Reliance Life Pay Five Plan
Reliance Life Pay Five Plan
Reliance Life Pay FivePlan is a unit linked insurance plan (ULIP) where the Premium needs to be paid only for 5 years. This is a Non-Traditional Plan without Bonus Facility.
In this plan, annual premium is paid only for a period of 5 years but the policy continues till the end of the Policy Term. 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.
Key Features
Benefits
In case of death of the policy holder, the nominee gets Sum Assured + Fund Value.
On maturity, the Fund Value is paid to the policyholder.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
There are 5 riders available in this policy
- New Major Surgical Benefit Rider
- New Critical Conditions (25) Rider
- Term Life Insurance Benefit Rider
- Accidental Death and Total and Permanent Disablement Rider
- Life Insurance Family Income Benefit Rider
There are 8 Investment Funds available
- Life Equity Fund 3
- Life Corporate Bond Fund 1
- Life Money Market Fund 1
- Life Gilt Fund 1
- Life Infrastructure Fund 2
- Life Energy Fund 2
- Life Midcap Fund 2
- Life Pure Equity Fund 2
And Life Balanced Fund 1 is for Settlement Option only
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. The minimum top-up premium is Rs. 5,000.
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.
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.
Eligibility
| 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) | 10/15 years - if Entry Age < 60 yrs
10 years - if Entry Age>= 60 yrs |
|
| Premium Payment Term (in years) | 5 years | |
| Entry Age of Policyholder (in years) | 7 | 65 |
| Age at Maturity (in years) | 17 | 75 |
| Single Premium (in Rs.) | 45,000 | No Limit |
| Payment modes | Only Yearly | |
FAQs
What happens if 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.
What happens if 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.
What happens if 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.
What happens if 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.
