Reliance Life launches two plans with guaranteed returns

Reliance Life launches two plans with guaranteed returns
PTI
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First Published: Mon, Dec 22 2008. 04 46 PM IST
Mumbai: Anil Dhirubhai Ambani Group firm Reliance Life Insurance on Monday said it has launched two unit-linked insurance plans with insurance and pension options, which assure investors of guaranteed returns on maturity.
The new plans launched under the ‘Reliance Guaranteed Return Plan Series I’ with insurance and pension options would have fixed term of five years, Reliance Life Insurance said in a statement.
Unit-linked policies (ULIPs) are life insurance policies, where a portion of the premium is invested in the stock market.
“Both the options guarantee a return on investment funds of 6.85% compounded annually at maturity,” Reliance Life Insurance CEO P. Nandagopal said.
“Apart from the guaranteed returns, the policyholders also benefits from any growth in the fund value in excess of the guaranteed amount,” Nandagopal added.
Under the plan, investment rate of return would amount to 10.4% presuming tax benefits at 10% of return and tax rate of 33.99%, the company said.
In an insurance option, besides maturity, an investor can choose any life cover between 1.25 and 5 times of single premium, while in pension variant, the guaranteed return on death is available during the fifth year, it further added.
The insurance plan also provides partial withdrawal benefits in insurance option after three years. Minimum withdrawal amount would be Rs5,000, whereas maximum should be 20% of the fund value at the time of withdrawal, Reliance Life CEO further said.
Reliance Life Insurance is the fourth largest private insurer in the country in terms of new business premium and the company has recorded the highest growth in new premium at 196% and registered Rs2,754 crore through fresh premium collections in the current fiscal.
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First Published: Mon, Dec 22 2008. 04 46 PM IST