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What are the common exclusions under child insurance plans offered by Reliance Life insurance?

Updated On Jul 02, 2021

As a parent, you work really hard day and night just to make your children's future secure and they do not need to face any financial hurdles in future while running towards their dreams. You always wish the best for your child. A life insurance plan is a financial instrument tool that helps you fulfil your loved ones financial requirements at crucial milestones, even when you are not around. It also gives flexibility to the family to pay off any liabilities, mortgage, medical expenses or loans, so that these expenses do not cause overburden to them. 

Child Insurance Plans offered by Reliance Nippon Life Insurance is one of the best investment options for you to start saving in advance in a systematic manner so that you can add your contribution towards your child's future requirements even when you may not be there for them. Whether it is higher education fees, his or her daily expenses or any other needs, you can always be there for a child by being their support system. 

Reliance Nippon Life Insurance offers 2 types of Child Insurance Plans i.e. Reliance Nippon Life Education Plan and Reliance Nippon Life Child Plan. 

In the article, we will discuss both types of Child Insurance Plans offered by Reliance Nippon Life Insurance in detail to give you a clear and thorough understanding of the features and benefits of both plans. You can consider it and make an informed decision. 

Types of Child Insurance Plans offered by Reliance Nippon Life Assurance 

1. Reliance Nippon Life Education Plan

This plan is specially designed to meet a child's needs in your absence. It offers Guaranteed Maturity Benefit along with remaining Sum Assured in case of death of yours in a policy tenure.  Future payments are also waived off so that children can use the benefits without any interruption. Additional Riders are provided under the policy to make your children enjoy uninterrupted benefits. 

Benefits of Reliance Nippon Life Education Plan

There are certain that you as a policyholder will enjoy by purchasing a policy

1. Death Benefit

In case of death of the policyholder during the tenure, the nominee of the policy is entitled to receive the death benefit as per the option selected which is higher than 105% of the premiums paid and sum assured on death. 

2. Maturity Benefit

The Policyholder would receive guaranteed maturity benefits which is equal to Basic Sum Assured plus Sum of Guaranteed Additions and Guaranteed Maturity Additions on the date of maturity as per the payout option selected. 

3. Income Tax Benefit 

Under this benefit, the balance of critical illness is deducted under Section 80D and premiums you paid are eligible for deductions from tax under Section 80C of the Income Tax Act. 

Exclusions Under Reliance Nippon Life Education Plan 

There are not various exclusions under the plan. It only has 1 exclusion that is Suicidal Exclusion. Under Suicidal Exclusion, if in case the policyholder commits suicide within the period of 1 year from the beginning date of the policy or from the revival date of the policy the nominee is entitled to receive the highest of 80% of the paid premiums and resign value till the date of death. 

2. Reliance Nippon Life Child Plan

It is an individual non-linked, participating child insurance plan under which the policyholder is required to pay premiums on a regular basis throughout the policy tenure. 

The policy is for terms between 10 to 20 years. 

Reliance Nippon Life Child Plan offers guaranteed periodic benefits, High Sum Assured, vested bonuses along with other opted benefits. 

Benefits of Reliance Nippon Life Child Plan

There are certain benefits that you as a policyholder will enjoy after buying the policy are as follows: 

1. Maturity Benefit

If the policyholder has made all premium payments regularly then he/she is entitled to receive Guaranteed Periodic Benefits which is equal to 25% of the Base Sum Assured plus High Sum Assured addition benefit and vested bonus if any on every third year of the policy irrespective of the survival of the life assured or the maturity.

2. Bonuses

Under the policy, you as a policyholder will receive Simple Reversionary Bonuses which are declared by the Insurance Company at the end of every financial year. Once it is declared it will get added to your policy and become guaranteed. 

3. Guaranteed Death Benefit

If in case of death of the policyholder during the policy tenure and policy is in active status then the nominee is entitled to receive the minimum sum assured on death plus 105% of all the premiums paid as a guaranteed death benefit. 

Exclusions Under Reliance Nippon Life Child Plan

There is only one exclusion under the Reliance Nippon Life Child Plan that is the suicidal exclusion.

Suicide exclusion

Under the exclusion, if the policyholder commits suicide within one year from the date of the beginning of the policy and the policy is an inactive status or from the revival date of the policy, the nominee of the policy is entitled to receive a higher of 80% of the premiums paid and surrender value if any till the date of death excluding service tax. 

Reliance Life Child Plans include a lot of benefits which makes it an ideal plan to opt for a child to meet their future requirements even in your absence. It includes only 1 exclusion as mentioned above makes it unique from other available plans.

Also Read: 

Things To Look for Before Purchasing a Child Plan

How Are Child Plans Different From Sukanya Samriddhi Yojna ?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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