A Reliance Capital company Reliance Secure Child Term 10 Plan Awaiting approval from IRDA.

A Reliance Capital company

Reliance Secure Child Term 10 PlanAwaiting approval from IRDA


IRDA through its recent circular stipulated cap on charges on all new ULIP products:

For ULIP insurance contracts with tenor less than or equal to 10 years duration, the difference between gross and net yields shall not exceed 300 basis points of which the fund management charges shall not exceed 135 basis points.

For ULIP insurance contracts with tenor more than 10 years duration, the difference between gross and net yields shall not exceed 225 basis points of which the fund management charges shall not exceed 135 basis points.

Mortality and morbidity charges may be excluded in calculation of the net yield.

In respect of whole life products, the net yield calculation should be demonstrated assuming the duration of (X - entry age) or 30 years whichever is lower where X is the cover ceasing age as defined in the product or may be assumed to be 100.

Surrender penalty should be zero after completion of five policy years and thereafter irrespective of the number of premiums paid

For more details refer IRDA website

Cap on charges


Due to the circular, we would be withdrawing all our unit linked life insurance products including pension plans and launching new plans which are compliant with the circular on charges.

In essence, going forward, for each product (with the exception of a few) we would have two versions namely: Term 10 with a fixed policy term of 10 years and

Basic with a policy term of 15 years or more depending on the product

Cap on charges


Thus, we have the following new plans:

Reliance Super InvestAssure Term 10 Plan – Not available

Reliance Super InvestAssure Basic Plan

Reliance Super InvestAssure Plus Term 10 Plan

Reliance Super InvestAssure Plus Basic Plan

Reliance Super Automatic Investment Term 10 Plan

Reliance Super Automatic Investment Basic Plan

Cap on charges



Reliance Super Market Return Term 10 Plan

Reliance Super Market Return Basic Plan

Reliance Super Golden Years Term 10 Plan

Reliance Super Golden Years Basic Plan

Reliance Super Golden Years Plus Term 10 Plan

Reliance Super Golden Years Plus Basic Plan

Cap on charges



Reliance Super Golden Years Value Term 10 Plan

Reliance Super Golden Years Value Basic Plan

Reliance Secure Child Term 10 Plan

Reliance Secure Child Basic Plan

Reliance Imaan Investment Term 10 Plan

Reliance Imaan Investment Basic Plan

Cap on charges



Reliance Wealth+ Health Basic Plan

Reliance Wealth+ Health Term 10 Plan – not available

Reliance Total Investment Series II Term 10 Plan – Pension

Reliance Total Investment Series II Basic Plan – Pension not available

Reliance Total Investment Series I Term 10 Plan-Insurance

Reliance Total Investment Series I Basic 10 Plan-Insurance not available

Reliance Premier Life Term 10 Plan

Reliance Premier Life Basic Plan

Reliance Money Guarantee Term 10 Plan

Reliance Money Guarantee Basic Plan

Cap on charges


Reliance Secure Child Term 10 Plan is the version with a fixed policy term of 10 years as explained earlier.

Reliance Secure Child Basic Plan is the new version of the earlier unit linked Reliance Super Market Return Plan for policy terms of 15 years and above.

Reliance Secure Child Term 10 Plan


Minimum basic sum assured = annualized premium multiplied by half the policy term.

Maximum sum assured = annualized premium multiplied by half the policy term.

Policy limits – Regular premium option sum assured


Minimum basic sum assured = 110% of the single premium amount.

Maximum sum assured = 5 times the annualized premium.

Policy limits – Single premium option sum assured


Mode Minimum premium

Amount (Rs) Annual 20,000

Half yearly 10,000

Quarterly 5,000 (ECS only)

Monthly 2,000 (ECS only)

Top ups 2,500

Top ups must not exceed 25% of the total regular premiums paid up to the date of top up

Policy limits – Regular Premium payment option


Minimum Rs 50,000

Top ups Rs 2,500

Top ups must not exceed 25% of the total single premium paid as at the date of top up

Policy limits – Single premium payment option


Minimum Maximum

Age at entry Parent 21 years 50 years

Child 30 days 15 years

Policy term 10 years 10 years

Age at maturity Parent - 60 years

Child - 10 years

Policy limits – Ages & policy terms


Premium payment term

Regular premium paying option: Premium payment term = policy term

Single premium paying option: Single premium is payable at inception


Fund value

“Fund Value under Basic Plan” at any point in time represents the value of units purchased by premiums under the Base Plan at that point of time i.e. number of units purchased by premiums under Base Plan multiplied by the price of the units. The units include units under Return Shield Fund, if opted and units under the e- Account.

“Fund Value under Top-up” at any point of time represents the value of units purchased by the Top-Ups at any point of time i.e. number of units purchased by top-up premiums multiplied by the price of the units. The units include units under Return Shield Fund, if selected And the units under the e- Account.


General description of the plan

This is a unit linked insurance plan on the life of a child.

This plan provides an in built premium waiver benefit on the life of insured parent (insured father or insured mother)

During every year, 1% of Premiums paid by the policyholder (excluding extra or additional premiums) under Base plan and under top ups will be transferred to a separate account called e- Account.

The Company will also contribute, towards the e –Account, 1% of Premiums paid by the policyholder (excluding extra or additional premiums) as a Guaranteed Addition, during the year for premiums paid under Base plan and under top ups.

The operation of e point Account is described later.


General description of the plan

Capital guarantee will be available on maturity or on death of the child during the policy term under Regular Premium Base policy only, provided, the policy had been in force by payment of all due premiums at the time of maturity/death claim and that no partial withdrawals were made and that New Equity Fund ,New Mid-Cap Fund, New Infrastructure Fund, New Energy Fund and New Pure Equity fund were not selected at any time.

Capital Guarantee will not be available on Single Premium policy, Limited Premium policy and Top ups paid under Single Premium, Regular Premium and Limited Premium policy.

Capital guarantee comprises of payment of 95% of total Regular Premiums paid under the Regular Premium Base policy only less extra or additional premiums if any provided no partial withdrawals were made from any fund except redemption of points from e-Account for availing of services of web based community and that the New Equity Fund , New Mid-Cap Fund ,New Infrastructure Fund, New Energy Fund and New Pure Equity fund was never selected up to the date of death. Capital Guarantee will not be available on Single Premium policy, Limited Premium policy and Top ups paid under Single Premium, Regular Premium and Limited Premium policy.

In case the insured parent (insured father or insured mother) pre-deceases the child, the policy will continue, with all the future premiums waived under the Base plan.

If the child is totally and permanently disabled due to an accident, provided the policy is in force for full sum assured and the risk cover on the life of the child has commenced, a lifetime fixed annual income benefit will be paid to the child and the amount of the benefit will be equal to 10% of the sum assured per year.


e – Account - introduction

The e-Account is a mandatory feature of the policy during the policy term. This is an extension of the concept of providing health check ups under health

insurance policies. This plan is for the benefit of the child. Apart from the financial assistance, the

overall progress of the child also requires engagement in various educational activities (educational games, educational books, school uniforms, periodic advice on career planning etc). We are only providing means for availing such services. Providing such services helps in achieving ultimate motive of insurance plans for the children i.e. taking care of overall growth of the children.

The services will be available to all the policyholders. The primary means of providing these services will be through web portal. However, for those policyholders who do not have access to the web portal, the information will be supplied regularly through pamphlets. Request for purchase of an item can be made through web portal or through our customer care centres.

The funds allotted for such services are a small percentage of the total fund.


e – Account - introduction

If the amounts in e Account are not utilized for purchase of services, it will be invested in the unit funds at the choice of the policyholder and will accrue investment returns like any other unit fund balance.

The balance in e Account is paid to the policyholder in cash on maturity of the policy, death of the child or on surrender of the policy.

It helps in connecting the policyholder i.e. the parent and the child with the policy. This will help in increasing the persistency.

The e-Account will not operate during the settlement option.


e – Account - workings

1% of Premiums (excluding extra or additional premiums) paid every year under Base plan and under top ups will be transferred to an account called e-Account.

As a Guaranteed Addition, the Company will also contribute 1% of Premiums paid every year (excluding extra or additional premiums) under Base plan and under top ups towards the e-Account.

Anytime during the tenure of the policy, the amounts in e-Account. can be utilized for availing of the benefits offered by the web based community mentioned later.

On availing of the benefits of the web based community, the balance in the e-Account will be reduced.

Availing benefits of the web based community will not affect the capital guarantee under the Regular Premium Base policy.


e – Account - Funding

Units corresponding to the 1% of premium (excluding extra or additional premiums) paid by the policyholder and the Shareholder’s contribution of similar sum i.e. 1% of premium (excluding extra or additional premiums) is transferred to the e Account at the time of payment of the first premium and at the time of crediting the renewal premiums / top up premiums.

e-Account is a part of policyholder’s account only and is earmarked separately in the system.

There will not be separate unit values for e Account. Rather, part of the funds New Fund G, New Fund H, New Equity Fund, New Mid-Cap Fund, New Infrastructure Fund, New Energy Fund and New Pure Equity fund will be earmarked towards e-Account within each fund.


e – Account – points determination

The e-points are derived from the e-Account value.

e-Account value is the value of the units transferred to e-Account i.e. no of units in the e-Account multiplied by prevailing unit price.

The e-Account value is multiplied by 2 to arrive at e points.


e – Account – policyholder benefits

Access to educational and recreational products and services through web based community or through regular distribution of pamphlets.

The Company will form a web based community for the parents and children covered under this plan.

For those policyholders who do not have access to internet, the information available on web portal will be supplied through pamphlets regularly.

Various educational and recreational products of children’s interest could be procured through this website.

For those policyholders who do not have access to internet, the procurement could be done through our Customer Care Centers.



The goods and services can be availed of by redemption of units in the e-Account during the tenure of the policy.

The benefits and items of interest and value as offered above are subject to changes, from time to time at the sole discretion of the company.

Parent and child both can access the web based community and/or the pamphlets giving the information.

Until the child attains the age of 18, procurement of products and services though redemption of e points can only be done by the parent nominated as proposer in the policy.

After the child attains age 18, the procurement of products and services through redemption of e points can only be done by the child.



Anytime from the date of the issue of the policy, the e- points in the e-Account can be utilized for availing benefits offered by the web based community mentioned below.

On availing of the benefits of the web based community and paying for the same using e-points, the balance of e-points in the e-Account will be displayed on the site.

For those policyholders who do not have access to the internet, the information will be supplied on unit statement.

The balance in the e-Account cannot be withdrawn during the policy tenure except for availing the benefits under the web based community. If there is any balance in the e-Account, it will be paid along with the death claim on the child, on maturity of the policy or on full surrender of the policy.


e – Account – points redemption

A catalogue of services / products will be made available on the web based community portal with details of the number of e-points required to be redeemed for each.

For those policyholders who do not have access to the internet, the information will be supplied through pamphlets regularly. Alternatively, the information will also be available thorough our Customer Service Centres.

On policyholder logging in with his / her ID and PIN, he / she will be able to view his points statement as well as the catalogue.

On the last day of every month, the policyholder can choose to buy an item. The purchase will go through successfully if and only if the number of e-points to his credit in his e-Account is more than the number of e-points required / needed on that day. At any point of time, a customer can redeem only up to a maximum of 80% of his total accumulated e–Points.

If the customer is not able to redeem the rewards online, then he can fill up a redemption form and mail or fax it to any of the Company’s branch offices or to the customer service centre. The redemption form will be available on the Company’s website and can be downloaded. Alternatively, the customer can also call the customer `service centre to mail him the same.

Redemption from e-Account is not allowed on discontinuance of premium.


e – Account: Status

The policyholder may view the e-points to his credit on his website log in. The information will also be available through our Customer Service Centers.

The number of e-points to his credit and the actual fund outflow from the e-Account to pay for redemptions if any, on account of the products / services requested will change on a daily basis.

Everyday a statement of e-Account for points gets updated on the system for customers to view. Alternatively, the customer can call the customer service centre.

A Unit Account Statement will be sent on a monthly basis provided there have been e-Account redemptions during the month.

In addition, the customer will also receive the mandatory annual Unit Account Statement including the e-Account redemption.


e – Account: Premium discontinuance

Discontinuance of premium: (excluding death of the parent when waiver of premium is in operation)

On discontinuance of premium (Excluding death of the Parent when the waiver of premium is in operation and the Company is paying the premium in to the policy),), there can not be any transfers from the premium income to the e-Account.

The Guaranteed Addition contribution from the shareholder will immediately terminate. However, the existing balance in the e-Account will remain intact and will be increased

or decreased on account of movements in the unit values. The policyholder will not be able to purchase goods and services while the policy is in

premium discontinuance mode (except when waiver of premium is in operation). The existing balance in e Account will be available to the policyholder along with the

final claim (i.e death of the child, maturity of the policy or surrender of the policy).

Should the policyholder restart payment of premiums, the Guaranteed Additions and the transfer from premium income to e account will restart.

e-Account transfers will continue even after Death of the parent and when the policy is in waiver of premium mode and is receiving premium from the Company


Basic benefits

If death of the child occurs before commencement of risk cover

Fund value (including fund value under New Return Shield Fund and e- Account) as on the date of intimation of death relating to the Base policy

Plus

Fund Value ( including fund value under New Return Shield Fund and e- Account) under top-ups (if any), as on the date of intimation of death


Basic benefits

On death of the child after commencement of risk cover, RLIC pays:

Regular premium payment option, maximum of

i) Sum assured

ii) Total Fund value ( including fund value under New Return Shield Fund and e- Account) under Base Plan as on the date of intimation of death

iii) 95% of total Regular Premiums paid under the base plan less extra or additional premiums if any provided no partial withdrawals were made from any fund except redemption of points from e –Account for availing of services of web based community and that the New Equity fund, New Mid-Cap Fund, New Infrastructure Fund, New Energy Fund and New Pure Equity fund was never selected up to the date of death.

Plus



Basic benefits

On death of the child after commencement of risk cover, RLIC pays:

Limited / single premium payment option, maximum of

i) Sum assured

ii) Total Fund value ( including fund value under New Return Shield Fund and e- Account) under Base Plan as on the date of intimation of death

Plus



Basic benefits

On death of the parent:

All future premiums under the base policy (other than the premiums under the riders, if any) will be waived.


Basic benefits

On Total & Permanent disability of the child due to accident, a lifetime fixed annual income benefit at the rate of 10% of the sum assured under the policy, per annum, will be paid to the child.

The policy contract will continue, but no rider benefits will be available on the life of the child.

‘‘total and permanent disablement’’ means that the child life assured has solely and directly as a result of an accident caused by outward, violent and visible means suffered for at least six months: total and irrecoverable loss of the sight of both eyes, or

loss by severance of two limbs at or above wrist or ankle, or

total and irrecoverable loss of the sight of one eye and loss by severance of one limb at or above wrist or ankle.

Totally and permanently disabled has a corresponding meaning.


Basic benefits

On maturity, RLIC pays:

Regular premium paying option:

Maximum of

i) Fund value ( including fund value under New Return Shield Fund and e- Account) as on the date of maturity relating to the Base policy

ii) 95% of total Regular Premiums paid under the Regular premium Base policy less extra or additional premiums if any provided no partial withdrawals were from any fund except redemption of points from e Account for availing of services of web based community and that New Equity Fund, New Mid-Cap Fund, New Infrastructure Fund, New Energy Fund and New Pure Equity fund was not selected at any time during the policy term

Plus

Fund Value ( including fund value under New Return Shield Fund and e- Account) under top-ups (if any), as on the date of maturity


Basic benefits

On maturity, RLIC pays:

Limited / Single premium paying option:

Fund value ( including fund value under New Return Shield Fund and e- Account) as on the date of maturity relating to the Base policy

Plus

Fund Value ( including fund value under New Return Shield Fund and e- Account) under top-ups (if any), as on the date of maturity


Risk commencement

Commencement of risk cover on the life assured will depend on the age of the life assured on commencement of the policy.

If the age of the life assured on commencement of the policy is less than 6 years last birthday, the risk cover on the life assured will commence either one year from the date of commencement of the policy or from the policy anniversary falling on or immediately after the sixth birthday of the life assured whichever is later.

If age of the life assured on commencement of the policy is equal to or more than 6 years last birthday but less than 12 years last birthday then the risk cover on the life assured will commence after one year from the date of commencement of the policy.

If age of the life assured on commencement of the policy is equal to or greater than 12 years last birthday, the risk cover on the life assured will commence immediately.


Surrender value from basic plan

Full surrender value under the basic plan is acquired immediately on payment of the first / single premium. However, it is payable only after completion of three policy anniversaries.

Whenever full surrender value of the basic plan is paid, the surrender value of any attaching top ups will also be paid.

The full surrender value under the basic plan is equal to the fund value less surrender charge.

Single premium policies do not have any surrender charges


Partial withdrawal Value under Base plan

No partial withdrawal is allowed from the e-Account. However, during the tenure of the policy, redemption of e-points from e-Account for availing the services of web based community is allowed.

For all other funds, partial withdrawal value will be acquired immediately on payment of the first premium. However, the partial withdrawal value will be payable only after the completion of three policy anniversaries or on attainment of age 18 by the child whichever is later.


Surrender and partial withdrawal value under top ups

Surrender Value or partial withdrawal value will be acquired immediately on payment of the top up.

The surrender value or partial withdrawal value will be payable only after the completion of three years from the date of payment of top up on attainment of age 18 by the child whichever is later.

This condition of three years, is not applicable during the last three years of the policy. Whenever full surrender value of the Base plan is paid, surrender value of the attaching top up will also be paid.

There is no surrender charge or partial withdrawal charge under top ups. The surrender value or Partial Withdrawal Value is therefore equal to the fund value under the top ups. In case of surrender of the Base policy after 3 years, the surrender value of top-ups is paid immediately.

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


Options under this plan

Regular / limited and single premium payment options are available

Funds available in respect of Base plan and top up premium The plan offers seven funds for Base plan and top ups – New Fund G, New

Fund H , New Equity Fund, New Mid-Cap Fund, New Infrastructure Fund, New Energy Fund and New Pure Equity Fund .

Fund available in respect of Return Shield Option New Return Shield fund will be available if Return Shield Option is selected.

The returns earned under the Base plan and top ups under the funds New Fund G, New Fund H, New Equity Fund, New Mid-Cap Fund, New Infrastructure Fund, New Energy Fund and New Pure Equity Fund will be transferred to New Return Shield fund if Return Shield option is selected.

Fund available during settlement period For those policy holders opting for the settlement option New Fund G would

apply by default during the settlement period.


Additional options

Top ups can be accepted only when all basic due premiums have been paid.

Minimum Rs 2,500 per top up

Maximum = 25% of the total basic regular premiums paid till date of the top up

Payment of top ups do not result in increase in sum assured

Switching Alters the proportion of your fund balances at the time of switching.

You may switch fund balances from Return Shield Fund into other funds

The reverse switching into the Return Shield Fund is only possible automatically at policy month end.

Does not affect the investment pattern of future premiums you may pay in

4 free switches per policy year

Un used free switches cannot be carried forward


Additional options

Once a switch is made in to New Equity fund , New Mid-Cap Fund, New Infrastructure Fund, New Energy Fund, New Pure Equity Fund, the capital gurantee under the Regular premium Base policy will cease immediately. The capital gurantee can not be re-established by switching out of Equity fund.

Switching in to and out of e- Account and New Return Shield Fund is not allowed.


Additional options

Return Shield Option. The option can be selected or deleted at any time during the term of the

policy.

There will not be any charge for the Return Shield option under following circumstances;

If the option is selected under basic plan at inception If the option is selected under top up premiums at the time of payment of top

up premiums

If this option is selected, the returns earned on basic plan and Top Ups during the month will be utilized to purchase units in New Return Shield fund at the end of the policy month.


Premium redirection

A policyholder may instruct us in writing to redirect all the future premiums under a policy in an alternative proportion to the various unit funds available.

Redirection will not affect the allocation of premium(s) paid prior to the request.

If New Equity Fund, New Mid-Cap Fund, New Infrastructure Fund, New Energy Fund, New Pure Equity fund is selected after redirection, the capital guarantee under the Regular Premium Base policy if any will cease immediately. Once the capital guarantee ceases, it can not be re-established.

Premium re-direction in to e- Account and New Return Shield Fund is not allowed.


Return Shield Option.

The amount of return to be transferred to New Return Shield Fund will be calculated separately in respect of each of the three funds New Fund D, New Fund E and New Fund F using the following formula in respect of each policyholder.

“Fund Value on the last working day of the policy month.

Less Fund Value on last working day of the previous policy month

Less amount of inflow into the fund during the month

The operation of Return Shield option under top-up premium(s) will be similar to that of Basic Policy.

Units will be purchased under New Return Shield Fund at the prevailing unit price.


Additional options

Exchange option available for existing policyholder under Reliance Secure ChildTerm 10 Plan after

completion of three policy years from the date of commencement.

the policy holder may transfer policy benefits (surrender, maturity etc.) either fully or partially to another plan wherein exchange option is available.

option must be exercised at least 30 days before the receipt of benefit under the policy.

The new plan would be offered on the life of the policy holder and would be subject to terms and conditions of new contract.

If the policyholder is opting for transfer from other plans into Reliance Secure Child Term 10 Plan under exchange option, the allocation charge in year of exchange will be reduced in the year of exchange to 8% of the annualized premium.

Regular allocation charges would apply to the balance of the policy term.

If the exchange option is used to pay top ups in Reliance Secure Child Term 10 Plan, the allocation charge in the year exchange will be 1% of the top up amount.


Settlement Option

The policyholder has the option to take the maturity proceeds in periodic installments within a maximum of 5 years from the date of maturity.

The policyholder has to give a notice to the insurer at least 30 days before the maturity date.

The periodic installment could be in any form including lump sum or infrequent withdrawals as requested by the policyholder.

The policy will participate in the performance of units. There will not be any deductions towards mortality charges.

The Company will however continue to deduct administration charges by cancellation of units. The fund management charge will be priced in the unit value.

In the event of death of the Insured during settlement period the fund value as on the date of intimation of death at the office will be paid to the nominee.

During the settlement period, no insurance will be available to the policyholder.

The investment risk during the settlement period will be borne by the policyholder.

If settlement option is selected, then on maturity of the policy, the total fund balance would be automatically moved into New Fund G, the only fund option available during the settlement period.


Other options

Nomination is allowed

Assignment is allowed


Additional rider options

On completion of age 18, the child has the option of taking or removing the following riders at any policy anniversary subject to medical and financial underwriting provided the criteria in respect of minimum and maximum age at entry, policy term, premium payment term, Sum Assured under each rider are satisfied

Optional rider may be purchased through payment of additional rider premiums over and above the basic plan premiums

Reliance Term Life Insurance Benefit Rider

Reliance Accidental Death and Total and Permanent Disablement Rider

Reliance New Major Surgical Benefit Rider

Reliance New Critical Conditions (25) Rider


Discontinuance of premiums

Within 3 years from inception of the policy

the insurance and disability cover on the life of child, premium waiver benefit on the life of parent and capital guarantee under Regular Premium Base policy, if any will cease immediately. The rider benefits if any will also cease immediately.

the policyholder will continue to participate in the performance of unit funds.

the monthly administration charges will be deducted from the Fund Value by cancellation of units. The fund management charge will be priced in the unit value.

anytime during this period, should the child/parent die, the fund value under the Base plan and the fund value under the top ups if any will be paid.

the policyholder may revive the policy by paying all due premiums in full and re-commencing the premium payment within a period of two years from the due date of first unpaid premium but before the date of maturity of the policy. Other conditions for revival are stated below.

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 or at the end of third policy anniversary, whichever is later.



After paying atleast 3 consecutive years premiums

the policy will remain in force with the insurance and disability benefits on the child remaining intact.

the capital guarantee under the Regular premium Base policy and premium waiver benefit on the life of parent will cease immediately. The rider benefits (on the lives of both – parent and the child) if any will also cease immediately.

the policyholder will continue to participate in the performance of the unit funds chosen by him.

the mortality and disability charges on the life of child and administration charges will be deducted from the Fund Value by cancellation of units. The fund management charge will be priced in the unit value

the policyholder may revive the Policy by paying all due premiums in full at any time within a period of two years from the due date of first unpaid premium but before the maturity date of the policy.



After paying atleast 3 consecutive years premiums 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 or at the end of third policy anniversary, whichever is later.

the policyholder may opt to continue the policy even beyond the revival period (but not beyond the maturity date of the policy). The mortality and the disability charges on the life of child and administration charges will be deducted from the Fund Value by canceling the units. The fund management charge will be priced in the unit value. The policy will continue to participate in the performance of the unit funds chosen by the policyholder.

This option will be available until the fund value reaches an amount equivalent to one full year’s premium plus surrender charge, if any.

If, at any point of time, the fund value reaches an amount equivalent to one full year’s premium plus surrender charge, the policy will be terminated by paying the surrender value which is equal to one year’s premium

In case of limited premium policies, annual premium for this purpose will be defined as, (instalment premium for one year premium payment term/ policy term)


Revival of a policy

A policy will lapse if premiums are not paid during the days of grace.

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 of the policy subject to satisfactory medical and financial underwriting.

On revival of the policy, the capital guarantee under the Regular Premium Base policy will be reinstated if it was available at the time of discontinuance of premium payment under the policy.


Revival of a policy

If the Base plan is revived, the riders can be revived by paying the arrears of premiums with interest at the prevailing rate of interest and recommencing the payment of rider premium. The current rate of interest is 9.0% p.a. This will be subject to satisfactory medical and financial underwriting.

If the policyholder has informed the Company his/her intention to discontinue the premiums ( i.e. take premium holiday) then at the time of revival, medical underwriting may not be required.


Allocation charges

Allocation charges

For RADAG Employees

For non RADAG employees

Policy year – 1 25%Policy year – 2 5%Policy year – 3 to 4 3%Policy year 5 to 10 2.5%Top – ups 2%

Policy year – 1 8%Policy year – 2 & over 1%Top – ups 1%


Surrender charges for surrender of the basic plan

No surrender charge for surrender of top up fund

Year of Surrender Surrender Charge as % of Fund Value under regular premium

policies

Surrender charge as % of Fund Value under single premium

policies

1 to 3 years Surrender Value not payable Surrender Value not payable

4th year 20% Nil

5th year 10% Nil

6th year onwards Nil Nil


Partial withdrawal charges

Year of Partial Withdrawal

Partial Withdrawal Charge as % of Fund being withdrawn

under regular premium policies

Partial Withdrawal charge as % of Fund being withdrawn under

single premium policies 1 to 3 years Partial withdrawal not payable Partial Withdrawal not payable

4th year 20% Nil

5th year 10% Nil

6th year onwards

Nil

Nil

The partial withdrawal charge is not applicable on top-ups


Miscellaneous charges

In some of our ULIP plans we had a miscellaneous charge of Rs 2 per 1000 of the sum assured.

The same has been removed in the new product filed with IRDA for approval for cap on charges


Fund management charges

Charges

Fund Name FMC p.a. New Fund G 1.30% New Fund H 1.30% New Fund I (New Return Shield Fund) 1.25% New Equity Fund 1.35% New Pure Equity Fund 1.35% New Infrastructure Fund 1.35% New Energy Fund 1.35% New Midcap Fund 1.35%


Charges

Policy administration charge: A monthly administration charge of Rs 40 will be deducted by canceling units in advance at the beginning of the month.

Switching charge: There are 4 free switches during any policy year. Subsequent switches if any will have a fixed charge of Rs 100 per switch.

Return Shield charge: Every time a Return Shield fund is selected, a charge of Rs 100 would be levied unless specifically free

Disability Charge for the Child – a Charge for the benefit on disability of the child due to accident in built in the product is 0.30 per 1000 Sum Assured for all ages.


Service tax

This charge shall be levied on: Mortality charge,

Premium Allocation Charges,

Fund Management Charges,

Policy Administration Charges,

Switching Charges,

rider premiums

Return shield option charge

The level of this charge shall be as per the rate of Service Tax on risk

premium, declared by the Government from time to time.

The current rate of service tax on risk premium ) is 10.30%(10% for service tax and 3% education cess)


Foreclosure of policies

In respect of fully paid up policies wherein all the premiums have been paid, and policies under which the premium is being paid, if the fund value is less than the mortality and policy administration charge for the next month, the policy will be foreclosed by paying the fund value.


Others

Life insurance policies are eligible for income tax benefits under income tax Act 1961 and amendments thereafter.

Premium paid – Sec 80C

Death and maturity benefits – Sec 10 (10D)

Health related premiums – Sec 80D

For a policy to qualify for tax benefits, the sum assured must be atleast 5 times the premium in each year as per current laws.

Consult your tax advisor for more details


Thank you

Date post:	28-Dec-2015
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A Reliance Capital company Reliance Secure Child Term 10 Plan Awaiting approval from IRDA.

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