Perfect option for savers, Unit-Linked Insurance Plans are your go-to place when your main goal is to invest while being insured. And that is exactly what is offered by country’s one of the top players in insurance sector, Reliance Life Insurance, or formally known as Reliance Nippon Life Insurance Company Limited. There are three comprehensive products put forth under the umbrella of Reliance Life ULIPs and are enough to encompass needs of almost every savings-lover.
Types of Reliance Life ULIPs:
There are three plans provided under the head of Reliance Life ULIPs, namely, Premier Wealth Insurance Plan, Smart Savings Insurance Plan and Classic Plan II
Reliance Nippon Life Premier Wealth Insurance Plan
A perfect Unit-Linked Insurance Plan, this policy provides the buyer with ease of customization leading to flexibility to balance between insurance and investment in either an active manner or systematic one.
Features & Benefits:
- Insurance + Investment:
Best of ‘wealth plus security’ put together in a single bouquet of Reliance Life ULIP Plans. This means you are getting the essence of unit-linked insurance plans without having to burn big holes in your pocket. Your money works for you, I.e. keeping you and your family protected against emergencies along with building hefty corpus to expend in future.
- Investment Options:
Dual Investment Options to choose from viz. Self-Managed Option And Auto-Managed Option. You can be a pro in money market situations or you be a pass in the same, but with the aforementioned options, you can be sure of your money being invested in the best of funds.
- Easy Switching:
Option to switch from auto-management to active-management investing and vis-a-vis. No fund performs the same all the time and that is the essence of this feature being provided by Reliance Life ULIPs.
- Wealth Boosters:
Yearly wealth boosters @ 0.03% p.a. awarded for being a loyal customer after the end of eight years. These boosters will eventually help minimize policy charges, thus awarding you with a deeper pool of savings to dive in.
Of course money is of no use being a show-piece. We need it in cash sometimes at the moment, thus this feature. In case emergencies, resort to your investments made in the plan by way of partial withdrawals.
Flexibility to choose payment of premium options from Limited Pay, Single Pay and Regular Pay modes. In Single Pay, you just have to pay the premium once and you are sorted for the entire policy term while in Regular Pay, you will be required to pay premium on a regular basis. Limited Pay mode gives you the option to pay premiums for a certain period of time and then be done it.
- Tax Savings:
Tax benefits to amp up savings even more as the premiums your pay along with the benefits received by you in the policy are both eligible to be deducted while filing your ITR.
Reliance Nippon Life Smart Savings Insurance Plan
This Reliance Life ULIP is an automated plan fit for those who don’t have an upper hand in the money market and/or have less time to spare for the same. It’s automatic feature balances your money in equity and debt funds, taking in consideration your risk appetite, thus providing you with a systematic asset allocation.
Features & Benefits:
- Choice to Invest
You can choose to invest either by yourself, I.e. managing your money invested in the funds on your own by opting for Self-Managed Mode OR go for Auto-Managed Mode to get your money invested automatically. This way you won’t have to keep a check on the fund performance, thus shedding one load off your shoulders.
- Reduced Charges
When you buy this Reliance Life ULIP, you will be charged with certain policy charges that are needed to keep the policy working. Although these are not so hefty but still, if you opt for a high premium amount, these charges will get reduced thus leading to extra savings on your end.
- Loyalty Additions
These are the incentives given under Reliance Life ULIP Plans to those customers who keep the policy in full-force throughout the policy term.
- Maximum Protection
For those of you, which are almost all, who always worry about the future of their family especially financially in case of your absence, this feature will make sure this worry vanishes in no time. With this Reliance Life ULIP, just pay your premiums in time and be rest assured of the protection of family as they will be insured with at least 10x the annualized premium.
Reliance Nippon Life Classic Plan II
If you take this ULIP by Reliance Life then you will be the sole-decider of asset allocation. If you have good knowledge about the field and have the time to keep a check on prevailing market conditions, then this is the plan made for you. Although, do take in consideration that the investment risk here will be borne by you (I.e. the policyholder).
Features & benefits:
- Flexibility to Invest
You will be offered with as many as 5 investment funds to choose from, viz. 2 Equity oriented ones, 2 Debt oriented funds and 1 Balanced Fund.
Also, you will have the option to choose to choose your premium payment mode from Annual, Semi-Annual or Monthly.
- Manage Actively
This Reliance Life ULIP provides its customers with a huge bunch of free switches amounting to 52 in number. Tops-Ups are provided to amp up your savings all the more.
- Premium Re-direction
You can use this feature to switch from your current investment pattern to a better one in future. This will eliminate unnecessary risk while boosting your investment score safely.
- Best of Financial Protection
This Reliance Life ULIP is designed to help protect your family in times of need. You can add value to the life cover by opting for a higher Sum-assured. Also, in case of accidental death of the policyholder, their family will be covered with additional protection.
- Easy cash-flow
Life is uncertain but this plan is planned taking care of such uncertainties too. In case of emergencies, this Reliance Life Insurance policy will provide you the leverage to make partial withdrawals and meet such exigencies.
Comparison of Reliance Life ULIPs
|Parameters||Premier Wealth Insurance Plan||Smart Savings Insurance Plan||Classic Plan II|
|Entry Age||30 days – 60 years||Minimum:|
Regular Pay: 60 years
10 Pay: 60 years
7 Pay: 55 years
5 Pay: 50 years
|7 – 60 years|
|Maturity Age||18 – 70 years||18 – 70 years||22 – 75 years|
|Top-Up Premium||Rs. 10,000 – Equal to 100% of premiums paid||Rs. 10,000 – Equal to 100% of premiums paid||Rs.5000 – No Limit|
Q1. Can I withdraw money from my policy?
Yes, you certainly can. Although there is a capping of 5 years which means these withdrawals can be made only after a period of 5 years.
Q2. I am clueless about the working of money market. Which investment option is best for me?
Best investment option for you will be Auto-Managed Mode which will waive off your worry to keep a check on your money invested in market funds. This option is available in 2 Reliance Life ULIPs, namely Premier Wealth Insurance Plan and Smart Savings Insurance Plan. Choose as per your risk-appetite and stay sorted for the entire term of the policy.
Q3. Can I take loan against my plans?
No. In these Reliance Life ULIPs, loan facility is not available.