Reliance Guaranteed Return Plan Series I

After LIC’s “Jeevan Astha” and Aegon Religare Guranteed Return plan It is turn of Reliance life to come out with guaranteed return plan.
After their ULIP which give guaranteed addition of 2.5% after 4th year, Reliance life has launched two new guaranteed returns come ULIP plans; 'Reliance Guaranteed Return Plan Series I', with insurance and with pension option.
Main difference between Reliance life and above two plans is this product not only provides GR but has a ULIP feature which gives investor chance to earn even more then GR.
Apart from that there is a
* Partial withdrawal facility after 3rd year.
* Insurance cover between 1.5 times to 5 times the single premium.
* Guaranteed return is 6.85% compounded annually for the single premium paid (minus allocation charge, mortality charge, fund management charge, service tax, and policy admin. charge).
* Minimum single premium is Rs. 35,000.
* Min/Max age is 12 and 50 years.
* Policy term is 5 year only.
Allocation charge is very reasonable and is 4% to 3% depending on single premium paid.
On an all it seems to be nice alternative to LIC’s Jeevan Astha as it provides chance to earn even more then what it promises.
However 6.85% interest rate is a bit low compared to what LIC and AR is giving (Both between 7 – 8%).
Only AR’s GR plan pays interest on full SP as in case of Jeevan astha some times SP is higher then Maturity Sum Assured (eg. MSA is Rs, 30,000 but SP is around 31,000 for a 5 year term of 25 year old male).
In Reliance’s case it pays interest only after deducting various charges.
Keeping visiting this place for a more detail review and comparison of Reliance Guaranteed Return Plan Series I ULIP plans.