Reliance Life Insurance launches Lifelong Savings Plan

Reliance life long savings plan reviewReliance Life Insurance Lifelong Savings Plan


Couple of weeks back, Reliance Life has launched Lifelong Savings Plan. Reliance Lifelong Savings Plan is a non linked, participating endowment plan. Reliance life indicates that this plan is aimed to plan for child education and retirement planning. What are the features of Reliance Lifelong Savings Plan? What are the Benefits of Reliance Lifelong savings plan? How exactly this plan works?

Features of Reliance Lifelong Savings Plan


  • This is a protection cum investment plan.
  • It is non linked, participating, endowment-cum-whole life plan.
  • This plan indicates that it is aimed to offer goal based savings and protection to policy holders where one can save money for child education or retirement savings along with enjoying life cover.
  • It has standard and extended cover benefits.
  • Enhance savings through bonus additions.

Also Read: ICICI iProtect Smart Term Insurance Plan covers 30+ Critical Illness – Is this a good term insurance plan?

Benefits of Reliance Lifelong Savings Plan


  • Offer flexible cover options: Standard cover: You can get lump sum amount at maturity and life cover for the policy term. Extended cover: You can get lump sum amount at maturity and life cover for the policy term. You can get extended life cover whole of the life after the policy term.
  • Guaranteed maturity benefit includes sum of basic sum assured along with accrued guaranteed additions.
  • 4% of basic sum assured for five years is accrued as guaranteed additions.
  • Simple reversionary bonus accrued every year from 6th policy year along with terminal bonus (if any).
  • You can opt to pay for full policy term or for limited period of 10 years.
  • Loan facility can be availed on this policy.

How does this Reliance Lifelong Savings Plan work exactly?


This plan illustrations are given on Reliance life website, hence I am not taking pain to draw my own examples. Here are 2 illustrations given by them.

Example 1: Standard Option

Raman, aged 35 years, aims to save for his child’s higher education and to protect his family during his earning years. He opts for Reliance Lifelong Savings, and

  • Selects the Standard Cover Option with policy term of 15 years and Base Sum Assured of Rs. 3,00,000
  • Pays an annual premium of Rs. 23,823 p.a. (exclusive of taxes) for the entire term of 15 years (Regular Pay), assuming that he is in good health 
  • Guaranteed Additions of Rs. 12,000 p.a. accrue in the policy during first five policy years i.e. a total of Rs. 60,000
  • Guaranteed Maturity Benefit which is equal to Base Sum Assured and all Guaranteed Additions payable will be Rs. 3,60,000
  • The maturity payouts are enhanced through Simple Reversionary Bonuses and Terminal Bonus, if any

Scenario I: If Raman, i.e. the Life Assured, survives till the end of the Policy Term, he receives:

Reliance lifelong savings plan-illustration-1-part-1

Scenario II – In case of unfortunate demise of Raman at the end of 10th policy year:

Reliance lifelong savings plan-illustration-1-part-2

Also Read: Religare Care Freedom plan Health Insurance Plan is offered without medical check-ups

Example 2: Extended Cover Option

Ravi, aged 30 years, wants to save for his old age while also creating a legacy for his family. He opts for Reliance Lifelong Savings, and:

  • Selects the Extended Cover Option, policy term of 20 years and Base Sum Assured of Rs. 5,00,000
  • Pays an annual premium of Rs. 33,335 p.a. (exclusive of taxes) for the entire term of 20 years (Regular Pay), assuming that he is in a good health
  • Guaranteed Additions of Rs. 20,000 p.a. accrue in the policy during first five policy years i.e. a total of Rs. 1,00,000
  • Guaranteed Maturity Benefit which is equal to Base Sum Assured and all Guaranteed Additions payable will be Rs. 6,00,000
  • The maturity payouts are enhanced through Simple Reversionary Bonuses and Terminal Bonus, if any
  • Gets a life cover even after the policy term i.e. during the extended period, equal to the higher of the Base Sum Assured or 105% of the annualised premiums paid as on the date of death

Scenario I: If Ravi, i.e the Life Assured, survives till at the end of the Policy Term, he receives

Reliance lifelong savings plan-illustration-2-part-1

Scenario II – Death during the policy term – In case of unfortunate demise of Ravi at the end of the 11th policy year  (at age 40 years)

Reliance lifelong savings plan-illustration-2-part-2

Death after the policy term


In case of an unfortunate demise of Ravi in the 70th policy year (at age 100 years), the nominee shall receive the lump sum death benefit of Rs. 7,00,035, which is higher of the Base Sum Assured and 105% of total annualised premiums paid as on the date of death.

This amount is in addition to the Maturity Benefit which was given to Ravi at the end of the 20th policy year

Also Read: Bharti Axa Invest Once Insurance Plan says 9% guaranteed additions – How far this is true?

What does their management say about Reliance Lifelong Savings Plan?

“Reliance Life Long Savings Plan is aimed to provide goal-based long term financial planning, while providing flexibility to deal with unforeseen life events. The plan’s unique feature offers lifelong cover, bonus, and two sum assured – one at maturity and one at death. This added protection will go an extra mile to protect the future and provide a financial cover for the policyholder and their family” said Manoranjan Sahoo, Chief Agency Officer, Reliance Life Insurance.

“We have tried to package maximum benefits in the product that can support the family by providing bonus and sum assured at the time of maturity while continuing the cover for lifetime and another sum assured at the time of unfortunate death of the policyholder. This is in line with our overall strategy to offer innovative products to our customers and support their families in case of an unforeseen event”, said Sahoo.

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Suresh
Reliance Lifelong Savings Plan

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