Reliance Life Guaranteed Maturity Insurance Plan Review
Reliance Life insurance offers Guaranteed Maturity Insurance Plan where it would double your investment. Reliance Life Guaranteed Maturity Plan is a single premium ULIP Plan. It comes with zero premium allocation charges. It would double your investment in 10 years apart from providing risk cover. What are the key features of this Double your money insurance plan from Reliance Life? Should you invest in such ULIP Plan which provide guaranteed double your money scheme?
Key features of Reliance Life Guaranteed Maturity Insurance Plan
- This is a single premium ULIP Plan.
- You can consider premium of as low as Rs 5,000.
- Reliance life guarantees to pay double your premium amount on maturity.
- Tenure of this life insurance plan is 10 years.
- This is Unit Linked Insurance Plan, hence there is scope to get higher amount on maturity.
- Zero premium allocation charges.
- You can have partial withdrawals after 5 years from the policy date.
- This ULIP would invest in Reliance Assured Maturity Debt Fund.
Also Read: 10 Top Ways to Double your Money in India
Who is eligible to take Reliance Life Guaranteed Maturity Insurance Plan?
What are various benefits available in Reliance Life Guaranteed Maturity Insurance Plan?
a) Death Benefit
- In case of unfortunate death of life insured, nominee would get higher of the following a) Prevailing sum assured after reducing any partial withdrawal of units in last 24 months before the death of life insured or b) fund value as on the date of receipt of intimation of death of life insured.
- Policy terminates after payment of death benefit.
b) Maturity Benefit
- At the end of the policy term of 10 years, maturity benefit would be higher of a) Guaranteed Maturity Value which is double the amount of single premium or b) Fund value as on the date of maturity.
- Policy terminates after maturity benefit is paid.
c) Surrender Benefit
- Surrender benefit would be full value of single premium, however would be payable only after 5 years of lock-in period.
What is the Fixed Sum assured under this ULIP Plan?
Fixed sum assured would be as follows:
- Policy year 1 –5 times of single premium
- Policy year 2 and later, but life insured age is < 45 yrs – 1.25 times of single premium
- Policy year 2 and later, but life insured age is >= 45 yrs – 1.1 times of single premium
How much partial withdrawal available under this Insurance Plan?
After 5 years, you can withdraw partial amounts from your insurance plan with following conditions:
- Minimum partial withdrawal is Rs 5,000.
- Maximum partial withdrawal is 20% of fund value at any point of time.
- However, one should hold 50% of single premium as fund value till end of maturity.
What are the charges applicable in this Reliance Life Guaranteed Maturity Insurance Plan?
Below are the details of charges which are important from investors point of view.
- Zero premium allocation charges.
- Standard mortality charges which would be deducted from fund value.
- Policy administration charges would be 1.85% per annum (till 5 years) and 0.7% per annum after 5 years period. However, maximum charges under this would be Rs 6,000 per annum.
- Fund Management Charges would be 1% p.a.
- No discontinuance charges.
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Should you invest in Reliance Life Guaranteed Maturity Insurance Plan?
There are several positive factors in this insurance cum investment plan. Such market linked plans can give you 6% to 8% approximate returns and it could be higher based on market situation. If we compute under this plan, it is expected to give minimum of 7.2% annualized returns to double your investment by 10 years. Beyond this, you have insurance cover for 5 times till 5 years and 1.25 or 1.1 times minimum till tenure end. I suggest you to take term insurance plan for risk cover as priority. If you are low risk investor, you can consider such plans which would provide 7% guaranteed returns. Alternatively, you can invest in equity mutual funds which can provide you 12% to 15% annualized returns in the long run of 10 to 15 years.
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Reliance Life Guaranteed Maturity Insurance Plan