Reliance Life Classic Plan Limited Payment

 

 

Reliance Life Classic Plan- Limited Premium is a Limited Premium Unit Linked Insurance Plan (ULIP). This is a Non-Traditional Plan without Bonus Facility.

In this plan, premium is paid till the end of the Premium Paying Term as chosen by you at the policy inception. Then the policy continues for another 5 years till the end of the Policy Term when it matures. There are 8 funds in which the Policyholder may choose to invest his money such that he gets returns according to his risk appetite. In this plan, the Life Insured will receive the entire Fund Value on the Policy maturity. However, if the Life Insured dies within the policy tenure, the nominee would receive Double Death Benefit, i.e. the Sum Assured + the Fund Value as Death Benefit. This is paid to combat the immediate expenses on the premature death of the Life Insured and then the policy terminates.

 

 

 

• This is a simple Unit Linked Insurance Plan with Limited payment
• The Policy Term is 5 years more than the Premium Paying Term
• Fund Value is paid at the end of the Plan as Maturity Benefit
• In this plan, there is double Death Benefit of Sum Assured + Fund Value on death of Life Insured
• There is a facility of Systematic Transfer Plan where you can systematically invest into any of the chosen funds
• There is a wide option for investment in 8 Funds
• This plan has an option of Exchange Option where you may choose to move to any plan launched in the future.

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Death Benefit – In case of death of the policy holder, the nominee gets Double Death Benefit, i.e. the Sum Assured + Fund Value.

 

Maturity Benefit – On maturity, the Fund Value is paid to the policyholder.

 

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

 

 

 

	Minimum	Maximum
Sum Assured (in Rs.)	10 X AP or ½ X PT X AP for age< 45 yrs 7 X AP or ¼ X PT X AP for age>=45 yrs	According to the Sum Assured multiple
Policy Term (in years)	15 for Entry Age upto 60 yrs 10 for Entry Age> 60 yrs	30
Premium Payment Term (in years)	Policy Term – 5 years
Entry Age of Policyholder (in years)	7	62
Age at Maturity (in years)	22	75 for Entry Age upto 60 yrs 72 for Entry Age> 60 yrs
Premium (in Rs.)	45,000	No Limit
Payment modes	Yearly, Half Yearly, Quarterly and Monthly

 

 

 

Riders – There are 5 additional riders available in this policy. The rider benefit will be available during the Premium Paying Term only,

1. New Major Surgical Benefit Rider
2. New Critical Conditions (25) Rider
3. Term Life Insurance Benefit Rider
4. Family Income Benefit Rider
5. Accidental Death and Total and Permanent Disablement Rider

 

 

Investment Fund Options - There are 8 Investment Funds available

1. Life Equity Fund 3
2. Life Corporate Bond Fund 1
3. Life Money Market Fund 1
4. Life Gilt Fund 1
5. Life Infrastructure Fund 2
6. Life Energy Fund 2
7. Life Midcap Fund 2
8. Life Pure Equity Fund 2

 

And Life Balanced Fund 1 is for Settlement Option only

 

Top-up - You can invest additional premiums as top-up premiums anytime except in the last five policy years. Sum assured will increase by the top-up premium paid according to the table specified. The minimum top-up premium is Rs. 5,000.

 

Switching - You have the flexibility to switch investments from one fund to the other any time during the policy term. There are 52 free switches in one year.

 

Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years. 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.

 

 

Policy Year	Premium Allocation Charge
1st Year	8.25%
2nd to 10th Year	5.50%
11th Year onwards	3%

 

Policy Year	Policy Administration Charge
During Premium Paying Term	NIL
After Premium Paying Term	Rs 40 p.m.

 

Life Corporate Bond Fund 1	1.25%
Life Money Market Fund 1	1.25%
Life Gilt Fund 1	1.25%
Life Equity Fund 3	1.35%
Life Infrastructure Fund 2	1.35%
Life Midcap Fund 2	1.35%
Life Pure Equity Fund 2	1.35%
Life Balanced Fund 1	1.25%
Life Energy Fund 2	1.35%

 

Year of Discontinuation	Annual Premium > Rs 25,000 p.a.
1st	Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd	Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd	Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th	Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards	NIL

Service Tax would be applicable on the charges depending on the applicable rates. 

                                             

 

You stop paying the premium before 5 years – 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. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

 

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.

 

You want to surrender the policy – The policy can be surrendered from the 6th (sixth) policy year. The surrender value will be equal to the fund value of all the premiums paid.

 

You want a loan against your policy – The maximum loan amount that can be availed will be the lower of either upto 40% of the surrender value but only after completion of 2 years.