Reliance Life InsuranceNew Product Launch - Analysis

Innovation & Market Research

List of Products

Guaranteed Money Back Plan

Cash Flow

Money Multiplier

Classic Life

Classic Plan II

Reliance Guaranteed Money Back Plan Reliance Guaranteed Money Back Plan 

* N P i i i M B k Pl* Non Participating Money Back Plan

* Min/ Max Entry Age: 18 /60 Years (Max Maturity Age: 75 Years) * Policy Term : 15 and 20 Years ; PPT : 5 /7 /10 Years or Policy Term

* Min/ Max Sum Assured : Rs 50,000 / No Limit

* Death Benefit – Sum Assured* Survival Benefit – Spread over last 5 policy Ys (15%, 15%, 15%, 15% & 40% ) + Guaranteed Loyalty Additions & Guaranteed Maturity AdditionsAdditions & Guaranteed Maturity Additions

* Guaranteed Loyalty Additions : 2% SA every Year* Guaranteed Maturity Additions : 15 Y Term: 15% SA ; 20 Y Term: 20% SA

* Inbuilt Accidental Death Benefit Rider (upto Rs 50 L) * Premium Mode Rebates * 3 Optional Riders * High Sum Assured Rebate

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Smart Money Back Vs Reliance Guaranteed Money Back Smart Money Back Vs Reliance Guaranteed Money Back SBI Life-

Smart Money Back Reliance

Guaranteed Money BackIllustration Comparison 

Plan Participating Money Back Plan Non ParticipatingRP / SP Regular Premium RP / LPPT

Min. / Max. Entry Age

Option 1(12 Y Term) 14-58 Ys Option 2(15 Y Term): 14-55 Ys Option 3(20 Y Term): 14-50 Ys Option 4(25 Y Term) 14 45 Ys

18 / 60 Years

SBIL Smart Money Back 

Reliance Guaranteed Money Back 

6% 10% Non Participating 

Option 4(25 Y Term): 14-45 Ys Max. Age at Maturity

70 Years 75 Years

Policy Term 12/15/20/25 Years 15/20 YearsPremium Payment Term

Policy Term 5 /7 /10 Years or Policy Term

Age  30 Years 

SA  Rs 5,00,000 

Term & PPT 

15 Years 

Min. / Max. Sum Assured

Rs. 75,000/No Limit Rs 50,000 / No Limit

Maturity / Survival Benefit

Option Total Survival Benefit 1 110% SA+VB 2 115% SA+VB 3 120% SA+VB

100% SA + Guaranteed Loyalty Additions & Guaranteed Maturity Additions

Premium  Rs 42,935 pa  Rs 41,026 pa 

Additions Rs 1,68,750  Rs 3,18,750  Rs 2,25,000 

Total Survival  Rs 7,43,750  Rs 8,93,750  Rs 7,25,000 

4 125% SA+VB

Death BenefitFull SA + Vested Bonuses + Terminal Bonus Sum Assured

Additional Units / Guaranteed None

Guaranteed Loyalty Additions : 2% SA every Year* Guaranteed Maturity Additions :

Benefits 

IRR  2.48% 5.30% 2.32%

Smart Money Back –Guaranteed Additions

None * Guaranteed Maturity Additions : 15 Y Term: 15% SA ; 20 Y Term: 20% SA

Riders 3 Riders 4 Riders (1 In-built)

Rebates High Sum Assured * Premium Mode Rebates * Hi h S A d R b

Smart Money Back –

• Participating Plan – giving better additions to Total Survival Benefits

g* High Sum Assured Rebate • More Policy Term Options

• Better Premium Payment Options BACK

SBI Life S t M B k

RelianceC h Fl

Money Back Vs Reliance Cash Flow

Smart Money Back Cash Flow

Plan Type Participating Participating

Min /Max Entry Age

Option 1(12 Y Term) 14-58 Ys Option 2(15 Y Term): 14-55 Ys

16/63 YearsMin./Max. Entry Age Option 3(20 Y Term): 14-50 Ys Option 4(25 Y Term): 14-45 Ys

16/63 Years

Policy Term 12/15/20/25 Years 7/10/13/16/19/22/25/28/31/34 Years

Min. / Max. SA Rs. 75,000/No Limit Rs 25,000/No Limit

T l S i l B fi

Option Total Survival Benefit 1 110% SA+VB 2 115% SA VB

4th Anniversary & every 3rd Y thereafter (additional bonus with final payout)Total Survival Benefit 2 115% SA+VB

3 120% SA+VB 4 125% SA+VB

(additional bonus with final payout) [each cash flow equals to SA/no of payouts to be made]

Death Benefit Full SA + Vested Bonuses + Terminal Bonus Full SA+ Accumulated BonusDeath Benefit Full SA + Vested Bonuses + Terminal Bonus Full SA+ Accumulated Bonus

Riders 3 Riders 2 Riders

Rebates High Sum Assured High SA

BACK

* Non Participating Regular Premium Endowment Plan

Reliance – Money Multiplier

* Min/ Max Entry Age: 18 /65 Years

* Policy Term : 10/ 15/ 20 Years * Li i d P i P T 7/10 /15 Y (F i )* Limited Premium Payment Term : 7/10 /15 Years (For respective term)

* Min/ Max Sum Assured : Rs 50,000/ No Limit

* Guaranteed Loyalty Additions : End of each policy term (1% * Xth * Basic Sum Assured)

* Guaranteed Maturity Additions : 1% * Policy Term * Basic Sum Assured

* High Sum Assured Rebates

* 4 Riders 4 Riders

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Saral Maha Anand Vs Reliance Classic Life

SBIL R li Charge ComparisonUnit Linked

SBIL Saral Maha Anand

Reliance Classic Life

Portfolio Strategy 1 1

Policy Term 10/15/20 Years 15 to 30 Years 7 250

16,600 6,000

Charge Comparison

13,25016,600

Min Premium Y: Rs 15,000/- (Y/HF/Q/M ) RP : Rs 20,000/-SP : Rs 50,000/-(Y/HY/Q/M/SP)

Max Premium Y: Rs 29,000/- No Limit

7,250

SBIL Reliance

Policy Administration Charge Premium Allocation Charge

Rider Options Accidental Death Benefit Linked 3 Riders

Guaranteed Additions

Y End % of AP 10 5%15 10%20 15%

None Fund Value & IRR Comparison

Assuming : Annualized Premium as Rs 20,000/‐; Sum Assured as Rs 2,00,000/‐

Term : 15 Years

Premium Allocation Charge

Y 1 : 6.25% ; Y 2-5 : 3.75% ; Y 6- 10 : 3.00% Y 11 + : Nil

Y 1: 7% ; Y 2-4: 6%Y 5 -10: 5.5% ; Y 6+ : 5% ;SP : 2%

Policy Admin Charge Rs 33.33/- pm SP : Rs 40/- pm 576 403

3.89%

7.80%

3.33%

7.32%

Policy Admin Charge Rs 33.33/ pm SP : Rs 40/ pm

Commission

Y 1 : 6% Y 2 – 5: 2.75% Y 6 -10 : 2%

Y 1: 6%Y 2 + : 2% SP : 1%

412,682 576,403

393,657 552,739

Fund Value @ 6% Fund Value @ 10%

7

Y 11 onwards : 1% SBIL Reliance

BACK

Reliance Classic Plan II* Unit linked Plan with dual benefit of market linked return and insurance protection

* Min/ Max Entry Age: 7 /60 Years (Max age at maturity:75Y),* Premium(Min/Max): Rs 15,000/No limit; Policy Term : 15 to 30 Years ; PPT : Policy Term/SP

* Min Sum Assured: Higher of 10/7 times AP (depending on age)* Max Sum Assured : 20 to 30 times AP depending on age

* Death Benefit – higher of SA or FV. (if death is due to accident or before age 65: additional SA paid) * Survival Benefit – FV

h* Policy Admin Charges: RP: Rs 40/-pm from 6th Y ; SP: Rs 40/- pm throughout* Premium Allocation Charges: RP: 1 Y: 8%, 2-5 Y: 5.5%, 6-9 Y: 5%; 10 Y onwards: 3% ; SP & Top Up : 2%

* Riders: Inbuilt Accidental Death Benefit Rider, Term Rider, Family Income Benefit rider, CI rider, Surgical benefit rider* Exchange Option: After completing five years, policy benefits can be transferred to another plan, or vice versa.

Saral Maha Anand v/s Reliance Classic Plan II  Saral Maha Anand v/s Reliance Classic Plan II  SBI Life-

Saral Maha AnandReliance

Classic Plan II Charge ComparisonPlan Non Participating Non Participating

RP / SP Regular Premium RP/SP

Min. / Max. Entry Age

18 /55 Y7/60 Y

6,000

4,800

g p

21,800

15,065

Max. Age at Maturity

65 Years 75 Years

Policy Term 10/15/20 Years 15 to 30 YearsPremium Payment Term

Policy Term Policy Term/SP

Mi 10/7 * AP 0 5/0 25 * Hi h f 10/7 i AP ½ /

9,065

17,000

6,000

SBIL Reliance

Min. Sum AssuredMin: 10/7 * AP or 0.5/0.25 * Term * AP

Higher of 10/7 times AP or ½ / ¼ policy term (depending on age)

Min/Max Premium Rs 15,000/Rs 29,000 Rs 15,000/ No Limit

Maturity / Survival Benefit

FV FV

Policy Admin charge premium allocation charge

Fund Growth & IRR Comparison

Assuming : 15 Y Term ; AP of Rs 25,000/-& SA of RS 5,00,000/-

Death Benefit Higher of SA or FV Higher of SA or FV

Premium Allocation Charge

Y 1 : 6.25% ; Y 2-5 : 3.75% ; Y 6- 10 : 3.00% Y 11 + : Nil

RP: 1 Y: 8%, 2-5 Y: 5.5%, 6-9 Y: 5%; 10 Y onwards: 3% ; SP & Top Up : 2%

Policy Admin. Rs 33 33/- pm RP: Rs 40/-pm from 6th Y ; 710,157 676,791

3.69%3.05%

7.08%7.63%

Charge Rs 33.33/ pm

SP: Rs 40/- pm throughout

Additional Units / Guaranteed Additions

At end of Y 10: 5%At end of Y 15: 10%At end of Y 20: 15%

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Riders ADB rider 4 Riders (1 In-built)

507,376

481,097

676,791

Fund Value @ 6% Fund Value @ 10%

SBIL Reliance

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