Let’s take an example:
Rajiv, aged 30 years, is blessed with a baby boy, Akash. Rajiv is filled with joy and preparing himself for the increased responsibilities in his life. He opts for Reliance Nippon Life Increasing Money Back with a Base Sum Assured of Rs. 2,50,000 and chooses to pay premiums for 15 years (Regular Pay). Assuming he is in good health, he pays a premium of Rs. 28,578 (excluding taxes) for 15 years.
Scenario I: If Rajiv, the life assured, survives till maturity, he receives Money Back benefits beginning from the end of the third year and a lump sum maturity benefit in the 15th year.
Money Back Benefits:
|
End of Policy Year
|
3
|
6
|
9
|
12
|
|
Money Back (in Rs)
|
25,000
|
50,000
|
75,000
|
1,25,000
|
Let us look at how Rajiv uses these Money Back benefits to fulfill his responsibilities.
After 3 years : Rajiv receives the first money back payout of Rs 25,000. He renovates Akash’s room for his third birthday.
After 6 years : Akash is now 6 years old and is ready to enter primary school. Rajiv uses the second money back payout of Rs 50,000 to ensure that Akash is a student of the best educational institute in the city.
After 9 years : Rajiv receives the third money back payout of Rs 75,000. He decides to upgrade his car and makes a down-payment for a brand new family car.
After 12 years : Rajiv has spent a busy year at work and hence decides to spend time with his family. He uses the money back payout of Rs 1,25,000 to gift his family a luxurious vacation abroad.
Maturity Benefit:
On maturity, at the end of the 15th policy year, Rajiv receives Rs 2,50,000 (100% of the Sum Assured). Rajiv decides to invest this in Akash’s higher education.
Scenario II – Unfortunately, Rajiv meets with an accident and passes away in the 11th policy year . His wife, Neha, is overcome with grief. However, she finds some solace when she receives the lump sum amount of Rs 3,30,076 as death benefit, which is calculated as higher of Sum Assured on Death or 105% of premiums paid (excluding any extra premium).
DisclaimerFor more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. UIN for Reliance Nippon Life Increasing Money Back Plan: 121N116V01