Reliance Traditional Group Superannuation Plan
- Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
- Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
- Do more with plans that offer pure protection, retirement planning and investment options
It’s a non-linked fund based group insurance plan offered by Reliance Life Insurance, the premiums of which shall be invested as per the IRDA rules on pension and general annuity. The benefits paid under this plan are governed by the norms of individual employer’s superannuation scheme and it will vary from one employer to another.
Eligibility -Who is the Reliance Traditional Group Superannuation Plan for?
To be eligible for the Reliance Traditional Group Superannuation Plan, the master policyholder has to meet certain criteria. Refer to the below table for the same:
| Minimum group size | 10 members |
| Maximum age at entry | 69 years |
| Maximum age at maturity | 70 years |
| Maximum size of policy account | No limit |
Sum Assured and Premium Range - What you get and what it costs
Reliance Traditional Group Superannuation Plan offers two different types of schemes namely, Defined Contribution (DC) and Defined Benefit (DB). Find out more about policy parameters in the table below:
| Minimum premium contribution (annual) | Rs.2 lakh |
| Maximum premium contribution (annual) | No limit |
| Policy term | 1 year and it will be renewed annually during policy anniversary, unless terminated by the master policyholder |
| Types of cover | Defined Contribution (DC) and Defined Benefit (DB) |
| Modes of premium payment | Annually, half-yearly, quarterly, and monthly |
Plan coverage - What the Reliance Traditional Group Superannuation Plan covers
As already mentioned, the plan covers two types of schemes – Defined Contribution and Defined Benefit. The benefits paid under a Defined Contribution scheme are based on the contributions and investment earnings at the time of retirement. In Defined Benefit scheme, the benefits payable are predefined and it is a function of the individual’s salary. Both the schemes offer guaranteed non-zero positive interest rate equal to 2.5% and an additional interest of 0.01% per annum on the premium contributions of members. Here’s what the Reliance Traditional Group Superannuation Plan covers:
| Benefits offered under the plan | The exact benefits offered under the plan is governed by the superannuation scheme of the employer. In general, the following benefits shall be paid under the following circumstances:
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| Payout options | At the time of benefit payout, the company shall provide the following options to the members or beneficiaries subject to the individual employer’s superannuation scheme:
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| Interest rate declaration |
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Suicide Claim Provision
In the event of a member committing suicide, the benefits payable shall be as per the trust deed and the norms mentioned in the individual employer’s/master policyholder’s superannuation scheme. The liability of the company shall be limited to the maximum amount payable based on the policy account value or the accumulated premiums.
Other Key Features – Free Look Period, Surrender Values, Grace Period etc.
| Free Look Period | If the master policyholder disagrees with any of the policy terms, they can return the policy back to the company within 15 days of receipt of the policy documentation. This interval is referred to as the free-look period. The free-look period for policies that were purchased through distance marketing channels like online sale, telephonic purchase, etc. is 30 days. The master policyholder is then eligible to receive a refund of the premiums paid minus the proportionate risk premiums. |
| Policy Surrender | If the master policyholder opts to surrender the policy, they will receive an amount equal to the maximum policy account value or the accumulated premium contributions at the maximum agreed interest rate minus surrender charges. |
| Market Value Adjustment | A Market Value Adjustment (MVA) is applicable only during bulk exits and it is related to the amount which is above the amount indicating bulk exit. MVA is applied to adjust the amount payable during bulk exits. |
| Addition of New Members | New members can join anytime when the policy is in force. The addition of new members must be approved by the master policyholder. |
| Policy Loans | Not applicable |
| Claim Process | In the event of a claim, the master policyholder is required to intimate the company in writing and provide the following documents:
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Tax benefits – How you can save with the Reliance Traditional Group Superannuation Plan
Tax benefits will be offered under the policy as per the prevailing tax laws of the country. These laws are subject to amendment from time to time and you are advised to consult a tax advisor before purchase of the plan.
Why you should buy the Reliance Traditional Group Superannuation Plan?
Reliance Nippon Life Insurance Company offers a broad portfolio of products to fulfill your savings and insurance needs. The company has a higher claim settlement ratio and serves lakhs of customers across the country. Reliance Group also provides insurance services for industries such as Communications, Energy, Entertainment, Natural Resources, etc. Reliance Life Insurance Company is ranked among the top three life insurers in the country.
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