Download - Slide 1 - SRB INFOTECH
A Reliance Capital company
Reliance Automatic Investment Plan
Under this Plan, the Investment Risk in the Investment Portfolio is borne by the Policy Holder.
For Internal Communication Only
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
I too want to profit from the bull run on stock markets like all others and…Take advantage of market volatility!!
I want an expert to manage my investments for me so that I make money faster minus the anxiety
I want full control over my investmentsIts my money ..so I decide where to put it I want to have the flexibility to
change my plan with changing lifestyle
Reliance Automatic Investment Plan
I want a plan that does all the work while I relax
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Introducing
Reliance Automatic Investment Plan
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Offers your customers a solution, which adjusts automatically to their changing financial needs!!
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Key Benefits: Only from Reliance Life Automatic Asset Allocation (Ready Made Plan) – Provides automatic switching of
funds to suit your changing risk profile with increasing age
Tailor Made Plan – You have the freedom to decide on your fund mix
STP - Systematic shift from low risk to equity funds, helps you to average out the cost
per unit
Unique Exchange Option to shift between specific ULIP Plans from RLIC (currently
allowed between Reliance Money Guarantee Plan and Reliance Automatic Investment
Plan)
Unmatched flexibility – Freedom to utilize as high as 52 free switches per policy year
Top-ups – Park your additional savings as top-ups (maximum top ups allowed is 25%
of total regular premium paid till date
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Consumer Speak
“Tell me why should I invest in ULIPs” Because they offer transparent, market-linked returns
“I don’t know anything about finance market. How
do I make my investments and get better growth?”
Do not worry, the Plan has been designed by our
experts after a careful consideration of funds.
“Sounds fine, but what when my needs change as
I grow older?”
For that we have the Ready Made Plan. This
automatically changes the fund pattern as per your age.
“Will my money be invested in risky options? ”
OR “What if I do not want to invest in risky options
when I grow older?”
We realize that your risk appetite may change as you
grow older. The Ready Made Plan automatically takes care
of this by switching funds automatically as per your life
stage .
“I do not want any hassles of tracking the funds or
paperwork of switching”
No problem, the Ready Made Plan just comes handy,
because the plan takes care of switching the funds
automatically without you having to give any instructions.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Consumer Speak
“Wow! very interesting ,but maybe later I may
want to choose my investments myself. ”
No problem , we also have a Tailor Made Plan option ,In
which you can shift laterally between any of the funds
available under the Tailor Made Plan. You can even switch
from the Ready Made Plan option & tailor made plan
option if you desire later.
“What if my financial needs change & I like to buy
another plan of Reliance Life Insurance
company ?
We have the answer. For the first time in the industry
we provide the unique Exchange Option. You can
exchange in or exchange out from any other specified
Reliance Life ULIPs
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Part IIMore Details
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Product Details1. Basic Plan Features
a) Policy Limits
b) Premium Modes
c) Life Cover Benefit
d) Maturity Benefit
e) Sum Assured
f) Surrender Value
2. Options Availablea) Ready Made Option
b) Tailor Made Option
c) Exchange Option
3. Other Benefitsa) Riders
b) Tax Benefits
4. Flexibility Availablea) Systematic Transfer Plan
b) Top up Payment
c) Partial Withdrawals
d) Switching Option
e) Settlement Option
f) Convenient Premium Payment Options
g) Premium Redirection
5. Charge Structure
6. Miscellaneous
7. Summary Snapshot
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Basic Plan Features
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Policy Limits
Basic Plan Minimum Maximum
Age at Entry 30 days65 years last birthday
Age at Maturity18 years last birthday
80 years last birthday
Policy Term 5 years 30 years
Life Cover begins only after the age of 12 years. (last birthday)
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Types of plans based on premium payment
Regular premium Premium to be paid every year for the entire policy term
Minimum premium Rs. 10000 Annual Mode
Limited premium Premium paying term is minimum 5 years and in multiples of 5 years
Minimum premium Rs. 20000 Annual Mode
Single Premium Premium to be paid only once during the term, only at the start of the policy
Minimum premium Rs. 25000
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Premium Payment Modes 4 Convenient Premium Payment Modes
Yearly
Half yearly
Quarterly and
Monthly
Premium can be paid by Cash, cheque, debit/credit card, ECS & direct debit
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Premium Modes & Limits
ModeMinimum Premium (Rs.)
Regular Premium Limited Premium
Yearly 10,000 20,000
Half-yearly 5,000 10,000
Quarterly 2,500 5,000
Monthly 1,000 2,000
Single Premium 25,000
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Life Cover Benefit
Age Death Benefit payable
Less than 12 years Fund value
Above 12 years Higher of…
Age above 12 years, but below 60 years
Sum Assured less all partial withdrawals made in last 24 months
Fund Value
Above 60 years
Sum Assured less all partial withdrawals made after age 58 years
Fund Value
Life Cover begins only after the age of 12 years. (last birthday)
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Maturity Benefits
Fund Value as on date of maturity
The policy terminates on payment of the maturity benefit.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Minimum Sum Assured for Regular/Limited Premium policies
Higher of: 5 times the annual premium OR Half of term multiplied by annual premium
Minimum Sum Assured for Single Premium policies
For single premium option, the minimum sum assured is 125% of the single premium amount
Maximum Sum Assured
No Limit
Sum Assured
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Options Available on Discontinuance of Premiums
Premium payment discontinued within 3 years of policy inception
Insurance cover ceases immediately. Policyholder can revive the policy within 3 years’ revival period During the revival period applicable charges (except mortality
charges) are deducted by cancellation of units If the policy is not revived, then applicable surrender value, if any, is
paid at the end of the revival period.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Options Available on Discontinuance of Premiums (contd) Premium payment discontinued after paying at least 3 full years premiums:
Life cover continues, by deducting the applicable mortality charges.
Riders are discontinued
Policyholder can revive the policy within 3 years’ revival period
If within the revival period, the account value falls below the amount of annual premium, the account value is paid and policy is terminated.
If the policy is not revived, then with the consent of the policyholder, the policy is kept in force (by deducting the appropriate charges) until such time the unit account value does not fall below an amount equal to one annual premium.
At this point the unit account value is paid to the policy holder and the policy is terminated.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Options Available
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Two Plan options
Ensures safety of investments as your risk appetite reduces with increasing age Three prepackaged funds available as per age bands Fund switch is automatic as you move from one age band to anotherWith growing age equity exposure is reduced Flexibility to switch to Tailor Made Plan option
Ready Made Option
The fund mix changes automatically with changing life stage
We manage your money while you relax
Automatic Asset Allocation
80
50
20
20
50
80
0
20
40
60
80
100
120
0 - 40 41 - 60 61 & Above
Age
%
Equity Debt
Fund A Fund B Fund C
Expert fund manager to manage the fund on your behalf
Hassle free investment management
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Ready Made Plan – Fund Option
Fund
NameInvestment Objectives
Asset
Category
Asset
Allocation
Range (%)
Target (%)
Fund A
High real rate of return in
The long term through
High exposure to equity
investments
Money Market
instruments 0 – 40 0
Debt Securities
Such as gilts,
Corporate debt
excluding
Money market
instruments.
0 – 100 20
Equities 0 – 80 80
This fund is for the band of 0-40 years of age. This fund is customized to the general risk appetite during this period.
High Risk Appetite
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Ready Made Plan – Fund Option
Fund
NameInvestment Objectives
Asset
Category
Asset
Allocation
Range (%)
Target (%)
Fund B
Significantly higher returns
In the long term, through
High exposure to equity
investments.
Money Market
instruments 0 – 40 0
Debt Securities
such as gilts,
corporate debt
excluding Money
Market
instruments.
0 – 100 50
Equities 0 - 50 50
This fund is for the band of 41-60 years of age. This fund is customized to the general risk appetite during this period.
Moderate to High Risk
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Ready Made Plan – Fund Option
Fund Name Investment ObjectivesAsset
Category
Asset
Allocation
Range (%)
Target (%)
Fund C
Returns that exceed the
Rate of inflation in the
long term while
maintaining moderate
probability of negative
Returns in the short term.
Money Market
instruments 0 – 40 0
Debt Securities
Such as gilts,
Corporate debt
excluding
money market
instruments.
0 – 100 80
Equities 0 - 20 20
This fund is for the band of over 61 years of age. This fund is customized to the general risk appetite during this period.
Moderate Risk
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Two Plan options
Decide your own fund mix with this option Full flexibility to decide your asset mix depending on your risk appetite Offers 4 funds - Money Market, Gilt ,Corporate Bond & Equity Fund Allocate your premium in all or any one fund in ANY proportion* Take 100% equity to maximize returns or diversify your basket 52 free switches in a year Flexibility to switch to Ready Made Plan option
Tailor Made Option
* Except for Money Market fund where max allocation is 40% of premiums at any time
Flexibility to switch between the two plan options 52 times a year, free of cost
You have the freedom to decide on your fund mix
You control your investments & benefit from it
Money Market (20%)
Gilt (25%)
Corporate Bond (30%)
Equity (25%)
Gilt (50%)
Equity (50%)
Initial Allocation New Allocation
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Tailor Made Plan – Fund OptionFund
NameInvestment Objective Asset Category
Asset Allocation Range (%)
Target (%)
Money
Market
The capital value of all
contributions (net of charges) and
All interest additions. Money Market
instruments100 100
Gilt
Returns that exceed the
inflation rate, without taking any
credit risk (sovereign risk only)
and maintaining a low probability
of negative return over short term.
Central Government
Securities0 – 100 80
Other government
securities
including securities
With unconditional
Central Government
guarantee
0 – 40 20
Money Market
instruments 0 - 40 0
These are low risk - moderate return funds
Low Risk
Low to Moderate Risk
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Tailor Made Plan – Fund Option
Fund
NameInvestment Objective Asset Category
Asset
Allocation
Range (%)
Target (%)
Corporate
Bond
Returns that exceed the
Inflation rate, while taking
some credit risk (through
investments in corporate
debt instruments) and
Maintaining a
Moderate probability of
Negative return over short
term.
Corporate bonds/
debentures and
Other debt
instruments
0 – 100 100
Money Market
instruments 0 - 40 0
This is a moderate risk - moderate return fund
Low to Moderate Risk
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Tailor Made Plan – Fund Option
Fund
NameInvestment Objective Asset Category
Asset
Allocation
Range (%)
Target (%)
Equity
High real rate of return in the
Long term through high
exposure to equity
investments, while
recognizing that there is
Significant probability of
negative returns in the short
term.
Equities 0 – 100 100
Money Market
instruments 0 - 100 0
This is a high risk – high return fund
High Risk
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Exchange Options Customers can take benefit under existing plan and use it to purchase
specified Unit Linked Plan from Reliance. This option must be exercised at least 30 days before the receipt of benefit
under the policy.
The Key Advantage - Reduced allocation charges in the first year.
The Two Options Exchange from Reliance Automatic Investment Plan into Reliance Money
Guarantee Plan
Exchange into Reliance Automatic Investment Plan from Reliance Money Guarantee Plan
This option can be selected any time on completion of three policy years.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Other Benefits
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Rider Benefit Accidental Death & Accidental Total and Permanent Disablement benefit rider Term Life Insurance Benefit rider
Rider benefits are available only with regular and limited premium payment
policies. For limited premium policies the rider benefits will be available
During the premium paying term only.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Tax Benefit* Premiums paid are eligible for tax deduction under section 80C of the Income
Tax Act 1961 Withdrawals are eligible for tax benefit under Section 10(10D) Death Benefit are tax free under Section 10(10D)
* For details, please refer your tax consultant
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Flexibility Available
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Systematic Transfer Plan - Benefit from a volatile market
• A procedural shift from a low risk investment in to equities
• The initial amount is invested in the Gilt fund
•25% of units transferred to equity fund every week for equivalent fund value
• In effect your average unit cost comes down
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Systematic Transfer Plan – How you can benefit from it
Investment Value Unit Price No. of units
12,500 10 1250.0
12,500 11 1136.4
12,500 10 1250.0
12,500 9 1388.9
50,000 5025.3
Average Unit Cost
Average Sale Price
9.9
10.0
Although the average sale price is Rs 10 {(10+11+10+9) =40/4} = 10.The average cost per units is Rs 9.9 {(50000/5025.3) = 9.9}.STP helps buy more units when the price is low and fewer units when the price is high and hence your average cost per unit Rs 9.9 remains below the average sale price of Rs 10.
The premium is allocated towards equity funds in 4 installments (once every week)
This helps you to take advantage from rupee-cost averaging
Consider the following table - If STP option is not selected the total units would have been 5000 units.
Fund Value If STP option is selected = (5025.3*9)= Rs 45227.3.
Fund Value If STP option is not selected = (5000*9)= Rs 45000
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Top-up Payments Helps the customer to increase the investments
Top-ups allowed only if all the premiums till date are paid
Maximum top-up allowed is 25% of the total regular premiums paid till date (i.e. sum of all top-ups paid cannot exceed 25% of total regular premiums paid till date)
For example: If regular annual premium is Rs. 10000, and one top-up of
Rs. 4000 is made in the 2nd policy year; Then in the fourth policy year, maximum top-up allowed is
25% of Rs. 40000 (total of regular premium paid for 4 years) less Rs. 4000 (earlier top-up made)
Thus maximum top-up allowed in this case would be Rs. 6000
Minimum top amount allowed is Rs.2500
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Easy Liquidity – money when you need it the most
• You can make partial withdrawal from your basic plan after 3 years and without any charges from 6th year onwards
• You can also make partial or full surrender from your top-up account without any charges after three years from the payment of such top-ups
• Better alternative than banks FDs which are taxable
• All partial withdrawals are tax free
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Withdrawals Are not allowed until the life assured completes 18 years
of age.
Partial Withdrawals Are allowed anytime after 3 years
Policy continues to remain in force
Withdrawal charges are equal to surrender charges
Sum Assured will be reduced to the extent of partial withdrawals made in the past 24 months
Total Withdrawals i.e. Surrender Allowed anytime after 3 years
Policy ceases after surrender
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Switching Option Available between
Tailor Made Plan option & the Ready Made Plan option
The funds under Tailor-made Plan option
When switching from Tailor Made Plan to Ready Made Plan, the fund option will depend on the age last birthday and the corresponding age band.
When switching from Ready Made Plan to Tailor Made Plan, the policyholder, can decide his own fund mix.
52 switches in any policy year are free.
Any additional switch will be charged Rs. 100 per switch.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Settlement Options Maturity proceeds can be withdrawn in periodic installments within 5 years
No Life Cover Benefit will be available during this period.
Fund C will apply by default during the settlement period.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Premium Redirection Available only for Tailor-made plan
A written instruction to redirect all future premiums in an alternative proportion to the various unit funds.
Redirection will not affect the allocation of premium(s) paid prior to the request.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Charge Structure
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Allocation charges
Allocation charge
Premium grid
(Rs. 000)
Reliance Auto Invest Plan (5 years)
Reliance Auto Invest Plan (greater than 5 years)
Year 1
10 to 25 9.25% 25%
25 to 50 8.50% 22.5%
50 to 150 7.75% 20%
150 to 1500 7.00% 17.5%
1500 to 2500 6.25% 15%
2500 & above 4.75% 10%
Year 2 5% 5%
Year 3 5% 5%
Year 4 + 5% 5%
Top-up 2% 2%
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Fund Management Charge
Ready Made Plan
Fund Name Annual Rate
Fund A 1.45% p.a.
Fund B 1.38% p.a.
Fund C 1.30% p.a.
Tailor Made Plan
Fund Name Annual Rate
Money Market 1.25% p.a.
Gilt 1.25% p.a.
Corporate Bond 1.25% p.a.
Equity 1.50% p.a.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Surrender & Partial Withdrawal Charges Apply on Fund Value at the time of surrender or partial withdrawal
No charges on surrender or partial withdrawal under top-ups and under single premium policies.
Year of Surrender
Surrender Charge/Partial WithdrawalCharge as a percentage of Fund Valueof basic policy /Fund Value withdrawnon partial withdrawal
1 - 3Surrender Value/ partial withdrawal value not available
4 5%
5 3%
6 & above Nil
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Other Charges Under The Policy
Policy Administration Charge: Rs. 40 per month per policy.
Mortality Charge : Based on the applicable mortality table Charged on the difference of fund value and sum assured (sum at risk) Charged on monthly basis, by cancellation of units
Miscellaneous Charge: Rs. 2 per 1000 sum assured will be collected on inception of the policy.
Switching Charge: Rs.100 for every switch after the 52 free switches
Charge for Systematic Transfer Plan (STP) Option: No charge, when the facility is requested for the first time. Subsequent requests charged at Rs. 100 No charge for cancellation of STP
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Other Charges Under The Policy Premium for Rider Benefits
Will be collected over and above the premium under Base Plan.
Service Tax Charge Applicable on mortality charges and the rider premium.
Currently the service tax is @ 12.24%
Decided (and can be revised) by the Government of India
Currently service tax is absorbed by RLIC
In future, RLIC may decide to pass on the service tax to the customer
48
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Automatic Investment Plan – Competitive Advantage Product Feature Reliance
Automatic Investment
Plan
ICICI Pru
Life Time Super
Bajaj Allianz
New Unit Gain
HDFC SL
UL Endowment/ Young Star
Birla SunLife
Flexi Save Plus
SBI Life
Horizon II
The Reliance
Automatic Investment
Plan Advantage
Life Stage based plan
Yes No No No No Yes A plan that does all while
you relax
Free Switches 52 4 3 24 2 0 Highest number of
free switches
Switching Charges 100
(from 53rd switch)
100 - 100 100 NA Nominal switching
charges, at par with
competition
Ready-made/Tailor-made plan option
Yes No No No No No Only plan to offer investment fund options catering to risk averse and risk lovers
Systematic Transfer Plan
Yes No No No No No Only plan to offer STP option. Take advantage of rupee-cost averaging
49
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Automatic Investment Plan – Competitive Advantage Product Feature Reliance
Automatic Investment
Plan
ICICI Pru
Life Time Super
Bajaj Allianz
New Unit Gain
HDFC SL
UL Endowment/ Young Star
Birla SunLife
Flexi Save Plus
SBI Life
Horizon II
The Reliance
Automatic Investment
Plan Advantage
Exchange Option Yes No No No No No Only plan to offer Exchange with another UL Plan - RAIP
Funds Offered 7 4 6 6 3 3 Maximum number of funds to
choose from
Top-ups Yes No Yes Yes Yes Yes Recognizes the strong consumer demand for top-ups
Partial Withdrawals
Yes Yes Yes Yes Yes Yes Enables Liquidity. Withdrawals from top-ups are free
Surrender Charge Till 5th year Till 4th year Till 3rd year Till 3rd year Till 4th year Entire policy term
Low exit charge
50
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Automatic Investment Plan vis-à-vis Competition - Common Features
Feature Reliance Automatic Investment
Plan
ICICI Pru
Life Time Super
Bajaj Allianz
New Unit Gain
HDFC SL
UL Endowment/ Young Star
Birla SunLife
Flexi Save Plus
SBI Life
Horizon II
LIC – Money Plus
Premium Holiday
Available Available Available Not Available Not Available
Available Available
Riders Term Insurance
ADT/PD
ADDB;
Critical Illness;
Waiver of Premium;
ADB, APT/PD;
Critical Illness;
Hospital Cash; Mahila Gain;
Term;
Critical Illness;
Waiver of Premium;
ADB;
ADD;
Critical Illness;
Waiver of Premium;
CI for women;
Accident Benefit & Critical Illness Benefit
Accident Benefit & Critical Illness Benefit
Revival Period
3 2 2 2 2 5 2
Min Premium (Rs)
10000 18,000 10000 10000 10000 5000 5000
FMC 1.25% to 1.4%
0.75% - 2.25%
0.95% to 1.75%
0.8% 1% 0.25% to 1.5%
1% to 1.75%
Top-up Charges
2% Not allowed 2% 2% 2% 1% Not allowed
Min/Max entry age
30 days/ 65 years
0/65 years 0/60 years 18/65 yrs 30 days/60 yrs
0/60 years 0/65 years
51
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Allocation charges on Reliance Automatic Investment Plan
Allocation charge
Premium grid
(Rs. 000)
Reliance Automatic Investment
Plan (5 years)
Reliance Automatic Investment
Plan * (greater than 5 years)
ICICI Pru
Life Time Super
Bajaj Allianz
New Unit Gain
HDFC SL
UL Endowment/ Young Star
Birla SunLife
Flexi Save Plus
SBI Life
Horizon II
Year 1
10 to 25 9.25% 25% 20% 71.5% 30% 29.9% to 65% 15%
25 to 50 8.50% 22.5% 20% 71.5% 30% 29.9% to 65% 15%
50 to 150 7.75% 20% 18% 71.5% 30% 29.9% to 65% 15%
150 to 1500 7.00% 17.5% 18% 71.5% 30% to 10% 29.9% to 65% 15%
1500 to 2500 6.25% 15% 18% 71.5% 5% 29.9% to 65% 15%
2500 & above 4.75% 10% 18% 71.5% 5% 29.9% to 65% 15%
Year 2 5% 5% 7.5% 7% same as year 1 5% to 7.5% 10%
Year 3 5% 5% 4% 6% 1% 5% to 7.5% 10%
Year 4 + 5% 5% 4% 5% 1% 5% 5%
Top-up 2% 2% Not allowed 5% 2.5% yr 1& 2, 1% thereafter
2% 1%
Cost Competitive but Customer Value more relevant than just cost*For Term > 5
52
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Allocation Charges
Reliance Life offers a discounted allocation charge for higher premium slabs Reliance Automatic Investment Plan allocation charges are lower than ICICI Prudential & Birla SunLife. Reliance Automatic Investment is better than HDFC for lower premium slabs. SBI Life charges lower but charges apply for a longer duration which make Reliance Automatic Investment Plan cheaper in comparison
Fund Management Charges (FMC)
Reliance Automatic Investment Plan is cheaper than ICICI Prudential & Bajaj Allianz on FMC Comparable with SBI Life
Reliance Automatic Investment Plan – 1.25% to 1.5% ICICI Prudential – 0.75% to 2.25% HDFC Standard Life – 0.8% SBI Life – 0.25% to 1.5% Bajaj Allianz – 0.95% to 1.75%Birla SunLife – 1%
53
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Reliance Automatic Investment Plan Value Equation
Feature Reliance Automatic
Investment Plan
Reliance Life - MRP
ICICI Pru
Invest Shield
Life
Birla Sun Life Flexi Save
Plus
HDFC
Youngstar
Bajaj Allianz – Unit Gain
Premium 25000 25000 25000 25000 25000 25000
Sum Assured 125,000 125,000 125,000 125,000 125,000 125,000
Term 10 10 10 10 10 10
Maturity value @ 10% 362670 362581 357245 345823 365068 335242
IRR 6.67% 6.66% 6.40% 5.47% 6.78% 5.28%
Allocation Charge as % of Premium paid
7% 6.5% 7.4% 11.5% 6.8% 12%
NPV charges 13917 12738 15737 24432 15132 25539
Assumption: The above illustration if for an individual aged 30, term 10 years.
On IRR/NPV combined basis Reliance Automatic Investment Plan offers more value to our customers
Along with MRP, we have two of the strongest ULIP products in the market
54
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Miscellaneous
55
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
By Default… In case no plan option has been opted for, the plan option by default will be
Ready Made Plan option.
If Tailor-made Plan is selected and no fund has been opted for, the allocated premiums shall by default be invested in the Gilt Fund Option.
56
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Summary Snapshot
57
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Reliance Automatic Investment Plan – At a GlanceKey Benefits
Automatic Asset Allocation Asset Allocation according to your risk at a particular age
Systematic Transfer Plan Helps to average out the cost of units
Exchange Option Option to move between in and out of specific Reliance Life ULIP
Other Benefits
Fund options Choice of 7 carefully designed funds
Riders Accident Death & Disability and Term Riders
Tax Benefit Under section 80C and 10(10D)
Unmatched Flexibility
Top Ups Can be used to increase the investment component in the policy
Partial Withdrawals Provides liquidity in case of need
Switching Options Flexibility to switch between funds
Premium Redirection To change fund configuration for future premiums
Settlement Options Keep the money invested and receive in installments
Premium payment Options Flexibility to pay premiums in over different modes
58
A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
When to Pitch Which Option Explain to the prospect that both are attractive options
If prospect is knowledgeable about the market and has the ability and willingness to take informed decisions on choice of fund, switches, relative allocation to each fund then they can go for Tailor-made option.
In case the prospect is not knowledgeable, or would not like to devote time and effort to track the same, it can be left to the Fund Managers of RLI – i.e. he could opt for the Ready-made option where the fund mix is predetermined.
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A Reliance Capital company
Reliance Automatic Investment PlanFor Internal Communication Only
Things to Remember… Top-ups limited to 25% of the premiums paid to date, so it doesn’t impact the
Sum Assured. In case of Partial Withdrawals, one annual premium should be retained as
balance in the policy. Partial Withdrawals are allowed three years from inception. The 52 switches are not weekly, they can be used as and when the policy
holder wishes. In case of the Limited Premium Option, the premium paying term can be
chosen as 5 years or periods in multiples of 5. The Exchange Option can be used only with reference to another specified
ULIP plan. In case of the STP option, if the market is closed on the 7th, 14th, 21st.or the
28th of the month, the investment in the equity fund is done on the next working day.
Returns are not guaranteed.
A Reliance Capital company
Thank You!!