How is Reliance Money Return Guarantee plan?

[Ankit_09]

I am looking to buy Reliance Money Return Guarantee plan.

Important Features of the plans (as told to me by Agent) are -
1- 2.5 L return after 5 years (premium 30K/yr)
2- medical aid + maternity benifite
3- 80C Benefit
4- Life cover

Is there any other plan where I can look for 5-7 years for investment with 20-30 K premium per annum?

[PolicyWala]

First thing first - "Don't mix insurance with investment." Both have different purpose and different products caters to these requirements.

Your queries -

1- 2.5 L return after 5 years (premium 30K/yr)
So you would be paying Rs. 150,000 (30,000 x 5) as premium and getting Rs. 250,000 as return after 5 years. The return comes out to be 19.38% on Rs. 30000 per annum investment to achive Rs. 250,000. To me 19.38% is too ambitious to achive, when banks are only paying you 8.5% in FDs. And when it's assumed that there are no changes on the above plan.


2- medical aid + maternity benefit
As per Reliance Life's Money Return Guarantee plan (http://www.reliancelife.com/RLIC/Products/SolutionsforIndividuals/Plans/RelianceGuaranteedMoneyBack/RLIGMBP_Benefits.aspx), there are additional riders available that to after paying of additional premium -
1.Reliance New Major Surgical Benefit Rider: Provides lump sum amount to cover surgical expenses from a list of 33 surgeries including Open Heart surgery, Kidney Transplant, Cornea transplantation, Transplant of Lungs and many more.
2.Reliance New Critical Conditions (25) Rider: Provides lump sum amount to take care of 25 critical conditions including Cancer, Heart Attack, Paralysis, Major Organ transplant and many more.
3.Reliance Term Life Insurance Benefit Rider: Provides additional death benefit depending on the sum assured selected under the rider.
4.Reliance Life Insurance Family Income Benefit Rider: In the event of death or total and permanent disablement of the life assured, this rider provides a monthly benefit of 1% of sum assured every month (i.e. 12% per annum), to the beneficiary. The benefit is payable from the date of death till end of the rider policy term or 10 years whichever is later, before the maturity of the policy.

Limited health benefits available, but none of them talks about maternity benefit.
Also keep in mind that this is not a replacement of the complete health insurance/mediclaim.

[PolicyWala]

3- 80C Benefit & 4- Life cover
You will get these benefits and also 80D for health riders, if you opt.


Is there any other plan where I can look for 5-7 years for investment with 20-30 K premium per annum?
For investment short term (5-10 Years) go for Gold, FDs, Post Office RDs.
For long term (10-15 years) go for PPF, mutual funds and shares with some expert advice.
Buy term plan first

[Ankit_09]

What do you guys say, do I need to buy this plan?

[>take]

What do you guys say, do I need to buy this plan?
It's upto you to decide, if you think that 19.38% return is achievable then go ahead. The current return of this plan is only - Absolute Returns : 13.56% (http://www.moneycontrol.com/insurance/ulip/reliance-life-insurance-AM/reliance-money-guarantee-plan-life-growth-plus-fund-2-IAM251.html).
And the most important part that the above plan is not for 5 years, it is a guaranteed moneyback plan and term is 15-20 years.