Complete project 00000000

Reliance Life Insurance
A Reliance Capital Company
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A SUMMER PROJECT REPORT ON
.
U LIP(RELIANCE CLASSIC PLAN-II)-Breaking the Myth and Repositioning
as a PRODUCT OF CHOICE
&
ULIP(RELIANCE CLASSIC PLAN-II)VERSUS Mutual Fund ,Corporate Bond,
Debt Fund and Money Market
SUBMITTED BY:-JYOTISH KUMAR BHARTI
PGDM (2012-2014)
Submitted for partial fulfillment of the requirement of PGDM 2012-2014
UNDER THE GUIDANCE OF
INTERNAL GUIDE:- SWAGATA KUMAR
FINANCE FACULTY,BITT
CORPORATE GUIDE:- AVINASH KUMAR
BRANCH MANAGER
(RELIANCE LIFE PLAZA,
RELIANCE LIFE INSURANCE)
BIRSA INSTITUTE OF TECHNOLOGY TRUST

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ACKNOWLEDGEMENT
It gives me immense pleasure, having done a project on an interesting and
knowledgeable topic like‖ Reliance life plaza.
This project has not only widened my horizon as far as academics are concerned but
also helped me to enlarge my knowledge bank. Financial management are not topics,
which could be handled with certain amount of casualty. There are many people
associated with this project without which this project would not have been possible.
I thank my institute who has given me an opportunity to show my skills. I also thank all
my nearer and dearer ones without whose support this project would not been possible.
I would like to thank Mr .Avinash kumar (Branch Manager) Ranchi, who allow me
to do this project in Reliance life plaza.
I am deeply grateful to Mr. kumar Dharmesh (Area Sales Manager) Jharkhand and
Bihar, for his ever willing help and guidance to complete my project successfully.
I also would like to thank to Mr. Satish kumar for his guidance and help to complete
my project perfectly.
I would like to thank to Ms. Swagata Kumar her able guidance, keen ineterst ,
constant supervision and ever willing help throughout the course of this study.
I also would like to thank Ms. Kasturi Sahay (H.O.D and placement cell head) who
help in allowing to do this project in Reliance.
Above all I would like to thank all contacted person who took out valuable time to
answer me queries and gave me full information about insurance industry and Reliance
life plaza.
I extend my gratitude towards my parents, who have always encouraged me and gave
suggestions as how to work on project. They always stand by me in solving all my
queries. Their support has always motivated me.

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Above all it gives immense pleasure to thank authors of various books who indirectly
helped me in gaining knowledge about insurance industry.

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- PREFACE-
Indian insurance industry is emerging rapidly after year 2000.To survive in this highly
competitive scenario, managers are being pressured to improve quality and skilled
people and eliminate inefficiently .The collective efforts of the employer, managers and
other relative people assume relevance in this context. And this is where finance
management , marketing management and human resource management play important
role.
RLIC is the first company in India to set up a structured need-based in-branch
sales platform in the form of a 'Life Plaza', which aims at creating awareness
about life insurance and fulfilling the needs of prospective customers through
Financial planning and its array of products and services.
The introduction of Life Plaza was announced by Mr. Malay Ghosh, President and
Executive Director, Reliance Life Insurance.
Reliance Life Insurance offers the products that fulfill our savings and protection
needs. Our aim is to emerge as a transnational Life Insurer of global scale and standard.
Reliance Life Insurance Company Limited is a part of Reliance Capital, under Reliance
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 Capital has interests in asset management
and mutual funds, stock broking, life and general insurance, proprietary investments,
private equity and other activities in financial services.
Reliance Life Insurance Company (RLIC), part of ADAG‘s Reliance Capital Ltd, on
Thursday launched a new unit-linked plan, called Classic Plan II, that offers customers
dual benefits of insurance protection and market-linked return. The existing ULIP plans
in RLIC‘s portfolio offer life cover benefit equal to the sum assured plus fund value
I have made an attempt to study this aspect of insurance industry in my project. In this
project, details of ULIP product (Reliance Classic Plan-II) breaking the myth and
Repositioning it as a product of choice .And its comparative analysis of
ULIP(Reliance Classic Plan-II) versus Mutual Fund, Corporate Bond, Debt Fund,
Money Market.
I have tried to find out how consumer awareness about product and its importance

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regarding tax and investment benefit is very important for this well as well as this
industry as well as this firm.
To get knowledge of above question and to fulfill the requirements for project on
―ULIP (Reliance Classic Plan-II) and its importance in financial term‖ I have worked
in Reliance Life Insurance and search some interest sites.
On the basis of my study, I have included following topics as the important aspect of
my project
I. Insurance Industry Introduction
II. Ulip Product details
III. Ulip tax benefits and charges
IV. Ulip flexibility and disclaimer
V. Ulip working process
In this project I have tried to give attention to all the above topics and study them in
depth. But I would still like to receive all sorts feedback to enhance my knowledge on
the topics as far as this industry is concern.

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TABLE OF CONTENTS.
ACKNOWLEDGEMENT 2
PREFACE 4
TABLE OF CONTENTS 6
LIST OF ABBREVIATIONS 8
SECTION( A): INTRODUCTION 9
A.1> ABOUT INSURANCE INDUSTRY IN INDIA 10
A.2>ABOUT RELIANCE LIFE INSURANCE 17
A.3>ABOUT RELIANCE LIFE PLAZA 32
A.4> ABOUT PROJECT 41
SECTION( B): RELIANCE LIFE INSURANCE LAUNCHES ULIP( RELIANCE CLASSIC PLAN-II)
42
SECTIONC(-A): ULIPPRODUCT(REL1IANCE CLASSIC PLAN-II) 48
C.1>ULIP {ABOUT us. 49
C.2>ULIP {CHARGES 49
C.3>ULIP {FAQs. 55
C.4>ULIP {Flexibility 58
C.5>ULIP {Benefits. 60
C.6>ULIP {Tax and benefits 63

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C.7>ULIP {Disclaimer 64
(C-B)COMPARATIVE ANALYSIS OF ULIP(RELIANCE CLASSIC PLAN-II VERSUS MUTUAL
FUND,CORPORATE BOND,DEBT FUND AND MONEY MARKET 66
SECTION (D): STATUS REPORT 82
RESEARCH METHODOLOGY
D.1> RESEARCH OBJECTIVE 83
D.2>QUESTIONNAIRE 83
D.3>SAMPLING METHOD AND SAMPLE SIZE 83
D.4>LIMITATIONS 84
D.5>SWOT ANALYSIS 84
SECTION E:CONCLUSION 86
E.1>EXPERIENCE 87
E.2>SUMMARY 87
E.3>RECOMMENDATION 88
E.4>BIBLIOGRAPHY 89
SECTION F:ANNEXURE 90
F.1>QUESTIONNAIRE 91
F.>ANALYSIS OF QUESTIONNAIRE 93
THANK YOU 102

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LIST OF ABBREVIATIONS
RLI Reliance Life Insurance
IRDA Insurance Regulatory & Development
Authority
AA Agent Advisor
PO
CSR Corporate Social Responsibility
SM Sales Manager
RCL Reliance Corporation limited
ADAG Anil Dhirubhai Ambani Group

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Section A:
INTRODUCTION

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A.1> About Insurance Industry in India
A promise of compensation for specific potential future losses in exchange for a
periodic payment.
Insurance is designed to protect the financial well-being of an individual, company or
other entity in the case of unexpected loss.
Insurance = Collective bearing of Risk.
• Basic Human trait is to be averse the idea of risk taking.
• Insurance, whether life or non-life, provides people with a reasonable degree of
security and assurance that they will be protected in the event of a calamity or failure of
any sort.
Insurance sector is an opportunity for India.
This business is growing at the rate of 18-22 per cent annually.
Presently it covers market of Rs.450 billion.
Together with banking sector it contributes about 7% to GDP.
Gross premium collection is about 2% of GDP.
Still 80% of Indian population is without life insurance.
This is an indicator that growth potential for the insurance sector is immense.
Insurance sector contribute a lot in economic development.
It provides long term fund for infrastructure development.
It is estimated that over the next ten years India would require investment of the
order of one trillion US dollar
The insurance sector,to some extent,can enable investments in infrastructure
development to sustain economic growth of the country.
Division OF Insurance Sector

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Origin And Growth Of Insurance Sector
# In fiscal 2000-01, the Indian federal government lifted all entry restrictions for
private sector investors.
# Foreign investment insurance market was also allowed with 26 percent cap.
# GIC was converted into India's national reinsure From December,2000.
# All the subsidiaries working under the GIC umbrella were restructured as
independent insurance companies.
Till end of FY 1999-2000, two state-run insurance companies, namely, Life Insurance
Corporation (LIC) and General Insurance Corporation (GIC) were the
monopoly insurance providers in India.
#Under GIC there were four subsidiaries:
–National Insurance Company Ltd.
–Oriental Insurance Company Ltd.
Insurance industry in india
Public sector
Life
Lic Post office insurance
general
Gic and its four
subsidiaries
Private sector
Life
(16Companies)
General
(16 Companies)

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–New India Assurance Company Ltd.
–United India Assurance Company Ltd.
Factor Affecting Service Sector
Five environmental variables that affect all industries-
– Customers
– Competitors
– Government
– Technology and
– Globalization -are forcing rapid changesin the service sector.
• In addition, there are four factors ofparticular importance to service
providers-
– change in how quality is perceived
– cost control
– customer services and
– the new definitions of the customer
Life Insurance Corporation
Organisation
The Life Insurance Corporation of India (LIC) is undoubtedly India's largest life
insurance company. Fully owned by government, LIC is also the largest investor of the
country. LIC has an estimated asset of ` 8 Trillion. It also funds almost 24.6% of the
expenses of Government of India.
Established in 1956 and headquartered in Mumbai, Life Insurance Corporation of India
has 8 zonal offices, 100 divisional offices, 2,048 branch offices and a vast network of

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10,02,149 agents spread across the country.
Life insurance companies In India
1.Bajaj Allianz Life Insurance Company Limited
2.BirlaSunLifeInsuranceCo.Ltd
3.HDFCStandardLifeInsuranceCo.Ltd
4.ICICIPrudentialLifeInsuranceCo.Ltd.
5.INGVysyaLifeInsuranceCompanyLtd.
6.LifeInsuranceCorporationofIndia
7.MaxNewYorkLifeInsuranceCo.Ltd
8.MetLifeIndiaInsuranceCompanyLtd.
9.KotakMahindraOldMutualLifeInsuranceLimited
10.SBILifeInsuranceCo.Ltd
11.TataAIGLifeInsuranceCompanyLimited
12.RelianceLifeInsuranceCompanyLimited.
13.AvivaLifeInsuranceCo.IndiaPvt.Ltd.
14.SaharaIndiaLifeInsuranceCo,Ltd.
15.ShriramLifeInsuranceCo,Ltd.
16.BhartiAXALifeInsuranceCompanyLtd.
17.FutureGeneraliLifeInsuranceCompanyLtd.
18.IDBIFortisLifeInsuranceCompanyLtd.
19.CanaraHSBCOrientalBankofCommerceLifeInsuranceCo.Ltd
20.AEGONReligareLifeInsuranceCompanyLimited.
21.DLFPramericaLifeInsuranceCo.Ltd.
22. Star Union Dai-ichi Life Insurance Comp. Ltd.
Non-Life Insurance companies in India
#>Bajaj..Allianz..General..Insurance..Co..Ltd.
#>ICICILombardGeneralInsuranceCo.Ltd.
#>IFFCOTokyoGeneralInsuranceCo.Ltd.
#>NationalInsuranceCo.Ltd.

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#>NewIndiaAssuranceCo.Ltd.
#>Oriental..InsuranceCo.Ltd.
#>RelianceGeneralInsuranceCo.Ltd.
#>RoyalSundaramAllianceInsuranceCo.Ltd.
#>TataAIGLifeInsuranceCo.Ltd.
# United India Insurance Co. Ltd
Reinsurers:
# General Insurance Corporation of India
Contribution Too Growth
• Currently, the insurance sector size is estimated at Rs.500 billion.
• On account of intense marketing strategies adopted by private insurance players, the
market share of state owned insurance companies like GIC, LIC and others have come
down to 70% in last 4-5 years from over 97%.
• The private insurance players despite the sector is still regulated has been offering
rate of return (R o R) to its policy holders which is estimated at about 35% as
against20% of domestic insurance companies.
• LIC and GIC have limited number of policies to offer to their subscribers
• Private insurance companies offer many policies and the premium amount as well as
the maturity period is much competitive as against those of government insurance
companies.
• The private sector insurance players have started exploring the rural markets in which
until recently, the state owned companies had the monopoly.
• India‘s life insurance premium, as a percentage of GDP is 1.8%
Future Of Sector
*Indian insurance sector is likely to register unprecedented growth of 200% and attain a
size of Rs. 2000 billion by 2009-10
*A private sector insurance business will achieve a growth rate of 140% as a result of

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aggressive marketing technique being adopted by them against 35-40% growth rate of
state owned insurance companies.
*In rural markets, the share of private insurance players would increase substantially as
these have been able to generate a faith among their rural consumers.
Insurance Sector-Emerging Areas
Demand for Pension Plans:-
Two relatively modern trends affect lifeinsurance business in India significantly:
– Joint Family System and
– elderly are increasingly having to fend for themselves
Separateness of Banking and Insurance
– Bancassurance
• Role of Information Techno-logy
• Using Postal Network
• Creating Insurance awareness
• Innovative Products
Change in Trends
From price point of view
• DIFFERENT COMPANIES ARE PROVIDING POLICES OF INSURANCE AT
COMPETETIVE
PRICES
• EVEN THE ALLOCATION CHARGES UNDER POLICIES IS ALSO
DECREASED
• THE INSURANCE AGENT COMISSION IS ALSO FIXED AAND REDUCED

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SO THAT THE
CUSTOMER CAN GET THE BEST.
From customer and service point of view
• Globalization - "The Dynamic Force"
• MNCs - "The New Path Maker"
• More customer oriented
• Mostly better service oriented
• More competitive
• Better satisfaction
• More value addition
• Strategic development
From promotion point of view
• Computerization
• Internet
• Electronic Clearance Service
(ECS)
• Call Centres and SMS services
Indian Insurance In 21st
Century
# > 2000:IRDA starts giving licenses to private insurers: ICICI prudential and
HDFC Standard Life insurance first private insurers to sell a policy.
# > 2001: Royal Sundaram Alliance first non life insurer to sell a policy .
# >2007:First Online Insurance portal, set up by an Indian
Insurance Broker, Bonsai Insurance Broking Pvt Ltd.
# >The Government of India liberalized the insurance sector in March 2000 with
the passage of the Insurance Regulatory and Development Authority (IRDA)

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Bill, lifting all entry restrictions for private players and allowing foreign
players to enter the market with some limits on direct foreign ownership.
#>Minimum capital requirement for direct life and Non-life Insurance
company is INR1000 million and that for reinsurance company is INR
2000 million. In the 2004-05 budgets, the Government proposed for
increasing the foreign equity stake to 49%, this is yet to be
effected. Under the current guidelines, there is a 26 percent equity
cap for foreign partners in direct insurance and reinsurance Company.
A.2> Reliance Life Insurance
Reliance Life Insurance offers you products that fulfill your savings and protection
Reliance Life Insurance Company Limited 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 Capital has
interests in asset management and mutual funds, stock broking, life and general
insurance, proprietary investments, private equity and other activities in financial
services. Reliance Capital Limited (RCL) is a Non-Banking Financial Company

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(NBFC) registered with the Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly
growing financial services sector in India and aims to become a dominant player in this
industry and offer fully integrated financial services. Reliance Life Insurance is another
steps forward for Reliance Capital Limited to offer need based Life Insurance solutions
to individuals and Corporate.
FOUNDER OF RELIANCE
Few men in history have made as dramatic a contribution to their country‘s economic
fortunes as did the founder of Reliance, Shri. Dhirubhai H Ambani. Fewer still have
left behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud
patriot, the leader of men, the architect of India‘s capital markets, the champion of
shareholder interest.
But the role Dhirubhai cherished most was perhaps that of India‘s greatest wealth
creator. In one lifetime, he built, starting from the proverbial scratch, India‘s largest
private sector enterprise.
When Dhirubhai embarked on his first business venture, he had a seed capital of barely
US$ 300 (around ` 14,000). Over the next three and a half decades, he converted this
fledgling enterprise into a ` 60,000 crore colossus—an achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private company to
do so.
Dhirubhai is widely regarded as the father of India‘s capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a
place patronised by a small club of elite investors which dabbled in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of first-time retail investors
to participate in the unfolding Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their trust, substantial return on
their investments. It was to be the start of one of great stories of mutual respect and
reciprocal gain in the Indian markets.
Under Dhirubhai‘s extraordinary vision and leadership, Reliance scripted one of the
greatest growth stories in corporate history anywhere in the world, and went on to

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become India‘s largest private sector enterprise.
Through out this amazing journey, Dhirubhai always kept the interests of the ordinary
shareholder uppermost in mind, in the process making millionaires out of many of the
initial investors in the Reliance stock, and creating one of the world‘s largest
shareholder families.
HISTORY
Reliance Capital Limited announced the launch of its life insurance business on
February 1, 2006. This was after obtaining the required regulatory approvals from the
Registrar Of Companies and the Insurance Regulatory and Development Authority. It
was in August 2005 that the ball was set rolling when Reliance Capital Limited, the
financial arm of Reliance – Anil Dhirubhai Ambani Group (ADAG) – announced the
requisition of 100% shareholding in AMP Sanmar Life Insurance Company Limited;
and the formal transfer of shares took place in October 2005. The company will issue
all policy contracts under the Reliance Life Insurance Company limited name. All the
existing policy contracts also stand transferred to the Reliance Life Insurance entity
with all
the original contractual terms and commitments intact.
JOURNEY SO FAR……….
2005 August: Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of
100 percent shareholding in AMP Sanmar Life Insurance Co Ltd.
2006January 17: Mr. Nandgopal participates in a one-day conference on ‗Optimising
growth opportunities through Distribution Matrix: ‗Emerging Bancassurance‘ organized
by the Asia Insurance Post at the Taj President, Mumbai.
February 1: Rliance Life Insurance officially launched.
February 16, 17, 18: Strategy meet at the Reliance Management Institute. Amongst
those who participate are the CEO, COO, Functional Heads, Regional Managers and
Regional Sales Managers.
February 26: A Puja held at the Churchgate office situated in Express Building, 4th

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Floor, 14 ‗E‘ Road, Mumbai.
March 1: Churchgate office inaugurated by Mr. Amitabh Jhunjhunwala, Mr. Amitabh
Chaturvedi and Mr. Nandgopal.
March 6: Shifting to the new premises at Churchgate commences.
March 7: The new office at Chennai, at the Trapezium, First Floor, # 39, Nelson
Manickam Road, inaugurated by their CEO Mr. Nandgopal, Mr. KV Srinivasan and
Mr. Sureshbabu also graced the occasion.
ACHIEVEMENT
Largest Private Life Insurance in terms of Number of Policies for two consecutive
years as of 31st March 2012
A wide network of 1230 branches and 1,50,000 advisors
Over 9 million policies
RLIC continues to be amongst the foremost Life Insurance companies in India to
be certified ISO 9008:2001
Winner of ―Best Non-Urban Coverage‖ Award at Indian Insurance Awards 2011
RLIC‘s Boundaries for Books Campaign won the 'Silver' at the Indian Digital
Media Awards (IDMA) 2012, under Best Integrated Campaign – Social Cause
and Best Use of Social Network – Social Cause
Amongst the top 3 Most Trusted Service Brands in the Insurance category as per
the Brand Equity‗s ‗Most Trusted Service Brands 2011‘ Survey
ROLE OF IT AT A RELIANCE LIFE INSURANCE
1) World Class Data Centre: -
They plan to establish a Primary Data Centre at Navi Mumbai (Dhirubhai Ambani
KnowledgeCity) which will cater to their company needs across India, with fail-over

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capability to their Chennai Data Centre within the same business day in occurance if an
incident or Disaster
happens.
2) Inter Office Connectivity: -
All their Branch / Area and Regional offices will be interconnected to their Data Centre
with a 24x7 access to Core Applications like Lotus Mail, Life-Asia and Internet
Applications. This
will enable their associates to work faster and better with high-speed Internet
connectivity and also ensure faster Turn Around Time for their customers.
3) Customer Care Centre: -
They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge
City at Navi Mumbai, which cater services to internal and external queries and
complications. A customer
Relationship Management Tool (CRM) and Lead Management System (LMS) are in
progress.
4) Web Portal: -
This portal will be an interface between both internal employees and their external
users. Some of the functions included in their portal are Policy Tracking Systems,
Corporate News, Quality Checking System, Under Writing Medical System, and Agent
Management System etc.
5) R World: -
Reliance Mobile R-World will provide online information about
their Company, Products, and Policy Services to their existing customers,
Agents/Advisors and Lead Generators.
6) SMS Alerts: -
SMS Alerts will be provided to their Sales Managers about the latest happenings like
Contests and Campaigns, Employee Alerts will include Company News and
Welcome/Birthday/Anniversary message etc. Customer Alerts will include
Welcome/Birthday/Anniversary message, Policy Dispatch Details, Policy Servicing
SMS like Premium Receipt and Renewal Premium reminders etc.
7) Life and Group Asia: -
Single Life and Group Life details will be captured and managed by Life and Group
Asia. A common middleware between these applications will enable Group Life
Customers to view their individual Single Life Insurance Plan details taken with
Reliance Life Insurance and
vice versa.
8) Advisor Lounge: -
It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches

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across India. This Lounge will be equipped with desktops and printers with Internet
connectivity, where
their Advisors can bring in the prospects and can have discussions across the table and
they can create and print quotes. The Agents/Advisors can use this area to service their
existing customers.
9) Document Management System: -
DMS will enable both policy issuance and contract servicing through an automated
workflow, which yields a faster Turn around Time to both internal and external users.
This application will enable them to have a paperless office and thus mitigate the risk of
losing vital records/papers.
10) Wireless Data Access: -
This will enable identified Top Sales Managers and Top Advisors to access real time
data for both LMS and CRM on the fly through Handheld PDA device.
11) SAP – ERP Modules: -
SAP (Finance and HR Modules), will automate the Expense, Travel and Leave
Management Systems.
MISSION
The mission of Reliance Life Insurance Company Limited is to be the best in every
sphere- business results, customer care and employee focus. The aim of the company is
to Think Bigger and Think Better.
CORE VALUES
Reliance Life Insurance Company Limited has some core values which are listed as
follows:
1) Result Oriented
2) Performance Driven
3) Customer Focused
4) Learning and Development Oriented
5) Employee Centric
6) Informal and Fun
FUTURE PLANS
�Forty-four new branches to be opened across the country in the coming months; and
a pan India presence with 162 branches in the coming year.
�A state-of-the-art customer care centre will provide continuous, responsive services
to the caller and promptly address queries, collate feedback and suggestions from the
caller, who may be both

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prospective and existing clientele and from channel partners in Chennai and Mumbai.
�It will be launching additional products aimed at providing unparalleled service to its
valued clientele.
VISION
Empowering everyone live their dreams.
GOAL
Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:
Emerge as transnational Life Insurer of global scale and standard
Create best value for Customers, Shareholders and all Stake holders
Achieve impeccable reputation and credentials through best business practices
HEAD – OFFICE
Reliance Life Insurance Company Limited,
The Trapezium,
39, First Floor,
Nelson Manickam Road,
Chennai – 600 029.
BRANCHES
They have so many branches and substations in the India. They have around 160
branches in the India. And they have planned to open more branches across the country
in the coming months
PRODUCTS
TRADITIONAL PLAN:-
Life insurance products are designed to suit the requirementsof customers.
Fundamentally the product provide for:
�Risk cover
�Investment
�Health cover

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In every product, to a certain degree, risk cover is imperative for it to fall under the
category of insurance. Based on the coverage of the product, the premiums are
calculated and the customer pays accordingly. In order to suggest the right product, it is
essential for an agent to understand
the requirements of the customer well. Reliance Life Insurance Company Limited has
offered 9
traditional plans to the customers, which are listed as follows:
1) Reliance Term Plan
2) Reliance Whole Life Plan
3) Reliance Child Plan
4) Reliance Endowment Plan
5) Reliance Special Endowment Plan
6) Reliance Cash Flow Plan
7) Reliance Credit Guardian Plan
8) Reliance Special Credit Guardian Plan
Each of the above traditional plans is discussed as follows:
1) Reliance Term plan: -
This insurance policy is designed for those who only want life cover for the protection
of their family, and do not wish to save for themselves. It can also be useful to business
firms that wish to provide financial security to their business against the sudden loss of
partners or valuable manpower. Since there is no saving element or bonus provision, the
premium is very low.
Hence, this is a high-risk plan with a low premium.
�Features: -
a) Purely a term plan
b) Entry age minimum 18 years and maximum 65 year
c) Maximum premium paying term is 30 year
d) Loan facility N.A.
e) Maturity amount = Sum assured
2) Reliance Whole Life Plan: -
This insurance policy is designed for people who do not wish to avail of any benefits
themselves but wish to create an immediate estate to protect their family by availing of
insurance cover on their life at a very low cost.
�Features: -
a) It is a whole life insurance policy with profits
b) Low cost life cover

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c) Maturity age is 85 year or 99 years last birthday as chosen
d) Maturity amount = Sum assured + Vested bonus
e) Tax benefit is available
3) Reliance Child Plan: -
This insurance policy is designed for people who wish to save money for a future time
when there will be a recurring need for substantial amounts of money. This is especially
true when it comes to paying large sums of money for higher education as and when
your son or daughter is studying to become an Engineer, a Doctor or specialize in some
other field, or is perhaps planning to go abroad. This money is payable in equal
installments over the last 4 years of the
policy term.
�Features: -
I. Minimum entry age is 20 year and maximum 60 year
a) Minimum sum assured is Rs. 25,000.
b) Minimum premium paying term is 5 year and maximum 20 year
c) Tax benefit is available
d) Maturity amount = Four equal installment of sum insured in last four year plus
vested bonus in the last year
e) Loan facility is available
4) Reliance Endowment Plan: -
Reliance Life Insurance‘s Reliance Endowment Plan is the key to all your financial
needs. It is an inexpensive and easy way to protect you, your family or your business. In
a nutshell this plan will keep you financially prepared for all the special occasions in
your life - your daughter‘s wedding, your child‘s university education or even a new
office for your business - by eliminating the burden that a shortage of money creates. In
the event of your untimely death, Reliance Endowment Plan will also assist your loved
ones through this difficult time by the financial support that it provides. Reliance
Endowment Plan also gives you the additional benefit of participating in the company‘s
profits, which you will receive at the end of the policy period.
�Features: -
a) Entry age minimum is 5 year and maximum 65 year
b) Maturity age minimum is 18 year and maximum 75 year
c) Minimum premium paying term is 5 year and maximum 35 year in case of regular
and in case of single 15 year

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d) Minimum sum assured is Rs. 25,000 or as determined by the minimum premium
e) Maximum sum assured is Rs. 5,00,000 (entry age below 18 years and no limit for
entry age 18 and above)
f) Premium mode annual, half yearly, quarterly and monthly(by salary deduction only)
g) Loan up to 90% of the surrender value of the policy
h) Maturity amount = Guaranteed sum assured + Reversionary bonus
5) Reliance Special Endowment Plan: -
This insurance policy is designed for people who wish to combine savings with
extended security. The unique feature of this policy is that life protection continues for
five years after you have stopped the payment of premium. Payment of sum assured at
the end of premium paying term and
extension of life cover thereafter for the full sum assured for a period of 5 years, are
characteristics of the policy.This plan also participates in the profits.
�Features: -
a) Entry age minimum 12 year and maximum 65 year
b) Minimum sum assured is Rs. 25,000
c) Minimum premium paying term is 10 year and maximum 40 year
d) Unique feature of this policy is that five year life protection continues after you have
stopped the payment of premium
e) Tax benefit is available
f) Under this policy bonus is compounded yearly
g) Loan facility is available
h) Maturity amount = Full sum assured before maturity date + Vested bonus at the time
of maturity date.
6) Reliance Cash Flow Plan: -
This insurance policy is designed for those who have a recurring need for reinvestment
in business or look for short-term investment channels. The advantage of the policy is
that they need not part with a sizable amount of money at any one time, but create,
through regular premium payments, a
periodic return of lump sums which become available for reinvestment at higher
returns, while providing simultaneously, substantial life cover. Alternatively, it can be
used to meet any immediate financial crisis in the family like your son's college
admission, your daughter's engagement, and renovation of your home or perhaps, a
holiday abroad. The money is payable in installments. The first installment is paid at

27 | P a g e
the end of the 4th year and thereafter at the end of every 3rd year.
�Features:-
a) Plan with profits
b) Minimum entry age is 15 year and maximum is 63 year
c) Maximum premium paying term is 34 year
d) Loan facility is not available
e) In case of death full sum assured + accrued bonuses up to the date of death is payable
immediately
f) In case of survival up to maturity date all premium paid
g) Rider accident death and critical illness
h) Mode of payment is available
7) Reliance Credit Guardian Plan: -
This insurance policy is designed for those who not only safeguards individuals but also
families and businesses from the financial hardship that could arise from unfortunate
and unexpected death.
�Features: -
a) Loan protection against home, home improvement, two wheelers and four wheelers
b) In case of death remaining loan amount paid immediately
c) In case of survival no benefit is available
d) Premium payment option for single and regular is available
e) Premium paying term is 2/3 of loan period and remaining period paid by the
company
8) Reliance Special Credit Guardian Plan: -
This insurance policy is designed for those who not only safeguards individuals but also
families and businesses from the financial hardship that could arise from unfortunate
and unexpected death, disability or critical illnesses.
�Features: -
a) Loan protection against home, home improvement, two wheelers and four wheelers
b) In case of death remaining loan amount paid immediately
c) In case of survival no benefit is available
d) Premium payment option for regular and single is available
e) Premium payment term is 2/3 of loan period and remaining period paid by the
company

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f) Maturity amount = All the premium paid amount
g) Tax benefit is available
UNIT LINKED PLAN
A unit-linked policy is a life assurance policy in which the benefits depend on the
performance of a portfolio of shares. Each premium paid by the insured person is split:
a part is used to
provide life assurance cover, while the balance (after the deduction of costs, expenses,
etc.) is used to buy units in a unit trust. In this way, a small investor can benefit from
investment in a managed
fund without making a large financial commitment. As they are linked to the value of
shares, unit linked policies can go up or down in value.
Policyholders can surrender the policy at any time and the surrender value is the selling
price of the units purchased by the date of cancellation 9less expense). A small part of
the contribution is used for providing life cover and the balance is invested in unit.
Legal heirs are entitled to the amount of insurance cover and entitled units in case of
death of the insured. Reliance Life Insurance Company Limited has also offered the two
Unit Linked Plans, which are listed as follows:
1) Reliance Market Return Plan
2) Reliance Golden Years Plan
Amongst the above plans the Reliance Market Return Plan is the largest selling plan of
the Reliance Life Insurance Company Limited. The above two ULIP plans are
discussed as follows:
1) Reliance Market Return Plan: -
Reliance Market Return Fund is the unit-linked product that helps you invest in the
financial markets in a combination of investment instruments of your choice. You can
enjoy the returns from the markets without the trouble of monitoring and managing
your own investment portfolio and keeping track of the market movements. At the same
time your investment premiums provide you with insurance cover. Reliance Market
Return Fund unit-linked insurance plan provides you with a basket of fund options that
balances your return and risk exposure while providing life cover at the same time.
�Features: -
a) Minimum entry age is 30 days and maximum entry age is 65 year
b) Maximum policy term 40 year and minimum policy term 5 year
c) Mode of premium as annual, quarterly, half yearly and monthly Rs. 1000 (for salary
deduction only) and Rs. 2500 (standing order/credit card)

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d) Top up premium minimum Rs. 2500
e) Option of investment fund
i. Capital secure 100% fixed interest securities
ii. Balanced minimum 80% fixed interest securities and maximum 20% in
equity
iii. Equity 100% equity
iv. Growth minimum 60% fixed interest securities and maximum 40% in equity
f) Loan facility is not available
g) One switches every year free and subsequent switches charged 1% of the amount
switched
h) Partial withdrawals per year under regular and single premium options is 2 times
i) Lock in period till today is 3 year
j) Minimum unit account balance after each withdrawals is Rs. 10,000
2) Reliance Golden Years Plan: -
Reliance Golden Years Plan….. The Reliance Life Insurance ‗no-worry stay happy‘
retirement plan. Reliance Golden Years Plan is a flexible package that provides
freedom of choice in choosing the type of investment, life cover, vesting options such
as commuting and annuity options. Contributions provide Income tax savings as well.
Reliance Golden Years Plan, a flexible pension product is available for all individuals
who are between the ages of 18 and 65.
�Features: -
a) Entry age minimum is 18 year and maximum 65 year
b) Minimum premium amount Rs. 10,000 and maximum is unlimited
c) Mode of premium payment is available
d) Pension plan with risk cover and without risk cover
e) Choice of investment
i. Capital secure fund – 80% in equity and 20% in government security
ii. Balanced fund – 80% in government and 20% in equity
f) No loan facility is available
g) Tax benefit is available
h) Annuity options
i. Annuity payable for life
ii. Annuity payable for 5/10/15 years certain and thereafter with life
iii. Annuity payable for life with return of capital on death of the annuitant
ROLE OF FINANCE DEPARTMENT IN RELIANCE

30 | P a g e
LIFE INSURANCE.
FUND PERFORMANCE:-
There are four fund options, which Reliance Life Insurance Company Limited has
offered, which are as follows:
1) Capital Secure Fund:-
This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. In line
with the objective of protecting the capital against any erosion, 61.4% of the funds were
invested in short-term Government Securities (Gilts) and to meet liquidity requirement
higher about 40% of funds are kept in short term bank deposits.
Bank Fixed Deposits
Asset Name % of total assets
Total Bank Deposit 38.60
Gilts
Total Gilts 61.40
Total 100.00
2) Balanced Fund:-
This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. To take
advantage of the bullish trend in the equity market, the equity holdings in the fund was
maintained as close as possible to the maximum of 20% allowed for the fund. Bank
deposits were maintained only
for the purpose of liquidity management. To reflect their bearish view on the debt
market the duration of the fixed income portfolio was kept low. Within the fixed
income portfolio, allocation to Gilts was higher than corporate bonds. All the bonds in
the portfolio are top rated
Asset Name % of Total Asset
Equity 20
Corporate Bonds & Debentures 22
Gilts 53
Bank Deposits 5
Total 100.00
3) Growth Fund:-
This fund is for Reliance Golden Years Plan, and Reliance Market Return Plan. To take
advantage of the bullish trend in the equity market, the equity holdings in the fund was

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maintained as close as possible to the maximum of 20% allowed for the fund. To reflect
their bearish view on the debt market the duration of the fixed income portfolio was
kept low. All the bonds in the portfolio are top rated.
Equity 9
Corporate Bonds & Debentures 40
Gilts 45
Bank Deposits 6
Total 100.00
4) Equity Fund:-
This fund is for Reliance Market Return Plan. In line with the stated asset allocation
pattern and their view of the market, the entire corpus of the fund was invested in
equities.
Equity 98.93
Mutual Fund/Bank Deposits 1.07
Total 100.00

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A.3>RELIANCE LIFE PLAZA
Reliance Life introduces Life Plaza
RELIANCE LIFE INSURANCE INTRODUCES LIFE PLAZA
FIRST-OF-ITS-KIND SALES AND SERVICE INITAITIVE BY A
NY INSURER IN INDIA
AIMS TO FULFILL NEEDS OF PROSPECTIVE AND EXISTING
CUSTOMERS AND OFFER FINANCIAL AND VALUED-ADDED SERVICES
TO SET UP CLOSE TO 200 LIFE PLAZA BRANCHES ACROSS THE
COUNTRY
PLANS TO HIRE 1,000 PEOPLE UNDER NEW SALES FORMAT
FOCUS ON TIER II, TIER III AND TIER IV CITIES
MUMBAI, OCT 23:
Reliance Life Insurance Company (RLIC) today introduced a distribution channel
– Life Plaza – aimed at creating awareness about life insurance and said it plans to
set up about 200 branches across the country by the end of the current financial

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year.
―The main objective of our new distribution format is to generate greater
awareness about life insurance in and around different locations where these Life
Plazas will operate and create a pull for life insurance products,‖ Malay Ghosh,
President and Executive Director, Reliance Life Insurance, said.
RLIC targets to hire about 1,000 people under this new distribution format within
this fiscal and would focus on Tier II, Tier III and Tier IV cities for recruitment
and setting up of Life Plazas, he said.
Reliance Life Plaza would promote need-based sales, fill service gaps and also
offer financial and value-added services such as tax and financial planning,
Aadhar card registration, pan card generation, health check-ups and nutrition
counselling.
All Life Plazas will be managed by RLIC employees, who will handle customers’
queries and process the documentation instantly at the venue, with a view to tap
new customers and also provide service to existing RLIC policyholders, the
company said.
Apart from addressing walk-in customers, the company will also proactively invite
customers to the Life Plaza for presentations on the benefits of investment in
various financial products; importance of insurance as life protection tool and
RLIC’s wide-range of products and services, it said.
―We believe this unique distribution model will help us reach out to customers,
understand their needs and provide solutions to them at the venue. The process of
selling will ensure that the customer buys only what he or she needs and
understands and thus also address the problem of mis-selling,‖ Malay Ghosh said.
He further added that, ―We are confident that Life Plaza will help us build a
healthy relationship with the customers and expand and strengthen the existing
distribution channels in order to increase our reach.‖
―We hope to replicate the success that this model enjoys in Japan,‖ he said.
RLIC is the first company in the country to set up a structured need-based in-
branch sales platform in the form of a Life Plaza, the company said.

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Reliance Life Insurance Company (RLIC), part of Reliance Capital Limited, on
Tuesday introduced a new distribution channel -- Life Plaza -- a first-of-its-kind sales
and service initiative by any insurer in India.
RLIC is the first company in India to set up a structured need-based in-branch sales
platform in the form of a 'Life Plaza', which aims at creating awareness about life
insurance and fulfilling the needs of prospective customers through financial planning
and its array of products and services.
The introduction of Life Plaza was announced by Mr. Malay Ghosh, President and
Executive Director, Reliance Life Insurance, here today.
"The main objective of our new distribution format is to generate greater awareness
about life insurance in and around different locations where these Life Plazas will
operate and create a pull for life insurance products. Need fulfillment of customers at
the venue through our products and services is the ultimate goal of Life Plaza," said Mr.
Ghosh.
Inspired by best practices of Nippon Life, Reliance Life Plaza would promote need-
based sales, fill service gaps and also offer financial and value-added services such as
tax and financial planning, Aadhar card registration, pan card generation, health check-
ups and nutrition counseling.
All Life Plazas will be managed by RLIC employees, who will handle customers'
queries and process the documentation instantly at the venue, with a view to tapping
new customers and also providing service to existing RLIC policyholders.
LIFE INSURANCE SCRIPT IN RELIANCE LIFE PLAZA
Life insurance script in life plaza details in the following process:--
How to start?
 Good Morning Sir/Madam,
 I am ___________ (Name), from Reliance Life Insurance Co Ltd., and I am
currently working as a …... I help people in analyzing their present financial

35 | P a g e
condition and how they may further be benefited in building a financially secured
future.
 As discussed earlier with you, all we will need is half an hour of your valuable
time. I assure you that you will not be under obligation to buy.
 Let us consider a situation, where the client‘s age is 35 years, his spouse is aged
32 years and they have a child aged 2 Years.
 With your kind permission, I will like to know about some of your details about
you and your family members, which will help us to do the right analysis and find
appropriate solution for you.
 I assure you, these details will be kept strictly confidential and under no
circumstances be shared with anyone else. And at the end of the discussion I will
leave the paper with you.
 Before I start, I just wanted to tell you that it would have been better if bhabhi ji
also joins us in this discussion.
Step 1: Seeking Information
 Mr. Rakesh, I would like to know your current age.
 35 Years
 I would like to know whether you are married.
 Yes
 If Response if ‘Yes’: If you don‘t mind, may I know madam‘s Name and Age.
 Sweta Sharma, 32 Years
 (If Married), Do you have any children ?
 Yes, I have a daughter
 If Response if ‘Yes’: If you don‘t mind, I will also like to know the sweet little
ones name and age.

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 Sanjana Sharma, 2 Years
 Apart from this, do you have any other dependants?
 Yes, my parents
 If you don‘t mind, may I ask about your current occupation and for how long are
you involved in it? Where did you start first?
 At the Age of 25 years, in Delhi
 How long do you intend to keep earning from your current occupation? In other
words, by what age you plan to take off from your occupation and enjoy your life
 Till 60 years
 If I have understood you correctly, you are currently 35 years of age, with a
family comprising of your wife, aged 32 years and a children aged 2 years
respectively.
 Name: Rakesh Sharma Age: 35 Years
 Wife: Sweta Sharma Age: 32 Years
 Daughter: Sanjana Sharma Age: 02 Years
Step 2: Need Identification
 As you have told me that you started your earning at the age of 25 years. And
you wish to continue till the age of 60 years.
 I would also like to inform you that As per World Health Organization (WHO)
report, the current Average Indian Male will go on to live till 75 years and the
Average Indian Female will live 5 years more than their male counterpart i.e. 80
years.
 Though I wish that you live more than 100 years.
 Sir, can you pls tell me what is your monthly expenses currently including house
rent, food, child education, medical expenses, transportation, etc. i.e. the cost to

37 | P a g e
maintain your family as of now?.
 Approx. Rs. 20000
 Consider if you maintain the same life style and family 25 years back say in late
80s or early 90s, your expense would have been same or different?
 Different. Approx Rs. 2000
 An increase of 10 Times. Am I correct sir?
 Correct me if I am wrong, as you had shared with me earlier , that you intend to
take off from your work at the age of 60 years.
 Considering that inflation and other environmental factors etc. what would be
your monthly expense when you attain the age of 60 i.e. 25 years from now to
maintain your family? Will it increase @ 10 times or more?
 I think it will go up to Rs. 100000 / month
 So total expense for a year = 100000X12= 1200000 i.e. 12 Lacs
 You will continue without income from 60 to 75 years i.e. around 15 years.
 So you will require 1200000X15 = 18000000 i.e. 1.8 Cr
 Since you have started earning very early, I am very sure that you would have
saved for your old age. Can I know the approx value of your savings for old age
as on date?
 Rs. 1000000 i.e. 10 Lacs
 As we have seen that your expense went up, in the same way value of your saving
will also go up in next 25 years. Can I know the approx value of your saving at
the age of 60.
 Rs. 8000000 i.e. 80 lacs
 So you will still require 18000000-8000000= 10000000 i.e. 1 Cr. for your old age.
 Have you ever thought of it sir?

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Step 3: Creating Urgency
 Let‘s assume that you are at the age 60 and I tell you about your requirement of
Rs. 1 crore at that point.
 Can you tell me about any investment avenue which can give you a return of Rs.1
crore in such a short span of time. I don‘t think there is any!
 But if you start provisioning for it at the age of 55 years, will it be easier for you
or not?
 Sure
 Same thing if you start at the age of 45 years, will it be little easier or not?
 Yes, easier
 Which one will be the most easiest for you? If you start at the age of 35 i.e. now
or after it?
 At the age of 35.
 That is what I was trying to convey you.
 There are so many ways in which you can provision for it. You can invest in

39 | P a g e
Bank, Share Market, Real estate, Gold etc.
 But I can tell you about an avenue of investment which will cover your risk, will
be easier , will be cheap and is available for you if you wish to start provisioning
now.
 And that is INSURANCE
 Once you start provisioning for it, the whole amount of 1 crore will be set aside
by insurance company for your family.
 You will be paying premium for it in bit and pieces and not at once, which will be
easier for you.
 If you start now, the premium will be the lowest otherwise as your age increases,
premium will also increase.
 Now because you are healthy, any insurance company will be willing to make
provision for your corpus of Rs. 1 crore. And as you know any one can catch
illness in this changing environment. Once anyone becomes ill, no insurance
company would like to bear his / her risk.
 In today‘s world where there is no certainty of life, only insurance ascertain you
that the corpus which you wish to built will reach to you or your family whatever
the circumstances may be.

40 | P a g e
Step 4: Proposing a Solution
 As per the risk appetite and saving capacity of the customer, a solution can be
proposed.
 If customer wants to take risk on his investment to create the corpus for his old
age, then we can suggest him Unit Linked Insurance product.
 In ULIPs, customer may get a return of 12-15% on his investment in long run (As
per the past history of share market). Investment risk in market linked product is
borne by the policyholder.
 And if the customer does not want to take risk and wants guaranteed return on his
investment, then Traditional insurance products can be offered.
 In traditional products, customer will get a return in the range of 6-10% in long
run. Investment risk in traditional product is borne by insurer.
 It is very much possible that customer may not be able to pay the premium
required for building a corpus of 1 crore at this point of time. His current income
may not permit it.
 But he can always start with a small corpus of let us say 10-20 lacs with his
present disposable income. And as and when his income grows, rest of the corpus

41 | P a g e
can be taken care of.
Taking a small step towards building the corpus for old age and then achieving it in
phase by phase makes it easier to achieve .
A.4> ABOUT PROJECT
The project deals with the topic ULIP(Reliance classic plan-II):Breaking the myth and
repositioning as a product of choice.
The project would also help in understanding preference of people regarding private
and public insurance companies.
The entry of foreign MNC‘s and the conductive business environment fostered by the
government, it is no wonder that the re-entry of private insurance has marked a second
coming for the sector. In just five years, the sector has undergone a makeover, offering
more choice, better services, quicker settlement, tighter regulation and greater
awareness ‗s the environment become more and more competitive and services and
products become alike, creating a differentiation is becoming extremely tough.
Thus, the main objective of my project was to find out the preference of people
regarding insurance companies, which would help R.L.I. employees to market their
product. The study then goes on to evaluate and analyze the findings so as to present a
clear picture of recent trends in the Insurance sector.

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SECTION :B
RELIANCE LIFE INSURANCE LAUNCHES ULIP
(RELIANCE CLASSIC PLAN –II)

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RELIANCE CLASSIC PLAN-II
UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDER.
―Life is a race: If you are not fast enough, you will get trampled.‖
To keep pace in the race of life where financial planning is one of the key requirements,
it is imperative that you move fast and act smart.
Plan early – Invest Now
Reliance Life Insurance Classic Plan - II, A Unit Linked insurance plan works well for
people in every stage of life, from young investors to retirees
Invest Now – Invest Smart
Reliance Life Insurance Classic Plan - II helps you plan your finances wisely, cover the

45 | P a g e
risk arising due to loss of life and assumes all the flexibilities required in a financial
product.
Key features - Reliance Life Insurance – Classic Plan - II
Dual benefit of market linked return and insurance
protection.
Amount equivalent to base sum assured is payable in
extra on account of accidental deaths.
Investment opportunity with flexibility - Choose from 8
pure investment fund options
Additional flexibility with options like Systematic
Transfer Plan &Premium Redirection.
Option to pay Top-up Premium(s).
Liquidity in the form of partial withdrawals after
completion of five policy anniversaries.
Exchange option to take advantage of any new plans we
may offer in the future.
A host of optional rider benefits to enhance protection
cover.
How does the Reliance Life Insurance Classic Plan - II works?
As a customer you have the liberty to choose between eight fund options. The premium
contributions you make, net of premium allocation charges are invested in funds of
your choice. The units are allocated depending on the price of units for the funds. The
Fund Value is the total value of units that you hold across all the unit-linked funds.
Sum Assured
Minimum Sum Assured:
The minimum sum assured under the base plan depends up on the age at entry of the
life assured
If the age at entry is If the age at entry is
less than 45 years equal to or greater

46 | P a g e
than 45 years
Regular Higher of 10 times of Higher of 7 times of
Premium the annualised the annualised
Policy premium or 1/2* premium or 1/4*
policy term policy term
*Annualised premium *Annualised premium
Single 125% of the single 110% of the single
Premium Premium Premium
Policy
The minimum sum assured under Top-up depends upon the age of the life assured at
the time of payment of top-up premium
If the age at payment If the age at payment
of top premium is of premium is equal
less than 45 years to or greater than
45 years
Top up Fixed sum assured of Fixed sum assured of
Premium 125% of the top up 110% of the top up
Premium premium
At any point of time, the minimum death benefit shall be 105% of the total premiums
(including top-ups) paid.
Maximum Sum Assured:
The following table shows the maximum sum assured for regular premium payment
optio

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Age at entry Maximum Sum Assured
(last birthday)
30 times of Annualised Premium subject
7 to 11
to maximum of ` 5 lakhs across all
policies (including base plan and top up)
with Reliance Life
12 to 50 30 times of Annualised Premium
The maximum sum assured under top up premiums will be fixed sum assured of 125%
of the top up premiums if the age of the life assured at the time of payment of top up
premium(s) is less than 45 years and fixed sum assured of 110% of the top up
premiums if the age of the life assured at the time of payment of top up premium(s) is
greater than or equal to 45 years.
The maximum sum assured (including base plan and top up across all polices with
Reliance Life Insurance Company) shall not exceed ` 5 Lakhs, if the age of the life
assured is greater than or equal to 7 years but less than 12 years.

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SECTION:C
ULIP PRODUCTS
RELIANCE CLASSIC PLAN-II

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C.1> ULIP {ABOUT us.
Reliance Life Insurance offers you products that fulfill your savings and protection
Reliance Life Insurance Company Limited is a part of Reliance Capital, under Reliance
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 Capital has interests in asset management
and mutual funds, stock broking, life and general insurance, proprietary investments,
private equity and other activities in financial services.
Reliance Group also has presence in Communications, Energy, Natural Resources,
Media, Entertainment, Healthcare and Infrastructure.
C.2>ULIP {CHARGES.
Charges and Recovery of charges under the policy:
Allocation charges:
The allocation charges are deducted from the premiums. The allocation charges in

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respect of regular premium payment policies are stated below:
Policy
Year
Allocation charge as % of
the annualised premium
1 year 8.00%
2nd year to
5th year
5.50%
6th year to
9th year
5.00%
10th year
onwards
3.00%
The allocation charge on the single premiums will be 2% of the single premium and
allocation charge under the top up will be 2% of the Top Up amount.
Mortality charges:
This charge will be deducted from the fund value under the base plan and top-up
premium(s). The mortality charges will vary depending on
1. The amount of life insurance cover
2. The attained age of life assured
3. The occupation of the life assured
4. The health of the life assured
The standard mortality charges per annum under this policy per` 1000/- sum assured are
given in Annexure A.
These mortality charges will be deducted on a monthly basis at the beginning of each
policy month using 1/12th of the mortality rates.
Accidental Death Benefit Charges:
Annual charge for Accidental Death Benefit is `1 per 1000 Sum Assured and will be
deducted on monthly basis at the beginning of each policy month using 1/12th of the
charge.
Discontinuance Charge

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The discontinuance charge under the regular premium payment policy is as given
below:
The policy year
during which
the policy is
discontinued
Discontinuance charge
if the annualised
premium is less than
or equal to ` 25,000
Discontinuance charge
if the annualised
premium is greater
than ` 25,000
1
Lower of 20% of
(Annualised premium
or Fund value), subject
to a maximum of
`3,000
Lower of 6% of
(Annualised premium
or Fund value),
subject to a maximum
of `6,000
2
Lower of 15% of
(Annualised premium
to a maximum of
`2,000
Lower of 4% of
(Annualised premium
or Fund value),
of `5,000
3
Lower of 10% of
(Annualised premium
to a maximum of
`1,500
Lower of 3% of
(Annualised premium
or Fund value),
of `4,000
4
Lower of 5% of
(Annualised premium
to a maximum of
`1,000
Lower of 2% of
(Annualised premium
or Fund value),
of `2,000
5 and above Nil Nil
There are no discontinuance charges under single premium and top up premiums.
Partial Withdrawal Charge:
Partial withdrawal charge of ` 100 will be collected from the fund withdrawn, on every
partial withdrawal.
Policy Administration Charge

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Under regular premium policies, ` 40 per month will be deducted as Policy
Administration Charge from 6th policy year till the end of the policy term.
Under single premium policies, ` 40 per month will be deducted as Policy
Administration Charge for the entire policy term
Fund management charge:
Fund Name
Annua
l Rate
Life Corporate Bond Fund 1 (SFIN:
ULIF02310/06/08LCORBOND01121)
1.25%
Life Money Market Fund 1 (SFIN:
ULIF02910/06/08LMONMRKT01121)
1.25%
Life Gilt Fund 1 (SFIN:
ULIF02610/06/08LGILTFUN01121)
1.25%
Life Equity Fund 3 (SFIN:
ULIF04201/01/10LEQUITYF03121)
1.35%
Life Infrastructure Fund 2 (SFIN:
ULIF04401/01/10LINFRAST02121)
1.35%
Life Midcap Fund 2 (SFIN:
ULIF04501/01/10LMIDCAPF02121)
1.35%
Life Pure Equity Fund 2 (SFIN:
ULIF04601/01/10LPUEQUTY02121)
1.35%
Life Balanced Fund 1 (SFIN:
ULIF00128/07/04LBALANCE01121)
1.25%
Discontinued Policy Fund 0.5%
Switching charge:
There are 52 free switches during any policy year. Subsequent switches if any will have
a fixed charge of` 100 per switch.
Miscellaneous Charge (Charge for Systematic Transfer Plan (STP) Option.)
There is no charge, the first time Systematic Transfer Plan Option is effected for regular

53 | P a g e
premium payment mode as well as top –ups. Subsequently, a fixed charge of `100 will
be levied every time the Systematic Transfer Plan Option is selected. There are no
charges for cancellations of STP option.
Service Tax Charge
This charge shall be levied on the Allocation charge, Mortality charge, Accidental
Death Benefit charge, Policy administration charge, Fund Management Charge,
Switching charge, Miscellaneous charges on STP option and rider premiums. The level
of this charge shall be as per the rate of Service Tax, declared by the Government from
time to time. The current rate of service tax is 10.30% (10% for service tax and 3%
education cess). The service tax on Fund management charge is applied on actual fund
management charge or the maximum fund management charge fixed by the IRDA,
whichever is higher.
Recovery of Charges
Mortality Charges
Mortality charges will be recovered by cancellation of units at the prevailing unit price,
in advance at the beginning of each month.
Accidental Death Benefit charges
Accidental Death Benefit charges will be recovered by cancellation of units at the
prevailing unit price, in advance at the beginning of each month.
Allocation charges
The allocation charges are deducted as percentage of premium (regular premium or
single premium or top – up as the case may be) before allocation of units each time a
premium is received.
Policy administration charge
The monthly Policy administration charge during the settlement period will be deducted
by cancelling units at the prevailing unit price in advance at the beginning of the month.
Fund Management charges
The Fund Management charges will be priced in the unit price of each Fund on a daily
basis. This will result in the adjustment of NAV.

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Partial Withdrawal charge
A Partial withdrawal charge of `100 will be deducted from the amount of fund
withdrawn on every partial withdrawal.
Premium for rider benefits
The premium for rider benefits if selected will be collected over and above the premium
under basic plan. The frequency of rider premium will be same as frequency of
premium under basic plan.
Service Tax Charge
The service tax charge will be collected as mentioned below:
a. The Service Tax charge on allocation charge will be deducted from the premium
along with the allocation charge.
b. The Service Tax Charge on Fund Management Charge will be priced in the unit
price of each Fund on a daily basis.
c. The Service Tax charge on Policy administration charge, Mortality charge,
Accidental Death Benefit charge, switching charge and Miscellaneous charges on
STP option will be recovered by cancellation of units at the prevailing unit price.
d. Service tax will also be applicable for rider premium and has to be paid along with
the rider premium.
Switching charge
Switching charge will be recovered by cancellation of units at the prevailing unit price.
Miscellaneous Charge (Charge for Systematic Transfer Plan (STP) Option.)
Charge for Systematic Transfer Plan (STP) Option will be recovered by the cancellation
of units at the prevailing unit price.
Charges Levied by the Government in Future
In future the Company may decide to pass on any additional charges levied by the
governmental or any statutory authority to the policyholder. Whenever the company
decides to pass on the additional charges to the policy holder, the method of collection
of these charges shall be informed to them.
In the event that units are held in more than one Fund, the cancellation of units will be
effected in the same proportion as the value of units held in each Fund. In case the fund

55 | P a g e
value in any fund goes down to the extent that it is not sufficient to support the
proportionate monthly charges, then the same shall be deducted from the fund value of
the other funds.
Revision in Rate of Charges
The revision in charges if any ( except the service tax charge) will take place only after
giving three months notice to the policyholders and after obtaining specific approval of
the IRDA.
The service tax charge will be revised as and when notified by the Government.
If the policyholder does not agree with the modified charges, they shall be allowed to
withdraw the units in the plans at the then prevailing unit value after paying surrender
charge if any and terminate the Policy.
The Company reserves the right to change the Fund Management charge. However, the
maximum FMC on any fund excluding discontinued policy fund will be 1.35% p. a. and
the maximum FMC on discontinued policy fund will be 0.5% p. a.
The policy administrative charge is subject to revision at any time, but will not exceed`
80 per month.
The partial withdrawal charge, switching charge and the charge for selecting STP
option is subject to revision at any time, but will not exceed` 500.
The premium rates under Reliance Term Life Insurance Benefit Rider, Reliance Life
Insurance Family Income Benefit Rider are guaranteed throughout the policy term.
The premium rates for Reliance New Major Surgical Benefit Rider and Reliance New
Critical Conditions (25) Rider, once applied on any policy, will be guaranteed for the
first three years of the policy. After three years period, the Company may change the
premium rates with three months prior notice subject to the IRDA approval. Such
revised rates would be effective on all in-force policies and new policies sold.
C.3>ULIP {FAQs….
What happens if I am unable to pay my regular premiums?
If you are unable to pay due regular premiums within the grace period:

56 | P a g e
A revival notice will be sent to the policyholder within fifteen days from the date of
expiry of the grace period. The policyholder shall be entitled to
1. revive the policy, or
2. to withdraw completely from the policy without any insurance benefit, accidental
death benefit and rider benefits.
The policyholder has to exercise any one of the options within 30days from the date of
receipt of the revival notice. During this period, the policy will be treated as in-force
with insurance and accidental death benefits but the rider benefits will cease
immediately. The policy will participate in the performance of fund. Mortality charges,
Accidental Death Benefit charges and Policy Administration Charges will be deducted
from the fund value by cancellation of units. The Fund Management Charge will be
priced in the unit value.
1. Revival: If the policyholder opts to revive the policy, the policy continues with all
the benefits.
2. Complete withdrawal from the policy without any insurance benefit and rider
benefits: In case the policyholder chooses to withdraw the policy or does not
exercise any option, then the policy treatment would vary depending on the
number of completed policy years.
Discontinuance of premium within five years of inception of the policy:
On discontinuance of premium, the fund value under the base plan (including top-ups)
less applicable discontinuance charges less the outstanding loans along with interest
will be switched to Discontinued Policy Fund. The insurance benefit, accidental death
benefit and rider benefits ceases immediately. The income earned on the fund shall be
apportioned to the discontinued policy fund. The proceeds of the discontinued policies
shall be payable only on completion of five policy anniversaries.
Discontinuance of premium after five years of inception of the policy:
On discontinuance of premium, the fund value under the base plan (including top-ups)
less applicable discontinuance charges less the outstanding loans with the interest, if
any will be paid to the policyholder.
Revival of policy after non-payment of due premiums
If the due premiums are not paid within the grace period, a revival notice will be sent to
the policyholder within fifteen days from the date of expiry of the grace period. The

57 | P a g e
policyholder may revive a policy by the payment of the due premium(s) at any time
within a period of 30 days from the date of receipt of the revival notice but before the
maturity date of the policy subject to satisfactory medical and financial underwriting. In
case the policyholder chooses to withdraw the policy or does not exercise any option
and if the policy has not completed five years from the date of inception, the policy
shall be treated as discontinued.
Policyholder can revive the discontinued policy within two years from the date of
discontinuance or expiry date of policy term, whichever is earlier, by paying all the
outstanding premiums to the company
If the basic plan is revived, the riders can be revived by paying the arrears of premiums
with interest at the prevailing rate of interest. The current rate of interest is 9.0% p.a.
This will be subject to satisfactory medical and financial underwriting.
What if I want to discontinue/surrender the Policy?
Surrender Value under the regular premium policy:
The surrender Value under the single premium policy will be the fund value.
Surrender value is acquired immediately on payment of the single premium. However,
the surrender value will be payable after the completion of five policy anniversaries.
There is no discontinuance charge under single premium policy.
If the policyholder has availed loan under single premium policy, the loan outstanding
and the interest on loan outstanding will be recovered first from the surrender value and
the balance if any will be paid to the policyholder.
Whenever full surrender value of basic plan is paid, the surrender value of any attaching
top ups will also be paid.
Once a policy is surrendered in full, it cannot be reinstated.
Surrender Value under the top-up:
The surrender Value under the top up will be the fund value.
Surrender value is acquired immediately on payment of the top up premium. However,
Surrender value of top up can be paid after the completion of five years from the date of
payment of top up.
There is no discontinuance charge on the top ups. The surrender value is therefore equal

58 | P a g e
to the fund value under the top ups.
Whenever full surrender value of basic plan is paid, the surrender value of any attaching
top ups will also be paid.
Foreclosure of the Policies in-force: For the policies in force, if anytime during the
tenure of the policy but after five policy anniversaries, the fund value is less than the
charges for the next month, the policy will be foreclosed by paying the fund value.
Can I avail loan under this policy?
Not Applicable
Can I change the mode of premium payment?
The mode of premium payment can be changed on the policy anniversary.
Grace Period for payment of premiums
There is a grace period of 30 days from the due date for payment of regular premiums.
In case of monthly mode, the grace period is of 15 days. A policy lapses if premiums
are not paid within the days of grace.
C.4>ULIP {FLEXIBILITY.
RelianceLifeInsurance–ClassicPlan-II
Nomination:
Nominations will be allowed under this plan as per Section 39 of the Insurance Act,
1938. The life assured, where he is the Policyholder, may, at any time during the policy
term, can make a nomination for the purpose of payment of Benefits in the event of his
death. Where the Nominee is a minor, the Policyholder may also appoint a person to
receive the money during the minority of the Nominee. Nomination may be made by an
endorsement on the Policy and by communicating the same in writing to the Company.
Any change of nomination, which may be effected before the termination of the Policy
shall also be communicated to the Company. In registering a nomination, the Company
does not accept any responsibility or express any opinion as to its validity or legal
effect.

59 | P a g e
Assignment:
Assignment will be allowed under this plan as per section 38 of the Insurance Act,
1938. An assignment of the Policy may be made by an endorsement upon the Policy
itself or by a separate instrument signed in either case by the assignee or specifically
stating the fact of assignment and duly attested. Only the Policyholder may make the
first assignment. Such assignment shall be effective, as against the Company, from and
upon the service of a written notice to the Company and the Company recording the
assignment in its books. In case of assignment under this Policy, the assignee would not
be entitled to increase the Death Benefit. In registering an assignment, the Company
does not accept any responsibility or express any opinion as to its validity or legal
effect.
General Exclusion:
The company will not pay any additional sum assured on accidental death which results
directly or indirectly from any one or more of the following. However, the basic sum
assured is payable under these circumstances.
i. an act or attempted act of self-injury
ii. participation in any criminal or illegal act,
iii. being under the influence of alcohol or drugs except under direction of a
registered medical practitioner,
iv. racing or practicing racing of any kind other than on foot,
v. flying or attempting to fly in, or using or attempting to use, an aerial device of any
description, other than as a fare paying passenger on a recognised airline or
charter service,
vi. participating in any riot, strike or civil commotion, active military, naval, air
force, police or similar service, or
vii. war, invasion, act of foreign enemies, hostilities or war like operations (whether
war be declared or not), civil war, mutiny, military rising, insurrection, rebellion,
military or usurped power or any act of terrorism or violence.
Suicide Exclusion:
If the Life Assured commits suicide for any reason, while sane or insane, within 12
months from the date of commencement of this policy or the date of any revival of the
policy this policy shall be treated as null and void, and the Company will limit the death
benefit to the Fund Value and will not pay any insured benefit

60 | P a g e
How safe is your investment
Unit Linked Life Insurance products are different from the traditional insurance
products and are subject to the risk factors.
The contribution paid in unit linked insurance policies are subject to investment
risks associated with capital markets and NAVs of the units may go up or down
based on the performance of the fund and factors influencing the capital markets
and the policyholder is responsible for his/her decisions.
―Reliance Life Insurance Company Limited‖ is the name of the company and
―Reliance Life Insurance Classic Plan - II‖ is only the name of the policy and does
not in any way indicate the quality of the policy, its future prospects or returns.
The names of the Fund Option viz Life Corporate Bond Fund 1, Life Money
Market Fund 1, Life Gilt Fund 1, Life Equity Fund 3, Life Infrastructure Fund 2,
Life Balanced Fund 1, Life Midcap Fund 2 and Life Pure Equity Fund 2 do not in
any manner indicate the quality of the Fund Option or their future prospects or
returns. The Fund Option(s) do not offer any guarantee or assure any guaranteed
return;
Investments in Units are subject to market and other risks. Investment risk in
investment portfolio is borne by the Policyholder. There is no assurance that the
objectives of the Fund Option shall be achieved;
The Unit Price of the Units may fluctuate depending on factors and forces
affecting the capital markets and the level of interest rates prevailing in the
market;
Past performance of the Fund Options is not indicative of future performance of
any of those Fund Options.
All Benefits payable under this Policy are subject to tax laws and other fiscal
enactments in effect from time to time.
The Company reserves the right to suspend the Allocation, reallocation and/or
cancellation of Units under extraordinary circumstances such as extreme volatility of
assets, extended suspension of trading on stock exchange, natural calamities, riots and
other similar events or force major circumstances.
C.5>ULIP {BENEFITS.
Life Cover Benefit:
In the event of death of the life assured provided the policy is in full force on the date
of death, the higher of Sum Assured under the base plan or the fund value under the

61 | P a g e
base plan as on the date of intimation of death Plus the higher of Sum Assured under
the Top-up or the fund value under the top-up as on the date of intimation of death will
be paid.
In the event of death of the life assured due to accident on or before age 65, provided
the policy is in force on the date of death, an additional amount equal to the base sum
assured will be paid. However if the age at accidental death is less than 18 years, the
maximum additional sum assured payable for accidental death (across all policies with
Reliance Life) is up to Rs.5 Lakhs. The additional sum assured on accidental death
(including sum assured under Reliance Accidental Death and Total and Permanent
Disablement Rider across all policies with Reliance Life) will not exceed Rs. 50 Lakhs.
The policy terminates on payment of death benefit.
Maturity Benefit:
On survival of the Life Assured to the end of the policy term provided the policy is in
force and all due premiums are paid, the Fund Value under the basic policy and top-ups,
if any, will be paid.
The policy terminates on payment of maturity benefit.
Rider Benefits:
The following optional riders are available under Regular Premium polices, on payment
of additional premium over and above the basic premium provided conditions on riders
(entry age, policy term, sum assured) are satisfied:
1. Reliance New Major Surgical Benefit Rider: Provides lump sum amount to
cover surgical expenses from a list of 33 surgeries including Open Heart surgery,
Kidney Transplant, Cornea transplantation, Transplant of Lungs and many more.
2. Reliance New Critical Conditions (25) Rider: Provides lump sum amount to
take care of 25 critical conditions including Cancer, Heart Attack, Paralysis,
Major Organ transplant and many more.
3. Reliance Term Life Insurance Benefit Rider: Provides additional death benefit
depending on the sum assured selected under the rider.
4. Reliance Life Insurance Family Income Benefit Rider: Provides a monthly
benefit of 1% of sum assured every month (i.e.12% per annum). The benefit is

62 | P a g e
payable from the date of death till end of the rider policy term or 10 years
whichever is later, in the event of death/total and permanent disablement due to
accident or sickness, before the maturity of the policy.
These rider benefits can be selected on commencement of the policy or on any policy
anniversary during a policy term. The Sum assured under the rider cannot be higher
than the sum assured under the basic plan.
The sum of rider premiums should not exceed 30% of the premiums paid under Basic
Plan.
When the basic plan is lapsed, paid up, surrendered or forfeited, all the rider benefits
attaching to the base plan will also terminate.
Note: Please refer to the rider brochure on rider benefits for more details.
Computation of Net Asset Value (NAV):
The NAV will be computed as per the IRDA instructions vide circular no.:
IRDA/F&I/CIR/INV/173/08/2011 dated 29th July 2011.
The NAV for a particular fund shall be computed as: Market Value of investment held
by the fund plus the value of current assets less the value of current liabilities and
provisions, if any. This gives the net asset value of the fund. Dividing by the number of
units existing at the valuation date (before creation/redemption of units), gives the unit
price of the fund under consideration.
In case the valuation day falls on a holiday, then the exercise will be done on the
following working day.
We reserve the right to value less frequently than daily in extreme circumstances, where
the value of the assets may be too uncertain. In such circumstances we may defer
valuation of assets until normality returns. Examples of such circumstances are:
A. When one or more stock exchanges which provide a basis for valuation for a
substantial portion of the assets of the fund are closed otherwise than for ordinary
holidays
B. When, as a result of political, economic, monetary or any circumstances out of our
control, the disposal of the assets of the unit fund are not reasonable or would not
reasonably be practicable without being detrimental to the interests of the
remaining unit holders.

63 | P a g e
C. During periods of extreme volatility of markets during which surrenders and
switches would, in our opinion, be detrimental to the interests of the existing unit
holders of the fund.
D. In the case of natural calamities, strikes, war, civil unrest, riots and bandhs.
E. In the event of any force majeure or disaster that affects our normal functioning.
F. If so directed by the IRDA.
Allocations of units
The company applies premiums to allocate units in one or more of the unit linked funds
in the proportions which the policyholder specifies. The allotment of units to the
policyholders will be done only after the receipt of premium proceeds as stated below;
1. In case of New Business, units shall only be allocated on the day the proposal is
completed and results into a policy by the application of money towards premium.
2. In the case of renewal premiums, the premium will be adjusted on the due date,
whether or not it has been received in advance. (This assumes that the full
stipulated premium is received on the due date.) Renewal premiums received in
advance will be kept in the deposit account and will not earn any returns until the
renewal premium due date on which the same will be applied to the unit funds.
3. In respect of premiums received or funds switched up to 3.00 p.m. by the
company along with a local cheque or a demand draft payable at par at the place
where the premium is received, the closing unit price of the day on which the
premium is received or funds switched, shall be applicable.
4. In respect of premiums received after 3.00 p.m. by the company along with a local
cheque or a demand draft payable at par at the place where the premium is
received, the closing unit price of the next business day shall be applicable.
5. In respect of premiums received with outstation cheques or demand drafts at the
place where the premium is received, the closing unit price of the day on which
cheques / demand draft is realised shall be applicable.
Redemptions:
In respect of valid applications received (e.g. surrender, maturity claim, switch out etc)
up to 3.00 p.m. by the insurer, the same day‘s closing unit price shall be applicable.
In respect of valid applications received (e.g. surrender, maturity claim, switch out etc)
after 3.00 p.m. by the insurer, the closing unit price of the next business day shall be
applicable. The unit price for each segregated fund provided under this product shall be
made available to the public in the print media on a daily basis. The unit price will also

64 | P a g e
be displayed in the web portal of the company.
Cancellation of units:
To meet fees and charges, and to pay benefits, the company will cancel the units to
meet the amount of the payments which are due. If units are held in more than one unit
linked fund, then the company will cancel the units in each fund to meet the amount of
the payment. The value of units cancelled in a particular fund will be in the same
proportion as the value of units held in that fund is to the total value of units held across
all funds. The units will be cancelled at the prevailing unit price. The Fund
Management charges will be priced in the unit price of each Fund on a daily basis.
C.6>ULIP {TAX AND BENEFITS..
Tax benefits:
On policies issued on or after 1st April, 2012, income tax benefit under section 80C
shall apply only to the extent of ten percent of minimum sum assured during the entire
term of the policy. Additional conditions apply.
On policies issued on or after 1st April, 2012, income tax benefit under section 10(10D)
shall be available if premium payable for any of the years during the term of the policy
do not exceeds ten per cent of minimum sum assured during the entire term of the
policy. Additional conditions apply.
However, in the event of death, sum received under any Life Insurance Policy continue
to be exempt. Additional conditions apply.
Kindly consult a tax expert to understand income tax applicable on various financial
aspects
C.7>ULIP {DISCLAIMAR.
Definitions /Other Terms & Conditions:
Free look
In the event the policyholder disagrees with any of the terms and conditions of the
policy, he/she may return the policy to the Company within 15 days of its receipt for
cancellation, stating his/her objections in which case the company will refund an
amount equal to the non allocated premium plus the charges levied by cancellation of

65 | P a g e
units plus fund value as on the date of receipt of the free look cancellation request less
proportionate risk premium for the period the company has been on risk, less the
expenses incurred by the company on medical examination of the life assured and less
the stamp duty charges. .
Section 41 of the Insurance Act, 1938 states: Prohibition of Rebate:
1) No person shall allow or offer to allow, either directly or indirectly, as an inducement
to any person to take out or renew or continue an insurance in respect of any kind of
risk relating to lives or property in India, any rebate of the whole or part of the
commission payable or any rebate of the premium shown on the Policy, nor shall any
person taking out or renewing or continuing a Policy accept any rebate, except such
rebate as may be allowed in accordance with the published prospectuses or tables of the
insurer. Provided that acceptance by an insurance agent of commission in connection
with a policy of life insurance taken out by himself on his own life shall not be deemed
to be acceptance of a rebate of premium within the meaning of this sub-section if at the
time of such acceptance the insurance agent satisfies the prescribed conditions
establishing that he is a bona fide insurance agent employed by the insurer.
2) Any person making default in complying with the provisions of this section shall be
punishable with a fine which may extend to five hundred rupees.
Section 45 of the Insurance Act, 1938 states: Policy not to be called in question on
ground of mis-statement after two years
1) No policy of life insurance effected before the commencement of this Act shall after
the expiry of two years from the date of commencement of this Act and no policy of life
insurance effected after the coming into force of this Act shall, after the expiry of two
years from the date on which it was effected be called in question by an insurer on the
ground that statement made in the proposal or in any report of a medical officer, or
referee, or friend of the insured, or in any other document leading to the issue of the
policy, was inaccurate or false, unless the insurer shows that such statement was on a
material matter or suppressed facts which it was material to disclose and that it was
fraudulently made by the policy-holder and that the policy-holder knew at the time of
making it that the statement was false or that it suppressed facts which it was material to
disclose:
2) Provided that nothing in this section shall prevent the insurer from calling for proof
of age at any time if he is entitled to do so, and no policy shall be deemed to be called in
question merely because the terms of the policy are adjusted on subsequent proof that

66 | P a g e
the age of the life insured was incorrectly stated in the proposal.
Reliance Life Insurance is a licensed life insurance company registered with Insurance
Regulatory & Development Authority (IRDA) Registration No. 121.
Note:
This product brochure gives only the salient features of the plan. For further details on
all the conditions, exclusions related to Reliance Life Insurance Classic Plan - II - A
unit linked Insurance Plan, please contact our insurance advisors.
COMPARATIVE ANALYSIS
OF
ULIP(Reliance Classic Plan-II)

67 | P a g e
versus
* Mutual Fund,
* Corporate Bond,
* Debt Fund AND
* Money Market.
The value of your fund at any time is the number of units allocated to your contract at
that time multiplied by the applicable unit price. If you hold units in more than one unit
linked fund, then your fund value is the total value across all unit linked funds. Note
that all fund values including top up funds are aggregated. Investment Options
Reliance Life Insurance Company Ltd. understands the value of your hard earned
money and in our endeavour to help you grow your wealth, we offer you 8 fund
options. ―Life Balanced Fund 1‖ is available for settlement option. The asset allocation,
investment policy and Segregated
1>.LIFE Equity Fund 3
2.>LIFE Corporate Bond Fund 1
Fund Investment Asset Category Asset Target
Name Objectives Allocation (%)
Range (%)
Life Provide high real Corporate 0-100 0
Equity rate of return in the bonds and
Fund 3 long term through other debt

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(SFIN: high exposure to instruments/
ULIF042 equity investments, Bank deposits/
01/01/10 while recognizing Money market
LEQUITY
that there is instruments.
F03121)
significant
probability of
negative returns in Equities 0-100 100
the short term. The
risk appetite is ‘high’
Life Provide returns that Money market 0-100 0
Corpo- exceed the inflation instruments
rate rate, while taking incl. liquid
Bond some credit risk mutual funds
Fund 1 (through and bank
(SFIN: investments in deposits
ULIF023 corporate debt
Corporate 0-100 10010/06/08
instruments) and
LCORB bonds/
maintaining a
OND01 debentures and
moderate probability
121)
other debt
of negative return in
instruments
the short term. The
excluding
risk appetite is ‘low
money market
to moderate’
instruments
3.>LIFE Money Market Fund 1
4.>LIFE Gilt Fund 1
5.>LIFE Infrastructure Fund 2
6.>LIFE Balance Fund 1
Range (%)
Life Maintain the capital Money market 100 100
Money value of all instruments
Market contributions (net of incl. liquid
Fund 1 charges) and all mutual funds
(SFIN: interest additions, at and bank
ULIF02 all times. The risk Deposits
910/06/ appetite is ‘low’.
08LMO
NMRK
T01121)

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Life Provide returns that Central 0-100 80
Gilt exceed the inflation Government
Fund 1 rate, without taking securities (Gilts)
(SFIN: any credit risk
Other 0-40 20
ULIF026 (sovereign risk only)
government
10/06/ and maintaining a
Securities08LGIL
low probability of
TFUN0 Including
negative return in
1121)
securities with
the short term. The
unconditional
risk appetite is ‘low
Central
to moderate’
Government
Guarantee
Money market 0-100 0
instruments incl.
liquid mutual
funds and bank
Deposits
Life Provide high rate of Corporate 0-100 0
Infrast- return in the long bonds and
ructure term through high other debt
Fund 2 exposure to equity related
(SFIN: investments in instruments/
ULIF044 Infrastructure and Banks deposits/
01/01/1 allied sectors, while Money market
0LINFR
recognizing that Instruments
AST02
there is a significant
121)
Equities in 0-100 100probability of
negative returns in Infrastructure
the short term. The and allied
risk appetite is high sector
Life The investment Debt Securities 0-100 80
Balan- objective of the fund
Equities 0-20 20Ced is to provide
Fund 1 investment returns
Money market 0-100 0
(SFIN: that exceed the rate
instruments
ULIF00 of inflation in the
incl. liquid
128/07/ long term while
mutual funds04LBA
maintaining a low
LANC and bank
probability of
E01121)
deposits
negative returns in
the short term. The
risk appetite is
defined as ‘low to
moderate’.

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7.>LIFE Midcap Fund 2.
8.>LIFE Pure Equity Fund 2
Range (%)
Life Provide high rate of Corporate 0-100 0
Midcap return in the long bonds and
Fund 2 term through high other debt
(SFIN: exposure to equity related
ULIF045 investments in instruments/
01/01/10 Midcap companies, Banks deposits/
LMIDCA
while recognizing Money marketPF02121)
that there is Instruments
significant
Equities 0-100 100
probability of
predominantly
negative returns in
in mid cap
the short term. The
companies
risk appetite is high
Life The investment Equities in 60-100 100
Pure objective of the Pure sectors other
Equity Equity fund is to than banks and
Fund 2 provide non-banking
(SFIN: policyholders high financial
ULIF04 real rate of return in companies,
601/01/ the long term breweries,

71 | P a g e
10LPU
through high distilleries,
EQUT
exposure to equity alcohol basedY02121)
investments, while chemicals,
recognizing that cigarettes,
there is si gnificant tobacco,
probability of entertainment,
negative returns in leather, sugar
the short term. The and hatcheries.
risk appetite is ‘high’
Corporate 0-40 0
bonds and
other debt
instruments/
Bank deposits/
Money market
instruments
1.>LIFE EQUITY FUND 3
A mutual fund that invests principally in stocks. It can be actively or passively (index
fund) managed. Stock mutual funds are principally categorized according to company
size, the investment style of the holdings in the portfolio and geography:
Size is determined by a company's market capitalization, while the investment style,
reflected in the fund's stock holdings, is also used to categorize equity mutual funds.
Reliance Life Classic Plan - Life Equity Fund 3
11.630
0.12 (1.04%)
NAV as on Jul-12-2013

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