male for a combination of different ages, term and Sum Assured. The premiums are including taxes and are assumed to be paid annually for the entire plan tenure.
|Sum Assured range||Discount per Rs.1000 of Sum Assured|
|Rs.1 lakhs – Rs.2.5 lakhs||Re.1|
|More than Rs.2.5 lakhs but below Rs.5 lakhs||Rs.2|
|More than Rs.5 lakhs but below Rs.10 lakhs||Rs.3|
|More than Rs.10 lakhs||Rs.4|