Life Insurance

An important part of a sound financial plan, life insurance provides a valuable death benefit to your beneficiaries upon your death. Your beneficiaries can then use this money to replace some of the income you would have earned or to help pay off debts or other expenses. The two types of life insurance are term and permanent. The one that's right for you depends on many factors, including your budget, the amount of coverage you need, and the length of time you'd like the coverage to last. Term Life InsuranceTerm policies can help meet a wide variety of business and personal needs and often provide the most coverage for your premium dollar for set periods of time. Whether you want to supplement your existing coverage or simply purchase insurance to meet a specific need, our term policies have the flexibility to help meet your needs. Learn more about our products. Permanent Life InsurancePermanent policies can provide lifetime protection. There are several different types of permanent policies: Universal Life InsuranceUniversal life insurance can help meet the needs of people who desire long-term death benefit protection with a flexible premium structure. Learn more about our products with a potential to accumulate non-guaranteed tax-deferred cash value. Variable Life InsuranceVariable life insurance offers a choice of death benefit options and a potential to accumulate non-guaranteed tax-deferred cash value that fluctuates based on the performance of underlying investment options that you choose. Learn more about our products or variable life insurance performance. Survivorship Life InsuranceSurvivorship (second-to-die) life insurance insures two people and pays the death benefit when both have died. It is used primarily for wealth preservation. Learn more about our product. Whole Life InsuranceWhole life insurance provides the security of knowing what your premiums will be year after year and gives you the potential to accumulate non-guaranteed tax-deferred cash value. Learn more about our product.

What if I want to discontinue paying premium?

During first 3 years of the inception of the policy: If premiums have not been paid for at least three consecutive years from inception, the Policy will continue to participate in the performance of Unit Funds chosen by you.
You may revive the Policy by re-commencing the premium payment within the Revival Period from the date of first unpaid premium or before the Maturity Date of the Policy whichever is earlier.
In the event the Policy is not revived during Revival Period, the Policy shall be terminated and the Surrender Value, if any, shall be paid at the end of the period allowed for revival.
After paying of at least three full years premiums: If premiums have been paid for at least three consecutive years and subsequent premiums are unpaid, the Policy will continue to participate in the performance of the Unit Funds chosen by you.
You may revive the Policy by re-commencing the premium payment within a period of three years from the date of first unpaid premium or before the maturity date of the Policy, whichever is earlier. At the end of the allowed period for revival, if the Policy is not revived, the Policy shall be terminated by paying the Surrender Value.
If at any time, the Fund Value reaches an amount equivalent to one full year’s premium, the Policy shall be terminated by paying the Fund Value.
RevivalYou may revive a Policy by recommencing the payment of premiums at any time within a period of three years from the due date of first unpaid premium but before the maturity date of the Policy.

What are the different fund options?

Reliance Life Insurance Company Limited understands the value of your hard earned money. In order to make your money grow we offer four different investment funds. You also have the option to allocate your premium in different funds in the manner you wish.
The four different funds offered are
1.Capital Secure Fund: The Investment Objective of this fund is to maintain the value of all contributions (net of charges) and all interest additions. This fund offers steady return for very little risk. The risk profile for this plan is low. Your funds are invested 100% in Bank Deposits, Government Bonds and Debt Instruments less than 180 days duration.
You may invest a maximum of 20% of the total premiums in the Capital Secure Fund.
2. Balanced Fund: The Investment Objective of this fund is to provide you with investment returns which exceed the rate of inflation in the long term while maintaining a low probability of negative investment returns. In this fund, a major portion of your funds are invested in Fixed Interest Securities while a small percentage is invested in the Equity Market, which is exposed to market movements. The risk profile of this fund is low to medium.
Investment would be atleast 80% in Fixed Interest Securities and maximum 20% in equities.
3. Growth Fund: The investment objective of this fund is to provide you with investment returns, which exceed the rate of inflation in the long term while maintaining a moderate probability of negative investment returns. A greater portion of your funds are invested in Fixed Securities while a small percentage is invested in the Equity Market, which is exposed to market movements. The risk profile of this fund is medium to high.
Investment would be at least 60% in Fixed Interest Securities and maximum 40% in Equities.
4. Equity Fund: The Investment Objective of this fund is to provide Policyholders with high exposure to equities and the possibility of investment returns which generate a high real rate of return in the long term while recognizing that there is a significant probability of negative investment returns in the short term. This fund offers a totally equity based investment option. Your returns depend entirely upon the performance of the equity market. The risk profile of this fund is high. The higher risk of this portfolio means that expected returns would also be higher.
Investments would not exceed 30% in Bank Deposits and may be 100% in equities.
The investment in Money Market Instruments under the Balanced, Growth and Equity funds is restricted to 20%.
Value of Units: The Unit Price of each fund will be the Unit Value calculated on a daily basis.
Unit Value =
Total Market Value of assets plus/less expenses incurred in the purchase/sale of assets plus Current Assets plus any accrued income net of Fund Management Charges less Current Liabilities less Provision
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Total Number of units on issue (before any new units are allocated/redeemed)
Flexibilities
Flexibility to pay top-ups: If you have received a bonus or some lumpsum money you can use that as a top-up to increase your investments at any time in your Policy. The minimum Top up amount is Rs. 2,500. 95% of any amount paid as top-up is allocated to your funds.
Flexibility to pay Single Premium: If you do not want to pay premium regularly, you can choose to opt for Single Premium. The minimum Single Premium amount is Rs 10,000.
Flexibility to switch between funds: Depending upon the performance of your funds you can switch between them. There will be one free switch in a Policy Year and for additional switches, Switching Charge of 1% of amount switched will be levied, subject to a maximum of Rs 1000 on each such occasion.
Flexibility to advance/extend your Vesting Age: You may choose to extend the Vesting Date to any later Policy Anniversary, provided the Policy vests before the attainment of age 70 years. The request for extending the Vesting Date must be made at least one month before the original Vesting Date.
After the Vesting Date, the benefit payable at any time will be the Fund Value.
The Policyholder may also choose an earlier Vesting Date, after completion of five years of Policy Term or age 45 years, whichever is later. The request for an earlier Vesting Date should be received at least one month before the proposed Vesting Date.
On attainment of the new Vesting Date the Policyholder is eligible to purchase Annuity for the full Fund Value or commute up to one third of the Fund Value as tax free lump sum and the balance can be used for the purchase of annuity. The annuity can also be purchased from us or from any other registered Life Insurance Company.

What are the different fund options?

Reliance Life Insurance Company Limited understands the value of your hard earned money. In order to make your money grow we offer four different investment funds. You also have the option to allocate your premium in different funds in the manner you wish.
The four different funds offered are
1.Capital Secure Fund: The Investment Objective of this fund is to maintain the value of all contributions (net of charges) and all interest additions. This fund offers steady return for very little risk. The risk profile for this plan is low. Your funds are invested 100% in Bank Deposits, Government Bonds and Debt Instruments less than 180 days duration.
You may invest a maximum of 20% of the total premiums in the Capital Secure Fund.

What are the benefits available with Reliance Golden Years Plan?

At Vesting:
On vesting, you can purchase annuity plan for the full Fund Value
You may commute up to one third of Fund Value as tax free lump sum and the balance can be used for the purchase of annuity
Open Market Option: you can purchase an annuity either from Reliance Life Insurance Company Limited or from any other registered life insurance company.
At Death: In the unfortunate event of your death during the Policy term, the Beneficiary will get the Fund Value. This amount can be taken as a lump sum or an annuity can be purchased for the entire lump sum or portion of it. The Beneficiary will have the option to purchase an annuity either from Reliance Life Insurance Company Limited or from any other registered life insurance company.

How does Reliance Golden Years Plan work?

The plan works in two parts – the Accumulation Period (i.e. the Policy Term) and the Distribution Period. The Accumulation period is the time when you build up your funds through premiums payment.
On your chosen Vesting Date, the Accumulation Period ends and the distribution period begins. You are free to choose your age of Retirement (Vesting Date) between 45 and 70 years. After the Vesting Date, the Annuity Payments begin.
On your Vesting Date, you have the following Annuity Options to choose from
Life Annuity
Life Annuity with return of purchase price on death. Purchase Price is the amount of Fund Value used to purchase an annuity.
Life Annuity Guaranteed for 5, 10 or 15 years and payable for life thereafter
These options are currently available with Reliance Life Insurance Company Ltd. We may offer more annuity options in future.

Reliance Golden Years Plan

Retirement means different things to different people, while some want to relax and take a trip around the world, some want to start up a venture of their own, and pursue a dream harnessed for years.
The power to make your autumn years special lies only with you. The Reliance Golden Years Plan gives you the power and the right kind of solution - A retirement plan that allows you to save systematically and generate the much-needed corpus to make your olden years look golden.
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.
Key Features
Invest systematically and secure your golden years
A flexible unit-linked pension product that is different from traditional life insurance products with Vesting Age between 45 and 70 years
Four different investment funds to choose from
Flexibility to switch between funds
Option to pay Regular, Single as well as Top-up Premiums
Flexibility to advance/extend your Vesting Age
Tax free commutation up to one third of Fund Value at Vesting Age