Reliance Life Money Multiplier Plan - Smart Savings with Insurance Protection

Benefits of Reliance Life Money Multiplier Plan

The benefits of Reliance Money Multiplier Plan are below:

1. The policy offers maturity benefits that are equal to the sum assured
2. The policy upon maturity also offers guaranteed loyalty additions. Loyalty additions are credited at the end of every policy year and is added on to the sum assured. Loyalty additions are calculated on the following formula:
   Guaranteed loyalty additions (in year X) = 1% X Sum Assured (year X corresponds to the years for which annualised premium has been paid in full.
3. The plan also provides a guaranteed maturity benefit which is calculated as:
   Guaranteed Maturity Benefit = 1% X Policy Term X Sum Assured.
4. The plan provides for death benefit where the nominee will receive a lump sum equal to 200% the sum assured plus accrued loyalty additions if any upon death of the life assured provided the policy is still in effect.
5. The money paid as premiums toward Reliance Money Multiplier Plus are applicable for tax deductions.
6. If the first annualised premium is completely paid in full and the policy is surrendered before the completion of 3 policy years, the policyholder is eligible to receive surrender benefits that will be paid out after the completion of the 3 policy years.

Eligibility Criteria for Reliance Life Money Multiplier Plan

Below are the criteria for eligibility for Reliance Money Multiplier Plan:

The other criteria are as follows:

1. The term of the policy can be 10 years, 15 years or 20 years
2. The premium payment is regular and the term of premium payment is equal to the policy term.
3. The modes of premium payment are monthly, quarterly half yearly and yearly

How the Plan works?

Let us assume Mr Vivek aged 30 years opts for a Reliance Money Multiplier plan for a policy term of 20 years. Mr Vivek selects a premium payment term of 20 years with RS 30,000 per annum as his annual premium. The Sum assured will be RS 2,88,462. Upon the maturity of the policy, Mr Vivek will receive a guaranteed maturity benefit equal to the sum assured (RS 2,88,462) along with accrued guaranteed loyalty additions at the end of every year. In this case since the term of the policy is 20 years and assuming Mr Vivek has been paying the full premium of RS 30,000 every year, the loyalty additions will be 1% at the end of the first year, 2% at the end of the second year and so on till it reaches 20% at the end of the 20^th policy year. The accumulated loyalty additions is 210% at the end of 20 years and amounts to RS 6,05,769. mr Vivek will also guaranteed maturity addition of 1% X Sum Assured X policy Term which in this case amounts to RS 57,962. Therefore Mr Vivek will receive a combined total of 9,51,293 at the end of 20 years. In the unfortunate event of Mr Vivek's death the nominee will receive the lump sum as death benefit.

If Mr Vivek dies during the 10^th policy year, the death benefit is 200% the sum assured plus loyalty additions for 10 years. In this case the death benefit will amount to RS 5,76,923 (200% of sum assured) plus RS 1,29,808 (1% addition of sum assured every year or 55% accumulated addition of sum assured for 10 years).

Therefore the nominee will receive RS 7,06,731 if Mr Vivek dies during the 10^th policy year.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017