a reliance capital company reliance wealth + health plan awaiting approval from irda

A Reliance Capital company

Reliance Wealth + Health PlanAwaiting approval from IRDA


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

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

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

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

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

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

For more details refer IRDA website

Cap on charges


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

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

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

Cap on charges


Thus, we have the following new plans:

Reliance Super InvestAssure Term 10 Plan – Not available

Reliance Super InvestAssure Basic Plan

Reliance Super InvestAssure Plus Term 10 Plan

Reliance Super InvestAssure Plus Basic Plan

Reliance Super Automatic Investment Term 10 Plan

Reliance Super Automatic Investment Basic Plan

Cap on charges



Reliance Super Market Return Term 10 Plan

Reliance Super Market Return Basic Plan

Reliance Super Golden Years Term 10 Plan

Reliance Super Golden Years Basic Plan

Reliance Super Golden Years Plus Term 10 Plan

Reliance Super Golden Years Plus Basic Plan

Cap on charges



Reliance Super Golden Years Value Term 10 Plan

Reliance Super Golden Years Value Basic Plan

Reliance Secure Child Term 10 Plan

Reliance Secure Child Basic Plan

Reliance Imaan Investment Term 10 Plan

Reliance Imaan Investment Basic Plan

Cap on charges



Reliance Wealth+ Health Basic Plan

Reliance Wealth+ Health Term 10 Plan – not available

Reliance Total Investment Series II Term 10 Plan – Pension

Reliance Total Investment Series II Basic Plan – Pension not available

Reliance Total Investment Series I Term 10 Plan-Insurance

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

Reliance Premier Life Term 10 Plan

Reliance Premier Life Basic Plan

Reliance Money Guarantee Term 10 Plan

Reliance Money Guarantee Basic Plan

Cap on charges


Reliance Wealth + Health Basic Plan is the version with a policy term of years as explained earlier.

Reliance Wealth + Health Plan does not have the Term 10 version.

However, the Reliance Wealth + Health Basic Plan has a policy term ranging from 10 years to 25 years.

Reliance Wealth + Health Basic Plan


First policy year Commissions to advisors shown below are net of adjustments for service tax.

The “Previous” refers to allocation and commission under Reliance Wealth + Health Plan.

There is no “Term 10” version for Reliance Wealth + Health Plan. The basic version has a policy term ranging from 10 years to 25 years.

Reliance Wealth + Health Basic Plan

Previous allocation 75.00%New allocation 75.00%

Previous commission 13.60%New commission 18.84%


Policy limits - Premium The minimum premium depends on the age at entry of the Principal Insured.

Age at entry of the Principal Insured Minimum premium Up to 50 years last birthday (Rs)

Yearly premium 10,000 p.a Half yearly 5,000 per half year Quarterly (ECS) 2,500 per quarter Monthly (ECS) 1,000 per month

51 years & more last birthday Yearly premium 12,000 p.a Half yearly 6,000 per half year Quarterly (ECS) 3,000 per quarter Monthly (ECS) 1,500 per month

There is no maximum premium limit


Policy limitsMinimum

Maximum Principal life insured

Age at entry 18 years 55 years

Age at maturity - 65 years

Insured spouse Age at entry 18 years 55 years

Benefit ceasing age - 65 years

Insured child Age at entry 3 months 19 years

Benefit ceasing age - 20 years

Policy term (multiples of 5 only) 10 years 25 years


Policy limits Minimum Hospital Cash Benefit in a ward other than Intensive Care Unit

5% of the annualized premium subject to minimum limit mentioned below Principal Insured : Rs.500 per day Insured Spouse : Rs. 500 per day Insured Child : Rs. 250 per day

Minimum Hospital Cash Benefit in a ward other than Intensive Care Unit The Hospital Cash Benefit in an ICU will be twice the daily amount mentioned

above. Thus, the cash benefit for stay in ICU will be as follows Principal Insured : Rs.1,000 per day Insured Spouse : Rs. 1,000 per day Insured Child : Rs. 500 per day


Policy limits Minimum Recuperation Benefit in a ward other than Intensive Care Unit

There is a fixed recuperation benefit equal to 2 days daily amount in a ward other than ICU. Thus, the minimum Recuperation benefit will be as follows:

Principal Insured : Rs.1,000 per day Insured Spouse : Rs. 1,000 per day Insured Child : Rs. 500 per day

The recuperation benefit is paid only if there is a minimum stay of 5 full days (120hours) in hospital.

Maximum Hospital Cash Benefit in a ward other than Intensive Care Unit 5% of the annualized premium subject to minimum limit mentioned below

Principal Insured : Rs.2,500 per day Insured Spouse : Rs. 1,500 per day Insured Child : Rs. 1,250 per day


Policy limits Maximum Hospital Cash Benefit in an Intensive Care Unit (ICU)

Principal Insured : Rs.5,000 per day Insured Spouse : Rs. 3,000 per day Insured Child : Rs. 2,500 per day

Maximum Recuperation Benefit There is fixed Recuperation benefit equal to the two days daily amount in a

ward other than ICU. Thus, the maximum Recuperation benefit will be as follows

Principal Insured : Rs.5,000 per day Insured Spouse : Rs.3,000 per day Insured Child : Rs. 2,500 per day

The recuperation benefit is paid only if there is a minimum stay of 5 full days (120 hours) in hospital.


Explanation Hospitalisation means the Insured’s required stay as an inpatient in a

Hospital within India for medically necessary treatment following and due to Accidental Bodily Injury or Sickness.

Hospitalisation period means the time (in number of hours and minutes) between the date and time (in hours and minutes) of admission into the hospital and the date and time (in number of hours and minutes) of discharge from the hospital.


Explanation Hospital means an institution in India established for indoor care, offers allopathic

treatment only for sickness and injuries and which:

1. is registered as a hospital or nursing home with the Appropriate Authorities and is under the supervision of a registered and qualified Physician, and

2. provides all the following facilities: 2.1. at least 10 inpatient beds 2.2. a fully equipped operation theatre of its own where surgical operations are carried

out, and 2.3. fully qualified nursing staff under its employment 24 hours per day, and 2.4. fully qualified Physicians in supervision 24 hours per day, and 2.5. maintains a daily medical record for each of its patients.

3. the term Hospital shall not include any institution which is primarily a rest home or convalescent facility, a place for custodial care, a facility for the aged or alcoholic or drug addicts or for the treatment of psychiatric or mental disorders; even if the institution has been registered as a hospital or nursing home with the Appropriate Authorities;


Explanation Accident means a sudden, unintended, fortuitous, violent, visible and external event and does

not include any naturally occurring condition or degenerative process.

Accidental Bodily Injury means physical bodily harm or injury (but does not include any mental sickness, disease or illness) which is caused by an Accident which first occurs during the Cover Period for the Hospital Cash Benefit Cover and for the Major Surgical Benefit Cover and requires inpatient treatment or surgery in a Hospital by a Physician.

Sickness means a sickness or a disease which first manifests itself during the Policy Period and requires inpatient treatment in a Hospital by a Physician; It would not include any sickness or disease or any ailment arising out of an Accident or Accidental Bodily injury.

Intensive Care Unit (ICU) means a special ward in any Hospital that is used for the sole purpose of the treatment of patients with a critical or exigent condition, and where the patient is under 24 hour care and monitoring, by a Physician and a Nurse.

Waiting Period means the period of 90 days from the date of adjustment of first premium or date of revival/reinstatement of

policy whichever is later. No hospital cash benefit claim will be entertained during the waiting period unless the hospitalization

has arisen on account of an Accident.


Explanation Deferment period

2 days (48 hrs) of hospitalization.

The daily benefit will be paid for each complete day of hospitalization. (24 hours).

No retroactive payments from day one are to be made

Maximum annual benefit period 18 days in year 1,

60 days per year thereafter,

inclusive of stay in ICU.

Max no. of days in ICU is restricted to 7 days in a year 1 and to 30 days thereafter


Explanation Maximum Benefit period during the policy term (no of days in hospital

including ICU) 180 days for principal insured, spouse and child above 5 years of age

90 days until the child completes age 5 years

If the Company finds that either of the children is not insurable for medical reasons, then the Company may consider inclusion of the third child on completion of requisite medical questionnaires. If the Company finds that the third child is not insurable for medical reasons, it may consider the inclusion of the fourth child on completion of requsite health questionnaire and so on.


Insuring spouse An unmarried Principal Insured will have option of including his / her spouse

after the marriage.

The option consent and the health questionnaire for the spouse should be received by the Company within 90 days from the date of marriage.

The Company will examine the health questionnaire and other details and decide on the inclusion of the spouse in the policy or otherwise.

If the Company accepts the spouse under the policy, the health insurance will be effective from the policy anniversary falling immediately after the underwriting decision of the Company.

The deduction of charges for the spouse will commence from the effective policy anniversary following the date of inclusion of spouse in the policy.


Insuring children A maximum of 2 children may be insured.

If the Principle Insured does not have any child or has only one child at the time of completing the proposal form, he/she will have option of including the child after the child completes 3 months of age.

The option consent and health questionnaire for the child should be received by the Company within 90 days after the child completes 3 months.

The Company will examine the questionnaire and decide on inclusion of the child in the policy or otherwise.

The health insurance for the child will be effective from policy anniversary immediately falling after the date of underwriting decision by the Company.

If the Company finds that either of the children is not insurable for medical reasons, then the Company may consider inclusion of the third child on completion of requisite medical questionnaires.


Insuring children If the Company finds that the third child is not insurable for medical reasons, it

may consider the inclusion of the fourth child on completion of requisite health questionnaire and so on.

The deduction of charges for the child included will commence from the effective policy anniversary following the date of inclusion of the child in the policy.


Benefits – Daily hospital cash benefit

Hospital Cash Benefit means, benefit payable in the event of Accidental Bodily Injury or Sickness,

event first occurs or manifests itself after the Date of Commencement,

event first occurs or manifests itself during the Policy Period,

period of Hospitalization of the insured to exceed continuous 48 hours,

the Daily Benefit payable is 5% of annualized premium subject to a maximum of Rs 2,500 per day for

principal insured, 5% of annualized premium subject to a maximum of Rs 1,500 per day for

spouse insured, 2.5% of annualized premium subject to a maximum Rs 1,250 per day for child

insured


Benefits – Daily hospital cash benefit

Hospital Cash Benefit means, the daily cash benefit when in an ICU will be twice the daily cash benefit

amount payable in a ward other than ICU,

maximum number of days ICU benefit payable are restricted to 7 in the first policy year and 30 during any policy year thereafter,

maximum number of days benefit (including for days in an ICU) are restricted to 18 in the first policy year and 60 during any policy year thereafter.

during the entire policy term, the maximum numbers of days benefit payable are restricted to 180 days (maximum of 90 days until child completes 5 years of age).


Recuperation benefit for each life insured This benefit is paid in addition to the daily hospital cash benefit.

This benefit will be payable in one lump sum if the insured completes 5 full days (120 hours) in a hospital (including days spent in an ICU) and has received the daily hospital cash benefit.

The amount of the recuperation benefit will be equal to the twice the amount of daily cash benefit in a ward other than ICU payable to the insured.


Death benefit The amount of benefit will be equal to the fund value in respect of the base

plan and top ups if any. The fund value will be calculated on the date of death intimidation by the Company.

There is no death benefit payable on death of the spouse or any of the insured children during the policy term. However, the deduction of charges for hospital cash benefit for the dead person will stop from the policy month immediately falling after the receipt of intimation of death by the Company.


Maturity benefit The Fund Value relating to the base policy and top-ups will be paid. The fund

value will be calculated on the maturity date of the policy


Rider benefits Reliance New Major Surgical Benefit Rider (Filed with IRDA),

Reliance New Critical Conditions (25) Rider (Filed with IRDA)

Reliance Term Life Insurance Benefit Rider (UIN: 121C009V01), This rider can be selected only if Reliance New Term Life with Accident Benefit Rider is not selected.

Reliance New Term Life with Accident Benefit Rider (Filed with IRDA), This rider can be selected only if Reliance Term Life Insurance Benefit Rider is not selected.


Options Only regular premium paying policies are available. Single and limited premium paying

options are not available.

Choice of premium payment modes, namely, monthly (ECS), quarterly (ECS), half yearly and yearly are available.

Two plan options are available namely, Ready-made plan and Tailor-made plan.

Partial withdrawals

Surrenders

Top – ups

Switching of funds


Readymade Plan Option Readymade Plan Option i.e. life stage based asset allocation

Under this option there will be three funds namely, New Fund A, New Fund B and New Fund C for the age bands 0 to 40, 41 to 60 and over 61 years as at last birthday respectively.

On commencement of the policy, depending on the age last birthday of the life assured, the premiums will be invested in one of the three Ready-made fund options.

The change in the fund option, if required as the life assured moves from one age band into the next, will be automatically effected at the next policy anniversary.

This change will be applicable for the existing fund balances and future premiums.


Options under this plan

Tailor-made Fund Option – Under this option you have the full freedom to decide your fund mix.

The funds available under this option are New Money Market Fund, New Corporate Bond Fund, New Gilt Fund, New Equity Fund, New Infrastructure Fund, New Energy Fund, New Mid-Cap Fund and New Pure Equity Fund irrespective of attained age.


Tailor – made option

8 different fund options with a wide range of risk profiles are available to cater to diverse investor risk profiles, namely, New equity fund

New corporate bond fund

New money market fund

New gilt fund

New infrastructure fund

New energy fund

New midcap fund

New pure equity fund

New Fund C is the only available fund during settlement period.


Partial withdrawal value

Partial withdrawal value is payable only after completion of three policy anniversaries.

No partial withdrawal charge for partial withdrawals to finance medical expenses

The partial withdrawal value under the basic plan is equal to the fund value less partial withdrawal charge for regular premium paying policies.

Minimum partial withdrawal = Rs 5,000

Maximum partial withdrawal = 20% of the fund value at the time of withdrawal.

Minimum fund balance at any point of time must be 125% of the annualized premium.


Surrender value

Full surrender value is payable only after completion of three policy anniversaries.

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

The full surrender value value under the basic plan is equal to the fund value less surrender charge for regular premium paying policies.

There are no surrender for top – up premiums


Additional options

Switching A policyholder may switch between Tailor-made plan option and the Ready-

made Plan option.

A policyholder may switch between the funds available under Tailor-made Plan option.

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

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

When switching from Tailor-made Plan to Ready-made Plan the fund option will depend on the age last birthday of the life assured and the corresponding age band.

When switching from Ready-made Plan to Tailor-made Plan the policyholder can decide his own fund mix

52 free switches per policy year

Unused Free switches cannot be carried forward


Additional options

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

Minimum Rs 2,500 per top up

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

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


Additional options

Premium redirection Alters the investment pattern of all future premiums you may pay into your

policy

Does not alter the proportion of your fund balances at the time of switching

Premium redirection is not available in Ready-made plan option


Systematic Transfer Plan (STP) is available only for contributions to be invested in the New Equity fund under Tailor-made plan option.

STP is not available under the Ready-made plan option.

This facility will allow policy holder to invest the portion of premium or top – ups meant for New Equity Fund initially into New Money Market fund and then systematically transfer (i.e. automatically switch) every week (not less than 1/4 part of the amount initially invested) into New Equity fund option.

On the date of realisation of the instalment premium cheque, units will be allocated in the New Money Market fund for the portion of premium meant for New Equity Fund.

On each of the next four Systematic Transfer dates one-fourth of the STP units will be transferred to the New Equity fund automatically. The STP dates will be 7th, 14th, 21st & 28th of every month.

Additional options


On each of the next four Systematic Transfer dates one-fourth of the STP units will be transferred to the New Equity fund automatically. The STP dates will be 7th, 14th, 21st & 28th of every month.

The first time the policyholder effects STP on regular / single premiums or on top ups no charge will be levied. Subsequently, a fixed charge of Rs.100 will be levied each time the Systematic Transfer Plan Option is selected.

However, the selection of STP can take place only on the policy anniversary.

There are no charges for cancellations.

No further switches are allowed during STP period in respect of the fund amount under STP option.

Once STP option is selected it can not be cancelled in respect of the amount already lying in the STP fund.

Additional options


Discontinuance of premiums

Within 3 years from inception of the policy

If premiums have not been paid for at least three consecutive years from the inception, the health insurance benefits and rider benefits if any will cease immediately.

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

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

Anytime during this period, should the policyholder die, the fund value will be paid.

A policyholder may revive the policy.


Discontinuance of premiums

After paying atleast 3 consecutive years premiums

If premiums have been paid for at least three consecutive years and subsequent premiums are unpaid, the policy will remain in force with the health insurance benefits intact.

The rider benefit if any will cease immediately.

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

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

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

The policyholder may revive the Policy.


Revival of a policy

If three policy years’ premiums have not been paid

A policyholder may revive a policy by recommencing the payment of premiums at any time within a period of 2 years from the due date of first unpaid premium but before the maturity date of the policy subject to satisfactory medical and financial underwriting.

If the basic policy is not revived before the end of the revival period, the policy would be terminated and surrender value paid at the end of the period allowed for revival or the third policy anniversary whichever is later.

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.


Revival of a policy

If atleast three policy years’ premiums have been paid

A policyholder may revive a policy by recommencing the payment of premiums at any time within a period of 2 years from the due date of first unpaid premium but before the maturity date of the policy subject to satisfactory medical and financial underwriting.

If the basic policy is not revived before the end of the revival period, the policy would be terminated and surrender value paid.

However, the policyholder may opt to continue the policy even beyond the revival period (but not beyond the maturity date of the policy). The hospitalisation and administration charges will be deducted from the Fund Value by cancelling the units. The policy will continue to participate in the performance of the unit funds chosen by the policyholder.

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.


Additional options

Exchange option available for existing policyholder under Reliance Wealth + Health Basic Plan after

completion of three policy years from the date of commencement.

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

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

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

If the policyholder is opting for transfer from other plans into Reliance Wealth + Health Basic Plan under exchange option, the allocation charge in year of exchange will be reduced in the year of exchange to 5% of the annualized premium.

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

If the exchange option is used to pay top ups in Reliance Wealth + Health Basic Plan, the allocation charge in the year exchange will be 1% of the top up amount.


Settlement Option

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

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

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

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

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

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

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

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

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


Charges

Year

Allocation charge as a % of Annualised Premium

1 25%

2 year onwards 5%

Allocation charges

Allocation charges for top – ups is 2%


Fund Management charges

Fund Name Annual Rate

New Fund A 1.35% p.a.

New Fund B 1.30% p.a.

New Fund C 1.30% p.a.

Ready - made

Tailor - made

Fund Name Fund Management Charge

New Money Market Fund 1.25% p.a.

New Gilt Fund 1.25% p.a.

New Corporate Bond Fund 1.25% p.a.

New Equity Fund 1.35% p.a.

New Pure Equity Fund 1.35% p.a.

New Infrastructure Fund 1.35% p.a

New Energy Fund 1.35% p.a

New Midcap Fund 1.35% p.a


Charges Policy administration charges – Rs 40 per month

Surrender & Partial withdrawal charges

Nil for top-ups

Nil if partial withdrawal is used to finance medical expenses

Year of surrender Surrender Charge/Partial Withdrawal Charges as percentage of fund value to be surrendered/withdrawn

1 to 3 Surrender Value/Partial Withdrawal Value not available 4th 20% 5th 10% 6th onwards Nil


Charges Miscellaneous Charge (Charge for Systematic Transfer Plan (STP) Option.)

There is no charge, the first time Systematic Transfer Plan Option is effected for regular premium payment mode as well as top –ups.

Subsequently, a fixed miscellaneous charge of Rs.100 will be levied every time the Systematic Transfer Plan Option is selected.

There are no charges for cancellations of STP option.


Service tax The Service Tax charge on Hospitalisation charge, Policy Administration

charge, Miscellaneous charges on STP option and Switching charge will be recovered by cancellation of units at the prevailing unit price.


Thank you

a reliance capital company reliance wealth + health plan awaiting approval from irda

Documents