Kochi | Reliance Life Insurance Company (RLIC), part of Reliance Capital Limited, has launched a new child insurance plan – Reliance Education Plan- at a function here today.
Reliance Education Plan was a non-linked, non-participating, specialist child insurance plan that provided assured payouts for financing a childs education and securing their future, Reliance Life Insurance Chief Agency Officer Manoranjan Sahoo said while launching the new product here.
Stating that the plan helping parents save for childs career milestones and provide them with the security of future income, he said a large part of households 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 childs career plans and provide future income as per chosen milestones.
Reliance Education Plan provide four maturity payout options that could be chosen based on the childs financial needs for education options, he said adding that the payout could 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 was 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 and the entry age for children for this plan was 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, he added.
Reliance Education plan also provide 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, he said adding that 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 Mr Sahoo added.
With increasing number of career options and paths, parents were often worried if the chosen career would result in a secured income. The plans option of income payout of the death benefit amount, allows the parent to be fully confident of having taken care of the childs future even after education.
Kerala is an important state for Reliance Life with over 20,000 policies issued in the region through 36 branches and over 2800 advisors. Given the higher level of consciousness towards education in the state, the people of Kerala would find this plan very relevant to plan for their childrens career, he said.
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