1. Reliance Life Insurance A Reliance Capital Company 1 | P a g e A SUMMER PROJECT REPORT ON . U LIP(RELIANCE CLASSIC PLAN-II)-Breaking the Myth and Repositioning as a PRODUCT OF CHOICE & ULIP(RELIANCE CLASSIC PLAN-II)VERSUS Mutual Fund ,Corporate Bond, Debt Fund and Money Market SUBMITTED BY:-JYOTISH KUMAR BHARTI PGDM (2012-2014) Submitted for partial fulfillment of the requirement of PGDM 2012-2014 UNDER THE GUIDANCE OF INTERNAL GUIDE:- SWAGATA KUMAR FINANCE FACULTY,BITT CORPORATE GUIDE:- AVINASH KUMAR BRANCH MANAGER (RELIANCE LIFE PLAZA, RELIANCE LIFE INSURANCE) BIRSA INSTITUTE OF TECHNOLOGY TRUST

2. Reliance Life Insurance A Reliance Capital Company 2 | P a g e ACKNOWLEDGEMENT It gives me immense pleasure, having done a project on an interesting and knowledgeable topic like Reliance life plaza. This project has not only widened my horizon as far as academics are concerned but also helped me to enlarge my knowledge bank. Financial management are not topics, which could be handled with certain amount of casualty. There are many people associated with this project without which this project would not have been possible. I thank my institute who has given me an opportunity to show my skills. I also thank all my nearer and dearer ones without whose support this project would not been possible. I would like to thank Mr .Avinash kumar (Branch Manager) Ranchi, who allow me to do this project in Reliance life plaza. I am deeply grateful to Mr. kumar Dharmesh (Area Sales Manager) Jharkhand and Bihar, for his ever willing help and guidance to complete my project successfully. I also would like to thank to Mr. Satish kumar for his guidance and help to complete my project perfectly. I would like to thank to Ms. Swagata Kumar her able guidance, keen ineterst , constant supervision and ever willing help throughout the course of this study. I also would like to thank Ms. Kasturi Sahay (H.O.D and placement cell head) who help in allowing to do this project in Reliance. Above all I would like to thank all contacted person who took out valuable time to answer me queries and gave me full information about insurance industry and Reliance life plaza. I extend my gratitude towards my parents, who have always encouraged me and gave suggestions as how to work on project. They always stand by me in solving all my queries. Their support has always motivated me. 3. Reliance Life Insurance A Reliance Capital Company 3 | P a g e Above all it gives immense pleasure to thank authors of various books who indirectly helped me in gaining knowledge about insurance industry. 4. Reliance Life Insurance A Reliance Capital Company 4 | P a g e - PREFACE- Indian insurance industry is emerging rapidly after year 2000.To survive in this highly competitive scenario, managers are being pressured to improve quality and skilled people and eliminate inefficiently .The collective efforts of the employer, managers and other relative people assume relevance in this context. And this is where finance management , marketing management and human resource management play important role. RLIC is the first company in India to set up a structured need-based in-branch sales platform in the form of a 'Life Plaza', which aims at creating awareness about life insurance and fulfilling the needs of prospective customers through Financial planning and its array of products and services. The introduction of Life Plaza was announced by Mr. Malay Ghosh, President and Executive Director, Reliance Life Insurance. Reliance Life Insurance offers the products that fulfill our savings and protection needs. Our aim is to emerge as a transnational Life Insurer of global scale and standard. Reliance Life Insurance Company Limited is a part of Reliance Capital, under Reliance Group. Reliance Capital is one of India's leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Life Insurance Company (RLIC), part of ADAGs Reliance Capital Ltd, on Thursday launched a new unit-linked plan, called Classic Plan II, that offers customers dual benefits of insurance protection and market-linked return. The existing ULIP plans in RLICs portfolio offer life cover benefit equal to the sum assured plus fund value I have made an attempt to study this aspect of insurance industry in my project. In this project, details of ULIP product (Reliance Classic Plan-II) breaking the myth and Repositioning it as a product of choice .And its comparative analysis of ULIP(Reliance Classic Plan-II) versus Mutual Fund, Corporate Bond, Debt Fund, Money Market. I have tried to find out how consumer awareness about product and its importance 5. Reliance Life Insurance A Reliance Capital Company 5 | P a g e regarding tax and investment benefit is very important for this well as well as this industry as well as this firm. To get knowledge of above question and to fulfill the requirements for project on ULIP (Reliance Classic Plan-II) and its importance in financial term I have worked in Reliance Life Insurance and search some interest sites. On the basis of my study, I have included following topics as the important aspect of my project I. Insurance Industry Introduction II. Ulip Product details III. Ulip tax benefits and charges IV. Ulip flexibility and disclaimer V. Ulip working process In this project I have tried to give attention to all the above topics and study them in depth. But I would still like to receive all sorts feedback to enhance my knowledge on the topics as far as this industry is concern. 6. Reliance Life Insurance A Reliance Capital Company 6 | P a g e TABLE OF CONTENTS. ACKNOWLEDGEMENT 2 PREFACE 4 TABLE OF CONTENTS 6 LIST OF ABBREVIATIONS 8 SECTION( A): INTRODUCTION 9 A.1> ABOUT INSURANCE INDUSTRY IN INDIA 10 A.2>ABOUT RELIANCE LIFE INSURANCE 17 A.3>ABOUT RELIANCE LIFE PLAZA 32 A.4> ABOUT PROJECT 41 SECTION( B): RELIANCE LIFE INSURANCE LAUNCHES ULIP( RELIANCE CLASSIC PLAN-II) 42 SECTIONC(-A): ULIPPRODUCT(REL1IANCE CLASSIC PLAN-II) 48 C.1>ULIP {ABOUT us. 49 C.2>ULIP {CHARGES 49 C.3>ULIP {FAQs. 55 C.4>ULIP {Flexibility 58 C.5>ULIP {Benefits. 60 C.6>ULIP {Tax and benefits 63 7. Reliance Life Insurance A Reliance Capital Company 7 | P a g e C.7>ULIP {Disclaimer 64 (C-B)COMPARATIVE ANALYSIS OF ULIP(RELIANCE CLASSIC PLAN-II VERSUS MUTUAL FUND,CORPORATE BOND,DEBT FUND AND MONEY MARKET 66 SECTION (D): STATUS REPORT 82 RESEARCH METHODOLOGY D.1> RESEARCH OBJECTIVE 83 D.2>QUESTIONNAIRE 83 D.3>SAMPLING METHOD AND SAMPLE SIZE 83 D.4>LIMITATIONS 84 D.5>SWOT ANALYSIS 84 SECTION E:CONCLUSION 86 E.1>EXPERIENCE 87 E.2>SUMMARY 87 E.3>RECOMMENDATION 88 E.4>BIBLIOGRAPHY 89 SECTION F:ANNEXURE 90 F.1>QUESTIONNAIRE 91 F.>ANALYSIS OF QUESTIONNAIRE 93 THANK YOU 102 8. Reliance Life Insurance A Reliance Capital Company 8 | P a g e LIST OF ABBREVIATIONS RLI Reliance Life Insurance IRDA Insurance Regulatory & Development Authority AA Agent Advisor PO CSR Corporate Social Responsibility SM Sales Manager RCL Reliance Corporation limited ADAG Anil Dhirubhai Ambani Group 9. Reliance Life Insurance A Reliance Capital Company 9 | P a g e Section A: INTRODUCTION 10. Reliance Life Insurance A Reliance Capital Company 10 | P a g e A.1> About Insurance Industry in India A promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Insurance = Collective bearing of Risk. Basic Human trait is to be averse the idea of risk taking. Insurance, whether life or non-life, provides people with a reasonable degree of security and assurance that they will be protected in the event of a calamity or failure of any sort. Insurance sector is an opportunity for India. This business is growing at the rate of 18-22 per cent annually. Presently it covers market of Rs.450 billion. Together with banking sector it contributes about 7% to GDP. Gross premium collection is about 2% of GDP. Still 80% of Indian population is without life insurance. This is an indicator that growth potential for the insurance sector is immense. Insurance sector contribute a lot in economic development. It provides long term fund for infrastructure development. It is estimated that over the next ten years India would require investment of the order of one trillion US dollar The insurance sector,to some extent,can enable investments in infrastructure development to sustain economic growth of the country. Division OF Insurance Sector 11. Reliance Life Insurance A Reliance Capital Company 11 | P a g e Origin And Growth Of Insurance Sector # In fiscal 2000-01, the Indian federal government lifted all entry restrictions for private sector investors. # Foreign investment insurance market was also allowed with 26 percent cap. # GIC was converted into India's national reinsure From December,2000. # All the subsidiaries working under the GIC umbrella were restructured as independent insurance companies. Till end of FY 1999-2000, two state-run insurance companies, namely, Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the monopoly insurance providers in India. #Under GIC there were four subsidiaries: National Insurance Company Ltd. Oriental Insurance Company Ltd. Insurance industry in india Public sector Life Lic Post office insurance general Gic and its four subsidiaries Private sector Life (16Companies) General (16 Companies) 12. Reliance Life Insurance A Reliance Capital Company 12 | P a g e New India Assurance Company Ltd. United India Assurance Company Ltd. Factor Affecting Service Sector Five environmental variables that affect all industries- Customers Competitors Government Technology and Globalization -are forcing rapid changesin the service sector. In addition, there are four factors ofparticular importance to service providers- change in how quality is perceived cost control customer services and the new definitions of the customer Life Insurance Corporation Organisation The Life Insurance Corporation of India (LIC) is undoubtedly India's largest life insurance company. Fully owned by government, LIC is also the largest investor of the country. LIC has an estimated asset of ` 8 Trillion. It also funds almost 24.6% of the expenses of Government of India. Established in 1956 and headquartered in Mumbai, Life Insurance Corporation of India has 8 zonal offices, 100 divisional offices, 2,048 branch offices and a vast network of 13. Reliance Life Insurance A Reliance Capital Company 13 | P a g e 10,02,149 agents spread across the country. Life insurance companies In India 1.Bajaj Allianz Life Insurance Company Limited 2.BirlaSunLifeInsuranceCo.Ltd 3.HDFCStandardLifeInsuranceCo.Ltd 4.ICICIPrudentialLifeInsuranceCo.Ltd. 5.INGVysyaLifeInsuranceCompanyLtd. 6.LifeInsuranceCorporationofIndia 7.MaxNewYorkLifeInsuranceCo.Ltd 8.MetLifeIndiaInsuranceCompanyLtd. 9.KotakMahindraOldMutualLifeInsuranceLimited 10.SBILifeInsuranceCo.Ltd 11.TataAIGLifeInsuranceCompanyLimited 12.RelianceLifeInsuranceCompanyLimited. 13.AvivaLifeInsuranceCo.IndiaPvt.Ltd. 14.SaharaIndiaLifeInsuranceCo,Ltd. 15.ShriramLifeInsuranceCo,Ltd. 16.BhartiAXALifeInsuranceCompanyLtd. 17.FutureGeneraliLifeInsuranceCompanyLtd. 18.IDBIFortisLifeInsuranceCompanyLtd. 19.CanaraHSBCOrientalBankofCommerceLifeInsuranceCo.Ltd 20.AEGONReligareLifeInsuranceCompanyLimited. 21.DLFPramericaLifeInsuranceCo.Ltd. 22. Star Union Dai-ichi Life Insurance Comp. Ltd. Non-Life Insurance companies in India #>Bajaj..Allianz..General..Insurance..Co..Ltd. #>ICICILombardGeneralInsuranceCo.Ltd. #>IFFCOTokyoGeneralInsuranceCo.Ltd. #>NationalInsuranceCo.Ltd. 14. Reliance Life Insurance A Reliance Capital Company 14 | P a g e #>NewIndiaAssuranceCo.Ltd. #>Oriental..InsuranceCo.Ltd. #>RelianceGeneralInsuranceCo.Ltd. #>RoyalSundaramAllianceInsuranceCo.Ltd. #>TataAIGLifeInsuranceCo.Ltd. # United India Insurance Co. Ltd Reinsurers: # General Insurance Corporation of India Contribution Too Growth Currently, the insurance sector size is estimated at Rs.500 billion. On account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies like GIC, LIC and others have come down to 70% in last 4-5 years from over 97%. The private insurance players despite the sector is still regulated has been offering rate of return (R o R) to its policy holders which is estimated at about 35% as against20% of domestic insurance companies. LIC and GIC have limited number of policies to offer to their subscribers Private insurance companies offer many policies and the premium amount as well as the maturity period is much competitive as against those of government insurance companies. The private sector insurance players have started exploring the rural markets in which until recently, the state owned companies had the monopoly. Indias life insurance premium, as a percentage of GDP is 1.8% Future Of Sector *Indian insurance sector is likely to register unprecedented growth of 200% and attain a size of Rs. 2000 billion by 2009-10 *A private sector insurance business will achieve a growth rate of 140% as a result of 15. Reliance Life Insurance A Reliance Capital Company 15 | P a g e aggressive marketing technique being adopted by them against 35-40% growth rate of state owned insurance companies. *In rural markets, the share of private insurance players would increase substantially as these have been able to generate a faith among their rural consumers. Insurance Sector-Emerging Areas Demand for Pension Plans:- Two relatively modern trends affect lifeinsurance business in India significantly: Joint Family System and elderly are increasingly having to fend for themselves Separateness of Banking and Insurance Bancassurance Role of Information Techno-logy Using Postal Network Creating Insurance awareness Innovative Products Change in Trends From price point of view DIFFERENT COMPANIES ARE PROVIDING POLICES OF INSURANCE AT COMPETETIVE PRICES EVEN THE ALLOCATION CHARGES UNDER POLICIES IS ALSO DECREASED THE INSURANCE AGENT COMISSION IS ALSO FIXED AAND REDUCED 16. Reliance Life Insurance A Reliance Capital Company 16 | P a g e SO THAT THE CUSTOMER CAN GET THE BEST. From customer and service point of view Globalization - "The Dynamic Force" MNCs - "The New Path Maker" More customer oriented Mostly better service oriented More competitive Better satisfaction More value addition Strategic development From promotion point of view Computerization Internet Electronic Clearance Service (ECS) Call Centres and SMS services Indian Insurance In 21st Century # > 2000:IRDA starts giving licenses to private insurers: ICICI prudential and HDFC Standard Life insurance first private insurers to sell a policy. # > 2001: Royal Sundaram Alliance first non life insurer to sell a policy . # >2007:First Online Insurance portal, set up by an Indian Insurance Broker, Bonsai Insurance Broking Pvt Ltd. # >The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) 17. Reliance Life Insurance A Reliance Capital Company 17 | P a g e Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. #>Minimum capital requirement for direct life and Non-life Insurance company is INR1000 million and that for reinsurance company is INR 2000 million. In the 2004-05 budgets, the Government proposed for increasing the foreign equity stake to 49%, this is yet to be effected. Under the current guidelines, there is a 26 percent equity cap for foreign partners in direct insurance and reinsurance Company. A.2> Reliance Life Insurance Reliance Life Insurance offers you products that fulfill your savings and protection needs. Our aim is to emerge as a transnational Life Insurer of global scale and standard. Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial Company 18. Reliance Life Insurance A Reliance Capital Company 18 | P a g e (NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. Reliance Life Insurance is another steps forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. FOUNDER OF RELIANCE Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Shri. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around ` 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a ` 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to 19. Reliance Life Insurance A Reliance Capital Company 19 | P a g e become Indias largest private sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind, in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the worlds largest shareholder families. HISTORY Reliance Capital Limited announced the launch of its life insurance business on February 1, 2006. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. It was in August 2005 that the ball was set rolling when Reliance Capital Limited, the financial arm of Reliance Anil Dhirubhai Ambani Group (ADAG) announced the requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited; and the formal transfer of shares took place in October 2005. The company will issue all policy contracts under the Reliance Life Insurance Company limited name. All the existing policy contracts also stand transferred to the Reliance Life Insurance entity with all the original contractual terms and commitments intact. JOURNEY SO FAR. 2005 August: Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Co Ltd. 2006January 17: Mr. Nandgopal participates in a one-day conference on Optimising growth opportunities through Distribution Matrix: Emerging Bancassurance organized by the Asia Insurance Post at the Taj President, Mumbai. February 1: Rliance Life Insurance officially launched. February 16, 17, 18: Strategy meet at the Reliance Management Institute. Amongst those who participate are the CEO, COO, Functional Heads, Regional Managers and Regional Sales Managers. February 26: A Puja held at the Churchgate office situated in Express Building, 4th 20. Reliance Life Insurance A Reliance Capital Company 20 | P a g e Floor, 14 E Road, Mumbai. March 1: Churchgate office inaugurated by Mr. Amitabh Jhunjhunwala, Mr. Amitabh Chaturvedi and Mr. Nandgopal. March 6: Shifting to the new premises at Churchgate commences. March 7: The new office at Chennai, at the Trapezium, First Floor, # 39, Nelson Manickam Road, inaugurated by their CEO Mr. Nandgopal, Mr. KV Srinivasan and Mr. Sureshbabu also graced the occasion. ACHIEVEMENT Largest Private Life Insurance in terms of Number of Policies for two consecutive years as of 31st March 2012 A wide network of 1230 branches and 1,50,000 advisors Over 9 million policies RLIC continues to be amongst the foremost Life Insurance companies in India to be certified ISO 9008:2001 Winner of Best Non-Urban Coverage Award at Indian Insurance Awards 2011 RLICs Boundaries for Books Campaign won the 'Silver' at the Indian Digital Media Awards (IDMA) 2012, under Best Integrated Campaign Social Cause and Best Use of Social Network Social Cause Amongst the top 3 Most Trusted Service Brands in the Insurance category as per the Brand Equitys Most Trusted Service Brands 2011 Survey ROLE OF IT AT A RELIANCE LIFE INSURANCE 1) World Class Data Centre: - They plan to establish a Primary Data Centre at Navi Mumbai (Dhirubhai Ambani KnowledgeCity) which will cater to their company needs across India, with fail-over 21. Reliance Life Insurance A Reliance Capital Company 21 | P a g e capability to their Chennai Data Centre within the same business day in occurance if an incident or Disaster happens. 2) Inter Office Connectivity: - All their Branch / Area and Regional offices will be interconnected to their Data Centre with a 24x7 access to Core Applications like Lotus Mail, Life-Asia and Internet Applications. This will enable their associates to work faster and better with high-speed Internet connectivity and also ensure faster Turn Around Time for their customers. 3) Customer Care Centre: - They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai, which cater services to internal and external queries and complications. A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress. 4) Web Portal: - This portal will be an interface between both internal employees and their external users. Some of the functions included in their portal are Policy Tracking Systems, Corporate News, Quality Checking System, Under Writing Medical System, and Agent Management System etc. 5) R World: - Reliance Mobile R-World will provide online information about their Company, Products, and Policy Services to their existing customers, Agents/Advisors and Lead Generators. 6) SMS Alerts: - SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns, Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. Customer Alerts will include Welcome/Birthday/Anniversary message, Policy Dispatch Details, Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc. 7) Life and Group Asia: - Single Life and Group Life details will be captured and managed by Life and Group Asia. A common middleware between these applications will enable Group Life Customers to view their individual Single Life Insurance Plan details taken with Reliance Life Insurance and vice versa. 8) Advisor Lounge: - It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches 22. Reliance Life Insurance A Reliance Capital Company 22 | P a g e across India. This Lounge will be equipped with desktops and printers with Internet connectivity, where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. The Agents/Advisors can use this area to service their existing customers. 9) Document Management System: - DMS will enable both policy issuance and contract servicing through an automated workflow, which yields a faster Turn around Time to both internal and external users. This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers. 10) Wireless Data Access: - This will enable identified Top Sales Managers and Top Advisors to access real time data for both LMS and CRM on the fly through Handheld PDA device. 11) SAP ERP Modules: - SAP (Finance and HR Modules), will automate the Expense, Travel and Leave Management Systems. MISSION The mission of Reliance Life Insurance Company Limited is to be the best in every sphere- business results, customer care and employee focus. The aim of the company is to Think Bigger and Think Better. CORE VALUES Reliance Life Insurance Company Limited has some core values which are listed as follows: 1) Result Oriented 2) Performance Driven 3) Customer Focused 4) Learning and Development Oriented 5) Employee Centric 6) Informal and Fun FUTURE PLANS Forty-four new branches to be opened across the country in the coming months; and a pan India presence with 162 branches in the coming year. A state-of-the-art customer care centre will provide continuous, responsive services to the caller and promptly address queries, collate feedback and suggestions from the caller, who may be both 23. Reliance Life Insurance A Reliance Capital Company 23 | P a g e prospective and existing clientele and from channel partners in Chennai and Mumbai. It will be launching additional products aimed at providing unparalleled service to its valued clientele. VISION Empowering everyone live their dreams. GOAL Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below: Emerge as transnational Life Insurer of global scale and standard Create best value for Customers, Shareholders and all Stake holders Achieve impeccable reputation and credentials through best business practices HEAD OFFICE Reliance Life Insurance Company Limited, The Trapezium, 39, First Floor, Nelson Manickam Road, Chennai 600 029. BRANCHES They have so many branches and substations in the India. They have around 160 branches in the India. And they have planned to open more branches across the country in the coming months PRODUCTS TRADITIONAL PLAN:- Life insurance products are designed to suit the requirementsof customers. Fundamentally the product provide for: Risk cover Investment Health cover 24. Reliance Life Insurance A Reliance Capital Company 24 | P a g e In every product, to a certain degree, risk cover is imperative for it to fall under the category of insurance. Based on the coverage of the product, the premiums are calculated and the customer pays accordingly. In order to suggest the right product, it is essential for an agent to understand the requirements of the customer well. Reliance Life Insurance Company Limited has offered 9 traditional plans to the customers, which are listed as follows: 1) Reliance Term Plan 2) Reliance Whole Life Plan 3) Reliance Child Plan 4) Reliance Endowment Plan 5) Reliance Special Endowment Plan 6) Reliance Cash Flow Plan 7) Reliance Credit Guardian Plan 8) Reliance Special Credit Guardian Plan Each of the above traditional plans is discussed as follows: 1) Reliance Term plan: - This insurance policy is designed for those who only want life cover for the protection of their family, and do not wish to save for themselves. It can also be useful to business firms that wish to provide financial security to their business against the sudden loss of partners or valuable manpower. Since there is no saving element or bonus provision, the premium is very low. Hence, this is a high-risk plan with a low premium. Features: - a) Purely a term plan b) Entry age minimum 18 years and maximum 65 year c) Maximum premium paying term is 30 year d) Loan facility N.A. e) Maturity amount = Sum assured 2) Reliance Whole Life Plan: - This insurance policy is designed for people who do not wish to avail of any benefits themselves but wish to create an immediate estate to protect their family by availing of insurance cover on their life at a very low cost. Features: - a) It is a whole life insurance policy with profits b) Low cost life cover 25. Reliance Life Insurance A Reliance Capital Company 25 | P a g e c) Maturity age is 85 year or 99 years last birthday as chosen d) Maturity amount = Sum assured + Vested bonus e) Tax benefit is available 3) Reliance Child Plan: - This insurance policy is designed for people who wish to save money for a future time when there will be a recurring need for substantial amounts of money. This is especially true when it comes to paying large sums of money for higher education as and when your son or daughter is studying to become an Engineer, a Doctor or specialize in some other field, or is perhaps planning to go abroad. This money is payable in equal installments over the last 4 years of the policy term. Features: - I. Minimum entry age is 20 year and maximum 60 year a) Minimum sum assured is Rs. 25,000. b) Minimum premium paying term is 5 year and maximum 20 year c) Tax benefit is available d) Maturity amount = Four equal installment of sum insured in last four year plus vested bonus in the last year e) Loan facility is available 4) Reliance Endowment Plan: - Reliance Life Insurances Reliance Endowment Plan is the key to all your financial needs. It is an inexpensive and easy way to protect you, your family or your business. In a nutshell this plan will keep you financially prepared for all the special occasions in your life - your daughters wedding, your childs university education or even a new office for your business - by eliminating the burden that a shortage of money creates. In the event of your untimely death, Reliance Endowment Plan will also assist your loved ones through this difficult time by the financial support that it provides. Reliance Endowment Plan also gives you the additional benefit of participating in the companys profits, which you will receive at the end of the policy period. Features: - a) Entry age minimum is 5 year and maximum 65 year b) Maturity age minimum is 18 year and maximum 75 year c) Minimum premium paying term is 5 year and maximum 35 year in case of regular and in case of single 15 year 26. Reliance Life Insurance A Reliance Capital Company 26 | P a g e d) Minimum sum assured is Rs. 25,000 or as determined by the minimum premium e) Maximum sum assured is Rs. 5,00,000 (entry age below 18 years and no limit for entry age 18 and above) f) Premium mode annual, half yearly, quarterly and monthly(by salary deduction only) g) Loan up to 90% of the surrender value of the policy h) Maturity amount = Guaranteed sum assured + Reversionary bonus 5) Reliance Special Endowment Plan: - This insurance policy is designed for people who wish to combine savings with extended security. The unique feature of this policy is that life protection continues for five years after you have stopped the payment of premium. Payment of sum assured at the end of premium paying term and extension of life cover thereafter for the full sum assured for a period of 5 years, are characteristics of the policy.This plan also participates in the profits. Features: - a) Entry age minimum 12 year and maximum 65 year b) Minimum sum assured is Rs. 25,000 c) Minimum premium paying term is 10 year and maximum 40 year d) Unique feature of this policy is that five year life protection continues after you have stopped the payment of premium e) Tax benefit is available f) Under this policy bonus is compounded yearly g) Loan facility is available h) Maturity amount = Full sum assured before maturity date + Vested bonus at the time of maturity date. 6) Reliance Cash Flow Plan: - This insurance policy is designed for those who have a recurring need for reinvestment in business or look for short-term investment channels. The advantage of the policy is that they need not part with a sizable amount of money at any one time, but create, through regular premium payments, a periodic return of lump sums which become available for reinvestment at higher returns, while providing simultaneously, substantial life cover. Alternatively, it can be used to meet any immediate financial crisis in the family like your son's college admission, your daughter's engagement, and renovation of your home or perhaps, a holiday abroad. The money is payable in installments. The first installment is paid at 27. Reliance Life Insurance A Reliance Capital Company 27 | P a g e the end of the 4th year and thereafter at the end of every 3rd year. Features:- a) Plan with profits b) Minimum entry age is 15 year and maximum is 63 year c) Maximum premium paying term is 34 year d) Loan facility is not available e) In case of death full sum assured + accrued bonuses up to the date of death is payable immediately f) In case of survival up to maturity date all premium paid g) Rider accident death and critical illness h) Mode of payment is available 7) Reliance Credit Guardian Plan: - This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death. Features: - a) Loan protection against home, home improvement, two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for single and regular is available e) Premium paying term is 2/3 of loan period and remaining period paid by the company 8) Reliance Special Credit Guardian Plan: - This insurance policy is designed for those who not only safeguards individuals but also families and businesses from the financial hardship that could arise from unfortunate and unexpected death, disability or critical illnesses. Features: - a) Loan protection against home, home improvement, two wheelers and four wheelers b) In case of death remaining loan amount paid immediately c) In case of survival no benefit is available d) Premium payment option for regular and single is available e) Premium payment term is 2/3 of loan period and remaining period paid by the company 28. Reliance Life Insurance A Reliance Capital Company 28 | P a g e f) Maturity amount = All the premium paid amount g) Tax benefit is available UNIT LINKED PLAN A unit-linked policy is a life assurance policy in which the benefits depend on the performance of a portfolio of shares. Each premium paid by the insured person is split: a part is used to provide life assurance cover, while the balance (after the deduction of costs, expenses, etc.) is used to buy units in a unit trust. In this way, a small investor can benefit from investment in a managed fund without making a large financial commitment. As they are linked to the value of shares, unit linked policies can go up or down in value. Policyholders can surrender the policy at any time and the surrender value is the selling price of the units purchased by the date of cancellation 9less expense). A small part of the contribution is used for providing life cover and the balance is invested in unit. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the insured. Reliance Life Insurance Company Limited has also offered the two Unit Linked Plans, which are listed as follows: 1) Reliance Market Return Plan 2) Reliance Golden Years Plan Amongst the above plans the Reliance Market Return Plan is the largest selling plan of the Reliance Life Insurance Company Limited. The above two ULIP plans are discussed as follows: 1) Reliance Market Return Plan: - Reliance Market Return Fund is the unit-linked product that helps you invest in the financial markets in a combination of investment instruments of your choice. You can enjoy the returns from the markets without the trouble of monitoring and managing your own investment portfolio and keeping track of the market movements. At the same time your investment premiums provide you with insurance cover. Reliance Market Return Fund unit-linked insurance plan provides you with a basket of fund options that balances your return and risk exposure while providing life cover at the same time. Features: - a) Minimum entry age is 30 days and maximum entry age is 65 year b) Maximum policy term 40 year and minimum policy term 5 year c) Mode of premium as annual, quarterly, half yearly and monthly Rs. 1000 (for salary deduction only) and Rs. 2500 (standing order/credit card) 29. Reliance Life Insurance A Reliance Capital Company 29 | P a g e d) Top up premium minimum Rs. 2500 e) Option of investment fund i. Capital secure 100% fixed interest securities ii. Balanced minimum 80% fixed interest securities and maximum 20% in equity iii. Equity 100% equity iv. Growth minimum 60% fixed interest securities and maximum 40% in equity f) Loan facility is not available g) One switches every year free and subsequent switches charged 1% of the amount switched h) Partial withdrawals per year under regular and single premium options is 2 times i) Lock in period till today is 3 year j) Minimum unit account balance after each withdrawals is Rs. 10,000 2) Reliance Golden Years Plan: - Reliance Golden Years Plan.. The Reliance Life Insurance no-worry stay happy retirement plan. Reliance Golden Years Plan is a flexible package that provides freedom of choice in choosing the type of investment, life cover, vesting options such as commuting and annuity options. Contributions provide Income tax savings as well. Reliance Golden Years Plan, a flexible pension product is available for all individuals who are between the ages of 18 and 65. Features: - a) Entry age minimum is 18 year and maximum 65 year b) Minimum premium amount Rs. 10,000 and maximum is unlimited c) Mode of premium payment is available d) Pension plan with risk cover and without risk cover e) Choice of investment i. Capital secure fund 80% in equity and 20% in government security ii. Balanced fund 80% in government and 20% in equity f) No loan facility is available g) Tax benefit is available h) Annuity options i. Annuity payable for life ii. Annuity payable for 5/10/15 years certain and thereafter with life iii. Annuity payable for life with return of capital on death of the annuitant ROLE OF FINANCE DEPARTMENT IN RELIANCE 30. Reliance Life Insurance A Reliance Capital Company 30 | P a g e LIFE INSURANCE. FUND PERFORMANCE:- There are four fund options, which Reliance Life Insurance Company Limited has offered, which are as follows: 1) Capital Secure Fund:- This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. In line with the objective of protecting the capital against any erosion, 61.4% of the funds were invested in short-term Government Securities (Gilts) and to meet liquidity requirement higher about 40% of funds are kept in short term bank deposits. Bank Fixed Deposits Asset Name % of total assets Total Bank Deposit 38.60 Gilts Total Gilts 61.40 Total 100.00 2) Balanced Fund:- This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. To take advantage of the bullish trend in the equity market, the equity holdings in the fund was maintained as close as possible to the maximum of 20% allowed for the fund. Bank deposits were maintained only for the purpose of liquidity management. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. Within the fixed income portfolio, allocation to Gilts was higher than corporate bonds. All the bonds in the portfolio are top rated Asset Name % of Total Asset Equity 20 Corporate Bonds & Debentures 22 Gilts 53 Bank Deposits 5 Total 100.00 3) Growth Fund:- This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. To take advantage of the bullish trend in the equity market, the equity holdings in the fund was 31. Reliance Life Insurance A Reliance Capital Company 31 | P a g e maintained as close as possible to the maximum of 20% allowed for the fund. To reflect their bearish view on the debt market the duration of the fixed income portfolio was kept low. All the bonds in the portfolio are top rated. Asset Name % of Total Asset Equity 9 Corporate Bonds & Debentures 40 Gilts 45 Bank Deposits 6 Total 100.00 4) Equity Fund:- This fund is for Reliance Market Return Plan. In line with the stated asset allocation pattern and their view of the market, the entire corpus of the fund was invested in equities. Asset Name % of Total Asset Equity 98.93 Mutual Fund/Bank Deposits 1.07 Total 100.00 32. Reliance Life Insurance A Reliance Capital Company 32 | P a g e A.3>RELIANCE LIFE PLAZA Reliance Life introduces Life Plaza RELIANCE LIFE INSURANCE INTRODUCES LIFE PLAZA FIRST-OF-ITS-KIND SALES AND SERVICE INITAITIVE BY A NY INSURER IN INDIA AIMS TO FULFILL NEEDS OF PROSPECTIVE AND EXISTING CUSTOMERS AND OFFER FINANCIAL AND VALUED-ADDED SERVICES TO SET UP CLOSE TO 200 LIFE PLAZA BRANCHES ACROSS THE COUNTRY PLANS TO HIRE 1,000 PEOPLE UNDER NEW SALES FORMAT FOCUS ON TIER II, TIER III AND TIER IV CITIES MUMBAI, OCT 23: Reliance Life Insurance Company (RLIC) today introduced a distribution channel Life Plaza aimed at creating awareness about life insurance and said it plans to set up about 200 branches across the country by the end of the current financial 33. Reliance Life Insurance A Reliance Capital Company 33 | P a g e year. The main objective of our new distribution format is to generate greater awareness about life insurance in and around different locations where these Life Plazas will operate and create a pull for life insurance products, Malay Ghosh, President and Executive Director, Reliance Life Insurance, said. RLIC targets to hire about 1,000 people under this new distribution format within this fiscal and would focus on Tier II, Tier III and Tier IV cities for recruitment and setting up of Life Plazas, he said. Reliance Life Plaza would promote need-based sales, fill service gaps and also offer financial and value-added services such as tax and financial planning, Aadhar card registration, pan card generation, health check-ups and nutrition counselling. All Life Plazas will be managed by RLIC employees, who will handle customers queries and process the documentation instantly at the venue, with a view to tap new customers and also provide service to existing RLIC policyholders, the company said. Apart from addressing walk-in customers, the company will also proactively invite customers to the Life Plaza for presentations on the benefits of investment in various financial products; importance of insurance as life protection tool and RLICs wide-range of products and services, it said. We believe this unique distribution model will help us reach out to customers, understand their needs and provide solutions to them at the venue. The process of selling will ensure that the customer buys only what he or she needs and understands and thus also address the problem of mis-selling, Malay Ghosh said. He further added that, We are confident that Life Plaza will help us build a healthy relationship with the customers and expand and strengthen the existing distribution channels in order to increase our reach. We hope to replicate the success that this model enjoys in Japan, he said. RLIC is the first company in the country to set up a structured need-based in- branch sales platform in the form of a Life Plaza, the company said. 34. Reliance Life Insurance A Reliance Capital Company 34 | P a g e Reliance Life Insurance Company (RLIC), part of Reliance Capital Limited, on Tuesday introduced a new distribution channel -- Life Plaza -- a first-of-its-kind sales and service initiative by any insurer in India. RLIC is the first company in India to set up a structured need-based in-branch sales platform in the form of a 'Life Plaza', which aims at creating awareness about life insurance and fulfilling the needs of prospective customers through financial planning and its array of products and services. The introduction of Life Plaza was announced by Mr. Malay Ghosh, President and Executive Director, Reliance Life Insurance, here today. "The main objective of our new distribution format is to generate greater awareness about life insurance in and around different locations where these Life Plazas will operate and create a pull for life insurance products. Need fulfillment of customers at the venue through our products and services is the ultimate goal of Life Plaza," said Mr. Ghosh. Inspired by best practices of Nippon Life, Reliance Life Plaza would promote need- based sales, fill service gaps and also offer financial and value-added services such as tax and financial planning, Aadhar card registration, pan card generation, health check- ups and nutrition counseling. All Life Plazas will be managed by RLIC employees, who will handle customers' queries and process the documentation instantly at the venue, with a view to tapping new customers and also providing service to existing RLIC policyholders. LIFE INSURANCE SCRIPT IN RELIANCE LIFE PLAZA Life insurance script in life plaza details in the following process:-- How to start? Good Morning Sir/Madam, I am ___________ (Name), from Reliance Life Insurance Co Ltd., and I am currently working as a ... I help people in analyzing their present financial 35. Reliance Life Insurance A Reliance Capital Company 35 | P a g e condition and how they may further be benefited in building a financially secured future. As discussed earlier with you, all we will need is half an hour of your valuable time. I assure you that you will not be under obligation to buy. Let us consider a situation, where the clients age is 35 years, his spouse is aged 32 years and they have a child aged 2 Years. With your kind permission, I will like to know about some of your details about you and your family members, which will help us to do the right analysis and find appropriate solution for you. I assure you, these details will be kept strictly confidential and under no circumstances be shared with anyone else. And at the end of the discussion I will leave the paper with you. Before I start, I just wanted to tell you that it would have been better if bhabhi ji also joins us in this discussion. Step 1: Seeking Information Mr. Rakesh, I would like to know your current age. 35 Years I would like to know whether you are married. Yes If Response if Yes: If you dont mind, may I know madams Name and Age. Sweta Sharma, 32 Years (If Married), Do you have any children ? Yes, I have a daughter If Response if Yes: If you dont mind, I will also like to know the sweet little ones name and age. 36. Reliance Life Insurance A Reliance Capital Company 36 | P a g e Sanjana Sharma, 2 Years Apart from this, do you have any other dependants? Yes, my parents If you dont mind, may I ask about your current occupation and for how long are you involved in it? Where did you start first? At the Age of 25 years, in Delhi How long do you intend to keep earning from your current occupation? In other words, by what age you plan to take off from your occupation and enjoy your life Till 60 years If I have understood you correctly, you are currently 35 years of age, with a family comprising of your wife, aged 32 years and a children aged 2 years respectively. Name: Rakesh Sharma Age: 35 Years Wife: Sweta Sharma Age: 32 Years Daughter: Sanjana Sharma Age: 02 Years Step 2: Need Identification As you have told me that you started your earning at the age of 25 years. And you wish to continue till the age of 60 years. I would also like to inform you that As per World Health Organization (WHO) report, the current Average Indian Male will go on to live till 75 years and the Average Indian Female will live 5 years more than their male counterpart i.e. 80 years. Though I wish that you live more than 100 years. Sir, can you pls tell me what is your monthly expenses currently including house rent, food, child education, medical expenses, transportation, etc. i.e. the cost to 37. Reliance Life Insurance A Reliance Capital Company 37 | P a g e maintain your family as of now?. Approx. Rs. 20000 Consider if you maintain the same life style and family 25 years back say in late 80s or early 90s, your expense would have been same or different? Different. Approx Rs. 2000 An increase of 10 Times. Am I correct sir? Correct me if I am wrong, as you had shared with me earlier , that you intend to take off from your work at the age of 60 years. Considering that inflation and other environmental factors etc. what would be your monthly expense when you attain the age of 60 i.e. 25 years from now to maintain your family? Will it increase @ 10 times or more? I think it will go up to Rs. 100000 / month So total expense for a year = 100000X12= 1200000 i.e. 12 Lacs You will continue without income from 60 to 75 years i.e. around 15 years. So you will require 1200000X15 = 18000000 i.e. 1.8 Cr Since you have started earning very early, I am very sure that you would have saved for your old age. Can I know the approx value of your savings for old age as on date? Rs. 1000000 i.e. 10 Lacs As we have seen that your expense went up, in the same way value of your saving will also go up in next 25 years. Can I know the approx value of your saving at the age of 60. Rs. 8000000 i.e. 80 lacs So you will still require 18000000-8000000= 10000000 i.e. 1 Cr. for your old age. Have you ever thought of it sir? 38. Reliance Life Insurance A Reliance Capital Company 38 | P a g e Step 3: Creating Urgency Lets assume that you are at the age 60 and I tell you about your requirement of Rs. 1 crore at that point. Can you tell me about any investment avenue which can give you a return of Rs.1 crore in such a short span of time. I dont think there is any! But if you start provisioning for it at the age of 55 years, will it be easier for you or not? Sure Same thing if you start at the age of 45 years, will it be little easier or not? Yes, easier Which one will be the most easiest for you? If you start at the age of 35 i.e. now or after it? At the age of 35. That is what I was trying to convey you. There are so many ways in which you can provision for it. You can invest in 39. Reliance Life Insurance A Reliance Capital Company 39 | P a g e Bank, Share Market, Real estate, Gold etc. But I can tell you about an avenue of investment which will cover your risk, will be easier , will be cheap and is available for you if you wish to start provisioning now. And that is INSURANCE Once you start provisioning for it, the whole amount of 1 crore will be set aside by insurance company for your family. You will be paying premium for it in bit and pieces and not at once, which will be easier for you. If you start now, the premium will be the lowest otherwise as your age increases, premium will also increase. Now because you are healthy, any insurance company will be willing to make provision for your corpus of Rs. 1 crore. And as you know any one can catch illness in this changing environment. Once anyone becomes ill, no insurance company would like to bear his / her risk. In todays world where there is no certainty of life, only insurance ascertain you that the corpus which you wish to built will reach to you or your family whatever the circumstances may be. 40. Reliance Life Insurance A Reliance Capital Company 40 | P a g e Step 4: Proposing a Solution As per the risk appetite and saving capacity of the customer, a solution can be proposed. If customer wants to take risk on his investment to create the corpus for his old age, then we can suggest him Unit Linked Insurance product. In ULIPs, customer may get a return of 12-15% on his investment in long run (As per the past history of share market). Investment risk in market linked product is borne by the policyholder. And if the customer does not want to take risk and wants guaranteed return on his investment, then Traditional insurance products can be offered. In traditional products, customer will get a return in the range of 6-10% in long run. Investment risk in traditional product is borne by insurer. It is very much possible that customer may not be able to pay the premium required for building a corpus of 1 crore at this point of time. His current income may not permit it. But he can always start with a small corpus of let us say 10-20 lacs with his present disposable income. And as and when his income grows, rest of the corpus 41. Reliance Life Insurance A Reliance Capital Company 41 | P a g e can be taken care of. Taking a small step towards building the corpus for old age and then achieving it in phase by phase makes it easier to achieve . A.4> ABOUT PROJECT The project deals with the topic ULIP(Reliance classic plan-II):Breaking the myth and repositioning as a product of choice. The project would also help in understanding preference of people regarding private and public insurance companies. The entry of foreign MNCs and the conductive business environment fostered by the government, it is no wonder that the re-entry of private insurance has marked a second coming for the sector. In just five years, the sector has undergone a makeover, offering more choice, better services, quicker settlement, tighter regulation and greater awareness s the environment become more and more competitive and services and products become alike, creating a differentiation is becoming extremely tough. Thus, the main objective of my project was to find out the preference of people regarding insurance companies, which would help R.L.I. employees to market their product. The study then goes on to evaluate and analyze the findings so as to present a clear picture of recent trends in the Insurance sector. 42. Reliance Life Insurance A Reliance Capital Company 42 | P a g e 43. Reliance Life Insurance A Reliance Capital Company 43 | P a g e SECTION :B RELIANCE LIFE INSURANCE LAUNCHES ULIP (RELIANCE CLASSIC PLAN II) 44. Reliance Life Insurance A Reliance Capital Company 44 | P a g e RELIANCE CLASSIC PLAN-II UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. Life is a race: If you are not fast enough, you will get trampled. To keep pace in the race of life where financial planning is one of the key requirements, it is imperative that you move fast and act smart. Plan early Invest Now Reliance Life Insurance Classic Plan - II, A Unit Linked insurance plan works well for people in every stage of life, from young investors to retirees Invest Now Invest Smart Reliance Life Insurance Classic Plan - II helps you plan your finances wisely, cover the 45. Reliance Life Insurance A Reliance Capital Company 45 | P a g e risk arising due to loss of life and assumes all the flexibilities required in a financial product. Key features - Reliance Life Insurance Classic Plan - II Dual benefit of market linked return and insurance protection. Amount equivalent to base sum assured is payable in extra on account of accidental deaths. Investment opportunity with flexibility - Choose from 8 pure investment fund options Additional flexibility with options like Systematic Transfer Plan &Premium Redirection. Option to pay Top-up Premium(s). Liquidity in the form of partial withdrawals after completion of five policy anniversaries. Exchange option to take advantage of any new plans we may offer in the future. A host of optional rider benefits to enhance protection cover. How does the Reliance Life Insurance Classic Plan - II works? As a customer you have the liberty to choose between eight fund options. The premium contributions you make, net of premium allocation charges are invested in funds of your choice. The units are allocated depending on the price of units for the funds. The Fund Value is the total value of units that you hold across all the unit-linked funds. Sum Assured Minimum Sum Assured: The minimum sum assured under the base plan depends up on the age at entry of the life assured If the age at entry is If the age at entry is less than 45 years equal to or greater 46. Reliance Life Insurance A Reliance Capital Company 46 | P a g e than 45 years Regular Higher of 10 times of Higher of 7 times of Premium the annualised the annualised Policy premium or 1/2* premium or 1/4* policy term policy term *Annualised premium *Annualised premium Single 125% of the single 110% of the single Premium Premium Premium Policy The minimum sum assured under Top-up depends upon the age of the life assured at the time of payment of top-up premium If the age at payment If the age at payment of top premium is of premium is equal less than 45 years to or greater than 45 years Top up Fixed sum assured of Fixed sum assured of Premium 125% of the top up 110% of the top up Premium premium At any point of time, the minimum death benefit shall be 105% of the total premiums (including top-ups) paid. Maximum Sum Assured: The following table shows the maximum sum assured for regular premium payment optio 47. Reliance Life Insurance A Reliance Capital Company 47 | P a g e Age at entry Maximum Sum Assured (last birthday) 30 times of Annualised Premium subject 7 to 11 to maximum of ` 5 lakhs across all policies (including base plan and top up) with Reliance Life 12 to 50 30 times of Annualised Premium 51 to 55 25 times of Annualised Premium 56 to 60 20 times of Annualised Premium The maximum sum assured under top up premiums will be fixed sum assured of 125% of the top up premiums if the age of the life assured at the time of payment of top up premium(s) is less than 45 years and fixed sum assured of 110% of the top up premiums if the age of the life assured at the time of payment of top up premium(s) is greater than or equal to 45 years. The maximum sum assured (including base plan and top up across all polices with Reliance Life Insurance Company) shall not exceed ` 5 Lakhs, if the age of the life assured is greater than or equal to 7 years but less than 12 years. At any point of time, the minimum death benefit shall be 105% of the total premiums (including top-ups) paid. 48. Reliance Life Insurance A Reliance Capital Company 48 | P a g e SECTION:C ULIP PRODUCTS RELIANCE CLASSIC PLAN-II 49. Reliance Life Insurance A Reliance Capital Company 49 | P a g e C.1> ULIP {ABOUT us. Reliance Life Insurance offers you products that fulfill your savings and protection needs. Our aim is to emerge as a transnational Life Insurer of global scale and standard. Reliance Life Insurance Company Limited is a part of Reliance Capital, under Reliance Group. Reliance Capital is one of India's leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Group also has presence in Communications, Energy, Natural Resources, Media, Entertainment, Healthcare and Infrastructure. C.2>ULIP {CHARGES. Charges and Recovery of charges under the policy: Allocation charges: The allocation charges are deducted from the premiums. The allocation charges in 50. Reliance Life Insurance A Reliance Capital Company 50 | P a g e respect of regular premium payment policies are stated below: Policy Year Allocation charge as % of the annualised premium 1 year 8.00% 2nd year to 5th year 5.50% 6th year to 9th year 5.00% 10th year onwards 3.00% The allocation charge on the single premiums will be 2% of the single premium and allocation charge under the top up will be 2% of the Top Up amount. Mortality charges: This charge will be deducted from the fund value under the base plan and top-up premium(s). The mortality charges will vary depending on 1. The amount of life insurance cover 2. The attained age of life assured 3. The occupation of the life assured 4. The health of the life assured The standard mortality charges per annum under this policy per` 1000/- sum assured are given in Annexure A. These mortality charges will be deducted on a monthly basis at the beginning of each policy month using 1/12th of the mortality rates. Accidental Death Benefit Charges: Annual charge for Accidental Death Benefit is `1 per 1000 Sum Assured and will be deducted on monthly basis at the beginning of each policy month using 1/12th of the charge. Discontinuance Charge 51. Reliance Life Insurance A Reliance Capital Company 51 | P a g e The discontinuance charge under the regular premium payment policy is as given below: The policy year during which the policy is discontinued Discontinuance charge if the annualised premium is less than or equal to ` 25,000 Discontinuance charge if the annualised premium is greater than ` 25,000 1 Lower of 20% of (Annualised premium or Fund value), subject to a maximum of `3,000 Lower of 6% of (Annualised premium or Fund value), subject to a maximum of `6,000 2 Lower of 15% of (Annualised premium or Fund value), subject to a maximum of `2,000 Lower of 4% of (Annualised premium or Fund value), subject to a maximum of `5,000 3 Lower of 10% of (Annualised premium or Fund value), subject to a maximum of `1,500 Lower of 3% of (Annualised premium or Fund value), subject to a maximum of `4,000 4 Lower of 5% of (Annualised premium or Fund value), subject to a maximum of `1,000 Lower of 2% of (Annualised premium or Fund value), subject to a maximum of `2,000 5 and above Nil Nil There are no discontinuance charges under single premium and top up premiums. Partial Withdrawal Charge: Partial withdrawal charge of ` 100 will be collected from the fund withdrawn, on every partial withdrawal. Policy Administration Charge 52. Reliance Life Insurance A Reliance Capital Company 52 | P a g e Under regular premium policies, ` 40 per month will be deducted as Policy Administration Charge from 6th policy year till the end of the policy term. Under single premium policies, ` 40 per month will be deducted as Policy Administration Charge for the entire policy term Fund management charge: Fund Name Annua l Rate Life Corporate Bond Fund 1 (SFIN: ULIF02310/06/08LCORBOND01121) 1.25% Life Money Market Fund 1 (SFIN: ULIF02910/06/08LMONMRKT01121) 1.25% Life Gilt Fund 1 (SFIN: ULIF02610/06/08LGILTFUN01121) 1.25% Life Equity Fund 3 (SFIN: ULIF04201/01/10LEQUITYF03121) 1.35% Life Infrastructure Fund 2 (SFIN: ULIF04401/01/10LINFRAST02121) 1.35% Life Midcap Fund 2 (SFIN: ULIF04501/01/10LMIDCAPF02121) 1.35% Life Pure Equity Fund 2 (SFIN: ULIF04601/01/10LPUEQUTY02121) 1.35% Life Balanced Fund 1 (SFIN: ULIF00128/07/04LBALANCE01121) 1.25% Discontinued Policy Fund 0.5% Switching charge: There are 52 free switches during any policy year. Subsequent switches if any will have a fixed charge of` 100 per switch. Miscellaneous Charge (Charge for Systematic Transfer Plan (STP) Option.) There is no charge, the first time Systematic Transfer Plan Option is effected for regular 53. Reliance Life Insurance A Reliance Capital Company 53 | P a g e premium payment mode as well as top ups. Subsequently, a fixed charge of `100 will be levied every time the Systematic Transfer Plan Option is selected. There are no charges for cancellations of STP option. Service Tax Charge This charge shall be levied on the Allocation charge, Mortality charge, Accidental Death Benefit charge, Policy administration charge, Fund Management Charge, Switching charge, Miscellaneous charges on STP option and rider premiums. The level of this charge shall be as per the rate of Service Tax, declared by the Government from time to time. The current rate of service tax is 10.30% (10% for service tax and 3% education cess). The service tax on Fund management charge is applied on actual fund management charge or the maximum fund management charge fixed by the IRDA, whichever is higher. Recovery of Charges Mortality Charges Mortality charges will be recovered by cancellation of units at the prevailing unit price, in advance at the beginning of each month. Accidental Death Benefit charges Accidental Death Benefit charges will be recovered by cancellation of units at the prevailing unit price, in advance at the beginning of each month. Allocation charges The allocation charges are deducted as percentage of premium (regular premium or single premium or top up as the case may be) before allocation of units each time a premium is received. Policy administration charge The monthly Policy administration charge during the settlement period will be deducted by cancelling units at the prevailing unit price in advance at the beginning of the month. Fund Management charges The Fund Management charges will be priced in the unit price of each Fund on a daily basis. This will result in the adjustment of NAV. 54. Reliance Life Insurance A Reliance Capital Company 54 | P a g e Partial Withdrawal charge A Partial withdrawal charge of `100 will be deducted from the amount of fund withdrawn on every partial withdrawal. Premium for rider benefits The premium for rider benefits if selected will be collected over and above the premium under basic plan. The frequency of rider premium will be same as frequency of premium under basic plan. Service Tax Charge The service tax charge will be collected as mentioned below: a. The Service Tax charge on allocation charge will be deducted from the premium along with the allocation charge. b. The Service Tax Charge on Fund Management Charge will be priced in the unit price of each Fund on a daily basis. c. The Service Tax charge on Policy administration charge, Mortality charge, Accidental Death Benefit charge, switching charge and Miscellaneous charges on STP option will be recovered by cancellation of units at the prevailing unit price. d. Service tax will also be applicable for rider premium and has to be paid along with the rider premium. Switching charge Switching charge will be recovered by cancellation of units at the prevailing unit price. Miscellaneous Charge (Charge for Systematic Transfer Plan (STP) Option.) Charge for Systematic Transfer Plan (STP) Option will be recovered by the cancellation of units at the prevailing unit price. Charges Levied by the Government in Future In future the Company may decide to pass on any additional charges levied by the governmental or any statutory authority to the policyholder. Whenever the company decides to pass on the additional charges to the policy holder, the method of collection of these charges shall be informed to them. In the event that units are held in more than one Fund, the cancellation of units will be effected in the same proportion as the value of units held in each Fund. In case the fund 55. Reliance Life Insurance A Reliance Capital Company 55 | P a g e value in any fund goes down to the extent that it is not sufficient to support the proportionate monthly charges, then the same shall be deducted from the fund value of the other funds. Revision in Rate of Charges The revision in charges if any ( except the service tax charge) will take place only after giving three months notice to the policyholders and after obtaining specific approval of the IRDA. The service tax charge will be revised as and when notified by the Government. If the policyholder does not agree with the modified charges, they shall be allowed to withdraw the units in the plans at the then prevailing unit value after paying surrender charge if any and terminate the Policy. The Company reserves the right to change the Fund Management charge. However, the maximum FMC on any fund excluding discontinued policy fund will be 1.35% p. a. and the maximum FMC on discontinued policy fund will be 0.5% p. a. The policy administrative charge is subject to revision at any time, but will not exceed` 80 per month. The partial withdrawal charge, switching charge and the charge for selecting STP option is subject to revision at any time, but will not exceed` 500. The premium rates under Reliance Term Life Insurance Benefit Rider, Reliance Life Insurance Family Income Benefit Rider are guaranteed throughout the policy term. The premium rates for Reliance New Major Surgical Benefit Rider and Reliance New Critical Conditions (25) Rider, once applied on any policy, will be guaranteed for the first three years of the policy. After three years period, the Company may change the premium rates with three months prior notice subject to the IRDA approval. Such revised rates would be effective on all in-force policies and new policies sold. C.3>ULIP {FAQs. What happens if I am unable to pay my regular premiums? If you are unable to pay due regular premiums within the grace period: 56. Reliance Life Insurance A Reliance Capital Company 56 | P a g e A revival notice will be sent to the policyholder within fifteen days from the date of expiry of the grace period. The policyholder shall be entitled to 1. revive the policy, or 2. to withdraw completely from the policy without any insurance benefit, accidental death benefit and rider benefits. The policyholder has to exercise any one of the options within 30days from the date of receipt of the revival notice. During this period, the policy will be treated as in-force with insurance and accidental death benefits but the rider benefits will cease immediately. The policy will participate in the performance of fund. Mortality charges, Accidental Death Benefit charges and Policy Administration Charges will be deducted from the fund value by cancellation of units. The Fund Management Charge will be priced in the unit value. 1. Revival: If the policyholder opts to revive the policy, the policy continues with all the benefits. 2. Complete withdrawal from the policy without any insurance benefit and rider benefits: In case the policyholder chooses to withdraw the policy or does not exercise any option, then the policy treatment would vary depending on the number of completed policy years. Discontinuance of premium within five years of inception of the policy: On discontinuance of premium, the fund value under the base plan (including top-ups) less applicable discontinuance charges less the outstanding loans along with interest will be switched to Discontinued Policy Fund. The insurance benefit, accidental death benefit and rider benefits ceases immediately. The income earned on the fund shall be apportioned to the discontinued policy fund. The proceeds of the discontinued policies shall be payable only on completion of five policy anniversaries. Discontinuance of premium after five years of inception of the policy: On discontinuance of premium, the fund value under the base plan (including top-ups) less applicable discontinuance charges less the outstanding loans with the interest, if any will be paid to the policyholder. Revival of policy after non-payment of due premiums If the due premiums are not paid within the grace period, a revival notice will be sent to the policyholder within fifteen days from the date of expiry of the grace period. The 57. Reliance Life Insurance A Reliance Capital Company 57 | P a g e policyholder may revive a policy by the payment of the due premium(s) at any time within a period of 30 days from the date of receipt of the revival notice but before the maturity date of the policy subject to satisfactory medical and financial underwriting. In case the policyholder chooses to withdraw the policy or does not exercise any option and if the policy has not completed five years from the date of inception, the policy shall be treated as discontinued. Policyholder can revive the discontinued policy within two years from the date of discontinuance or expiry date of policy term, whichever is earlier, by paying all the outstanding premiums to the company If the basic plan is revived, the riders can be revived by paying the arrears of premiums with interest at the prevailing rate of interest. The current rate of interest is 9.0% p.a. This will be subject to satisfactory medical and financial underwriting. What if I want to discontinue/surrender the Policy? Surrender Value under the regular premium policy: The surrender Value under the single premium policy will be the fund value. Surrender value is acquired immediately on payment of the single premium. However, the surrender value will be payable after the completion of five policy anniversaries. There is no discontinuance charge under single premium policy. If the policyholder has availed loan under single premium policy, the loan outstanding and the interest on loan outstanding will be recovered first from the surrender value and the balance if any will be paid to the policyholder. Whenever full surrender value of basic plan is paid, the surrender value of any attaching top ups will also be paid. Once a policy is surrendered in full, it cannot be reinstated. Surrender Value under the top-up: The surrender Value under the top up will be the fund value. Surrender value is acquired immediately on payment of the top up premium. However, Surrender value of top up can be paid after the completion of five years from the date of payment of top up. There is no discontinuance charge on the top ups. The surrender value is therefore equal 58. Reliance Life Insurance A Reliance Capital Company 58 | P a g e to the fund value under the top ups. Whenever full surrender value of basic plan is paid, the surrender value of any attaching top ups will also be paid. Foreclosure of the Policies in-force: For the policies in force, if anytime during the tenure of the policy but after five policy anniversaries, the fund value is less than the charges for the next month, the policy will be foreclosed by paying the fund value. Can I avail loan under this policy? Not Applicable Can I change the mode of premium payment? The mode of premium payment can be changed on the policy anniversary. Grace Period for payment of premiums 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. A policy lapses if premiums are not paid within the days of grace. C.4>ULIP {FLEXIBILITY. RelianceLifeInsuranceClassicPlan-II Nomination: Nominations will be allowed under this plan as per Section 39 of the Insurance Act, 1938. The life assured, where he is the Policyholder, may, at any time during the policy term, can make a nomination for the purpose of payment of Benefits in the event of his death. Where the Nominee is a minor, the Policyholder may also appoint a person to receive the money during the minority of the Nominee. Nomination may be made by an endorsement on the Policy and by communicating the same in writing to the Company. Any change of nomination, which may be effected before the termination of the Policy shall also be communicated to the Company. In registering a nomination, the Company does not accept any responsibility or express any opinion as to its validity or legal effect. 59. Reliance Life Insurance A Reliance Capital Company 59 | P a g e Assignment: Assignment will be allowed under this plan as per section 38 of the Insurance Act, 1938. An assignment of the Policy may be made by an endorsement upon the Policy itself or by a separate instrument signed in either case by the assignee or specifically stating the fact of assignment and duly attested. Only the Policyholder may make the first assignment. Such assignment shall be effective, as against the Company, from and upon the service of a written notice to the Company and the Company recording the assignment in its books. In case of assignment under this Policy, the assignee would not be entitled to increase the Death Benefit. In registering an assignment, the Company does not accept any responsibility or express any opinion as to its validity or legal effect. General Exclusion: The company will not pay any additional sum assured on accidental death which results directly or indirectly from any one or more of the following. However, the basic sum assured is payable under these circumstances. i. an act or attempted act of self-injury ii. participation in any criminal or illegal act, iii. being under the influence of alcohol or drugs except under direction of a registered medical practitioner, iv. racing or practicing racing of any kind other than on foot, v. flying or attempting to fly in, or using or attempting to use, an aerial device of any description, other than as a fare paying passenger on a recognised airline or charter service, vi. participating in any riot, strike or civil commotion, active military, naval, air force, police or similar service, or vii. war, invasion, act of foreign enemies, hostilities or war like operations (whether war be declared or not), civil war, mutiny, military rising, insurrection, rebellion, military or usurped power or any act of terrorism or violence. Suicide Exclusion: If the Life Assured commits suicide for any reason, while sane or insane, within 12 months from the date of commencement of this policy or the date of any revival of the policy this policy shall be treated as null and void, and the Company will limit the death benefit to the Fund Value and will not pay any insured benefit 60. Reliance Life Insurance A Reliance Capital Company 60 | P a g e How safe is your investment Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The contribution paid in unit linked insurance policies are subject to investment risks associated with capital markets and NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital markets and the policyholder is responsible for his/her decisions. Reliance Life Insurance Company Limited is the name of the company and Reliance Life Insurance Classic Plan - II is only the name of the policy and does not in any way indicate the quality of the policy, its future prospects or returns. The names of the Fund Option viz Life Corporate Bond Fund 1, Life Money Market Fund 1, Life Gilt Fund 1, Life Equity Fund 3, Life Infrastructure Fund 2, Life Balanced Fund 1, Life Midcap Fund 2 and Life Pure Equity Fund 2 do not in any manner indicate the quality of the Fund Option or their future prospects or returns. The Fund Option(s) do not offer any guarantee or assure any guaranteed return; Investments in Units are subject to market and other risks. Investment risk in investment portfolio is borne by the Policyholder. There is no assurance that the objectives of the Fund Option shall be achieved; The Unit Price of the Units may fluctuate depending on factors and forces affecting the capital markets and the level of interest rates prevailing in the market; Past performance of the Fund Options is not indicative of future performance of any of those Fund Options. All Benefits payable under this Policy are subject to tax laws and other fiscal enactments in effect from time to time. The Company reserves the right to suspend the Allocation, reallocation and/or cancellation of Units under extraordinary circumstances such as extreme volatility of assets, extended suspension of trading on stock exchange, natural calamities, riots and other similar events or force major circumstances. C.5>ULIP {BENEFITS. Life Cover Benefit: In the event of death of the life assured provided the policy is in full force on the date of death, the higher of Sum Assured under the base plan or the fund value under the 61. Reliance Life Insurance A Reliance Capital Company 61 | P a g e base plan as on the date of intimation of death Plus the higher of Sum Assured under the Top-up or the fund value under the top-up as on the date of intimation of death will be paid. In the event of death of the life assured due to accident on or before age 65, provided the policy is in force on the date of death, an additional amount equal to the base sum assured will be paid. However if the age at accidental death is less than 18 years, the maximum additional sum assured payable for accidental death (across all policies with Reliance Life) is up to Rs.5 Lakhs. The additional sum assured on accidental death (including sum assured under Reliance Accidental Death and Total and Permanent Disablement Rider across all policies with Reliance Life) will not exceed Rs. 50 Lakhs. At any point of time, the minimum death benefit shall be 105% of the total premiums (including top-ups) paid. The policy terminates on payment of death benefit. Maturity Benefit: On survival of the Life Assured to the end of the policy term provided the policy is in force and all due premiums are paid, the Fund Value under the basic policy and top-ups, if any, will be paid. The policy terminates on payment of maturity benefit. Rider Benefits: The following optional riders are available under Regular Premium polices, on payment of additional premium over and above the basic premium provided conditions on riders (entry age, policy term, sum assured) are satisfied: 1. Reliance New Major Surgical Benefit Rider: Provides lump sum amount to cover surgical expenses from a list of 33 surgeries including Open Heart surgery, Kidney Transplant, Cornea transplantation, Transplant of Lungs and many more. 2. Reliance New Critical Conditions (25) Rider: Provides lump sum amount to take care of 25 critical conditions including Cancer, Heart Attack, Paralysis, Major Organ transplant and many more. 3. Reliance Term Life Insurance Benefit Rider: Provides additional death benefit depending on the sum assured selected under the rider. 4. Reliance Life Insurance Family Income Benefit Rider: Provides a monthly benefit of 1% of sum assured every month (i.e.12% per annum). The benefit is 62. Reliance Life Insurance A Reliance Capital Company 62 | P a g e payable from the date of death till end of the rider policy term or 10 years whichever is later, in the event of death/total and permanent disablement due to accident or sickness, before the maturity of the policy. These rider benefits can be selected on commencement of the policy or on any policy anniversary during a policy term. The Sum assured under the rider cannot be higher than the sum assured under the basic plan. The sum of rider premiums should not exceed 30% of the premiums paid under Basic Plan. When the basic plan is lapsed, paid up, surrendered or forfeited, all the rider benefits attaching to the base plan will also terminate. Note: Please refer to the rider brochure on rider benefits for more details. Computation of Net Asset Value (NAV): The NAV will be computed as per the IRDA instructions vide circular no.: IRDA/F&I/CIR/INV/173/08/2011 dated 29th July 2011. The NAV for a particular fund shall be computed as: Market Value of investment held by the fund plus the value of current assets less the value of current liabilities and provisions, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before creation/redemption of units), gives the unit price of the fund under consideration. In case the valuation day falls on a holiday, then the exercise will be done on the following working day. We reserve the right to value less frequently than daily in extreme circumstances, where the value of the assets may be too uncertain. In such circumstances we may defer valuation of assets until normality returns. Examples of such circumstances are: A. When one or more stock exchanges which provide a basis for valuation for a substantial portion of the assets of the fund are closed otherwise than for ordinary holidays B. When, as a result of political, economic, monetary or any circumstances out of our control, the disposal of the assets of the unit fund are not reasonable or would not reasonably be practicable without being detrimental to the interests of the remaining unit holders. 63. Reliance Life Insurance A Reliance Capital Company 63 | P a g e C. During periods of extreme volatility of markets during which surrenders and switches would, in our opinion, be detrimental to the interests of the existing unit holders of the fund. D. In the case of natural calamities, strikes, war, civil unrest, riots and bandhs. E. In the event of any force majeure or disaster that affects our normal functioning. F. If so directed by the IRDA. Allocations of units The company applies premiums to allocate units in one or more of the unit linked funds in the proportions which the policyholder specifies. The allotment of units to the policyholders will be done only after the receipt of premium proceeds as stated below; 1. In case of New Business, units shall only be allocated on the day the proposal is completed and results into a policy by the application of money towards premium. 2. In the case of renewal premiums, the premium will be adjusted on the due date, whether or not it has been received in advance. (This assumes that the full stipulated premium is received on the due date.) Renewal premiums received in advance will be kept in the deposit account and will not earn any returns until the renewal premium due date on which the same will be applied to the unit funds. 3. In respect of premiums received or funds switched up to 3.00 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium is received, the closing unit price of the day on which the premium is received or funds switched, shall be applicable. 4. In respect of premiums received after 3.00 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium is received, the closing unit price of the next business day shall be applicable. 5. In respect of premiums received with outstation cheques or demand drafts at the place where the premium is received, the closing unit price of the day on which cheques / demand draft is realised shall be applicable. Redemptions: In respect of valid applications received (e.g. surrender, maturity claim, switch out etc) up to 3.00 p.m. by the insurer, the same days closing unit price shall be applicable. In respect of valid applications received (e.g. surrender, maturity claim, switch out etc) after 3.00 p.m. by the insurer, the closing unit price of the next business day shall be applicable. The unit price for each segregated fund provided under this product shall be made available to the public in the print media on a daily basis. The unit price will also 64. Reliance Life Insurance A Reliance Capital Company 64 | P a g e be displayed in the web portal of the company. Cancellation of units: To meet fees and charges, and to pay benefits, the company will cancel the units to meet the amount of the payments which are due. If units are held in more than one unit linked fund, then the company will cancel the units in each fund to meet the amount of the payment. The value of units cancelled in a particular fund will be in the same proportion as the value of units held in that fund is to the total value of units held across all funds. The units will be cancelled at the prevailing unit price. The Fund Management charges will be priced in the unit price of each Fund on a daily basis. C.6>ULIP {TAX AND BENEFITS.. Tax benefits: On policies issued on or after 1st April, 2012, income tax benefit under section 80C shall apply only to the extent of ten percent of minimum sum assured during the entire term of the policy. Additional conditions apply. On policies issued on or after 1st April, 2012, income tax benefit under section 10(10D) shall be available if premium payable for any of the years during the term of the policy do not exceeds ten per cent of minimum sum assured during the entire term of the policy. Additional conditions apply. However, in the event of death, sum received under any Life Insurance Policy continue to be exempt. Additional conditions apply. Kindly consult a tax expert to understand income tax applicable on various financial aspects C.7>ULIP {DISCLAIMAR. Definitions /Other Terms & Conditions: Free look In the event the policyholder disagrees with any of the terms and conditions of the policy, he/she may return the policy to the Company within 15 days of its receipt for cancellation, stating his/her objections in which case the company will refund an amount equal to the non allocated pre