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RELIANCE SIP + INSURE: TOOL TO ACCUMULATE WEALTH OVER A LONG TERM.


I THINK A  POTENTIAL LONG TERM INVESTOR SHOULD NOT BE UNAWARE OF RELIANCE SIP + INSURE SCHEME.

IT ALLOWS INVESTOR TO CREAT LONG TERM INVESTMENT THROUGH SYSTEMATIC INVESTMENT AS WELL GET INSURED AT NO COST.

IT IS A GREAT , COST EFFECTIVE SUBSTITUTE FOR UNIT LINKED INSURANCE PLANS. HERE ARE SOME FREQUENTLY ASKED QUESTIONS

BY INVESTORS:

 

1. IS RELIANCE SIP-INSURE IS AN ULIP?

NO. IT IS NOT ULIP.IT IS OFFERED BY RELIANCE MUTUAL FUND,,NOT OFFERED BY LIFE INSURANCE.

 

2. WHAT IS ELIGIBILITY FOR THIS SCHEME:

AGE SHOULD BE IN BETWEEN 20 TO 45 YRS. INVESTOR GET INSURED UPTO AGE OF 55.

 

3. WHAT IS MINIMUM AMOUNT OF INVESTMENT?

MINIMUM SIP OF RS.1000/- PER MONTH IN ANY OF THE EQUITY SCHEME OF RELIANCE MUTUAL FUND.

4.HOW DOES SIP + INSURE WORKS?

THIS SCHEME OFFERS LIFE INSURANCE WITHOUT ANY EXTRA COST TO THE SIP INVESTORS UPTO AGE OF 55. .

INSURANCE COVER AS DESCRIBED BELOW WILL BE AVAILABLE FOR EACH SIP INVESTOR.

 

5.WHAT AMOUNT OF INSURANCE WILL INVESTOR GET?

THERE ARE 2 POSSIBILITIES:

A)IN THE EVENT OF DEATH OF UNITHOLDER IN FIRST 2 YEARS: IN THIS CASE AMOUNT PAYABLE IS EQUIVALANT TO

SUM OF UNPAID SIP INSTALLMENT MAX UPTO RS. 10 LAKH.

SUPPOSE MR “A” CHOOSE A TERM OF 15 YRS WITH PER MONTH INSTALLMENT OF RS. 5000/-. UNFORTUNATELY HE DIED

AFTER 1 YR OF COMMENCEMENT OF COVER.  SO TOTAL NO OF UNPAID INSTALLMENTS ARE = 14 X 12 = 168 MONTHS .

AMOUNT PAYABLE TO NOMINEE = 168 X 5000

                          = 8,40,000. THIS AMOUNT ALONG WITH FUND VALUE WILL BE PAID TO NOMINEE BY AMC.

B)) IN THE EVENT OF DEATH OF UNITHOLDER AFTER COMPLETION OF 2 YRS:

AMOUNT OF INSURANCE = 2 x COMMITED PERIOD OF SIP IN MONTHS x SIP AMOUNT…..(MAXIMUM UPTO RS. 10 LAKH.)

6) WILL NOMINEE RECEIVE THIS CLAIM AMOUNT IN HAND?
 EXCEPT RELIANCE TAX SAVER FUND,,IT IS COMPULSORY TO INVEST THIS AMOUNT IN THE SAME SCHEME WHICH WILL

BE NOW UNDER NOMINEES NAME.IN CASE OF RELIANCE TAX SAVER AMOUNT WILL BE PAID TO NOMINEE IF 1 YR IS COMPLETED.

 

 7) WHAT ARE LOADS OF THIS SCHEME?

AS PER SEBI GUIDELINES,NO ENTRY LOAD WILL BE CHARGED IN THIS SCHEME.

AS THIS IS A LONG TERM BASED PRODUCT AMC AMC  HAVE KEPT A EXIT LOAD OF 2% FOR EARLY EXIT.

8) WHO PAYS COST OF INSURANCE?

IT IS FREE FOR INVESTORS. INVESTORS IN THIS SCHEME ARE INSURED UNDER GROUP INSURANCE SCHEME OF

RELIANCE LIFE INSURANCE. COST OF INSURANCE WILL BE BORNE BY AMC.

 

9)HOW IT IS DIFFERENT FROM NORMAL SIP?

THIS SCHEME MEANS A EXTENDED FACILITY OF LIFE INSURANCE TO SIP INVESTORS.

MIN. SIP INSTALLMENT IS 1000 PER MONTH WHILE FOR NORMAL SIP IT IS RS. 100/- PER MONTH.

2% EXIT LOAD IS PAYBLE FOR EARLY EXIT.

10) CURRENTLY I AM INVESTING IN RELIANCE MUTUAL FUND THROUGH SIP.CAN I AVAIL THIS FACILITY?

YOU HAVE TO CLOSE EARLIER SIP.YOU CAN KEEP  INVESTED AMOUNT  AS IT IS IN THE RESPECTED SCHEME.

JUST OPEN NEW FRESH SIP IN THIS SCHEME.

11) WHICH SCHEMES ARE ELIGIBLE FOR SIP + INSURANCE?

ALL EQUITY SCHEMES OF RELIANCE MUTUAL FUND ARE ELIGIBLE FOR IT. 

12) WHEN COVER UNDER SCHEME WILL BE COMMENCED?

COVER WILL BE COMMENCED FROM 90 DAYS OF FIRST SIP INSTALLMENT.

HOWEVER FOR ACCIDENTAL DEATH THIS PERIOD WILL NOT BE APPLICABLE.

13) WHAT IF I STOP SIP IN BETWEEN?

ONLY INSURANCE COVER WILL BE CEASED

14) CAN I TAKE PARTIAL WITHDRAWAL?

YES,,BUT WITH EFFECTIVE EXIT LOAD.INSURANCE COVER WILL BE DECREASED BY THE SAME AMOUNT.

15) WHAT ARE THE OTHER BENEFITS OF SIP?

MOST IMP BENEFIT IS VALUE AVERAGING, WE ARE INVESTING EACH MONTH UNDER DIFFERENT MARKET CONDITIONS.

ALL THE GAIN RECEIVABLE AT MATURITY IS COMPLETELY TAX FREE FOR INVESTORS AS IT WILL BE LONG TERM CAPITAL GAIN.

EXPOSURE TO EQUITY MARKET WHICH IS NEEDED TO BEAT INFLATION.

80C TAX BENEFIT FOR RELIANCE TAX SAVER (ELSS ) AS PER CURRENT TAX LAW.

SO TO CONCLUDE..”FRIEND IN NEED IS A FRIEND INDEED”….SO OPT FOR THIS SCHEME AS TODAY IT IS AVAILABLE TO YOU…

WHO KNOWS TOMORROW WILL AVAILABLE OR NOT???

 

                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 


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