Reliance Life Classic ULIP Plan Review
On Wednesday, 10th November 2010, Reliance Life has launched Classic ULIP Plan. Let us understand the key features of this plan and review this plan.
Key Features:
- Triple Benefits – Savings, Investment & Insurance
- Liquidity: Through Loans and Partial Withdrawals
- Loan after completion of second policy year
- Top up benefits
- Rifer benefits for additional cover available
- Death Benefit: the beneficiary would get double the base sum assured plus total fund value in the event of accidental death
- Two Minimum Payment Options: Regular option and the Single Premium option.
Under the Regular Premium Option, the customers would have to pay Rs 20,000 annually -- which can also be paid in monthly, quarterly and half yearly options.
For the Single Premium option, customers will have to pay a minimum of Rs 50,000 only once at the inception during the 15-year policy tenure.
However, I personally advise people to simply not invest in this plan. This is because It’s the ULIP and it is the combination of Insurance with Investment.
And the details about how much premium allocation charge they will charge is not very much clear. And what are the various annual policy charges under this policy will be?
So in my opinion, you should go for,
Term Insurance + Equity Mutual Funds + PPF
Remember that, never mix your insurance needs with investment needs. For insurance needs, buy a separate term insurance plan while for Investment needs, invest in Equity mutual funds or PPF.
So Stay away from this Plan.
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