The Group Sarv Samriddhi Plan from Reliance is a non-linked, non-participating group savings variable insurance policy which helps in sound financial planning so that customers can save their money on a regular basis, thereby having funds to utilise in the future. The low cost savings-oriented policy requires customers to pay premiums regularly in order to build a corpus that augments their savings via regular interest credits in addition to offering life cover. Customers who choose to purchase this plan can start securing the dreams of their families for an amount as low as Rs.1000 per annum.
The Reliance Group Sarv Samriddhi Plan offers life cover to customers for the whole of the policy term, which is 10 years. Additional protection can be availed in the event of accidental death wherein the benefit will be equal to the sum assured. The enrolment for the plan is hassle-free and customers can choose their premium payment frequency from monthly, quarterly, semi-annual and annual modes. The Reliance Group Sarv Samriddhi Plan boosts your returns as there is no Fund Management Charges for the first five member-contract years.
The Reliance Group Sarv Samriddhi Plan is designed especially for non-employer employee groups that are homogenous in nature. These groups include any associations wherein members represent a certain trade/profession/Anganwadi workers/domestic workers, any cooperative societies, government societies, parents of college/school students as members, or any other group that has the approval of the Insurance Regulatory and Development Authority. Following are the eligibility criteria for the Reliance Group Sarv Samriddhi Plan:
|Minimum Group Size||20 members|
|Maximum Group Size||5000 members|
|Policy Term||10 years|
|Minimum Entry Age||14 years|
|Maximum Entry Age||60 years|
|Minimum Maturity Age||24 years|
|Maximum Maturity Age||70 years|
Groups that purchase the Reliance Group Sarv Samriddhi Plan will have to choose the frequency at which the premiums will be paid. Premiums paid shall be invested post the deduction of Premium Allocation Charges, and at the end of every financial quarter or on the date of termination, whichever is earlier, the policy account shall be credited with the Minimum Floor Rate, which is guaranteed at 2.5% per year for the policy term as well as the non-zero positive residual additions, if any, at the end of every year starting at the completion of the fifth policy year. Following are some of the important details regarding the sum assured and the premium range for the Reliance Group Sarv Samriddhi Plan:
|Sum Assured||10 to 25 times the Annualised Premium, subject to at least Rs.10,000 per member|
|Minimum Premium||Rs.1,000 per annum|
|Maximum Premium||No limit|
|Premium Payment Term||10 years|
|Premium Payment Modes||Yearly / Half-Yearly / Quarterly / Monthly|
Following are the benefits offered by the Reliance Group Sarv Samriddhi Plan:
|Maturity Benefit||When the Reliance Group Sarv Samriddhi Plan reaches the maturity date, the policy account will be credited with all the invested premiums as well as the investment income via three different credits to the policy account, which include the minimum floor rate (guaranteed 2.5% at the end of each financial quarter), the non-zero positive additional interest rate, if any, (an amount more than the minimum floor rate, which is 1.25% per annum for the entirety of the policy term), and the non-zero positive residual additions, if any, starting from the end of the fifth policy year.|
|Death Benefit||In case of the death of a member during the member-contract term, if all premium payments have been made to keep the member-contract in force, the company will pay out the higher of the policy account value, or the basic sum assured, or 105% of all the premiums paid until the date on which the individual dies, not including any extra premiums of the individual member. In case of the death of a member during the member-contract term in case the member-contract is in paid-up status, the company will pay out the higher of the policy account value, or the basic sum assured x (number of premiums paid / number of premiums payable), or 105% of all the premiums paid until the date of death, not including any extra premiums, if any, of the individual member.|
|Death Benefit due to Accident||In case of the death of a member due to an accident before he/she attains the age of 65, the company will pay out an additional benefit which will be equal to the basic sum assured if the policy is in force, or the basic sum assured x number of premiums paid / total number of premiums payable) in case the policy is in paid-up status.|
Following are some of the other key features of the Reliance Group Sarv Samriddhi Plan:
|Grace Period||Customers who fail to pay their premiums on time will get a grace period of 30 days to ensure that all due premiums have been paid. For customers who choose the monthly mode of premium payment, the grace period will be 15 days.|
|Discontinuance of Premium Payment||In case a customer does not pay the due premiums within the grace period, he/she will receive a revival notice from the company within 15 days from the date on which the grace period expired. In such cases, the customer can revive the policy within two years. To do so, the customer will have to reply to the revival notice within 30 days from the date on which he/she received the notice. In case the customer intends to withdraw from the policy completely, he/she must reply to the notice within 30 days. Failure to reply to the notice will mean that the accidental death benefit and the insurance benefit will cease with immediate effect.|
|Surrender||In case an individual member decides to surrender the policy, the policy will attain a surrender value which will be the policy account value minus discontinuance charges, if any. Once surrendered, the policy cannot be reinstated. In case the Master Policyholder decides to surrender the group policy, the individual group members in such a scenario will have an option to continue the member-contract as an individual policy and the company will continue to be serve the members until the coverage is terminated.|
|Revival||Individual members are allowed to revive discontinued policies within two years from the date on which the policy was discontinued. In case an individual member decides to revive the policy, the proceeds of the discontinued policy account as well as the whole discontinuance charge subtracted will be transferred to the individual member’s policy account at the time of revival.|
|Premium Allocation Charges||Premium Allocation Charges will be subtracted from the premium amount at the time of premium payment prior to crediting the member’s policy account. For the first year, the premium allocation charges will be 12%, from the second year to the fifth year, the charge will be 7.5%, and from the sixth year onwards, the charge will be 5.5%.|
|Fund Management Charges||Fund Management Charges for member contract shall be applicable only after five member-contract years are completed. This fee shall be subtracted from the policy account value of every group member at 1.35% per year. The rate of fund management charges for the discontinued policy account will be 0.5% per year. Fund management charges are usually collected on a pro rata basis.|
|Policy Administration Charges||Policy administration charges shall be subtracted on a monthly basis depending on the applicable mortality rate, and the difference between the policy account value and the death benefit at the time of subtraction of charges.|
|Accidental Death Benefit Charges||The yearly charge for accidental death benefit up to the age of 65 years is Re.1 per 1000 sum assured and shall be subtracted on a monthly basis starting from the beginning of every policy month using 1/12th of the charge.|
|Discontinuance Charges||The discontinuance charges for annual premiums up to Rs.25,000 are as follow: In the first year of policy discontinuance, the charge will be lower of 20% of (annualised premium or policy account value), subject to a maximum of Rs.3,000. In the second year of discontinuance, the charge will be the lower of 15% of (annualised premium or policy account value) subject to a maximum of Rs.2,000. In the third year of discontinuance, the charge will be the lower of 10% of (annualised premium or policy account value) subject to a maximum of Rs.1,500. In the fourth year of discontinuance, the charge will be the lower of 5% of (annualised premium or policy account value) subject to a maximum of Rs.1,000. The discontinuance charge for annual premiums exceeding Rs.25,000 are as follow: In the first year of discontinuance, the charge will be the lower of 6% of (annualised premium or policy account value) subject to a maximum of Rs.6,000. In the second year of discontinuance, the charge will be the lower of 4% of (annualised premium or policy account value) subject to a maximum of Rs.5,000. In the third year of discontinuance, the charge will be the lower of 3% of (annualised premium or policy account value) subject to a maximum of Rs.4,000. In the fourth year of discontinuance, the charge will be the lower of 2% of (annualised premium or policy account value) subject to a maximum of Rs.2,000.|
|Service Tax||The Reliance Group Sarv Samriddhi Plan shall be subject to service tax that will be levied on the policy administration charges, premium allocation charges, fund management charges, accidental death benefit charges and mortality charges. Currently, the service tax is 12.36%, which will be deducted along with other relevant charges.|
|Free Look Period||In case a Master Policyholder is not satisfied with the terms and conditions of the policy, he/she has the option to return the policy within 15 days. However, the free look period will extend to 30 days in case it was purchased through the distance marketing channel.|
Suicide – In case the life assured commits suicide within 12 month from the date of the inception of the member-contract or its revival, whether sane or insane, the nominee shall be eligible for 80% of the premiums paid till the date of death or the policy account value as available on the date of death if the policy is still in force.
The premiums paid by the member as well as the benefits offered by the Reliance Group Sarv Samriddhi Plan will be eligible for tax exemption based on the current tax laws. The premium payments made by the master policyholder will be considered as business expenses and will be subject to conditions under the Income Tax Act, 1961.
The Reliance Group Sarv Samriddhi Plan is a great option as it enables savings at an affordable cost. The plan guarantees an interest rate of 2.5 per year for the whole of the policy term. The life cover offered by the plan can be up to 25 times the premium, making it a great investment platform for organisations and firms. Moreover, Reliance Nippon Life Insurance Company has developed a reputation for being one of India’s best private sector life insurance companies with more than 800 branches across the country. It also employs more than one lakh advisors, making it relatively easy for customers to get all the help they need to find the insurance plan that will best suit their unique requirements.
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