Let’s take an example:
Rohan, aged 30 years, opts for Reliance Nippon Life Education Plan to secure the bright future of his less than one year old son, Rahul.
Rohan understands that his son, Rahul, needs a comprehensive education plan to take care of all education related expenses such as initial admission, tuition fees in subsequent academic years and funds to cover expenses after completion of education. Hence, he:
|
Policy
Term
|
Premium
Payment Term
|
Base Sum
Assured
|
Death Benefit
Option
|
Payout
Option
|
|
18 years
|
7 years
|
249,270
|
Option II
|
Career Starter
|
- Pays an annual premium of Rs.35,000 p.a. (exclusive of taxes), assuming that he is in good health
- Gets Base Sum Assured, accrued Guaranteed Additions and accrued Guaranteed Maturity Additions after end of the policy term as per the Payout Option selected
Scenario I:
Rohan, i.e. Life Assured, survives till maturity of the policy and his son, Rahul, attains an age of 18 years. Now, Rohan is prepared to fulfill his son’s dream of studying in a reputed university for a 5 years Degree course.
With “Career Starter” Benefit Payout Option, Rahul will receive the following amount to pay for his educational expenses:
|
Payout Option
|
At Maturity
|
2nd Year
|
3rd Year
|
4th Year
|
5th Year
|
Total
|
|
Career Starter
|
20% of the BSA + GA
|
20% of the BSA
|
20% of the BSA
|
20% of the BSA
|
(20% of the BSA + GMA) * 132.76%
|
Rs. 488,615
|
| |
Rs 49,854
|
Rs 49,854
|
Rs 49,854
|
Rs. 199,462 |
Scenario II:
In case of Rohan’s unfortunate demise during the 5th policy year, Death Benefit amount payable is Rs. 428,744. Rohan opted for Death Benefit Option II. Hence, this amount can be utilized to support his family in the following manner:
- 50% of Death Benefit as an immediate lump sum on Death i.e. Rs. 214,372
- Remaining Death Benefit amount will be paid as an annual income for next 10 years, with each installment equal to 12.94% of 50% of total Death Benefit, i.e. Rs. 27,740 p.a.
- Rahul will also receive all policy benefits to complete his education as planned by his father
|
Benefits to Rohan’s Nominee
|
Amount (Rs.)
|
|
Death Benefit
|
50 % of Death Benefit as a lump sum
|
214,372
|
|
50 % of Death Benefit will be paid every year for next 10 years
|
27,740
|
|
Total Death Benefit
|
491,772
|
|
Maturity Benefit for Career Starter Payout Option
|
At Maturity: 20% of the BSA + GA
|
139,591
|
|
2nd Year: 20% of the BSA
|
49,854
|
|
3rd Year: 20% of the BSA
|
49,854
|
|
4th Year: 20% of the BSA
|
49,854
|
|
5th Year: (20% of the BSA + GMA) * 132.76%
|
199,462
|
|
Total Maturity Benefit
|
488,615
|
|
Total Benefits
|
980,387
|
Scenario III:
In case of Rohan’s unfortunate demise during the 17th policy year, Death Benefit amount payable is Rs. 428,744. Rohan opted for Death Benefit Option II. Hence, this amount can be utilized to support his family in the following manner:
- 50% of Death Benefit as an immediate lump sum on Death i.e. Rs. 214,372
- Remaining Death Benefit amount will be paid as an annual income for next 10 years, with each installment equal to 12.94% of 50% of total Death Benefit, i.e. Rs. 27,740 p.a.
- Rahul will also receive all policy benefits to complete his education as planned by his father
|
Benefit to Rohan's Nominee
|
Amount(Rs.)
|
|
Death Benefit
|
50% of Death Benefit as a lump sum
|
214,372
|
|
50% of Death Benefit will be paid every year for the next 10 years
|
27,740
|
|
Total Death Benefit
|
492,132
|
|
Maturity Benefit for Career Starter Payout option
|
At Maturity: 20% of the BSA + GA
|
139,591
|
|
2nd Year: 20% of the BSA
|
49,854
|
|
3rd Year: 20% of the BSA
|
49,854
|
|
4th Year: 20% of the BSA
|
49,854
|
|
5th Year: (20% of the BSA + GMA)*132.76%
|
199,462
|
|
Total Maturity Benefit
|
488,615
|
|
Total Benefits
|
980,747
|
DisclaimerFor more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. UIN for Reliance Nippon Life Education Plan:121N106V01