Slide 1 - SRB INFOTECH

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Slide 1 - SRB INFOTECH

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

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