Reliance Life Bluechip Savings Insurance Plan

Benefits of Reliance Bluechip Savings Insurance Plan:

This policy from Reliance Life is aimed at providing many benefits to the policyholder and his/her family and focuses on ensuring a prosperous financial scenario on retirement or in the case of unfortunate demise of the life insured. The following are a detailed list of the benefits offered under this policy –

1. Death benefit - The death benefit under this plan is payable on the death of the life insured, provided the policy is in force. Options of 7x and 10x benefits are available under Death Benefit and these options provide numerical multipliers to the death benefit applicable times 7 and 10 respectively. The policy terminates with the death of the life insured and the death benefit is a total of the following -
   1. Higher of
      1. Sum Assured on Death (higher of Annualised Premium x Death Benefit Multiple or Guaranteed Sum Assured on Maturity or Base Sum Assured) plus Vested Reversionary Bonuses and Terminal Bonus (if any)
      2. 105% of all the premiums paid till the date of death
2. Maturity benefit - The maturity benefit under this plan is payable on survival of the life insured on the date of maturity, provided the policy is in force and it will include Guaranteed Sum Assured on Maturity (Base Sum Assured plus Guaranteed Additions), Vested Reversionary Bonuses and Terminal Bonus, if any
3. Surrender Benefit - The policy acquires a surrender value post full payment of premiums on two years for payment terms less than 10 years, and 3 years’ payment in case of payment term more than or equal to 10 years. Provided the policy is in force, it can be surrendered to obtain a Guaranteed Surrender Value or Special Surrender Value. The amount thus payable as surrender benefit is at the discretion of the bank
4. Tax benefits - One might be eligible for availing tax benefits for premiums under Section 80C and for maturity/death benefits under Section 10(10D) as per the prevailing tax laws

Eligibility Criteria for Reliance Bluechip Savings Insurance:

Entry ages, premium amounts, maturity periods and choice of death benefit multipliers are interdependent in this plan and the criteria of eligibility for this plan can be illustrated in the table below -

How Reliance Bluechip Savings Insurance Works?

Mr. A, a 35 year old salaried professional, opts for Reliance Bluechip Savings Insurance.

He selects a premium payment term of 7 years, policy term of 15 years and pays a yearly premium of Rs. 50,000 with a 10x death benefit option. The premium rate comes to 229.24 per Rs. 1000 of Base Sum Assured and the Base Sum Assured thus becomes Rs. 2,18,111. In addition to that, Accrued Guaranteed Additions, Vested Reversionary Bonuses and Terminal Bonuses if any will also be received by Mr. A at the end of the policy term.

The scenarios for Mr. A could be as follows -

Scenario 1 - He survives till the maturity period. The total benefits that he receives is to the tune of Rs. 6,30,886 or Rs. 4,50,290 at 8% or 4% respectively.

Scenario 2 - Mr. A passes away in an unfortunate accident at the end of the 3rd policy year and has paid Rs. 1,50,000 towards premiums in total. His nominee receives a lump sum amount to the tune of Rs. 5,35,988 or Rs. 5.14,722 at 8% or 4% respectively, as death benefit.

Riders for Reliance Bluechip Savings Insurance:

This plan can have five optional riders under its wing in order to provide a more comprehensive risk cover. The riders are as follows -

1. Reliance Term Life Insurance Benefit Rider - Provides an depending on the sum assured under the base policy
2. Reliance Major Surgical Benefit Rider - Provides a lump sum amount to cover surgical expenses from a list of 33 surgeries
3. Reliance Critical Conditions (25) Rider - Provides a lump sum amount to take care of 25 critical conditions
4. Reliance Accidental Death and Total and Permanent Disablement Rider (Regular Pay) - Provides additional death/disability benefit if death/disability occurs due to an accident. Can also waive off future premiums in case of disability
5. Reliance Accidental Death and Total and Permanent Disablement Rider (Limited Pay) - Provides additional death/disability benefit if death/disability occurs due to an accident. Can also waive off future premiums in case of disability