Reliance SIP Insure facility is an add on feature of life insurance cover under Group Term Insurance
to individual investors opting for SIP in the designated schemes.
It helps to encourage individual investors to save & invest regularly through Systematic Investment Plan (SIP) and help achieve their financial objective without any hindrance
What is the Facility?
- Reliance SIP Insure provides free life insurance cover to investors at no extra cost. In the unfortunate event of the demise of an investor during the tenure of the SIP, the insurance cover will take care of the unpaid installments.
Thus, the nominee would be able to continue in the scheme without having to make any further contribution. Investor’s long term financial planning and objective of investing through SIP could still be fulfilled as per the targeted time horizon, even if he/she dies prematurely. (Nominee would mean designated nominee on the application form, in case of single holding & second or joint holder in case of Joint Holding).
Reliance SIP Insure- Benefits to the investor
**The benefit of Long Term Equity Investment
- Equities provide relatively better returns among all asset classes over a longer period of time
**The benefit of Systematic Investment Plan:
- Inculcates Savings Habit
- Rupee Cost Averaging & Eliminates the need to time the market
**Free Life Insurance Cover
- Helps to complete the planned investments
- Maturity Proceeds at NAV based prices
- Wide choice of eligible schemes
Designated Schemes in which Reliance SIP Insure will be offered
- Auto Debit from 14 banks
- ECS facility across – 87 locations
Amount of Life Insurance Cover Available:
- Reliance Growth Fund - Retail Plan
- Reliance Vision Fund - Retail Plan
- Reliance Equity Opportunities Fund - Retail Plan
- Reliance Equity Fund - Retail Plan
- Reliance Equity Advantage Fund- Retail Plan
- Reliance Regular Savings Fund – Equity option
- Reliance Regular Savings Fund – Balanced option
- Reliance Banking Fund – Retail Plan
- Reliance Pharma Fund
- Reliance Media & Entertainment Fund
- Reliance Diversified Power Sector Fund – Retail Plan
- Reliance Natural Resources Fund – Retail Plan
- Reliance Quant Plus Fund – Retail Plan
- Reliance Tax Saver (ELSS) Fund
- Reliance Long Term Equity Fund
- Reliance Infrastructure Fund- Retail Plan
- Reliance Small Cap Fund
Under Reliance SIP Insure, the investors are provided life insurance cover without any extra cost
under a Group Term Insurance scheme.
The Life Insurance Cover under ‘SIP Insure’ facility will be enhanced as per the following clauses;
An amount equivalent to the aggregate balance of unpaid SIP installments, subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios will be invested in the Nominee’s account.
The amount of life insurance cover shall be invested in the Nominee’s account in the same scheme** under which the deceased investor has enrolled for SIP Insure at the applicable price based on the closing NAV on the date on which the cheque for insurance claim settlement is received by the AMC from the insurance company, subject to completion of requisite procedure for transmission of units in favour of the nominee.
** Not applicable for Reliance Tax Saver (ELSS) Fund. Investors are requested to note that there will be a lock - in period of 3 years for each SIP Insure installment under ‘Reliance Tax Saver (ELSS) Fund’ as per the Government Notification of 2005 and in the event of demise of the unitholder, the nominee would be able to withdraw the investment amount only after the completion of one year from the date of allotment of the units or anytime thereafter without any exit load. The insurance amount as per the above sum assured clause under revised features subject to a maximum of Rs. 10 lakhs in a lumpsum in cash will be paid to the nominee in case of death of the unitholder (unlike other schemes, wherein the insurance amount will be compulsorily invested in the respective scheme and the nominee is allotted the units.)
- All individual investors enrolling for investments via SIP & opting for ‘Reliance SIP Insure’
- Only individual investors whose completed age is between 18 years & 45 years (inclusive of both) at the time of investment.
- In case of multiple holders in the any scheme, only the first unit holder will be eligible for the insurance cover.
Reliance SIP Insure – How does this work?
- Minimum Investment per installment: Rs.1000 per month & in multiples of Re 1 thereafter. (Except for Reliance Tax Saver (ELSS) Fund where minimum installment is Rs. 1000 p.m. and in multiples of Rs 500 thereafter). There is no upper limit.
- Minimum Period of Contribution: 3 years and in multiples of 1 month thereafter.
- Maximum Period of Contribution: No upper limit for SIP tenure. The investor can opt for Perpetual SIP also. However the insurance cover ceases when the investor attains 55 years of age or upon the completion of the SIP insure tenure whichever is earlier.
- Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated Cheques shall not be accepted )
- An investor does a monthly SIP of Rs.10,000 for 5 years in Reliance Growth Fund
- If he dies after a period of 3 yrs, then his Sum Assured= Unpaid SIP installments= 2 yrs ( 5 yrs-3 yrs) X 12 months X 10, 000 = Rs 2,40,000
This amount will be paid by Life Insurance Company to SIP investor”s nominee account with Reliance Mutual Fund and will be invested in Reliance Growth Fund (in the same scheme in which the deceased has earlier invested)
Commencement of Insurance Cover:
The Insurance cover shall commence after “waiting period” of 90 days from the commencement of SIP installments. However, the waiting period will not be applicable in respect of accidental deaths.
Cessation of Insurance Cover:
The insurance cover shall cease upon occurrence of any of the following:
- At the end of mandated Reliance SIP Insure tenure. i.e., upon completion of payment of all the monthly installments as registered or till attaining 55 years of age whichever is earlier.
- Discontinuation of SIP installments midway by the investor i.e., before completing the opted SIP tenure /installments or till attaining 55 years of age, whichever is earlier
- Redemption / switch-out of units purchased under Reliance SIP Insure before completion of the mandated SIP tenure / installments or till attaining 55 years of age, whichever is earlier
- In case of default in payment of two consecutive monthly SIP installments or four separate occasions of such defaults during the tenure of the SIP duration chosen or till attaining 55 years of age, whichever is earlier
Note -There is no provision for revival of insurance cover, once the insurance cover ceases as stated above
Exclusions for Insurance cover
No insurance cover shall be admissible in respect of death of the SIP-Insure unitholder (the insured person) on account of -
- Death due to suicide
- Death within 90 days from the commencement of SIP installments except for death due to accident
- Death due to pre-existing illness, disease(s) or accident which has occurred prior to the start of cover.
While nil load in Reliance Tax Saver (ELSS) Fund
- There will an Exit Load of 2%, if the accumulated units acquired or allotted under Reliance SIP Insure are redeemed or switched out or the SIP Insure is discontinued or it is defaulted before the maturity of committed SIP Insure tenure or before completion of 55yrs of age whichever is earlier as opted in the respective scheme either by the SIP-Insure unitholder or by the nominee, as the case may be.
- Upon completion of 55 years of age, if there are still balance unpaid SIP installments, those will be treated as Normal SIP with the relevant exit load as may be existing from time to time. The following exit load structure is applicable for all kinds of redemptions in the following schemes as on date viz : Reliance Growth Fund - Retail Plan, Reliance Vision Fund - Retail Plan, Reliance Equity Opportunities Fund - Retail Plan, Reliance Equity Fund - Retail Plan, Reliance Equity Advantage Fund- Retail Plan, Reliance Regular Savings Fund – Equity option, Reliance Regular Savings Fund – Balanced option, Reliance Banking Fund – Retail Plan, Reliance Pharma Fund, Reliance Media & Entertainment Fund, Reliance Diversified Power Sector Fund – Retail Plan, Reliance Natural Resources Fund – Retail Plan, Reliance Quant Plus Fund – Retail Plan, Reliance Long Term Equity Fund and Reliance Infrastructure Fund – Retail Plan.
-1% if redeemed/switched out on or before completion of 1 year from the date of allotment of units. Nil if redeemed/switched after completion of 1 year from the date of allotment of units.
While Reliance Small Cap Fund has the following exit load
- 2% If redeemed or switched out on or before completion of 12 months from the date of allotment of units
- 1% If redeemed or switched out after 12 months but on or before completion of 24 months from the date of allotment of units
- Nil If redeemed or switched out after the completion of 24 months from the date of allotment of units
- There will be Nil exit load (For the units acquired under SIP Insure before the age of 55 years), if the SIP Insure is discontinued before the maturity of committed SIP Insure tenure or before completion of 55 yrs of age whichever is earlier and redeemed after completion of 55 yrs of age either by the SIP-Insure unitholder or by the nominee, as the case may be.
- In the event of the death of the investor and the redemption by the nominee, before completion of SIP Insure Tenure or before attaining 55 yrs of age, there shall be an an exit load of 2% on the repurchase units.
SIP is also available without insurance cover. Disclaimer and Risk Factors : Reliance SIP Insure is a special facility available to the investors in selective schemes of Reliance Mutual Fund subject to such limits, operating guidelines, terms and conditions as may be prescribed by Reliance Capital Asset Management Limited (RCAM)/Reliance Mutual Fund from time to time. Free life insurance cover provided as a part of an add on feature called as ‘Reliance SIP Insure‘ (available in select schemes of Reliance Mutual Fund) is arranged and funded by Reliance Capital Asset Management Limited through “Reliance Group Term Assurance scheme/plan” (UIN 121N006V01) of Reliance Life Insurance Company Limited (Reg. 121). The sum assured will be an amount equivalent to the aggregate balance of unpaid SIP installments, subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios. For further details on SIP Insure facility including the load structure, terms of insurance etc. refer to the Notice Cum Addendum No 12 issued in the year 2011 and SID's of the respective schemes offering the said facility.
Reliance Mutual Fund has been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 Sponsor: Reliance Capital Limited. Trustee: Reliance Capital Trustee Company Limited. Investment Manager: Reliance Capital Asset Management Limited (Registered Office of Trustee & Investment Manager: 'H' Block,1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai - 400 710 Maharashtra. The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus.
Risk Factors: Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets.The name of the Scheme and does not in any manner indicate either the quality of the Scheme; its future prospects or returns.
Past performance of the Sponsor/AMC/Mutual Fund is not indicative of the future performance of the Scheme.The NAV of the Scheme may be affected, interalia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. For details of scheme features and for Scheme specific risk factors, please refer to the Scheme Information Document which is available at all the DISC / Distributors / www.reliancemutual.com. Please read the Scheme Information Document and Statement of Additional Information carefully before investing.
For more details about the scheme features and risk factors refer respective Scheme Information Documents of the Scheme(s)