We make investments to meet various financial objectives. All these financial objectives will be critical and it is important to ensure that the goals are met, even in the unfortunate event of the investor’s demise. Reliance SIP Insure precisely does this – it insures the financial goals.
Reliance SIP Insure facility adds the features of a life insurance cover to mutual fund investments. In case of the death of the investor, the insurance cover will provide for the remaining unpaid SIP instalments. All at no extra cost. Thereby, ensuring that critical financial goals are not compromised.
What is Reliance SIP Insure?
Do you want to plan the purchase of your dream house? Your marriage? Your child’s education or marriage? All these are ‘big ticket’ life goals, that is, they cost a lot. A convenient way to ensure that you fulfil these important life goals is by using the SIP (Systematic Investment Plan) facility. Reliance Mutual Fund offers you an additional feature that will help ensure that you fulfil these goals – the SIP Insure facility.
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, Investor’s long term financial planning and objective of investing through SIP could still be fulfilled 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
- Auto Debit from 16 banks
- ECS facility across – 87 locations
Designated Schemes in which Reliance SIP Insure will be offered
Please refer respective Scheme information document for product label.
Amount of Life Insurance Cover Available:
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 as per the following clause;
An amount equivalent to the aggregate balance of unpaid SIP installments, subject to a maximum of ` 10 lakhs per investor across all schemes / plans and folios
The amount of life insurance cover will be paid/credited to the Nominee's bank account directly by the insurance company, in the event of the death of the Unit Holder (subject to the terms and conditions of the insurance, read along with the Certificate of Insurance, of the Group Term Insurance policy).
Note: 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.
- 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.
You can avail of the Reliance SIP Insure facility if you fulfil the following conditions:
- Minimum Investment per installment: ` 1000 per month & in multiples of ` 1 thereafter. (Except for Reliance Tax Saver (ELSS) Fund where minimum installment is ` 1000 p.m. and in multiples of ` 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 )
Reliance SIP Insure – How does this work?
- An investor does a monthly SIP of ` 10,000 for 5 years in Reliance Growth Fund
- If he dies after a period of 3 years, then his Sum Assured= Unpaid SIP instalments= 2 years (5 years minus 3 years) X 12 months X 10,000 =
This amount will be paid/credited to the Nominee's bank account directly by the insurance company, in the event of the death of the Unit Holder (subject to the terms and conditions of the insurance, read along with the Certificate of Insurance, of the Group Term Insurance policy).
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.
- There will be an Exit Load of 2%, if the accumulated units acquired or allotted under Reliance SIP Insure are redeemed or switched out before the maturity of committed SIP Insure tenure or before completion of 55yrs of age whichever is earlier as opted in the 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, Reliance Vision Fund, Reliance Equity Opportunities Fund, Reliance Focused Large Cap Fund, Reliance Top 200 Fund, Reliance Regular Savings Fund – Equity option, Reliance Regular Savings Fund – Balanced option, Reliance Banking Fund, Reliance Pharma Fund, Reliance Media & Entertainment Fund, Reliance Diversified Power Sector Fund, Reliance Quant Plus Fund and Reliance Long Term Equity Fund
- -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
While nil load in Reliance Tax Saver (ELSS) Fund
- 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 exit load of 2% on the repurchase units.
Free life insurance cover provided as a part of an add on feature called as ‘Reliance SIP Insure’ is arranged and funded by Reliance Capital Asset Management Limited through “Reliance Group Term Assurance scheme/plan” (UIN 121N006V02) of Reliance Life Insurance Company Limited (Reg. 121). The sum assured will be limited to the sum of the outstanding SIP installments from the date of death to be payable in lumpsum, subject to a maximum of INR 10 Lakhs per investor across all schemes / plans and folios. As per IRDA Regulations, please note the investor would become a member of the policy and the policy benefits, if any, shall be paid by Reliance Life Insurance Company Limited directly to the investor's nominee.
SIP is also available without insurance cover.
Reliance SIP Insure is a special feature available under selected schemes of Reliance Mutual Fund and is subject to such limits, operating guidelines, terms and conditions. Investors are requested to refer to the Scheme Information Document (SID), Statement of Additional Information (SAI), Key Information Memorandum (KIM) cum Application Form for further details
The information herein above is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision.
None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.