This is Reliance Life's first pure equity unit linked insurance plan (ULIP) and has added Shariah compliant features like having no investments into industries such as non-banking finance, liquor, cigarettes, tobacco, and sugar among others, a company statement said.
The RSIP is designed to provide an opportunity to invest funds in eight different fund options, including the Gilt and sectoral funds like infrastructure, energy and mid-cap which, the company stated, provide relatively higher returns.
"One of the unique propositions of RSIP is that it contributes into a policyholder's account from 50 per cent (in 10th year) to 250 per cent (by 30th year) of the paid annualised premiums. This is the additional income which policyholders will get from the company and it will have compounded growth as well, depending on market conditions," Reliance Life Insurance CEO, P. Nandagopal, said.
He then added: "We aim to make it our top-selling product given the additional values and sound maturity benefits and expect a sales contribution of 20-25 per cent by the end of this financial year." It also provides a plan for a child of 30 days and covers life of the insured up to 20 times of the annual premium, depending on the age.
Reliance Life Insurance expects the 'Super InvestAssure Plan' to emerge as its flagship product under ULIPs and account for about 25 per cent of the new premium income for the current fiscal. In 2007-08, the company's new premium collections stood at Rs 2,754 crore.
Based in Tunbridge Wells UK, Reliance Mutual dates back to 1911 when it was known as Farringdon Reliance Friendly Collecting Society. In 1951, it converted to a Mutual Society - having no shareholders, its existence came about solely to provide benefits to the policyholders. Reliance Mutual currently provides life insurance, critical illness cover and pension and investment products to clients in the UK. It is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India's leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth.
Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based life insurance solutions to individuals and Corporates in India.
The plan claims to be the 'only plan to offer fixed income for life even in case of accidental disability of the child', to 'offer rewarding online community for child's overall development' and boasts that 'the company also donated Rs 5 Lakh to Akanksha Foundation, for underprivileged children'. Reliance Life Insurance are very optimistic about the new plan and hope that customers will be attracted to its benefits and bonuses.
"The Reliance Secure Child Plan aims to offer an innovative product with unique and fun-filled benefits to children while securing their future. This is in line with our strategy to offer best-in-class products to our customers", said Mr. P. Nandagopal while launching the product. The plan also offers an inbuilt waiver of premium benefit in the event of the death of the insured proposer (parent), that protects the future of the child by paying all the future premiums, so that the plan remains in full force.
Sofia is an author of several articles pertaining to Life Insurance. She is known for her expertise on the subject and on other Business and Finance related articles.
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