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Reliance Life Insurance Classic Plan II

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Reliance Life Insurance Classic Plan II
 
Reliance Life Insurance Classic Plan - II is a Unit Linked Insurance Plan (ULIP). Thus, it is a Non-Traditional Insurance Plan without Bonus facility.
 
How it works – In this plan, premium needs to be paid either till the end of the Policy Tenure, as in Regular Payment Option or in a lumpsum under Single Payment Option.
 
There are 8 funds for Investment Opportunity and 4 additional riders in this plan. The Fund Value would be paid to the policyholder on survival till the end of the Policy Tenure. 
 
However, if the Life Insured dies within the Policy Tenure, higher of Sum Assured under the base plan or the Fund Value is paid to the nominee as Death Benefit subject to a minimum of 105% of the total premiums (including top-ups) paid.
 
This plan has the option of converting the benefits of this plan after completion of 5 policy years to another plan wherein exchange option is available.
 
 
Key Features of Reliance Life Insurance Classic Plan II
 
  • It is a  plan Unit Linked Endowment Plan without Bonus
  • The Fund Value would be paid to the policyholder on survival till the end of the Policy Tenure
  • If the Life Insured dies within the Policy Tenure, higher of Sum Assured under the base plan or the Fund Value is paid to the nominee as Death Benefit
  • There are 8 funds for Investment Opportunity
  • There are 4 additional riders in this plan
  • There is an inbuilt rider of Accidental Death Benefit in this plan
  • This plan also allows Systematic Transfer Plan
  • There is an option for Exchange this Plan to any new plan in the future

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 
 
Benefits you get from Reliance Life Insurance Classic Plan - II
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets the higher of the Sum Assured or the Fund Value as Death Benefit subject to a minimum of 105% of the total premiums (including top-ups) paid.
 
Maturity Benefit – When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
 
 
Eligibility conditions & other restrictions in Reliance Life Insurance Classic Plan - II 
 

 

 
Minimum
Maximum
Sum Assured (in Rs.) For Regular Premium
For age<45 years,
SA = Higher of 10 X AP and 1/2 X AP X PT
For age>=45 years,
SA= Higher of 7 X AP and 1/4 X AP X PT
According to the Maximum Sum Assured table upto a maximum of 30 X AP
Sum Assured (in Rs.) For Single Premium
For age<45 years,
SA = 125% of Single Premium
For age>=45 years,
SA= 110% of Single Premium
According to the Maximum Sum Assured table upto a maximum of 6 X SP
Policy Term (in years)
15
30
Premium Payment Term (in years)
Single
Equal to Policy Tenure
Entry Age of Life Insured (in years)
7
60
Age at Maturity (in years)
22
75
Premium (in Rs.)
Yearly - Rs 15,000
Half yearly - Rs 7,500
Quarterly - Rs 5000
Monthly - Rs 2000
Single- Rs 50,000
No Limit
Payment modes
Single, Yearly, Half-Yearly, Quarterly and Monthly
 
 
Additional Features and Benefits of Reliance Life Insurance Classic Plan - II
 
Riders – There is an inbuilt Rider of Accidental Death Benefit in this plan
  • For age <=65 years, the Accidental Sum Assured is equal to the Base Plan Sum Assured
  • For age <18 years, the Accidental Sum Assured is equal to a maximum of Rs 5 lakhs
Accidental Death and Total and Permanent Disablement Rider across all policies with Reliance Life will not exceed Rs 50 Lakhs
 
There are 4 additional riders in this plan:
  1. New Major Surgical Benefit Rider
  2. New Critical Conditions (25) Rider
  3. Term Life Insurance Benefit Rider
  4. Family Income Benefit Rider
 
Investment Fund Options - In this plan, there are 8 funds for investment opportunity:
  1. Life Corporate Bond Fund 1
  2. Life Money Market Fund 1
  3. Life Gilt Fund 1
  4. Life Equity Fund 3
  5. Life Infrastructure Fund 2
  6. Life Midcap Fund 2
  7. Life Pure Equity Fund 2
  8. Life Balanced Fund 1
 
Top-up - Each Top Up is associated with a rise in Sum Assured of 125% of the Top Up Premium paid, in case the age of the life assured <45 years and 110% of the Top Up Premium paid, in case the age of the life assured >= 45 years. The Minimum Top Up Premium is Rs 5,000.
 
Switching - There are 52 switches free in this plan. Beyond which there is a charge of Rs 100 per switch.
 
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or when the life insured is at least 18 years of age, whichever is later.
The minimum amount of partial withdrawal should be Rs. 5,000 and the maximum partial withdrawal amount should not exceed 20% of the fund value at the time of withdrawal. Partial withdrawal charge of Rs 100 will be collected from the fund withdrawn, on every partial withdrawal.
 
 
Charges in Reliance Life Insurance Classic Plan - II
 
Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

Policy Year
Premium Allocation Charge
1st
8% of Annual Premium
2nd to 5th
5.5% of Annual Premium
6th to 9th
5% of Annual Premium
10th onwards
3% of Annual Premium
Single Premium
2% of Single Premium
Top Up Premium
2% of Top Up Premium
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

 

Type of Premium Payment
Premium Allocation Charge
Regular Premium Payment
Rs 40 per month from 6th policy year till the end of the policy term
Single Premium Payment
Rs 40 per month charged for the entire policy term
 
 
Fund Management Charge and Guarantee Management Charge – This charge is deducted by adjusting the NAV of the units on a daily basis.

 

Type
Charge
Life Corporate Bond Fund 1
1.25% of Life Corporate Bond Fund 1 Value
Life Money Market Fund 1
1.25% of Life Money Market Fund 1 Value
Life Gilt Fund 1
1.25% of Life Gilt Fund 1 Value
Life Equity Fund 3
1.35% of Life Equity Fund 3 Value
Life Infrastructure Fund 2
1.35% of Life Infrastructure Fund 2 Value
Life Midcap Fund 2
1.35% of Life Midcap Fund 2 Value
Life Pure Equity Fund 2
1.35% of Life Pure Equity Fund 2 Value
Life Balanced Fund 1
1.25% of Life Balanced Fund 1 Value
Discontinued Fund
0.5% of Discontinued Fund Value
 
 
Surrender Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
 
What happens if?
 
You stop paying the premium- If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund, net of discontinuation charges, which will earn an interest according to the norms of IRDA in accordance to the rate of interest of the State Bank of India. The proceeds from this discontinued fund will be payable after the fifth policy anniversary.
The policy can however be revived within 2 years from the due date of the First Unpaid Premium.
 
You want to surrender the policy under Regular Premium Payment – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge will be transferred to the Discontinued Policy Fund, net of discontinuation charges, which will earn an interest according to the norms of IRDA in accordance to the rate of interest of the State Bank of India. The proceeds from this Discontinued Policy Fund will be payable after the fifth policy anniversary.
 
If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease, the fund value shall be paid immediately and the policy would be terminated.
 
You want to surrender the policy under Single Premium Payment- Surrender value is 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.
 
You want a loan against your policy – There is no loan facility in this plan.

 
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