Reliance Life Insurance Money Multiplier Plan

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Reliance Life Insurance Money Multiplier Plan
UIN
IRDA Approval Awaited
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DO YOU LOVE YOUR NEAR AND DEAR ONES AS MUCH AS
YOU LOVE YOURSELF?
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CAN YOU BE SURE AS TO WHAT MAY HAPPEN TO U IN
THE NEXT FEW MINUTES?
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DO YOU WANT TO BE FINANCIALLY SECURE IN THE EVENT
OF ANY UNFORSEEN CALAMITY?
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Have you calculated your worth?

• Ask yourself
• What part of my present income does my family
  need?
• How many years are left for retirement?
• What are my cash assets?
• What are my monetary obligations?
• What debt am I currently carrying?
• Do I have a contingency fund?

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Have you planned for the following critical
requirements of life?

• Continuity of income
• Mortgage protection
• Protection against disabilities
• Childrens education
• Marriage expenditure
• Retirement fund
• Tax relief

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Take a step ahead of others. Choose
Reliance Life Insurance Money Multiplier
Plan Make your family feel proud of your
smartness in buying an insurance plan that best
suits your need.
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Unique Selling Proposition

• Double protection against life risks.
• Increasing life cover every year.
• Commitment through guarantees.
• Wealth accumulation through guaranteed additions.
• Liquidity through loans.
• Convenience through flexible premium payment
  modes available.
• Choice of rider options as per requirement.

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Guaranteed Additions

• Guaranteed Loyalty Additions up to 210 of the
  basic sum assured provided all due premiums are
  paid in full.
• Based on policy term chosen, Guaranteed Maturity
  Addition up to 20 of basic sum assured payable
  at maturity.

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Benefits

• Double Life Cover Benefit
• Double the Basic Sum Assured, and
• Accrued Guaranteed Loyalty Additions, if any.
• Triple Maturity Benefit
• Basic Sum Assured,
• Accrued Guaranteed Loyalty Additions, and
• Guaranteed Maturity Addition
• Tax Benefits
• Premiums paid get tax benefit u/s 80 C 80D.
• Maturity/Death proceeds get tax benefit u/s 10
  (10D).

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Additional Benefit Riders
Reliance New Critical Conditions (25)
Rider Provides lump sum amount on the diagnosis
of specified critical illness.
Reliance New Major Surgical Benefit Rider
Provides lump sum amount in case of any major
surgery done.
Reliance Accidental Death and Total and Permanent
Disablement Rider Provides additional benefit on
account of accident.
Reliance Term Life Insurance Benefit
Rider Provides increased insurance cover, at very
economical costs.
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Reliance Life Insurance Money Multiplier Plan
DETAILS
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Key Points

• Regular Premium plan with an objective to provide
  protection and regular savings.
• Money multiplies through Guaranteed Loyalty
  Additions getting accrued at the end of every
  policy year Guaranteed Maturity Addition
  payable on maturity.
• Double the Basic Sum Assured Accrued Guaranteed
  Loyalty Additions if any, as Life Cover benefit.
• Basic Sum Assured, Accrued Guaranteed Loyalty
  Additions Guaranteed Maturity Additions as
  Maturity benefit.
• More value for money through High Sum Assured
  rebate.
• Surrender value acquired after payment of 3 full
  years premium and is payable after completion of
  3 policy years.
• Loans up to 80 of surrender value after policy
  acquires a surrender value.
• Nomination Assignment available.
• A host of optional rider benefits to enhance life
  cover.

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Guaranteed Additions

• Guaranteed Loyalty Additions up to 210 of the
  basic sum assured provided all due premiums are
  paid in full.
• Based on policy term chosen, Guaranteed Maturity
  Addition up to 20 of basic sum assured payable
  at maturity.

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Product Limits
Minimum Maximum
Age at Entry 18 years 65 years last birthday
Age at Maturity 28 years 75 years last birthday
Policy Term 10 years / 15 years /20 years 10 years / 15 years /20 years
Premium No Limit No Limit
Premium Payment Term Regular Regular
Premium Payment Mode Yearly, Half-Yearly, Quarterly Monthly (ECS) Yearly, Half-Yearly, Quarterly Monthly (ECS)
Minimum Sum Assured Rs. 50,000 No Limit
Grace Period There is a grace period of 30 days
from the due date for payment of regular
premiums. In case of monthly mode, the grace
period is of 15 days.
Mode of premium payment can be changed on policy
anniversary.
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Product Limits
High Sum Assured Rebate
Sum Assured per Rs. 1000 Sum Assured
Less than Rs.1,00,000 Nil
Rs. 1,00,000 and above but less than Rs. 2,50,000 Rs. 1
Rs. 2,50,000 and above but less than Rs. 5,00,000 Rs. 2
Rs. 5,00,000 and above but less than Rs. 10,00,000 Rs. 3
Rs. 10,00,000 and above Rs. 4
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Benefits Under The Plan

• On Maturity, get Triple benefit of
• Basic Sum Assured,
• Accrued Guaranteed Loyalty Additions, and
• Guaranteed Maturity Addition
• Policy terminates on payment of maturity benefit.

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Benefits Under The Plan

• On Death of Life Assured, get Double benefit of
• Double the Basic Sum Assured, and
• Accrued Guaranteed Loyalty Additions, if any.
• Policy terminates on payment of death benefit.

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Tax Benefits

• Premiums paid in following respect are eligible
  for tax deduction as per Income Tax Act, 1961
• Basic policy u/s 80 C of the Act.
• Reliance Term Life Rider Reliance Accidental
  Death and Total and Permanent Disablement Rider
  u/s 80C of the Act.
• Reliance New Major Surgical Benefit Rider and
  Reliance New Critical Conditions (25) Riders
  u/s 80D of the Act.
• The benefits under this plan and riders are
  exempted from tax u/s 10 (10D) of the Act.
• All the above are subject to conditions under
  Income Tax, Act, 1961
• You are recommended to consult a tax advisor.

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Surrender Value

• SV acquires after three full year premiums have
  been paid.
• SV payable only after completion of three policy
  years.
• Higher of Guaranteed Surrender Value (GSV) and
  Special Surrender Value (SSV)
• GSV 30 of total premiums paid excluding first
  year premium, rider premiums and extra premium
  paid, if any.
• SSV Surrender value factor multiplied by paid up
  value payable at maturity, where
• Paid up value payable at maturity
• Basic sum assured X (number of premiums
  paid/total number of premiums payable) plus
  Accrued Guaranteed Loyalty Additions.

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Surrender Value

• Surrender Value Factor Applicable To Paid-up Value

Completed policy Years Policy Term 10 Policy Term 15 Policy Term 20
1 0 0 0
2 0 0 0
3 30 20 15
4 40 27 20
5 50 33 25
6 60 40 30
7 70 47 35
8 80 53 40
9 90 60 45
10 100 67 50
11 NA 73 55
12 NA 80 60
13 NA 87 65
14 NA 93 70
15 NA 100 75
16 NA NA 80
17 NA NA 85
18 NA NA 90
19 NA NA 95
20 NA NA 100
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Loans

• 80 of the surrender value under basic plan after
  the policy acquires a surrender value. 
• Interest on loan is payable at prevailing rate of
  interest i.e. 9 p.a.
• If at any time during the term of the policy, the
  sum of loan outstanding and interest on loan
  outstanding exceeds 95 of the surrender value
  the policy will be terminated by recovering the
  loan outstanding and interest on loan outstanding
  from the surrender value. The balance of
  surrender value will be paid. 
• Note
• Before payment of any benefit, the loan
  outstanding and the interest on loan outstanding
  will be recovered first and the balance if any
  will be paid to the policyholder or the
  nominee(s).

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• Nomination
• Allowed as per Section 39 of the Insurance Act,
  1938.
• Assignment
• Allowed as per section 38 of the Insurance Act,
  1938.

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Premium

• Sample Premium Rates for Base Plan
• SUM ASSURED Rs. 1,00,000
• Premium for Riders
• Will be collected over above the premium under
  basic plan.

Age/Policy Term 10 15 20
25 14,665 11,775 10,520
35 14,810 11,965 10,775
45 15,375 12,645 11,565
55 16,860 14,370 13,620
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Service Tax

• Applicable on basic premium, rider premium.
• On Basic premium - _at_ 1.03 p.a.
• On Rider premium - _at_ 10.30 p.a.
• Collected from the policyholder along with the
  basic premium and rider premiums respectively.
• The rate of service tax is decided and can be
  revised from time to time by the Government of
  India.

Strictly For Internal Communication only
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Discontinuance of Premium

• If less than three years premiums have been
  paid
• Policy LAPSES at the end of the grace period.
• Insurance Cover and Rider benefits cease
  immediately.
• No benefits will be paid when the policy is in
  lapsed status.
• Accrued Guaranteed Loyalty Additions, if any, are
  not payable for a policy in lapsed status.
• No further Guaranteed Loyalty Additions will be
  payable.
•  

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Discontinuance of Premium

• If discontinuance happens after payment of at
  least three full years premiums
• Policy will be converted into a PAID-UP policy.
• The benefits under basic plan will be reduced in
  a manner as given below
• Paid up value payable on death Twice the basic
  sum assured (Number of premiums paid / total
  number of premiums payable) plus Accrued
  Guaranteed Loyalty Additions.
• Paid up value payable on maturity Basic sum
  assured (number of premiums paid / total number
  of premiums payable) plus Accrued Guaranteed
  Loyalty Additions.
• Life insurance protection continues to the extent
  of the paid-up value until the end of the policy
  term but rider benefit will cease.
• Once the policy becomes paid up, further
  Guaranteed Loyalty Additions and Guaranteed
  Maturity Addition will not be payable.

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Disadvantages of Discontinuance of Premium

• No risk protection on your precious, priceless
  life.
• Regular saving stops.
• Purpose with which the plan was bought is lost.
• No Guaranteed Loyalty Additions and Guaranteed
  Maturity Additions payable.
• No Tax benefit available.

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Revival of Policy

• A) Policyholder may revive a PAID-UP or LAPSED
  policy
• by paying arrears of premium along with interest
  at prevailing rate,
• within the revival period of 2 years from the due
  date of first unpaid regular premium or date of
  maturity whichever is earlier,
• subject to satisfactory medical and financial
  underwriting.
• B) If the base plan is revived, the riders can
  also be revived
• by paying arrears of premiums along with interest
  at prevailing rate.,
• Subject to satisfactory medical and financial
  underwriting.

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Plan At a Glance
Key Benefits Key Benefits Key Benefits Key Benefits
Guaranteed Loyalty Additions Guaranteed Loyalty Additions Guaranteed Loyalty Additions Accrued at the end of each policy year
Guaranteed Maturity Additions Guaranteed Maturity Additions Guaranteed Maturity Additions Payable at maturity
Death Benefit Death Benefit Death Benefit Twice the basic sum assured Accrued Guaranteed Loyalty Additions
Maturity Benefit Maturity Benefit Maturity Benefit Basic sum assured Accrued Guaranteed Loyalty Additions Guaranteed Maturity Additions
Other Benefits Other Benefits Other Benefits Other Benefits
Riders Reliance New Critical Conditions (25) Rider, Reliance New Major Surgical Benefit Rider, Reliance Term Life Insurance Benefit Rider Reliance Accidental Death and Total and Permanent Disablement Rider Reliance New Critical Conditions (25) Rider, Reliance New Major Surgical Benefit Rider, Reliance Term Life Insurance Benefit Rider Reliance Accidental Death and Total and Permanent Disablement Rider Reliance New Critical Conditions (25) Rider, Reliance New Major Surgical Benefit Rider, Reliance Term Life Insurance Benefit Rider Reliance Accidental Death and Total and Permanent Disablement Rider
Tax Benefit Under section 80C, 80D and 10(10D) Under section 80C, 80D and 10(10D) Under section 80C, 80D and 10(10D)
Additional Options Additional Options Additional Options Additional Options
Rebate Rebate More value for money through High sum assured rebate More value for money through High sum assured rebate
Loans Surrenders Loans Surrenders Provides liquidity in case of need Provides liquidity in case of need
Premium payment Options Premium payment Options Flexibility to pay regular premium under different modes Flexibility to pay regular premium under different modes
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Target Market

• Young working professionals.
• Married couple with kids.
• Businessman.
• Entrepreneur.
• Self Employed.
• Salaried Individual (Private Govt)
• Elderly people. (Max entry age 65 years)

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Happy Selling!!!