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Reliance Life Pay Five Plan

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Reliance Life Pay Five Plan

 

Reliance Life Pay Five Plan 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 of Reliance Life Pay Five Plan

·         This is a 5 pay Unit Linked Insurance Plan

·         The premium needs to be paid for 5 years but the policy continues till the end of the Policy Term

·         There is double Death Benefit of Sum Assured plus Fund Value on death of Life Insured

·         Fund Value is paid as Maturity Benefit.

·         There are 5 additional riders that are available in this plan

·         There is a facility of Systematic Transfer Plan where you can systematically invest into any of the chosen funds.

·         This plan has an option of Exchange Option where you may choose to move to any plan launched in the future.


COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Benefits you get from Reliance Life Pay Five Plan

 

Death Benefit – In case of death of the policy holder, the nominee gets 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

 

Eligibility conditions and other restrictions in Reliance Life Pay Five Plan

 

 

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

 

Additional Features and Benefits of Reliance Life Pay Five Plan

 

Riders – There are 5 riders available in this policy

1.     New Major Surgical Benefit Rider

2.     New Critical Conditions (25) Rider

3.     Term Life Insurance Benefit Rider

4.     Accidental Death and Total and Permanent Disablement Rider

5.     Life Insurance Family Income Benefit Rider

 

Investment Fund Options

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

 

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. 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.

                                             

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.

 

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.

 

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