Investment Plans 1842 views November 28, 2020

Reliance Nippon Life Guaranteed Money Back Plan

Reliance Nippon Life Guaranteed Money Back Plan is a non-linked, non-participating, non-variable money back insurance. This plan not only helps you save for the future but also protects your savings. In your absence, the future policy premiums will be waived and your family will receive the policy benefit. If you buy Reliance Nippon Life Guaranteed Money Back Plan, you can save funds for your child’s higher education, pay your debts, take a vacation, visit a pilgrimage and gift something to your family. Read on to know more about this insurance plan.


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Key Benefits

  1. Savings with liquidity
  2. Tax benefits
  3. Protection for your loved ones
  4. Flexibility in insurance

Life Cover Benefit

In an unfortunate death of the life assured during the policy term, a death benefit will be paid in one lump sum provided that the policy is in force.

  1. For a Non-Accidental Death – The paid Sum Assured will be irrespective of the already paid periodic lump-sum benefits.
  2. For an Accidental Death or Death Before Age 65 – The company will pay an additional amount to the nominee, which is equal to the base sum assured. It includes the sum assured under Reliance Accidental Death and Total and Permanent Disablement Rider, which will not exceed INR 50 Lakh.

Money Back Benefit

If all due premiums are paid as on the date of death, the nominee will get Money Back benefits and the mentioned Maturity benefits as specified under the policy contract. The Periodic Money Back benefits are a percentage of the base sum assured or paid-up sum assured. Check out the table below and know it better.

Periodic Money Back (in percentage) Policy Anniversary for a 15-year Term Policy Anniversary for a 20-year Term
15% 11 16
15% 12 17
15% 13 18
15% 14 19
40% 15 20

Note – The Money Back period is irrespective of the survival of the life assured

Maturity Benefit

If you have survived till the end of the policy term, you will get the following benefits, provided the policy is not paid up.

Accrued Guaranteed Loyalty Additions: This is a percentage of the Basic sum assured and will be payable on maturity. For instance – if the policy term is 15 years, the Guaranteed Maturity Addition will be 15%, and if the policy term is 20 years, the Guaranteed Maturity Addition will be 20%

Guaranteed Maturity Additions: A 2% addition to the base sum assured or paid-up sum assured will accrue at the end of every policy year provided the policy is not surrendered or lapsed.

Note – Reliance Nippon Life Guaranteed Money Back Plan terminates on the payment of maturity benefits.

Rider Benefits

You can get an optional rider of your choice with your Reliance Nippon Life Guaranteed Money Back Plan. And this facility is available to the insured during the premium paying term only. For the optional riders, you need to pay an additional premium over and above the base premium. The following are the optional riders available in Reliance Nippon Life Guaranteed Money Back Plan.

Reliance New Major Surgical Benefits: You will get a lump sum amount for surgical expenses like Open Heart surgery, Kidney Transplant, Cornea transplantation, Transplant of Lungs, etc.

Reliance New Critical Conditions: A lump sum amount for specific 25 critical conditions that include Cancer, Heart Attack, Paralysis, Major Organ transplant, and more.

Reliance Term Life Insurance Benefit: An additional death benefit as per your selected sum assured.

Reliance Life Insurance Family Income Benefit: In case of death or total and permanent disablement, this rider offers you a monthly benefit of 1% of the sum assured (every month i.e.12% per annum).

Note – The sum assured under the optional rider cannot be higher than the base sum assured. The sum of rider premiums may not exceed 30% of the paid premiums of the Base Plan. And if the base plan gets lapsed, surrendered or forfeited, the rider will also get terminated immediately.

General Exclusion

Any additional Sum Assured will not be paid on an accidental death if it results from any of the following-

  1. Self-injury/Suicide
  2. Criminal/Illegal Act
  3. Use of alcohol or drugs (unless registered by a medical practitioner)
  4. Racing or Practicing Racing
  5. Flying or any attempt to fly
  6. Participation in a riot, strike, civil commotion, active military, naval, air force, police, or any similar kind of service.
  7. War, invasion, an act of foreign enemies, hostilities, or war-like operations

Free Look Period

You can return your Reliance Nippon Life Guaranteed Money Back Plan if you disagree with any of the terms and conditions within 15 days of receiving the policy document. In a situation like this, the company refunds the paid premium by deducting the proportionate risk premium and other expenses like medical examination and stamp duty charges. This free look period will be of 30 days if you have got the policy through the Distance Marketing channel.

Tax Benefits

Under the Reliance Nippon Life Guaranteed Money Back Plan, you will get tax benefits as per the prevailing Income Tax laws. The tax laws are subject to change from time to time, so it is advised to consult your tax expert.

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