The Life Classic Plan by Reliance is a ULIP belonging to the non-bonus facility category. This means that the premium is payable for the entire term of the policy. He has the option to choose his returns by making a choice in the type of fund that available within this category. There are 8 funds to choose from and the return generated from these fund plans depends entirely on the risk appetite of the policy holder.
The basic features of the Reliance ULIP include
- There are 8 options of funds from which one can make a choice within the plan.
- Life Pure Equity Fund 2
- Life Gilt Fund 1
- Life energy Fund 2
- Life Midcap Fund 2
- Life Corporate Bond Fund 1
- Life Infrastructure Fund 2
- Life Equity Fund 3
- Life Money Market Fund 1
- In the event of death of the policy holder, the nominee gets what is called a double death benefit which includes the Fund Value and the Sum Assured.
- Maturity benefit is received as the Fund Value.
- There is an inherent rider in the event of accidental death of the policy holder. There are 3 other riders that a person can opt for but the Accidental Death rider is available within the policy plan.
- The policy provides the policy holder with the option to choose amongst the funds available via the Systematic Transfer Plan.
- The Exchange Option allows one to switch or move to a new plan that might get launched in the times to come. Hence one sees flexibility in the Reliance Classic Life Plan.
Reliance Life Classic Plan : Benefits
Maturity Benefit – The maturity of the policy entitles the policyholder to the complete Fund Value.
Death Benefit – In the event of death of the holder of the policy, the entitlement due to his nominee shall include the Sum assured, Fund Value and a Death Benefit that comes from the Accidental SA.
Income Tax Benefit – Under Section 80C of the Income Tax Act, Life Insurance Plans or ULIPS get a tax deduction for premiums that are payable upto Rs. 100000.
Conditions and Restrictions of Reliance Classic Life Plan
- Entry Age: The minimum age for entry is 7 years while the maximum entry age is restricted at 65 years.
- Maturity Age: The minimum age of exit is 22 years while the maximum age of maturity is 75 years.
- Policy Term: The minimum term of the policy is 15 years for all ages up to 60 years and 10 years for ages above 60 years. The maximum term for the policy is 30 years. Since premium needs to be paid till end, the premium payment term is the same as the policy term (in years).
- The premium payment modes are available as Single, Monthly, Quarterly, Half-Yearly and Yearly.
- Premium: The minimum premium for the single mode is Rs. 50000 while for the Regular mode is Rs. 20000. There is no maximum limit for premium payments.
Other Features
Switching – The ULIP allows the policy holder to be flexible in the fund he selects at any point of time after taking his policy. Such switching can be done for a maximum of 52 times in a single policy year.
Partial Withdrawal – Such withdrawals are allowed only after completion of 5 policy years. Minimum withdrawal that can be made is Rs. 5000 while the maximum allowed withdrawal is restricted to a limit of 20 percent of the total Fund Value.
Top-up – Top ups are paid in the form of additional premiums and these can be paid anytime during the policy life except for the terminating last 5 years. Minimum top up allowed is Rs. 5000.
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