Reliance Life Group Sarv Samriddhi Plan
The Reliance Group Garv Samriddhi plan is a non participating non linked group savings variable insurance plan that provides a low cost systematic savings plan with regular interest credits. This plan allows you to build up a corpus that offers a financially safe and secure future for you and your loved ones.
Key Features of Reliance Group Sarv Samriddhi Plan:
Below are the key features of the Reliance Group Sarv Samriddhi Plan:
- The offers the group members life cover for the entire duration of the policy.
- The plan provides flexible modes of premium payment with modes ranging from monthly, quarterly, half yearly and yearly.
- The plan is targeted for non employer employee homogenous groups such as government agencies, cooperative societies, parents of students as members and any other group approved by the Insurance Regulatory and Developmental Authority.
- The plan provides death benefits and death benefits due to accidents.
- The plan has a grace period policy which allows you to make any payment missed on a date within 30 days if the premium payment is quarterly, half yearly or yearly monthly and 15 days if the premium payment is monthly.
- The policy can be acquired hassle free with minimum requirement of documents and allows policyholder option of choosing premium payments.
- The policy does not levy a fund management charge for the first five member contract years allowing policyholder to boost their returns.
Benefits of Reliance Group Sarv Samriddhi Plan:
The benefits of Reliance Money Multiplier Plan are mentioned below:
- The policy offers maturity benefits that are as follows:
- The policyholder will receive all invested premiums. The policyholder also receives a minimum floor rate (MFR) which is guaranteed at 2.5% per annum of the policy term. Over the MFR, the policyholder also receives additional interest rate (AIR) of 1.25% per annum for the duration of the policy. Starting from the fifth policy year, the non-zero positive residual additions (NRA) if any is credited at the end of every policy year.
- The policy offers death benefits. If the member dies during the member contract term and provided all premiums are paid, the nominee will receive 105% of all the paid up premiums or the basic sum assured.
- The policy also covers death by accident in which if the member dies before the age of 65 or due to an accident the nominee will receive an additional benefit of 105% of all the premiums paid till time of death.
Eligibility:
Below are the criteria for eligibility for Reliance Money Multiplier Plan:
Criteria | Minimum | Maximum |
Term of the policy | The minimum term of the policy is 10 years | The maximum term of the policy is 10 years |
Size of the Group | 20 members minimum | 5000 members maximum |
Age for entry | The minimum age of entry is 14 years as at last birthday | The maximum age of entry is 60 years as at last birthday |
Age of maturity | 24 years of age as at last birthday | 70 years of age as at last birthday |
Premium | Minimum premium is RS 1000 p.a | There is no limit on maximum premium to be paid |
Premium Payment Term in years | The minimum premium payment term of the policy is 10 years | The maximum premium payment term of the policy is 10 years |
The other criteria are as follows:
- The sum assured ranges from 10 to 25 times the annual premium. The sum assured is subject to minimum of RS 10,000 per member.
- The premium payment is equal to the policy term and the modes of premium payment are monthly, quarterly half yearly and yearly.
How the Reliance Group Sarv Samriddhi Plan works?
Regardless of the size of the group, a policy account is maintained for every member in the group at the time the policy takes effect. The members in the group can decide the mode of premium payments be it monthly, quarterly, half yearly or yearly. Premium Allocation charges will be deducted from the premiums paid by the member and the remaining amount will be invested. At the end of every financial quarter or on the date of termination of the policy, whichever comes first, the member's policy account is credited with MFR and AIR. The policy account will also be credited with NRA starting from the end of the 5th policy year and thereafter at the end of every policy year.
MFR is minimum floor rate and is guaranteed at 2.5% per annum throughout the term of the policy. AIR is non zero positive additional interest rate and is 1.25% per annum for the entire policy term and NRA is non zero positive residual additions.
Charges:
Below are the charges involved in the Reliance Group Sarv samriddhi Plan:
- Service Tax: Service tax is applicable on the premium allocation charges, fund management charges, policy administration charges, mortality charges, and accidental death benefit charges. The service tax is at the rate of 12.36% and is deducted along with the relevant charges.
- Premium Allocation Charges: These charges are deducted from the premiums paid at the time of premium payment and the remainder is credited to the policy account of the member. The premium allocation charges are 12% of the premium paid for the first year, 7.5% for the premiums paid from the 2nd year to the 5th year and 5.5% for any premiums paid after the 6th year.
- Fund Management Charges: The fund management charges will be deducted from the policy account value at the rate of 1.35% per annum. However these charges are waived off for the first 5 years. After the completion of 5 policy years these charges will be applicable.
Policy Discontinuance Year | Annual Premium up to ₹25,000 | Annual Premium above ₹25,000 |
1st Year | Lower of 20% of annual premium or policy account value, subject to a max of ₹3,000 | Lower of 6% of annual premium or policy account value, subject to a max of ₹6,000 |
2nd Year | Lower of 15% of annual premium or policy account value, subject to a max of ₹2,000 | Lower of 4% of annual premium or policy account value, subject to a max of ₹5,000 |
3rd Year | Lower of 10% of annual premium or policy account value, subject to a max of ₹1,500 | Lower of 3% of annual premium or policy account value, subject to a max of ₹4,000 |
4th Year | Lower of 5% of annual premium or policy account value, subject to a max of ₹1,000 | Lower of 2% of annual premium or policy account value, subject to a max of ₹2,000 |
5th Year and onwards | Nil | Nil |
- Policy Administration Charge: This charge is deducted at the rate of 2.5% per annum of the annualised premium subject to a RS 6000 limit per member contract year. This charge is deducted in advance monthly from the value of the policy account for the entire member contract term.
- Accidental Death Benefit Charges: Accidental death benefit charges and mortality charges is guaranteed during the member contract period. The charges for accidental death benefit is RS 1 for every RS 1000. This charge is annual but is deducted monthly at the rate of 1/12th of the charge at the beginning of each policy month.
- Mortality charges: The mortality charges are based on the mortality rate and the risk characteristics of the individual member. It will be deducted monthly and is based on the difference between the death benefit the value of the policy account at the time of deducting the charges.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017
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