Reliance Life Insurance launches new Child plan 'Reliance Education plan'

Reliance Education Plan is a non-linked, non-participating, specialist child insurance plan that provides assured payouts for financing a child’s education and securing their future.

The plan helps parents save for child’s career milestones and provide them with the security of future income.

“A large part of household’s saving and expenditure goes towards education and career planning of a child. We felt a need for a product that would help a children in planning their future and also provide at different career milestones of their life. Reliance Education Plan is designed to help systematically save and secure a child’s career plans and provide future income as per chosen milestones," said Manoranjan Sahoo, Chief Agency Officer, Reliance Life Insurance.

Reliance Education Plan provides four maturity payout options that can be chosen based on the child’s financial needs for education options.

The payout can be in one lump sum amount at maturity - that can serve as seed capital for their children planning to start a business; or in two installments when opting for post-graduation; four installments in case opting for a professional degree; or five installments if they have planned for an integrated course like a graduation and post-graduation.

The plan is available for policy term between 9 to 20 years and with payment options for 5 years, 7 years, 10 years or for the entire term.

The entry age for children for this plan is from Birth till 18 years of age and for parents between the age of 20-50 years with child below the age of 18 years.

Reliance Education plan also provides flexible options in case of death benefit payouts - full lump sum amount payable on death or 50 per cent lump sum followed by annual income for 10 years.

In addition to the death benefit payouts, the plan guarantees maturity payouts without any further premium payment, in case of any eventuality. These options can be selected at inception of the plan only.

“The plan has built-in flexibility, keeping in mind, the different needs of every child and the career path they may choose. We believe it will serve as a valuable companion for any child to protect their future and handhold them in critical points of their career where they need financial support to fulfill their dreams,” said Sahoo.

With increasing number of career options and paths, parents are often worried if the chosen career would result in a secured income.

The plan’s option of income payout of the death benefit amount, allows the parent to be fully confident of having taken care of the child’s future even after education.

“Gujarat is an important state for Reliance Life with over 85,000 policies issued in the region through 64 branches. The people of Gujarat are progressive in nature and would find this plan very relevant to plan for their children’s career – the future of Gujarat," he added.