Reliance Super InvestAssure Plan

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Reliance Super InvestAssure Plan

• June 3rd, 2008

Get More Than You Can Ask For!
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Agenda

• Consumer Speak
• Plan brief
• Strengths
• Plan details
• Competitive Advantage

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RELIANCE SUPER INVESTASSURE PLAN CONSUMER SPEAK
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Currently which are good investment avenues?
Will these investments reap required returns and
safeguard my money
I should have options as per my risk capacity
I have my own financial needs
With money protection I also need life protection
Savings will help me protect my money
I have earned money with much efforts
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How do I fulfill my needs?
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Presenting
Reliance Super InvestAssure Plan
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Reliance Super InvestAssure Plan
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RELIANCE SUPER INVESTASSURE PLAN STRENGTHS
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Rewards in form of Guaranteed Additions
Tax saving u/s 80 C, 80D 10 (10D)
Wide array of focused fund options
Unmatched flexibility on your investments
Customization through Accident Health riders
Protection through life cover
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Allocation

• Allocation Cumulative
• 1st Year Allocation in Customer Fund 20
• Guaranteed Addition 10th Year 50 70
• 15th Year
  50 120
• 20th Year
  50 170
• 25th Year
  50 220
• 30th Year
  50 270
• Allocation in Customer Fund for 2nd Subsequent
  Years - 95

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Snapshots..

• Guaranteed Additions up to 250 of annual
  premium in addition to earnings growth (10 th
  year 50 - 15th year 50, 20 th year 50, 25th
  year 50 and 30th year 50)
• Wide array of 8 fund options including 3 Sectoral
  Funds and a Pure Equity Fund
• Liquidity through partial withdrawals
• Unparalleled investment flexibility through
  Switching, Top-ups, Systematic Transfer, Premium
  Redirection and Exchange
• Customized solutions through Reliance Term Life,
  Reliance Accidental Death Total Permanent
  Disablement, Reliance Critical Conditions (25)
  Reliance Major Surgical Riders

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Benefits

• Maturity Benefit Fund Value
• Death Benefit Sum Assured or Fund value,
  whichever is higher
• Tax Benefits -
• Premiums get tax benefit u/s 80 C 80D
• Maturity/Death proceeds get tax benefit u/s 10
  (10D)

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Allocation Charges

• Allocation
• 20 allocation in the first year (Guaranteed
  Additions up to 250 of annual premium in
  addition to allocation)
• 95 allocation thereafter
• Fund Management Charge 1.25 p.a. - 1.50 p.a.

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Non Medical Limits

• Age Limit with standard Limit with non
• (years) age proofs standard age
  proofs
• 0-18 1,000,000 1,000,000
• 18-35 1,500,000 1,000,000
• 36-45 1,000,000 600,000
• 46-50 500,000 200,000
• 51 above 100,000 100,000

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RELIANCE SUPER INVESTASSURE PLAN Plan Details
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Whats new ? How would it help? What is there in
it for me ?
If you have these questions, we guarantee you an
answer in next 30 minutes.
Life is about putting pieces in place
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Take some time to think.
Am I financially strong enough to take care of
all my future Dreams ?
Lets Open Up the Desire List !!!!
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I am sure you dreams would be somewhat similar.
My. Dream car Favorite destination Holiday
Abroad Marriage Home sweet home A Stylish
lifestyle Childrens education - Their
professional qualification Financial Independence
at 55
If you can not cut down the list, why should you
cut your budget
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Who said its bad to aspire!
No matter who we are, what we do, where ever we
are. We all look for complimenting opportunities
in life.
Dont be Santoosht Thoda aur WISH Karo.
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Reliance Life Insurance Presents An
Opportunity For each one of us To get what we
want
Reliance Super InvestAssure Plan
The Road to prosperity starts here !
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Get what you want
Reliance Super InvestAssure Plan is a Regular
Premium Unit Linked Insurance Plan designed for
individuals, aspiring long term growth so as to
fulfill all that you desire.
Tiny droplets.make a mighty ocean.
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Key Benefits.
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Other Key Benefits.
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Product Limits
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Choosing the Sum Assured

• Minimum Sum Assured
• 5 times of the Annualized Premium
• Maximum Sum Assured
• As per the Table

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Premium Modes Limits
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Benefits from the Plan.

• Maturity Benefit
• On survival of the Life Assured till the end of
  Policy Term
• The TOTAL FUND VALUE on the date of maturity will
  be paid in one lump sum.
• Policy will get terminated.
• lump sum payment.to enable you to fulfill all
  the desires you had on your dream list.

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Benefits from the Plan.
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Loyalty Additions.makes you Earn More !!!!
As a Loyalty Addition, 50 of First Years basic
premium will be added to the Fund Value on the
10th policy anniversary and on every 5th policy
anniversary thereafter as long as the policy is
in force
Earn up to 250 of First Year Basic Premium as
Loyalty Additions during the policy term
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Build Your Own Portfolio Choice of 8 Funds

• Flexibility to choose from the wide Fund Options
  like
• Equity Fund
• Corporate Bond Fund
• Money Market Fund
• Gilt Fund
• Infrastructure Fund
• Energy Fund
• Mid Cap Fund
• Pure Equity Fund

New
New
New
New
Choose your own MIX !!!!!
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Other Features Flexibilities under the Plan.

• Accumulate more.!!!!!

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Liquidity.whenever you want it the most

• It is possible to make a full or a partial
  surrender of the plan before the maturity date.
• Surrender Value is acquired immediately on
  payment of the First premium. However, it is
  payable only after completion of three policy
  anniversaries
• Partial Withdrawals
• Are allowed anytime after 3 policy years or
  attainment of age 18 whichever is later.
• Policy continues to remain in force
• Withdrawal charges are equal to surrender charges
• Total Withdrawals i.e. Surrender
• Allowed anytime after 3 years
• Policy ceases after surrender

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Partial withdrawal

• Partial Withdrawal allowed after completion of 3
  full years.
• However, at any point of time during the policy
  term, the minimum balance after the partial
  withdrawal should be at least equal to 125 of
  the annualised premium.
• On a partial withdrawal while the Life Assureds
  age is less than 60 years last birthday, the Sum
  Assured under the basic Plan will be reduced by
  the amount of partial withdrawals made in the
  preceding 24 months of the date of partial
  withdrawal.
• On a partial withdrawal while the Life Assureds
  age is equal to or greater than 60 years last
  birthday, the Sum Assured under the basic Plan
  will be reduced by the amount of partial
  withdrawals made in the 24 months preceding the
  60th birthday of the policyholder and all partial
  withdrawals after the 60th birthday.

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Surrender Value

• Surrender Value will be acquired immediately on
  the payment of the first premium.
• However, the surrender value will be payable
  after the completion of three policy
  anniversaries.
• Whenever full surrender value of basic plan is
  paid, the surrender value of any attaching top
  ups will also be paid

Please Note There is no surrender charge or
partial withdrawal charge on the top ups. The
surrender value is therefore equal to the fund
value under the top ups
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Systematic Transfer Plan - Benefit from a
volatile market

• A procedural shift from a low risk investment in
  to equities
• The initial amount is invested in the Gilt fund
• 25 of units transferred to equity fund every
  week for equivalent fund value
• In effect Cost per unit is averaged out.

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Systematic Transfer Plan How you can benefit
from it
The premium is allocated towards equity funds in
4 installments (once every week) This helps you
to take advantage from rupee-cost
averaging Consider the following table -
If STP option is not selected the total units
would have been 5000 units.
Fund Value If STP option is selected
(5025.39) Rs 45227.3.
Fund Value If STP option is not selected
(50009) Rs 45000
Although the average sale price is Rs 10
(1011109) 40/4 10. The average cost per
units is Rs 9.9 (50000/5025.3) 9.9. STP helps
buy more units when the price is low and fewer
units when the price is high and hence your
average cost per unit Rs 9.9 remains below the
average sale price of Rs 10.
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Top Ups

• Helps you to increase the investments
• Top-ups allowed only if all the due regular
  premiums till date are paid
• Maximum top-up allowed is 25 of the total
  regular premiums paid till date (i.e. sum of all
  top-ups paid cannot exceed 25 of total regular
  premiums paid till date)
• Minimum Top up can be Rs 2500/-

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Switching Option

• 52 switches in any policy year are free.
• Any additional switch will be charged Rs. 100 per
  switch.

Settlement Options

• Maturity proceeds can be withdrawn in periodic
  installments within 5 years
• No Life Cover Benefit will be available during
  this period.
• Fund C will apply by default during the
  settlement period.

Premium Redirection

• A written instruction to redirect all future
  premiums in an alternative proportion to the
  various unit funds.
• Redirection will not affect the allocation of
  premium(s) paid prior to the request.
• Available free of cost.

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Discontinuance of Premium

• Premium payment discontinued within 3 years of
  policy inception
• Insurance cover ceases immediately.
• Policy continues to participate in the
  performance of funds
• During the revival period applicable charges
  (except mortality charges) are deducted by
  cancellation of units
• Policyholder can revive the policy within 2
  years revival period
• If the policy is not revived, then applicable
  surrender value, if any, is paid at the end of
  the revival period.

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Discontinuance of Premium

• Premium payment discontinued after paying at
  least 3 full years premiums
• Life cover continues, by deducting the applicable
  mortality charges.
• Riders are discontinued
• Policyholder can revive the policy within 2
  years revival period
• 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 the policy is not revived, then with the
  consent of the policyholder, the policy is kept
  in force (by deducting the appropriate charges)
  until such time the fund value does not fall
  below an amount equal to one annual premium plus
  surrender charges, if any.
• At this point the one annual premium is paid to
  the policy holder and the policy is terminated.

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Revival of Policy - After Non Payment of due
Premium.

• A policyholder may revive a policy
• by paying the arrears of premiums
• and recommencing the payment of premiums
• at any time within a period of 2 years from the
  due date of first unpaid premium but before the
  maturity date of the policy
• Subject to satisfactory medical and financial
  underwriting.

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Exchange Option

• Customers can take benefit under existing plan
  and use it to purchase specified Unit Linked
  Plan from Reliance.
• This option must be exercised at least 30 days
  before the receipt of benefit under the policy.
• This option can be selected any time on
  completion of three policy years.

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Tax Benefits

• As per Income Tax Act, 1961premiums are eligible
  for tax deduction as under,
• Premiums paid in respect of basic policy u/s 80
  C of the Act.
• Premium paid under Reliance Term Life Rider u/s
  80C of the Act
• Premium paid under the Reliance Accident Benefit
  Rider u/s 80 C of the Act
• Premium paid under Reliance Major Surgical
  Benefit Rider and Reliance Critical Conditions
  (25) Riders u/s 80D of the Act.
• The benefits under this plan and riders are tax
  exempt u/s 10 (10D) of the Act.
• Partial or Total Withdrawal under the plan is
  exempt u/s 10 10(D) of the Act.

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Rider Benefit

• Option to choose any of the 4 following Riders
• Reliance Critical Conditions (25) Rider
• Reliance Major Surgical Benefit Rider
• Reliance Term Life Insurance Benefit Rider.
• Reliance Accidental Death and Total Permanent
  Disablement Rider

You can choose any or all of the 4 riders,
however the sum of rider premiums should not
exceed 30 of the premiums paid under Basic Plan.
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Charges under the plan

• The Droplets to contribute to make an ocean

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Allocation Charge
Sub subsequent years 5 of premium
The allocation charge on the Top Ups will be 2
Top Up amount
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Fund Management Charge
Service Tax charge or any other charges, as may
be levied by Governmental authorities, on Fund
Management Services or any other services, as may
be applicable, shall be recovered from the
policyholder.
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Surrender or Partial Withdrawal Charges
Note The surrender charge is not applicable on
top-up premium units.
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Other Charges

• Charge for Systematic Transfer Plan (STP) Option
  
• No charge, when the facility is requested for
  the first time.
• Subsequent requests charged at Rs. 100
• No charge for cancellation of STP
• Switching Charge
• No charge for the first 52 switches in every
  policy year.
• Rs.100 for every switch after the 52 free
  switches
• Policy Administration Charge
• Rs. 50 per month per policy
• Miscellaneous Charge
• Rs. 2 per 1000 sum assured will be collected on
  inception of the policy.

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Other Charges
Other Charges

• Mortality Charge
• Based on the applicable mortality table
• Charged on the difference of fund value and sum
  assured (sum at risk)
• Charged on monthly basis, by cancellation of
  units
• Premium for Rider Benefits
• Will be collected over and above the premium
  under the base plan.
• However the sum of rider premiums should not
  exceed 30 of the premiums paid under basic plan.
• Service Tax Charge
• Applicable on mortality charges.
• Currently the service tax is _at_ 12.36
• Decided (and can be revised) by the Government of
  India

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Reliance Super InvestAssure Plan

• A Boon in disguise for our Advisors

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RELIANCE SUPER INVESTASSURE PLANCOMPETITIVE
ADVANTAGE
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Fund Options Benefits

• Range of fund options for risk lovers averse

Fund Options
8
3
8
7
50 of 1st yr AP in FV on 10 / 15 / 20 / 25 / 30
policy anniversary
Increment in funds by 0.10 every policy year
Get 250 of AP over investment income
Loyalty Additions
None
None
Maturity Benefit
Fund Value
Death before risk commencement age
Reap market benefits of 8 pure investment fund
options
Not Applicable
Not Applicable
Fund Value
Fund Value
Higher of FV OR SA less PW
Sum Assured Fund Value
Sum Assured Fund Value
Higher of FV OR SA less PW
Death after risk commencement age
FV Fund Value SA Sum Assured PW Partial
Withdrawals AP Annual Premium PT Policy
Term
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Features
Reliance Super InvestAssure Plan Advantage
Bajaj Allianz New Family Gain
Reliance Super InvestAssure Plan
HDFC Life Unit Linked Endowment Plus II
Birla Sun Life Saral Jeevan
Features
Flexibility Features
a
a
a
Top-up
X
Hike fund constituent
a
a
a
a
One free switch every week
Switching
a
a
a
a
Premium Redirection
Investment strategy as per risk appetite
Liquidity Features
Partial Withdrawal (after 3 yrs)
Free withdrawals from top-ups
a
a
a
a
Surrender (after 3 yrs)
Easy liquidity after 3 yrs
a
a
a
a
Planning Features
Systematic Transfer Plan Exchange Option
Be the only one to take advantage of rupee-cost
averaging Exchange with other RLICL ULIP
a
X
X
X
a
a
a
Settlement Option
Info not available
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Riders Policy Limits
Reliance Super InvestAssure Plan
Birla Sun Life Saral Jeevan
HDFC Life Unit Linked Endowment Plus II
Bajaj Allianz New Family Gain
Reliance Super InvestAssure Plan Advantage
Riders Policy Limits
Term Life Insurance
a
X
X
X
Get covered with maximum range of riders
Accidental Death TPD
a
a
X
a
a
a
X
a
Critical Conditions
a
X
X
Major Surgical
X
Higher of 5 times AP OR Half PT AP
Minimum Sum Assured
5 times AP
6 covers
Half PT AP
Investment focused plan
Entry Age 0-40 20 times AP 41-45 15
times AP 46-50 10 times AP 51-60 5 times AP
Entry Age 0-17 35 times AP 18-35 60 times AP
36-40 50 times AP 41-45 40 times AP 46-49 20
times AP 50-55 15 times AP 56-60 10 times AP
Maximum Sum Assured
100 covers Multiple covers (10,000) available.
40 times AP
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Policy Limits
Reliance Super InvestAssure Plan
Birla Sun Life Saral Jeevan
HDFC Life Unit Linked Endowment Plus II
Bajaj Allianz New Family Gain
Reliance Super InvestAssure Plan Advantage
Policy Limits
Min / Max Entry Age (years)
Plan even for minors
30 days / 60
0 / 60
18 / 55
18 / 65
Risk Commencement Age (years)
Early age cover
gt 6
7
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18
Min / Max Policy Term (years)
Flexible options to choose from
15 / 30
10 / 30
10 / 70
10 15 20
Min / Max Maturity Age (years)
15 / 75
18 / 70
28 / 65
28 / 75
Get value of your investment at the earliest
2 yrs Due premiums
2 yrs Due unpaid regular premium
2 yrs Due policy premiums
Revival period premium
2 yrs
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Policy Charges
Reliance Super InvestAssure Plan
HDFC Life Unit Linked Endowment Plus II
Bajaj Allianz New Family Gain
Birla Sun Life Saral Jeevan
Policy Charges
Yr 1 Premium Charge range Upto 1.99 lac
60 2 4.99 lac 48 5 9.99 lac
36 10 19.99 lac 33 20 lac
10 Top up 2.5 Yr 2
7 Yr 3
2 Top up (Yr 2) 2
Allocation charge included in Policy
Administration charge
PY Charge 1 70 2
3 Top up 2

• PY Charge
• 80
• 2 5
• Top Up 2

Allocation
Policy Administration Charge Monthly per
Cover PY PrePayTerm (yrs)
10 15 20 1-3 29 26 25 4 4
3 2.5 Plus Rs. 40 on 1st Cover
PY Policy Year
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Policy Charges NPV of Total Charges
Reliance Super InvestAssure Plan
HDFC Life Unit Linked Endowment Plus II
Birla Sun Life Saral Jeevan
Reliance Super InvestAssure Plan Advantage
Bajaj Allianz New Family Gain
Policy Charges
1.25 - 1.50
0.95 - 1.75
1.25
1 - 1.25
Fund Management Charges
FMC at par with market average
Rs. 87,120
Rs. 68,647
Total charges _at_ 6 BI
Rs. 67,340
Rs. 65,740
NPV of total charges _at_ 6
Rs. 59,880
Rs. 46,341
Rs. 47,655
Rs. 45,914
NPV of total charges _at_ 10
Rs. 49,266
Rs. 38,172
Rs. 39,480
Rs. 37,984
FMC Fund Management Charge NPV Net Present
Value
Assumption aged 35 yrs policy term of 15 yrs
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Reliance Super Invest Assure Plan Value Equation
Reliance Super InvestAssure Plan
HDFC Life Unit Linked Endowment Plus II
Bajaj Allianz New Family Gain
Birla Sun Life Saral Jeevan
Parameter
Rs. 20,000
Rs. 20,000
Premium
Rs. 20,863
Rs. 20,000
SA Multiplier
7.50
7.50
8.15
7.50
Sum Assured
Rs. 150,000
Rs. 170,000
Rs. 150,000
Rs. 150,000
Maturity value _at_ 6
Rs. 378, 083
Rs. 407,769
Rs. 381,173
Rs. 387,962
Maturity value _at_ 10
Rs.514,071
Rs. 570,048
Rs. 529,664
Rs. 536,107
IRR _at_ 6
2.84
3.24
2.94
3.15
IRR _at_ 10
6.48
7.19
6.82
6.96
Assumption aged 35 yrs policy term of 15 yrs

• IRR of Reliance

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Happy Selling
Strictly for internal Circulation only