PROJECT REPORT ON

VARIOUS PLANS OFFERED BY RELIANCE LIFE INSURANCE (under ULIP)

Submitted to: Mr. Chandan Parsad

Submitted by: Dimple Vaswani 09217001709

DECLARATION
I hereby declare that this Project Report titled VARIOUS PLANS OFFERED BY RELIANCE LIFE INSURANCE COMPANY LIMITED submitted by me to Banarsidas Chandiwala Institute of Professional Studies, Dwarka is a bonafide work undertaken during the period from 24 MAY 2010 to 31 JULY 2010 by me and has not been submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before.

(Signature of the Student) Name: DIMPLE VASWANI Enroll. No.:09217001709

CERTIFICATE This is to certify that DIMPLE VASWANI of BBA-III has undertaken project titled VARIOUS PLANS OFFERED BY RELIANCE LIFE INSURANCE COMPANY LIMITED. in the partial fulfillment of the course of BBA from Guru Gobind Singh Indraprastha University, under my supervision. Further to certify that this project work is his original effort and same has never been presented elsewhere before.

-------------------Mr. Chandan Parsad Project Guide (Internal) Date: Counter signed by ------------Dr. Ajay Rathore Director Date:

ACKNOWLEDGEMENT First of all, I would like to thank the Mr. Chandan Parsad Sir for guiding me throughout my project. Without his help and guidance this project would not have been a success. Thanking You

TABLE OF CONTENTS 1) ExecutiveSummary..........1 2) Introduction.............................................................2 About Insurance industry What is Life Insurance Life insurance v/s other savings 3) Companys Profile..................................................15 4) Corporate Objective.20 5) Corporate Mission.21 6) Objective of Research Study..22 7) Research Methodology..23 Secondary data 8) ULIPS offered by Reliance life...25 Reliance Money Guarantee Plan Reliance Super Automatic Investment Plan Reliance Child Secured Plan Reliance Wealth + Health Plan Reliance Super Golden Years plan 9) Reliance money Guarantee Plan...........................35 Features Working Benefits Flexibility Charges Tax benefit Term Life Insurance Benefit Free look period 10) Reliance Super Automatic Investment Plan..43 Features Benefits Working Tax Benefit

11) Reliance Child Secured Plan.49 Features Working Benefits Fund Options Flexibility Charges Exchange Option Tax Benefit Free look period 12) Reliance Wealth + Health Plan..59 Features Benefits Working Flexibility Charges Tax Benefits Free look period 13) Reliance Super Golden years plan...................... 14) Analysis. 15) Interpretation.. 16) Conclusion 17) Findings and recommendations.......................................... 18) Bibliography..

EXECUTIVE SUMMARY In the bur going Indian economy the service sector has emerged in a big way since the liberalization waves started blowing in India since 1992 onwards .It was the astounding growth rate of insurance sector which attracted me to explore and study this area. Life insurance corporation of India plays a predominant role because of obvious reasons and already lot of studies have been done on it, this research is to study the new entrant in the field i.e. Reliance Life Insurance Company Ltd. for my project work. The research includes the various products of RLI especially ULIPS. Further the comparison has been made regarding ULIP products between Reliance Life Insurance Company and ICICI prudential. This research has been done basically to find out the differences between the products offered by both the companies and to find out which one is better. The objective of conducting this research is to study and analyze the various ulip products of Reliance Life Insurance and further to have a detailed comparison of the products of ICICI Prudential Life Insurance Co. Ltd. For the research methodology, only secondary data has taken into consideration. Now firstly, the research has covered the details of major ulip plans offered by Reliance Life Insurance such as Super Automatic Investment Plan, Money Guarantee Plan, Health + Wealth, Secure Child Plan & Super Golden Years Plan. Secondly, the research has analyzed the comparison of products offered by both the companies which includes the detail about the features of the products as well their returns generated with in the time span of two previous financial years.

The overall analysis has been interpreted in following lines as stated, Reliance Life Insurance ulip products are a complete package for a customer which includes life insurance, returns on money invested, tax benefit, flexibility to the customer to withdraw full money after a certain period of time, also offers availability of partial withdrawals, choice of portfolios to invest their money into different funds and also provides ample of switches to exercise between the funds. The research also interpreted that the returns generated by ICICI Prudential are better than the Reliance life insurance. Finally the research has been concluded that despite of providing the above mentioned features, Reliance life insurance need to improve their fund management and provide more transparency to their customers in terms of investment options & better portfolio management services. To establish a position in the market Reliance life insurance need to work upon their policies, they have to reframe their plans according to the need of the market. The research also concludes the latest amendments made by the Insurance Regulatory Development Authority which further makes the product more customer friendly and emphasis the company to introduce more customer oriented products as per the new guidelines set by them.

INTRODUCTION The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life)

were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January 1956 that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

ABOUT INSURANCE INDUSTRY IN INDIA 2010 Insurance industry records a booming growth The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has projected a 500% increase in the size of current Indian insurance business from US$ 10 billion to US$ 60 billion by 2010 particularly in view of contribution that the rural and semi-urban insurance will make to it. Rural and Semi-Urban Life Insurance business is expected to touch US$ 20 billion figure in next 4 years from current level of less than US$ 5 billion now as rural and semi-urban folk will want themselves to ensure them for better future and their rising purchasing power will motivate them to move towards insurance sector. In view of Assocham, the non-life insurance will rise to US$ 15 billion by 2010 from its negligible size now and in Urban areas, life insurance businesses are anticipated to reach US$ 15 billion and that of non-life insurance US$ 10 billion, according to Chamber Paper on Insurance Sector : Its Future Perspective. Assocham has revealed that rural and semi-urban India shall contribute US $35 billion to the Indian insurance industry by 2010, including US $20 billion by way of life insurance and the rest US $15 billion through non-life insurance schemes. A large part of rural India is still untapped due to poor distribution, large distances and high costs relative to returns. Urban sector insurance is estimated to reach US $25 billion by 2010, life insurance US $15 billion and non-life insurance US $10 billion. Estimating the potential of the Indian insurance market from the perspective of macro-economic variables such as the ratio of premium to GDP, Assocham Papers reveals that Indias life insurance premium, as a percentage of GDP is 1.8% against 5.2% in the US, 6.5% in the UK or 8% in South Korea. Assocham findings further reveals that in the coming years the corporate segment, as a whole will not be a big growth area for insurance companies. This is because penetration is already good and companies receive good services. In both volumes

and profitability therefore, the scope for expansion is modest. Survey suggested that insurers strategy should be to stimulate demand in areas that are currently not served at all. Insurance companies mostly focus on manufacturing sector, however, the services sector is taking a large and growing share of Indias GDP. This offers immense opportunities for expansion opportunities. Being an agrarian economy again there are immense opportunities for the insurance companies to provide the liability and risks associated in this sector. The Paper found that the rural markets are still virgin territories to a great extent and offer exciting opportunities for insurance companies. To understand the prospects for insurance companies in rural India, it is very important to understand the requirements of India's villagers, their daily lives, their peculiar needs and their occupational structures. There are farmers, craftsmen, milkmen, weavers, casual labourers, construction workers and shopkeepers and so on. More often than not, they are into more than one profession. The rural market offers tremendous growth opportunities for insurance companies and insurers should develop viable and cost-effective distribution channels; build consumer awareness and confidence. The Paper found that there are a total 124 million rural households. Nearly 20% of all farmers in rural India own a Kissan Credit cards. The 25 million credit cards used till date offer a huge data base and opportunity for insurance companies. An extensive rural agent network for sale of insurance products could be established. The agent can play a major role in creating awareness, motivating purchase and rendering insurance services. There should be nothing to stop insurance companies from trying to pursue their own unique policies and target whatever needs that they want to target in rural India. Assocham suggests that insurance needs to be packaged in such a form that it appears as an acceptable investment to the rural people. In the near future, when well see more innovations in agriculture in the form of corporatization or a more professional approach from the farmers side, insurance will definitely be one option that the rural Indian is going to accept.

What Is Life Insurance? Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during:

The date of maturity or Specified dates at periodic intervals or Unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilizations partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:

1) Dying prematurely leaving a dependent family to fend for itself.

2)

Living till old age without visible means of support.

LIFE INSURANCE VS. OTHER SAVINGS Protection Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid to thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy installment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assesses can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise. Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-totime. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions). Who Can Buy A Policy? Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholders state of health, the proponent's income and other relevant factors are considered by the Corporation.

COMPANY PROFILE OF RELIANCE LIFE INSURANCE FOUNDER Few men in history have made as dramatic a contribution to their countrys economic fortunes as did the founder of Reliance, Sh. 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 Indias capital markets, the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a Rs.60,000 crores colossusan 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 Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized 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 Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private

sector enterprise. Through out this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder uppermost in mind.

ABOUT RELIANCE Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias 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 (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 step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporates.

CORPORATE OBJECTIVE Reliance Life Insurance strongly believes that as life is different at every stage, life insurance must offer flexibility and choice to go with that stage. They are fully prepared and committed to guide their customers on insurance products and services through their well-trained advisors, backed by competent marketing and customer services, in the best possible way. Aim to become one of the top private life insurance companies in India and to become a cornerstone of RLI integrated financial services business in India.

CORPORATE MISSION

To set the standard in helping our customers manage their financial future.

OBJECTIVE OF RESEARCH STUDY The objective of research study can be categorized as:

1) 2)

PRIMARY OBJECTIVE: To understand and analyze the various

ulip plans offered by Reliance Life Insurance company SECONDARY OBJECTIVE: To compare the various products

offered by Reliance life insurance Company with Icici prudential company with respect to their features and returns generated.

RESEARCH METHODOLOGY As this is an exploratory research, therefore the data which has been used for conducting research is only secondary data. Secondary data is data that is neither collected directly by the user nor specifically for the user, often under conditions not known to the user. Examples include- Government reports. Secondary information has already been collected for some other purposes. It may be available from internal sources, or may have been collected and published by another organization. Secondary data is cheaper and more quickly available than primary data, but likely to need processing before it is useful. Some are the sources of secondary data: Published reports Government statistics Scientific and technical Abstracts Companys financial statements Companys website Secondary source of data has been collected and used in project making. The research has made use of the information available on the companys website as well as the pamphlets of various ULIP plans of company.

ULIP PLANS OFFERED BY RELIANCE LIFE INSURANCE

1) Reliance Money Guarantee Plan 2) Reliance Super Automatic Investment Plan 3) Reliance Child Secured Plan 4) Reliance Wealth + Health Plan 5) Reliance Super Golden Years Plan

Reliance Money Guarantee Plan Reliance Money Guarantee Plan is a Unit Linked product addressing comprehensive need to strike that perfect balance of Protection and Savings that a customer deserve as he grow successfully. The Reliance Money Guarantee Plan is a Regular Premium Unit Linked Policy which guarantees the entire premium (including premiums for top- ups) paid by you. This is a plan which helps a customer to reap all the benefits of a rising market simultaneously protecting him from the downside risk of the market. Key Features

1) The sum of all premiums paid is guaranteed on maturity or on death before the maturity. 2) Unique Return Shield feature to protect your returns 3) Choice to invest in 3 investment fund options

4) Liquidity in the form of partial withdrawals from top-up fund.

The work procedure of the plan

The premium contributed by a customer net of Premium Allocation Charges and Miscellaneous Charge is invested in fund option of his choice for a specified period of time as selected by him and units are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that he hold in the fund. The Policy has a minimum Guaranteed Fund Value which is equal to total of all premiums paid (excluding any additional and extra premiums if any), to be payable on survival to maturity or earlier death. The amount of top-up

premiums paid is also guaranteed on death provided there is no partial withdrawal. The amount of top-ups premium is guaranteed on maturity provided the top-ups premium was paid at least 10 years before the date of maturity and there is no partial withdrawal. The Sum Assured under the Policy is fixed on the basis of the selected annual premium and Policy Term. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units whereas the Fund Management Charge is priced in the Unit Value. The premiums for riders, if selected, are payable over and above the premium for the basic Policy.

Benefits

1) Capital Guarantee 2) Life Cover Benefit 3) Sum Assured

Flexibility

1) Return Shield an innovative way to protect your returns 2) Pay top-ups 3) Switching Option 4) Premium Redirection 5) Convenient Premium Paying options

Reliance Money Guarantee Plan at a glance Basic Plan Age at Entry Minimum 30 days Maximum 55 years last birthday

Age at Maturity Policy Term Optional Riders

18 years last birthday 10 years

80 years last birthday 30 years

Term Life Insurance Benefit Rider Age at Entry Age at Maturity Policy Term Sum Assured Age at Entry Age at Maturity Policy Term Sum Assured 18 years last birthday 23 years last birthday 5 years 25,000 18 years last birthday 23 years last birthday 5 years 25,000 59 years last birthday 64 years last birthday 30 years Up to basic Policy Sum Assured 60 years last birthday 64 years last birthday 30 years Up to basic policy Sum Assured subject to a maximum of Rs 50,00,000 on accidental death and Rs 500,000 per annum on total permanent disability.

Accidental Death and Accidental Total and Permanent Disablement Rider

Charges under the plan 1. Premium Allocation Charges:

This is a percentage of the premium appropriated towards charges from the premium received. Year Year 1 Year 2 Year 3 to 5 Year 6 to 8
th

Premium Allocation Charge ( as percentage of premium amount) 20% 5% 3% 2%

9 year onwards 1% For top-up premium the Allocation Charge is 2%. 2. Policy Administration Charges: Rs 40 will be deducted per month per Policy (charged monthly through cancellation of units). 3. Switching Charge: First four switches in any Policy Year are free. There will be a charge of Rs100 per switch on subsequent switches. 4. Surrender Charge: This charge is levied on the Fund Value at the time of surrender of the Policy as under: Year of Surrender of Basic Plan/top-ups 1 to 3 4 5 6 onwards Surrender Charge as a percentage of fund value Not allowed 20% 10% Nil

5. Service Tax & other applicable charges: These charges are to be levied on the Mortality Charge and on Rider Premiums. The level of this charge will be as per the rate of Service Tax along with the other applicable taxes/ charges on risk premium, if any, as declared by the Government from time to time. The current rate of Service Tax (including the Education Cess on Service Tax) on risk premium is 12.24%. Currently, this charge is borne by the Company. However, the Company reserves the right to pass on this charge as well as other charges/taxes to the Policyholder in future. 6. Miscellaneous Charge: Fixed Miscellaneous Charge of Rs 2 per Rs 1000 Sum Assured will be collected on inception of the Policy.

Tax Benefit

As per current tax rules premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Provided the premium in any years during the term of the Policy does not exceed 20% of the Sum Assured, maturity and withdrawals are eligible for tax benefit under Section 10(10D). Death Benefit are tax free under Section 10(10) D of the Income Tax Act, 1961. Under Section 80C premiums up to Rs 100,000 are allowed as deduction from your taxable income. Term Life Insurance Benefit

Customer have the option of taking or removing the Term Life Insurance Benefit Rider at any time during the term of the Policy subject to Medical and Financial Underwriting provided the criteria in respect of minimum and maximum age at entry, Policy Term, Premium Payment Term, Sum. Assured are satisfied.

The maximum Sum Assured under Term Life Insurance Benefit Rider will be equal to the Sum Assured under Basic Plan.

15 day free look period

A customer is entitled to a free-look period of 15 days. If at the end of this time, he do not wish to continue this Policy, then he may request us in writing to cancel this Policy by returning it to the Company. The Company will refund the premium paid by him after deducting a proportionate premium for the cover the company provided to the customer during that time. Company will also deduct any medical examination costs and Stamp Duty Charges incurred by the company in respect of the Policy.

Reliance Super Automatic Investment Plan Automatic investment plan- The plan that automatically directs an investment and yield returns like a money plant. Features

1) Two plan options to choose from Ready-made and Tailor-made 2) Life Stage asset allocation to ensure automatic change in investment patterns, under the Ready-made Plan option

3) Freedom to decide a customers own fund mix based on his risk profile
under the Tailor-made Plan 4) Regular, limited, single premium paying options

5) Unmatched flexibility through companys Exchange Option

6) Liquidity in the form of partial withdrawal 7) Option to avail of Accidental Death Benefit, Accidental Total and Premium Disability.

Benefits

1) A smart plan which adapts to changing risk profile with increasing age 2) Option to lower the average cost of units through systematic transfer of
funds 3) Flexibility to switch between funds and plans

4) Options for additional Insurance cover available through riders

The work procedure of the plan

A customer have the liberty to choose between the Ready-made and Tailor-made Plan options. The premium contributions made by him, net of Premium Allocation Charges and Sum Assured Related Charges are invested in fund/funds of his choice and units are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that a customer hold in the fund/ funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units, whereas the Fund Management Charge is priced in the Unit Value. Reliance Super Automatic Investment Plan at a glance

Basic Plan Age at Entry Age at Maturity Premium Paying Term

Minimum 30 days 18 years last birthday 5 years

Maximum 65 years last birthday 80 years last birthday 30 years

Min Sum Assured

Regular / Limited Premium: Annualised Premium for 5 years or Annualised Premium for half of the policy term, whichever higher Single Premium 125% of the single premium amount

Max Sum Assured

No Limit

Benefit Illustration Age of the customer Annual Premium Paid Policy Term Premium Paying Term Sum Assured 30 25,000 15 15 1,87,500 35 25,000 15 15 1,87,500 4,94,413 6,93,530 40 25,000 15 15 1,87,500 4,93,017 6,91,444 45 25,000 15 15 1,87,500 4,90,506 6,87,755

Maturity Values: at 6% investment return 4,95,104 at 10% investment return 6,94,534 Minimum Premium Yearly Regular Premium option Limited Premium Single Premium Min Top Up amount Rs 10,000 Rs 20,000 Rs 25,000 Rs 2,500

Half Yearly Rs 5,000 Rs 10,000

Quarterly Monthly Rs 2,500 Rs 1,000 Rs 5,000 Rs 2,000

Tax Benefit

As per current tax rules premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Provided the premium in any years during the term of the Policy does not exceed 20% of the Sum Assured, maturity

and withdrawals are eligible for tax benefit under Section 10(10D). Death benefits are tax free under Section 10(10) D of the Income Tax Act, 1961. Under Section 80C premiums up to Rs 100,000 are allowed as deduction from your taxable income.

Reliance Secure Child Plan Reliance Secure Child Plan A unique life insurance cum savings plan. Start saving from now and secure the future of your child. Features

1) Insurance cover on the life of child

2) Money at critical milestones in

higher education, marriage

childs career path - college education,

3) Child is completely protected company will continue to pay the

premiums even if customer is not alive 4) Life time income to child in the event of disability

5) Return Shield option to protect

investment returns

6) Liquidity in the form of partial withdrawals 7) Capital guarantee available on maturity and on death of the child for basic and top-up premiums

The work procedure of the plan

This is a non profit unit linked endowment plan where the life insured is the child with premium waiver benefit on death of the proposer (father or mother). The premium contributed by a customer net of Premium Allocation Charges and Miscellaneous charges is invested in fund option of his choice for a specified period of time as selected by him and units are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that customer hold in the fund/funds. The policy has a minimum guaranteed fund value which is equal to 95% of total Premiums paid under the basic plan less extra or additional premiums if any provided no partial withdrawals were made from any of the funds except redemption of points from e-Account for availing of services of web based community and that the Equity fund was never selected up to the date of death. The sum assured under the policy is fixed on the basis of the selected annual Premium and policy term. The allocation charges and miscellaneous charges are deducted from the Premiums before allocation of units. The mortality charges (along with the service tax on mortality), charges for total and permanent disability due to accident and policy administration charges are deducted through cancellation of units whereas the fund management charge is priced in the unit value. The Premiums for riders, if selected, are payable over and above the Premium for the basic policy.

Benefits

1) Capital Guarantee 2) Commencement of risk cover

3) Life Cover Benefit

The different fund options

A. Funds available in respect of basic plan and top-up premium: The plan offers three funds for basic plan and top-up contributions namely: Fund G, Fund H and Equity Fund. A customer has the option to decide his own fund mix with respect to premiums under the basic plan and top-ups. B. Funds available in respect of Return Shield Option: Return Shield Fund will be available if Return Shield Option is selected. The returns earned under the basic plan and top-up contributions will be transferred to Return Shield Fund if Return Shield option is selected.

Flexibility

a) Return Shield b) Partial Withdrawals c) Pay top-ups d) Switching Option f) Convenient Premium paying options

Charges Available under the plan

1) Premium Allocation Charges:

This is a percentage of the Premium appropriated towards charges from the Premium received. It is deducted from the premium as and when the Premium is received. The initial allocation charge varies by the amount of the premium paid. The rates are given below Initial allocation charge- 25% of the premium in the first year Year 2nd year 3rd year and 4th year 5 year to 10 year
th th

Renewal allocation charge as % of annualized premium 5% 3% 2.50%

The allocation charge on the single premium and top-ups will be at the rate of 3% of the single premium / top-up amount.

2. Policy Administration Charges: A monthly administration charge will be deducted by canceling units in advance at the beginning of each monthly anniversary of the policy. Premium Payment Term Regular Premium Policies Limited Premium Policies (during premium payment term) Limited Premium Policies (after premium payment term) 35 Administration charge (Rs. per month) 40 40

Single Premium 35 3. Fund Management Charges: The fund management charges under each fund are given below: Fund Name Fund G Fund H New Fund I( New return shield fund) New equity fund, new pure equity fund, infrastructure fund, energy fund, madcap fund Annual Rate 1.30% p.a. 1.30% p.a. 1.25% p.a. 1.35% p.a.

4. Switching Charge: First four switches in any policy year are free. There will be a charge of Rs.100 per switch on subsequent switches.

5. Mortality Charge: The Mortality Charges are based on customer attained age, are determined using 1/12th of the charges mentioned in the Mortality Charge table below and are deducted by canceling the units from his fund every month. 6. Surrender charge/Partial withdrawal charge: This charge is levied on the Fund Value at the time of surrender of the Policy as under: Year Of Surrender/ partial withdrawal 1 to 3 Surrender Charge/ Partial Withdrawal Charge as a percentage of Fund Value Being Surrendered/partially Withdrawn In Case of Regular Premium Policies 20%

4 20% 5 6 onwards 10% Nil

7. Service Tax & other applicable charges: These charges are to be levied on the Mortality charge. The level of this charge will be as per the rate of Service Tax along with the other applicable taxes/charges on risk premium, if any, as declared by the Government from time to time. The current rate of service tax (including the education cess on service tax) on risk premium is 12.36%.

Exchange Option

This option is available for existing policyholders after completion of three policy years from the date of commencement. Under this option, the policy holder can transfer policy benefits (surrender, maturity etc.) either fully or partially to another plan wherein exchange option is available.

Tax Benefit

As per current tax rules premiums paid are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Provided the premium in any years during the term of the Policy does not exceed 20% of the Sum

Assured, maturity and withdrawals are eligible for tax benefit under Section 10(10D). Death benefits are tax free under Section 10(10D) of the Income Tax Act, 1961. Under Section 80C premiums up to Rs. 100,000 are allowed as deduction from your taxable income.

15 day free look period

In Case the Policy Holder disagrees with any of the terms and conditions of the policy, he 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 units plus fund value as on the date of receipt of the request in writing for cancellation, less the proportionate premium for the period the company has been on risk and the expenses incurred by the company on medical examination and stamp duty charges.

Reliance Wealth + Health Plan Reliance Wealth + Health Plan, a health insurance plan underwritten by Reliance Life Insurance Company Limited (Reliance Life), is designed to work in conjunction with contributions towards Savings. The uniqueness of this plan is that it not only provides benefits for covered injuries but also for other injuries by encashment from the unit Fund. This plan from Reliance Life offers the Hospitalization and Surgical Benefits and also covers Critical Illnesses. In short this plan provides a customer with a quality Health cover that fits his Life Style.

Features

1) A Unit Linked plan with Unique Savings Component 2) Twin benefit of market linked return and health protection 3) Flexibility to take care of customer familys health 4) Option to pay Top-ups Benefits

1) A comprehensive health plan that - helps a customer to pay the routine medical expenses - covers multiple major surgeries - takes care of the follow-up tests and medicines post hospitalization. 2) Fund option including Equity fund to harvest the best from the growing Equity market. 3) Income tax benefit under section 80C, 80 D and 10(10D) of the Income Tax will be available.

The work procedure of the plan This is a non profit unit linked health plan where there can be multiple lives insured. The principal insured is the policyholder and the other insured person(s) are the family member(s). The family consists of the Principal Insured (Policyholder), the Spouse as Insured Spouse and the first two eligible children by seniority in age. The plan takes care of the hospitalization expenses which include:

1) Daily Hospitalization expenses 2) Intensive Care Unit expenses

3) Post Hospitalization
expenses in the form recuperation benefits The premium contributed by customer net of Premium Allocation Charges and Miscellaneous charges is invested in fund option of his choice for a specified period of time as selected by him and units are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that he hold in the fund/funds. The allocation charges are deducted from the premiums before allocation of units. The insurance charges (along with the service charge), are deducted through cancellation of units whereas the fund management charge is priced in the unit value. The premiums for riders, if selected, are payable over and above the premium for the basic policy.

Flexibility

1) Partial Withdrawals

2) Pay top-ups. 3) Switching Option 4) Premium Redirection 5) Premium paying options

Reliance Wealth + Health Plan at a glance:

Basic Plan Age at Entry of the Child Age at Entry of the Principal Insured / Spouse

Minimum 3 month(Completed) 18 years last birthday

Maximum 19 years last birthday 55 years last birthday

Age at Maturity of the Child Age at Maturity/Benefit ceasing age of the Principal Insured / Spouse Policy Term (in multiples of 5 years) -

20 years last birthday 65 years last birthday

10 years

25 years

Charges under this plan

1. Allocation charges: These are deducted from the savings premiums as they are paid and are as follows: Year 1 2 year onwards 2. Hospitalization charges: This charge will apply for all Lives from inception. These hospitalization charges will be deducted on a monthly basis on the beginning of first day of each policy month using 1/12th of the Hospital Cash Benefit rates. 3. Policy administration charge: A monthly administration charge of Rs.40 will be deducted by canceling of units in advance at the beginning of the month. 4. Switching charge: There are 52 free switches during any policy year. Subsequent switches if any will have a fixed charge of Rs.100 per switch. Allocation charge as a % of Annualised Premium 25% 5%

5. Fund management charge:

Fund Name Money Market Fund Gilt Fund Corporate Bond Fund Equity Fund

Annual Rate 1.25% p.a. 1.25% p.a. 1.25% p.a. 1.50% p.a.

6. Service Tax Charge: This charge (along with education cess) will be levied on the morbidity charges. The level of this charge will be as per the rate of Service Tax on risk premium, declared by the Government from time to time. The current rate of service tax (including education cess) on risk premium is 12.36%.

Tax Benefit Benefits and premiums payable under the policy are subject to tax laws and other financial enactments as they may exist from time to time. As per current tax rules premiums paid in respect of hospitalization charges

are eligible for tax deduction under section 80 D of the Income Tax Act, 1961( the Act). The balance of premium is eligible to tax deduction under section 80 C of the Act, provided the annual premium during the year does not exceed 20% of the Sum Assured.

15 day free look period In Case the Policy Holder disagrees with any of the terms and conditions of the policy, he 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 units plus fund value as on the date of receipt of the request in writing for cancellation , less the proportionate premium for the period the company has been on risk and the expenses incurred by the company on medical examination and stamp duty charges.

RELIANCE SUPER GOLDEN YEARS PLAN Retirement means different things to different people, while some want to relax and take a trip around the world, some want to start up a venture of their own, and pursue a dream harnessed for years. The power to make your autumn years special lies only with customer. The Reliance Life Traditional Golden Years Plan gives him the power and the right kind of solution - A retirement plan that allows a customer to save systematically and generate the much-needed corpus to make his old age years look golden. Under this plan the investment risk in the investment portfolio is borne by the policyholder. Key Features Non linked non- profit plan Addition of Accumulation Rate at the of every calendar month - Rate for

FY 2010-11: 7.75% p.a.

Flexibility to increase Tax free commutation up to one third of benefits at Vesting Age.

your savings any time by paying additional premium.

The work procedure of Reliance Life Traditional Golden Years Plan

The plan works in two parts - the Accumulation Period (i.e. the Policy Term) and the Distribution Period (i.e. after the Vesting Date). The Accumulation Period is the time when a customer builds his Account values through premium payment. He pay premium every year for the entire term and get accumulated value which will be maintained in a separate account called 'Accumulation Account' in respect of each policyholder, which will be credited with accumulation rate at the end of every calendar month.

The accumulation rate shall be applied proportionately to any increase in the Account values. An additional accumulation account will be maintained for any additional premiums paid. After the Vesting Date, the Annuity Payments begins. Vesting Date means the date from which the pension will start. Plan at glance Age at Entry Maximum Minimum 18yrs last bday Vesting 85yrs last birthday Maximum 75yrs bday

Age Minimum Policy Term [10 or up to age 45 years, whichever is higher]in Base Premium years Yearly-10,000 Half-Yearl-5000 Quarterly-2500 No Limit

Additional Premium

Monthly-1000 Rs.1000/Installment

Per No limit. However the total of additional premiums at any point of time shall not exceed 50% of the total base plan premium paid till that time

An Accumulation Account

Accumulation Account is a separate account specially maintained for a customer. All the premiums he pay will be credited in the Accumulation Account after deducting the Allocation fees for the relevant year. The rate of allocation fees under the plan is stated below. Year Year 1 Year 2 to 10 Year 11 onwards Single premiums Allocation Fee as percentage of annualised premium 7.5% 5% 1% 2%

The rate of allocation fees under additional premiums will be 2% of the additional premiums. In addition to the premiums, his accumulation Account will be credited with accumulation Rate. The accumulation Rate will be declared in advance at the start of every financial year. However this will be added to customers account pro-rata at the end of every calendar month.

While there is no upper limit on the accumulation Rate that will be declared from year to year, the company undertakes that the accumulation Rate to be declared in future will not be less than the Savings Bank deposit interest rate declared by the Reserve Bank of India (RBI). The accumulation Rate for the FY 2010-11 will be 7.75% p.a. annually, declared accumulation rate would be available on our website www.reliancelife.com Once the accumulation rate is declared and credited to the accumulation account and additional accumulation account, it will be guaranteed for the rest of the policy term. After adding the accumulation Rate to customers account, company shall deduct account administration fees of 1.25% p.a. of the account value, at the end of every calendar month. There shall be monthly deductions of Policy

administration Fee of Rs 40 per month from customer accumulation account. An Additional Accumulation Account Any additional premium that a customer pay over and above the regular premium will be credited into this account after deducting the allocation fees of 2% of the additional premiums paid. At the end of every calendar month, the additional accumulation Account will be credited with the accumulation rate on pro-rata basis. The accumulation Rate on additional accumulation account will be at the same level as the rate declared on the accumulation account. After addition of the accumulation rate, account administration fees of 1.25% p.a. will be deducted from the additional accumulation account, at the end of every calendar month. There will not be any further deductions from the additional accumulation account. A company shall accept the additional premiums as long as all the due premiums under the base policy are paid.

Benefits a customer can avail in this policy

At Vesting: 1. 2. 3. On vesting, a customer can purchase annuity plan for the total of balances Customer may commute up to one third of benefit as tax free lump sum Open Market Option: customer can purchase an annuity either from in the accumulation account and additional accumulation account, if any. and the balance can be used for the purchase of annuity Reliance Life Insurance Company Limited or from any other registered Life Insurance Company. At Death: In the unfortunate event of death during the Policy term, the beneficiary will get the total of balances in the accumulation account and additional accumulation account, if any as on intimation of death and will be paid in full. The policy terminates on payment of death benefit. 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.

Surrender the Basic Policy (Accumulation Account)

The policy will acquire a surrender value after two full years' premiums have been paid. The surrender value will be available after completion of two complete policy years. Whenever full surrender value of the basic plan is paid, the surrender value of any additional premium will also be paid without any deductions.

Once a policy is surrendered, it cannot be reinstated. The Policyholder may take the full surrender value in cash or may purchase an annuity with the surrender proceeds the surrender value will depend on the number of premiums paid and the year of surrender. Surrender Value on accumulation account under the base policy is stated below: Year of Surrender Surrender Value (provided two full years premiums have been paid) as a % of First 3 years 4th policy year 5th policy year 6th and subsequent policy year Accumulation Account Surrender not allowed 80% 90% 100%

Surrender the Additional Accumulation Account

A full surrender can be done on the additional accumulation account. The full surrender value will be available in respect of on Additional Accumulation Account. Surrender value will be the balance in Additional Accumulation Account on the date of surrender. On full partial surrender of Additional Accumulation Account, there will not be any deduction towards surrender penalty. Discontinuation of the Premium Payment

If a customer discontinue the premium payments before premiums are paid for first two consecutive policy years. If the payment of premiums is discontinued before premiums are paid for first two consecutive policy years, the policy lapses. The Policy Administration fees will be deducted. The Company will credit Accumulation Rate to the Accumulation Account and Additional Accumulation Account if any at the end of every calendar month and debit the Accumulation Account and Additional Account with the Account Administration fees.

Any additional premiums can not be paid while a policy is in lapsed condition. However, an Additional Accumulation Account already existing on the date of lapse will remain intact. If a policyholder dies while the policy is in a lapsed condition, the balance in the Accumulation Account and Additional Accumulation Account, if any on the date of intimation of death will be paid. A lapsed policy can be revived within the revival period (i.e. a period of 5 years from the due date of first unpaid premium or maturity date whichever is earlier). If a lapsed policy is not revived at the end of period of revival, the policy will be terminated. If at any point of time during the revival period, the balance in Accumulation Account is not sufficient to cover the Policy Administration Fee for the next month, the balance in Additional Accumulation Account will be utilized for meeting the Policy Administration Fee. If the balances in Accumulation Account and Additional Accumulation Accounts are not sufficient to meet the policy administration fees for the next month, the policy will be terminated. A terminated policy cannot be reinstated. Whenever the base policy is terminated, the Additional Accumulation Account will also be terminated by paying the balance in the Additional Accumulation Account to the policyholder. If you discontinue the premium payments after premiums are paid for two complete policy years: If the payment of regular premiums is discontinued after the regular premiums for two complete policy years are paid, a policy will be in "Paid-up" status. Policy Administration fees will be deducted from the accumulation Account. At the end of every calendar month, the Company will credit the Accumulation Account and Additional Accumulation Account with the Accumulation Rate and debit the Accumulation and Additional Accumulation Accounts with Account Administration Fees. Additional premiums cannot be paid while a policy is in paid up condition.

The death benefit under a paid up policy will be the balance in the Accumulation Account and Additional Accumulation Account, if any. If at any point of time during the revival period, the balance in Accumulation Account is not sufficient to cover the Policy Administration Fee for the next month, the balance in Additional Accumulation Account will be utilized for meeting the Policy Administration Fee. If the balances in Accumulation Account and Additional Accumulation Accounts are not sufficient to meet the policy administration fees for the next month, the policy will be terminated. A terminated policy cannot be reinstated. Whenever base policy is terminated, the Additional Accumulation Account will also be terminated by paying the balance in the Additional Accumulation Account to the policyholder.

A paid up policy can be revived during the revival period (i.e. a period of 5 years from the due date of first unpaid premium or maturity date whichever is earlier). If the policy is not revived during the period of revival, the policy will be terminated by paying the surrender value at the end of revival period . Revival of the policy

A customer can revive lapsed or paid-up policy by recommencing the payment of premiums at any time within a period of five years from the due date of first unpaid premium but before the maturity date of the policy.

A loan facility under this Policy

Not Available 15 day free look period:

In the event the policyholder disagree 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 he/she shall be entitled to a refund of the premium paid. Nomination and Assignment

Nominations will be allowed under this plan as per Section 39 of the Insurance Act, 1938. Assignment not allowed under this plan. General Exclusion

If the life insured, whether sane or insane, commits suicide within 12 months from the date of commencement of this policy or the date of any revival of the policy the company will limit the death benefit to the accumulation account Value and Additional Accumulation Account value, if any.

Tax Benefit

Premiums paid are eligible for tax deduction under the Income Tax Act, 1961 and subsequent amendments. Please note that all benefits payable under the policy are subject to tax laws and other financial enactments as they may exist from time to time. You are recommended to consult your tax advisor.

ANALYSIS FOR THE ANALYSIS A COMPARSION HAS BEEN DONE AMONG THE PRODUCTS AND THEIR RESPECTIVE RETURNS GENERATED, WITH IN THE TIME SPAN OF TWO YEARS, OF RELIANCE LIFE INSURANCE WITH ICICI PRUDENTIAL. NOW FOLLOWING ARE THE BASIC COMPARISON DETAILS:

RELIANCE MONEY GUARANTEE PLAN AND ICICI INVEST SHIELD LIFE

COMPARISON

MONEY GUARANTEE PLAN

INVEST SHIELD LIFE

SEGMENTATION

NOT AVAILABLE. CUSTOMER SEGMENTATION IS MADE.

CAPITAL GUARANTEE

IS AVAILABLE.

IS AVAILABLE.

UNIQUE FEATURE

RETURN SHIELD OPTION INVEST SHIELD OPTION

POLICY ADMIN. CHARGE FUND MANAGEMENT CHARGES PREMIUM ALLOCATION CHARGES

RS40 PER MONTH

RS50 PER MONTH

1.29%P.A. 1ST YEAR-20% 2ND YEAR-5% 3RD TO 5TH YEAR-3% 6TH TO 8TH YEAR-2% 9TH YEAR ONWARDS-1% NO LOAN CAN BE AVAILED. NEW MAJOR SURGICAL BENEFIT RIDER NEW CRITICAL CONDITIONS(25) RIDER TERM LIFE INSURANCE BENEFIT RIDER ACCIDENTAL DEATH AND TOTAL AND PEMANENT DISABLEMENT RIDER

1.25%P.A. 1ST YEAR-30% 2ND YEAR-10% 3RD ONWARDS-3% (AND THIS VARY ACC. TO AMOUNT OF PREMIUM) LOAN CAN BE AVAILED, CURRENTLY 40% OF TH E SURRENDER VALUE. CRITICAL ILLNESS RIDER ACCIDENTAL AND DEATH BENEFIT RIDER WAIVER OF PREMIUM RIDER

LOAN FACILITY

RIDERS AVAILABLE

COMPARISON WITH THE HELP OF RETURNS GENERATED WTIH IN THE PAST TWO YEARS RETURNS OF RELIANCE MONEY GUARANTEE PLAN Fund Performance NAV Performance Analysis Following are the Unit values from 01 April 2008 to 31 Aug 2010 for MGP Return Shield Fund.

MGP - Return Shield Fund

Fund Name MGP - Return Shield Fund

NAV Growth(CAGR %) 8.2046 %

RETURNS OF ICICI PRU INVEST SHIELD PLAN Fund Performance NAV Performance Analysis Following are the Unit values from 01 April 2008 to 31 Aug 2010 for INVEST SHIELD LIFE Fund.

INVEST Shield life Fund Fund Name INVEST shield life fund NAV Growth(CAGR %) 9.42%

RELIANCE SUPER AUTOMATIC INVESTMENT PLAN AND ICICI PRU LIFE TIME SUPER PLAN

COMPARISON

SUPER AUTOMATIC INVESTMENT PLAN RS10,000 P.A.

LIFE TIME SUPER

PREMIUM

RS18000 P.A.

LOAN FACILITY

NO LAON IS AVAILABLE

LOAN IS AVAILABLE UPTO 40% OF SURRENDE VALUE SUM ASSURED IS A MULTIPLE OF THE ANNUAL PREMIUM PAID. MAXIMISER BALANCER PROTECTOR LIQUID CRITICAL ILLNESS BENEFIT RIDER ACCIENTAL AND DISABLEMENT RIDER

SUM ASSURED

MIN- 5 TIMES OF THE ANNUALISED PREMIUM. MAX-30 TIMES OF THE ANNUALISED PREMIUM. READY MADE TAILOR MADE

FUND OPTION

RIDERS

NEW MAJOR SURGICAL BENEFIT RIDER NEW CRITICAL CONDITIONS(25) RIDER TERM LIFE INSURANCE BENEFIT RIDER ACCIDENTAL DEATH AND TOTAL AND PERMANENT DISABLEMENT RIDER

UNIQUE FEATURE

SYSTEMATIC TRANSFER PLAN OPTION IS AVAILABLE

FLEXIBILITY TO KEEP CHANGING THE CUSTOMERS LIFE TIME NEEDS

PREMIUM ALLOCATION CHARGES

1ST YEAR-20% 2ND & 3RD YEAR-3% 4TH & 5TH YEAR-2% 6TH YEAR ONWARD-1%

1ST YEAR-20% (PRE.<50,000) -18% (PRE.>50,000) 2ND YEAR-8.5% 3RD YEAR ONWARDS-4% MAXIMISER-2.25% BALANCE-2.25% PROTECTOR-1.5% PRESERVER-0.75% 4 FREE SWITCHES

FUND MANAGEMENT CHARGES

READY MADE1.32%P.A. TAILOR MADE1.31%P.A.

SWITCHES

52 FREE SWITCHES

COMPARISON WITH THE HELP OF RETURNS GENERATED WTIH IN THE PAST TWO YEARS RETURNS OF RELIANCE SUPER AUTOMATIC INVESTMENT PLAN Fund Performance

NAV Performance Analysis Following are the Unit values from 01 April 2008 to 31 Aug 2010 for AIP Equity Fund.

AIP - Equity Fund

Fund Name AIP - Equity Fund

NAV Growth(CAGR %) 8.2200 %

RETURNS OF ICICI PRU LIFE TIME SUPER Fund Performance NAV Performance Analysis Following are the Unit values from 01 April 2008 to 31 Aug 2010 for LIFE TIME SUPER Fund

LIFE TIME SUPER Fund Fund Name LIFE TIME SUPER Fund NAV Growth(CAGR %) 7.15% 8.94%(MAXIMISER F)

RELIANCE HEALTH+WEALTH PLAN AND ICICI PRU HOSPITAL CARE

COMPARISON

HOSPITAL CARE RELIANCE H+W

WAITING PERIOD

90 DAYS

90DAYS

MAX AGE AT ENTRY

60 YEARS

55 YEARS

DAILY HOSPITALISATION CASH BENEFIT SURGICAL BENEFIT

AVAILABLE

AVAILABLE

BUILT INTO THE PLAN, OVER 900 SURGERIES ON 5 DAYS OF DHCB; 3*DHCB NOT AVAILABLE; BUT 33 ILLNESSES UNDER CRISIS COVER YES

PREM. PAYING RIDER, 33 MAJOR SURGERIES ONLY ON 5 DAYS OF DHCB; 2*DHCB PREM. PAYING RIDER; ONLY 25 ILLNESSES COVERED

RECUPERATING BENEFIT CRITICAL ILLNESS

ICU BENEFIT

YES

COVERAGE FRO FIRST 48 HOURS ANNUAL LIMIT

AVAILABLE

PAYABLE FROM THIRD DAY ONWARDS FIRST YR- 18 DAYS(7 FOR ICU) THEREAFTER-60 DAYS(30 FOR ICU) 180 DAYS(90 DAYS FOR CHILDREN BELOW 5 YRS) RS2500 PER DAY FOR PRIMARY; RS1500 FRO SPOUSE AND RS1250 FOR CHILDREN

90 DAYS PER POLICY YR (30 DAYS FOR ICU)

LIFE TIME LIMIT

1800*DHCB

MAX. COVERAGE AVAILABLE

PLAN D-RS 4000 PER DAY FOR EACH MEMBER OF THE FAMILY

HOSPITALISATION & SURGERY COVERAGE FUNDS AVAILABLE

SUPERIOR COVERAGE LIMITED COVERAGE NO FUNDS 4 FUNDS

PORTFOLIO STRATEGY INEDPENDENT OF MEDICLAIM LIFE COVER

NA

READY MADE OR TAILOR MADE YES

YES

BUILT INTO PLAN

PREMIUM PAYING RIDER

PREM. ALLOCATION CHARGE POLICY ADMIN CHARGE

NIL

FY-20% THEREAFTER-3% RS40 PER MONTH

RS60 PER MONTH

COMPARISON WITH THE HELP OF RETURNS GENERATED WTIH IN THE PAST TWO YEARS RETURNS OF RELIANCE HEALTH AND WEALTH PLAN Fund Performance NAV Performance Analysis

Following are the Unit values from 01 April 2008 to 31 Aug 2010 for RELIANCE HEALTH AND WEALTH FUND

W+HP - Equity Fund

Fund Name W+HP - Equity Fund

NAV Growth(CAGR %) 0.4674 %

RELIANCE SUPER GOLDEN YEARS PLAN AND LIFE TIME PENSION PLAN

COMPARISON

SUPER GOLDEN YEARS PLAN

LIFE TIME PENSION

BASIC

UNIT-LINKED PENSION PRODUCT

SAVING CAN BE MAXIMISED BY TAKING THE ADVANTAGE OF THE MARKET. RS1,00,000

SUM ASSURED

5 TIMES OF THE ANNUALISED PREMIUM. MIN-18 YEARS MAX-65 YEARS MAX AGE AT VESTING75 YEARS MIN-16 YEARS

AGE AT ENTRY(PROPOSER)

MIN- 18 YEARS MAX-60 YEARS MAX AGE WITH ZERO BENEFIT-65 YEARS MIN-10 YEARS

TERM

ANNUITY OPTION

LIFE ANNUITY LA WITH RETURN LA GUARANTEED FOR 5,10 OR 15YRS THEREAFTER

LIFE ANNUITY LA WITH RETURN LA GUARANTEED JOINT LIFE LAST SURVIVOR(RETURN) JLLS(WITHOUT RETURN) AVAILABLE

OPEN MARKET OPTION

AVAILABLE

EXTENSION OF RETIREMENT DATE

AVAILABLE

AVAILABLE

COMMUTATION OPTION

AVAILABLE AVAILABLE 8 FUNDS (MONEY MKT, BALANCE, GROWTH, GILT, ENERGY, MID CAP ETC.) RS40 PER MONTH 7 FUNDS (MAXIMISER, BALANCER, PROTECTOR, PRESERVER ETC.) RS20 PER MONTH

FUND OPTION

POLICY ADMIN CHARGE

FUND MGMT CHARGE

3.5%P.A.

1%P.A.

PREMIUM ALLOCATION CHARGE

1ST YR-7.5% 2ND TO 10TH YR-5% 11TH YR ONWARDS-1% 1ST 3 YRS-NIL 4TH YR-80% OF F.V 5TH YR-90% OF F.V 6TH YR ONWARDS-100%

1ST YR-22% 2ND YR-15% 3RD TO 10TH YR-1% 11TH YR ONWARDS-NIL BESIDE 1ST YR- NIL AFTER 1ST YR-25% OF F.V AFTER 2ND YR-40% AFTER 3RD YR- 60% AFTER 4TH YR-100%

SURRENDER VALUE

COMPARISON WITH THE HELP OF RETURNS GENERATED WTIH IN THE PAST TWO YEARS RETURNS OF RELIANCE SUPER GOLDEN YEARS PLAN Fund Performance

NAV Performance Analysis Following are the Unit values from 01 April 2008 to 31 Aug 2010 for RELIANCE SUPER GOLDEN YEARS FUND

GYP - Equity Fund Fund Name GYP - Equity Fund NAV Growth(CAGR %) 11.3793 %

RETURNS OF ICICI PRU LIFE TIME PENSION PLAN Fund Performance NAV Performance Analysis Following are the Unit values from 01 April 2008 to 31 Aug 2010 for ICICI LIFE TIME PENSION FUND

LIFE TIME PENSION Fund Fund Name LIFE TIME PENSION Fund NAV Growth(CAGR %) 7.84%

RELIANCE LIFE SECURE CHILD PLAN AND ICICI PRU SMART KID PLAN COMPARISON RELIANCE SECURE CHILD PLAN ICIC PRU SMART KID

BASIC FEATURE

MONEY AT CRITICAL MILESTONES OF CHILDS CAREER ANNUALISED PREM. * POLICYTERM/2 MIN-0YR MAX-15YRS MIN-21YRS MAX-50YRS AFTER 3YRS

SAVING + PROTECTION MIN=RS1,00,000 MAX=INFINITY MIN-30 DAYS MAX-15YRS MIN-20YRS MAX-60YRS AFTER 5YRS FLEXIBILITY TO DECIDE, 5 WITHDRAWALS IN THE WHOLE TERM (20%, 25%, 30%, 35%, 40%) NOT AVAILABLE

SUM ASSURED

AGE AT ENTRY(CHIL)

AGE AT ENTRY(PARENT) PARTIAL WITHDRAWALS AMNT OF WITHDRAWALS

20% OF FUND VALUE

E-ACCOUNT

AVAILABLE

RETURN SHIELD OPTION FUNDS

AVAILABLE

NOT AVAILABLE

8 FUNDS

7 FUNDS

RIDERS

6 RIDERS AVAILABLE

3 RIDERS AVAILABLE

SETTLEMENT OPTION

AVAILABLE

NOT AVAILABLE

1ST PREMIUM ALLOCATION CHARGES YR-25% 2 YR-5% 3RD TO 4TH YR-3% TH 5 TO 10TH YR-2.5%
ND

1ST YR-19% 2 TO 5TH YR-4% 6TH TO 10TH YR-2% 11TH ONWARDS-1%

ND

COMPARISON WITH THE HELP OF RETURNS GENERATED WTIH IN THE PAST TWO YEARS RETURNS OF RELIANCE SECURE CHILD PLAN Fund Performance NAV Performance Analysis

Following are the Unit values from 01 April 2008 to 31 Aug 2010 for RELIANCE SECURE CHILD FUND

. SCP - Equity Fund Fund Name SCP - Equity Fund NAV Growth(CAGR %) 6.9022 %

RETURNS OF ICICI PRU SMART KID PLAN Fund Performance NAV Performance Analysis Following are the Unit values from 01 April 2008 to 31 Aug 2010 for ICICI PRU SMART KID FUND

SMART KID Fund Fund Name SMART KID Fund INTERPRETATION While studying about the Unit Linked Insurance Plans of Reliance life, certain things can be interpreted. These are as follows: 1) Insurance plans offered by reliance, provides insurance benefits to its customers. 2) Reliance helps its customers to safeguard their investment. NAV Growth(CAGR %) 9.6 %

3) ULIPs help the people to save their hard earned money. 4) These plans provide tax benefits to its customers. 5) Companys allocation charges are quite high in its money guarantee plan. 6) Company provides assured amount on some of its policies if the amount has been deposited for specific period of time. 7) Company also provides switching option to its customers, which enables the investor to guide his investment to various funds as per the market fluctuations. 8) Company also provide with the readymade investment option which helps the customers to understand the funds more clearly. 9) Free look period of 15 days is provided by the company to its customers, which enables the people to get its policies cancelled within the 15 days from the date of issuance of policy.

FURTHER THE INTREPRETATON IS DONE WHILE CONSIDERING THE ICICI PRU PRODUCTS We can see the returns generated by both the companies, the past track record of ICICI Prudential is much competent than of reliance life insurance companys products.

As observed from the above data, the fund performance of ICICI Prudential Life Insurance is much better than of Reliance Life Insurance, but it is also true that ICICI Prudential is into Life Insurance business since 2000 and Reliance has entered into the market in 2006. As far as returns and claims are concerned, ICICI Prudential has given decent returns in the past 2 years & claim process is also quite fast. Despite of 4yrs of existence in the market, Reliance is improving on giving better returns to their customers. Therefore, good returns are expected in future as well. Reliance is also offering a vast Portfolio of funds offered in various plans, and also it gives an option to the customer to invest his money into various funds, called Tailor-Made Option.

Recommendations

1) Company must reduce its charges on various plans to make the product more customer oriented.

2)

The company should introduce some short term plans along with long

term plans to make more options available to the customers. 3) The company should increase the limit of partial withdrawal after the relavant time given in a policy. 4) The company must guide their task to the transparency factor for their customers. 5) The company should enhance its fund management, so that better returns are generated in future.

6)

The Company should send periodical statements to the customers, so that

they can review their investments & returns regularly. 7) Company should focus more on Brand Building through print media as well as television advertisement, so that they can increase their visibility in the market.

CONCLUSION After the overall research the conclusion can be viewed as:

Overall returns of the ICICI Prudential are more lucrative than Reliance life insurance. But due to some new changes made by IRDA (Insurance regulatory development authority) the sales for the products are more competitive, less margins are available to the agents and products have become more customer oriented. The new guidelines employed by IRDA are like: Allocation charges for any company for a ulip product can not be more than 30% in a 10 year term. The commission paid to the insurance agent can not be more than 10% through out the 10 year term. Surrender of any ulip plan can not be done before 5 years, incase of surrender of policy before 5 year, a huge surrender charges are to be borne by the policy holder.

Partial withdrawals for ulip plan were earlier allowed after three years but the facility of partial withdrawal is extended to 5 years in any ulip plan. Partial withdrawals were earlier available free of cost but from now onwards some nominal charges are paid by the policy holder per withdrawal.

Insurance companies are now focusing on long term products; the minimum term of any product is 15 years instead of 10 years.

After

analyzing

the

above

mentioned points, it has been concluded that by implementation of new changes, IRDA has made the insurance products more customer oriented, as well as there is maximum participation of funds in the product. Also, companies are focusing on long term products, so that better returns can be given to the customers. A new step has been taken by the IRDA is to aware the customer about the earnings of the agents made through them in a Ulip Product. After the overall conclusion, these changes will increase the interest of a customer to invest in a Ulip Product.

B IBLIOGRAPHY

Books: 1) Life insurance, Mc Gill 2) Study guide- Principles and practices of Life and general insurance. Magazines and pamphlets: 1) Reliance plans pamphlets 2) Insurance watch magazine. 3) Icici plans pamphlets Websites referred:

1) 2) 3) 4)

www.reliancelife.co.in www.wikipedia.com www.irdaindia.org www.iciciprulife.com