Reliance Classic Plan II

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Introduction/Overview

Reliance Classic Plan II is a unit linked non-participating Endowment Assurance Plan through which the policyholder can save for future requirements and augment his savings through market participation of funds invested.

Key Features

  • The premium paid can be invested in a choice of 5 funds as per the policyholder’s risk appetite namely:
  1. Life Equity Fund 3
  2. Life Corporate Bond Fund 1
  3. Life Money Market Fund 1
  4. Life Pure Equity Fund 2
  5. Life Balanced Fund 1
  • The premiums can be paid regularly or through Single Pay
  • The policyholder can average out his risks through Systematic Transfer Plan option under which the units are systematically transferred from low risk to high risk funds at different intervals

Benefits

  • The maturity Value will be the Fund Value including top-up fund value if any
  • On death, higher of the Sum Assured or Fund Value + higher of Top-up SA or Top-up Fund Value is paid subject to a minimum of 105% of all premiums paid till death
  • Additional Sum Assured is paid in case of accidental death
  • Income tax benefit on the premium paid as per Section 80C and on claims received as per Section 10(10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

7 years

60 years

Maturity Age (Last Birthday)

22 years

75 years

Policy Term (PT) in years

15

30

Premium Paying Term (PPT) in years

Equal to policy term or Single Pay

Premium Paying Frequency

Yearly, half-yearly, quarterly, monthly

Yearly Premium

Regular Pay – 15,000

Single Pay – 75,000         

No limit

Sum Assured

Regular pay – higher of 10 times annual premium or 0.5*policy term*annual premium (if age<45 yrs.)

Or

Higher of 7 times annual premium or 0.25*policy term*annual premium (if age >45 yrs.)

Single pay – 125% of single premium (if age<45 yrs.) or 110% of single premium (if age >45 yrs.)

Regular pay –

7-50 yrs.-30 times annual premium

51-55 yrs.- 25 times annual premium

56-60 yrs.-20 times annual premium

Single Pay –

7-30 yrs. (policy term 15-30 yrs.) – 6 times annual premium

31-40 yrs.(policy term 15-25 yrs.) – 5 times annual premium

31-40 yrs. (policy term 26-30 yrs.) – 3 times annual premium

41-50 yrs. (policy term 15-25 yrs.) – 5 times annual premium

41-50 yrs. (policy term 26-30 yrs.) – 2 times annual premium

51-60 yrs. (policy term 15-24 yrs.) – 2 times annual premium

Details About Premium

Benefit Illustration for a male aged 30 years with a 15 year policy term

Annual Premium

SA

Fund at the end of 6 years

Fund at the end of 10 years

Fund at maturity

@ 4%

@ 8%

@ 4%

@ 8%

@ 4%

@ 8%

50,000

500,000

298,561

342,510

527,262

658,002

853,078

11,88,068

Policy Details

Grace Period: 15 days grace period is allowed for payment of premium in monthly mode and 30 days for other modes. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: the policyholder can surrender the policy after 5 completed policy years. The fund value on the date of surrender will be paid. If surrendered before completion of 5 policy years, the fund value net of charges will be credited to the Discontinued Policy Fund where it will earn a guaranteed interest of 4% p.a. compounded annually. After 5 years is completed, the resultant Fund Value will be paid to the policyholder.

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

  • 52 free switches are allowed per policy year
  • The policyholder can redirect future premiums towards another funds through Premium Redirection option
  • After 5 completed years, the policy benefits can be transferred to another plan

Additional Features or Riders

  • There is an inbuilt Accidental Death Benefit rider which pays additional SA on death due to accident
  • Top-ups are allowed under the plan and the SA is increased after the top-up @ 125% or 110% of the top-up premium paid if age is less than or greater than 45 years respectively
  • Partial Withdrawals are allowed after 5 completed policy years and also from top-up funds 5 years after the top-up payment
  • The policyholder can choose to receive the maturity benefit in 5 equal instalments over 5 years post maturity through the Settlement Option

Exclusions

  • In case of suicide committed within 12 months of policy inception, only the Fund Value as on that date is payable

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.