Reliance Life Insurance Guaranteed Maturity Insurance Plan


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Reliance Life Insurance Guaranteed Maturity Insurance Plan
Double your money
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Reliance Life Insurance Guaranteed Maturity Insurance Plan
An insurance plan which guarantees atleast double your money plus all the upside for you at maturity. Reliance Life Insurance Guaranteed Maturity Insurance Plan (RLIGMIP), A Unit Linked Insurance Plan is the perfect answer to your need for insurance protection and investment protection in a changing investment market without losing the upside if any.

UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
Key Features  Guarantees to pay you double your money on maturity
 You get the upside too because this is a unit linked insurance cum investment plan
 Single premium plan
 Zero premium allocation charge
 Liquidity after five policy years
How does Reliance Life Insurance Guaranteed Maturity Insurance Plan work? Reliance Life Insurance Guaranteed Maturity Insurance Plan is a single premium unit-linked life insurance plan. You may purchase this plan for a single premium amount of as low as ` 5,000. We invest 100% of the Single Premium you pay into this plan in the Reliance Assured Maturity Debt Fund and the units are allocated to your policy account at the prevailing unit price of the fund. The fund value of your policy is the total value of units that you hold in the Reliance Assured Maturity Debt Fund.
The policy administration charge and mortality charge are deducted monthly through cancellation of units. The Fund management charge is adjusted in the unit price.
This policy operates as an unbundled unit-linked investment fund. The company will credit the fund value with:
 single premium
and debit the fund value with:
 benefits paid
 fees and charges
 charges for insurance benefits
 taxes, duties or surcharges of whatever description levied by any statutory authority.
The plan pays out a death benefit or a maturity benefit as explained below.
Benefits The benefits under this plan are:
Maturity Benefit: On survival of the life assured to maturity date, provided the policy is inforce, the maturity benefit will be the higher of the Guaranteed Maturity Value or the fund value, as on the maturity date. The Guaranteed Maturity Value is equal to two times of the single premium paid at policy inception.

The policy terminates on payment of maturity benefit.
Death Benefit: In case of death of the life assured during the policy term: The death benefit payable in one lumpsum would be the higher of:
(i) Prevailing Sum Assured reduced by the value of the units withdrawn through partial withdrawals from fund value in the last 24 months prior to the date of death
Or (ii) The fund value as on the date of receipt of intimation of
death at the Company’s office.
The policy terminates on payment of death benefit.

Fixed sum assured Policy year - 1

5 times the single premium

Policy year - 2 and later

Life assured age at entry < 45 years

1.25 times the single premium

Life assured age at entry 45 years & over

1.10 times the single premium

Polices where the age at entry of the life assured is greater than or equal to 8 years but less than 12 years, the single premium will be restricted such that the maximum sum assured across all policies with Reliance Life Insurance Company is ` 5 lac and shall confirm to the relationship between premium and sum assured mentioned under IRDA Cir No. IRDA/ACT/CIR/ULIP/102/06/2010 dated 28 June, 2010.

Full surrender
Surrender Value will be acquired immediately on payment of the single premium. However, the surrender value will be payable after the completion of five policy anniversaries.
There is no discontinuance charge under single premium policy. The surrender Value will be the Fund value under the policy at the prevailing unit price as on the date of surrender.
No guarantee is applicable on surrender.
Once a policy is surrendered in full, it cannot be reinstated.

Partial withdrawal
Partial withdrawals are available only after the completion of five policy anniversaries or on attainment of age 18 by the life assured whichever is later.
No guarantee is applicable on partial withdrawals.
The minimum amount of partial withdrawal is ` 5000.
The maximum partial withdrawal amount should not exceed 20% of the fund value at the time of withdrawal.

However, at any point of time during the policy term, the minimum fund balance after the partial withdrawal should be at least equal to 50% of the single premium.
The revised Guaranteed Maturity Benefit after partial withdrawal will be calculated as follows:
Revised Guaranteed Maturity Benefit =
[1 - (Amount of Partial withdrawal/Total Fund Value at the time of Partial Withdrawal)] * Guaranteed Maturity Benefit

Investment Options

Reliance Life Insurance Guaranteed Maturity Insurance Plan provides you only one fund option, the Reliance Assured Maturity Debt Fund. The investment objective of this fund is as follows:

Reliance Assured Maturity Debt Fund (SFIN: ULIF06720/12/11LASURMDEBT121)

The fund options available under the Plan, investment objective, risk profile and asset allocation for various funds are detailed in the table below:

Fund Name

Investment Objectives

Reliance Assured Maturity Debt Fund
(SFIN: ULIF06 720/12/ 11LASU RMDE BT121)

To provide predictable investment returns, achieved through 100% investment in debt securities, where returns are locked-in through portfolio immunization techniques and use of rigorous Asset Liability Management (ALM). The risk appetite for the fund is low to moderate.

Asset Category

Asset Allocation Range (%)

Target (%)

Bank

0-100 100

Deposits/

Money

Market

Instruments/

Gilts/ Bonds,

Debentures

and other

Corporate

Debt Papers

Fund offered under settlement option

Fund Name

Investment Objectives

Asset Category

Life Balanced Fund 1
(SFIN: ULIF00 128/07/ 04LBAL ANCE 01121)

The investment objective of the fund is to provide investment returns that exceed the rate of inflation in the long term while maintaining a low probability of negative returns in the short term. The risk appetite is defined as ‘low to moderate’.

Money market instruments incl. liquid mutual funds and bank deposits
Debt Securities such as gilts, corporate debt excluding Money market instruments
Equities

Asset Allocation Range (%)
0-100
0-100
0 - 20

Target (%)
0
80
20

Whilst every attempt would be made to attain target levels prescribed above, it may not be possible to maintain the prescribed ‘target’ at all times owing to market volatility, availability of market volumes and other related factors. The ‘target’ may be attained on a ‘best effort’ basis. However, the asset allocation will always fall within the asset allocation range mentioned in respect of each fund.

Unit pricing & Cut-off Timings

Value of Units: The unit price of each Fund will be the unit value calculated on a daily basis.

Unit Value =

Market Value of investment held by the fund plus the value of current assets less the value of current liabilities and provisions, if any. ----------------------------------------------------------------------------------Number of units existing at the valuation date (before creation/redemption of units)

Cut-off timings:
Uniform cut-off timings for applicability of Net Asset Value:
The allotment of units to the policyholder should be done only after the receipt of premium proceeds as stated below:

Allocation of units:
The company applies premiums to allocate units in the Reliance Assured Maturity Debt Fund that will be open for new business at the time of issue of the policy. The allotment of units to the policyholders will be done only after the receipt of premium proceeds as stated below;
In case of New Business, units shall only be allocated on the day the proposal is completed and results into a policy by the application of money towards premium.
In respect of premiums received up to 3.00 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium is received, the closing unit price of the day on which the premium is received, shall be applicable.
In respect of premiums received after 3.00 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium is received, the closing unit price of the next business day shall be applicable.
In respect of premiums received with outstation cheques or demand drafts at the place where the premium is received, the closing unit price of the day on which cheques / demand draft is realised shall be applicable.

Redemptions:
i) In respect of valid applications received (e.g. surrender, maturity claim, switch out etc) up to 3.00 p.m. by the

insurer, the same day's closing unit price shall be applicable.
ii) In respect of valid applications received (e.g. surrender, maturity claim, switch etc) after 3.00 p.m. by the insurer, the closing unit price of the next business day shall be applicable.
Cancellation of units:
i) To meet fees and charges, and to pay benefits, the company will cancel the units to meet the amount of the payments which are due. The units will be cancelled at the prevailing unit price.
ii) The Fund Management charges will be priced in the unit price of each Fund on a daily basis.
Computation of Net Asset Value (NAV):
The NAV for a particular fund shall be computed as: Market Value of investment held by the fund plus the value of current assets less the value of current liabilities and provisions, if any. This gives the net asset value of the fund.
Dividing by the number of units existing at the valuation date (before creation/redemption of units), gives the unit price of the fund under consideration. In case the valuation day falls on a holiday, then the exercise will be done the following working day.
We reserve the right to value less frequently than daily in extreme circumstances, where the value of the assets may be too uncertain. In such circumstances we may defer valuation of assets until normality returns. Examples of such circumstances are:
a) When one or more stocks exchanges which provide a basis for valuation for a substantial portion of the assets of the fund are closed otherwise than for ordinary holidays
b) When, as a result of political, economic, monetary or any circumstances out of our control, the disposal of the assets of the unit fund are not reasonable or would not reasonably be practicable without being detrimental to the interests of the remaining unit holders.
c) During periods of extreme volatility of markets during which surrenders and switches would, in our opinion, be detrimental to the interests of the existing unit holders of the fund.
d) In the case of natural calamities, strikes, war, civil unrest, riots and bandhs.
e) In the event of any force majeure or disaster that affects our normal functioning.
f) If so directed by the IRDA.
Settlement Options
The policyholder has the option to take the maturity proceeds in periodic installments within a maximum of 5

years from the date of maturity. The policyholder has to give a notice to the insurer at least 30 days before the maturity date. The periodic installment could be in any form including lump sum or infrequent withdrawals as requested by the policyholder.
If settlement option is selected, then on maturity of the policy, the maturity benefit would be automatically moved into Life Balanced Fund 1, the only fund option available during the settlement period.
During the settlement period, there will be no life cover. The policy will participate in the performance of units.
The Company will however continue to deduct policy administration charges by cancellation of units. The fund management charge will be priced in the unit value.
In the event of death of the Insured during settlement period the fund value as on the date of intimation of death at the office will be paid to the nominee.
During the settlement period, no insurance will be available to the policyholder. The policy will participate in the performance of the units.
During the settlement period, the investments made in the unit funds are subject to investment risks associated with capital markets and the NAV’s of the units may go up or down based on the performance of the fund and the factors influencing the capital market.
The investment risk during the settlement period will be borne by the policyholder.

Policy Limits
Minimum age at entry Maximum age at entry Fixed policy term Minimum age at maturity Maximum age at maturity Minimum single premium Maximum single premium

8 years last birthday 50 years last birthday 10 years 18 years last birthday 60 years last birthday INR 5,000 Limited by maximum sum assured

Charges under the Policy
Premium allocation charges: There is no premium allocation charge.
Mortality charges: This charge will be deducted from the fund value under the plan. The mortality charges will vary depending on a) The amount of life insurance cover

b) The attained age of life assured c) The occupation of the life assured d) The health of the life assured
The standard mortality charges per annum under this policy per ` 1000/- sum assured are given in Annexure A.
These mortality charges will be deducted on a monthly basis at the beginning of each policy month using 1/12th of the mortality rates.

Partial withdrawal charge: There is no partial withdrawal charge.

Policy administration charge:
For first 5 years:
1.85% per annum of the single premium paid at inception subject to maximum of ` 6,000 per annum.
After first 5 years:
0.70% per annum of the single premium paid at inception subject to maximum of ` 6000 per annum.
The policy Administration charges will be deducted on a monthly basis at the beginning of each policy month using 1/12th of the above policy administration charges per annum.

Fund management charge:

Fund Name
Reliance Assured Maturity Debt Fund (SFIN: ULIF06720/12/11LASURMDEBT121)
Life Balanced Fund 1 (SFIN:ULIF00128/07/04LBALANCE01121)

Annual Rate 1.00% 1.25%

Discontinuance charge:
There are no discontinuance charges under single premium.
Service Tax Charge:
This charge shall be levied on the mortality charge, policy administration charge and fund management charges. The level of this charge shall be as per the rate of service tax declared by the government from time to time. The service tax is chargeable on the actual fund management charge as per applicable rates.
The service tax charge will be collected as mentioned below:
a. The Service Tax charge on allocation charge will be deducted from the premium along with the allocation charge.
b. The Service Tax Charge on Fund Management Charge will be priced in the unit price of each Fund on a daily basis.

c. The Service Tax charge on Policy administration charge, Mortality charge and Miscellaneous charges, if any will be recovered by cancellation of units at the prevailing unit price.
Recovery of Charges
Mortality charges: Mortality charges will be recovered by cancellation of units at the prevailing unit price, in advance at the beginning of each month.
Premium allocation charges: We will not levy any premium allocation charge under this plan.
Fund Management charges: The Fund Management charges will be priced in the unit price of each fund on a daily basis. This will result in the adjustment of NAV.
Policy administration charge: The monthly Policy administration charge will be deducted by cancelling units at the prevailing unit price in advance at the beginning of the month.
If settlement option is opted, Policy administration charge of ` 40 per month will be deducted during the settlement period by cancellation of units.
Partial withdrawal charge: We will not levy any partial withdrawal charge under this plan.
Charges Levied by the Government in Future
In future the Company may decide to pass on any additional charges levied by the governmental or any statutory authority to the policyholder. Whenever the company decides to pass on the additional charges to the policy holder, the method of collection of these charges shall be informed to them.
Revision in Rate of Charges
The revision in charges if any ( except the service tax charge) will take place only after giving three months notice to the policyholders and after obtaining specific approval of the IRDA.
The service tax charge will be revised as and when notified by the Government.
If the policyholder does not agree with the modified charges, they shall be allowed to withdraw the units in the plans at the then prevailing unit value after paying surrender charge if any and terminate the Policy.
The Company reserves the right to change the Fund Management charge. However, the maximum FMC on any fund will be 1.35% p.a.
The policy administrative charge during the settlement period is subject to revision at any time, but will not exceed ` 75.

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Reliance Life Insurance Guaranteed Maturity Insurance Plan