The Reliance Nippon Life Classic Plan II is a unit-linked, non-participating endowment life insurance plan from Reliance Nippon Life Insurance Limited that offers policyholders the choice to make long term investments and diversify these to ensure maximum returns. The policy offers policyholders a choice of 5 funds with varying degrees of risk to suit every investment appetite as well as life coverage for the policyholder. The policy also allows for enhancement of the basic life coverage through riders as well as an easy liquidity option allowing for partial withdrawals from the policy in case of an emergency.
Premium amounts under the policy start at a minimum of Rs.20,00 for the annual mode and Rs.75,000 in case of single premium mode for a policy term ranging from 15-30 years.
Policyholders also receive tax benefits from investing in the policy, subject to prevailing tax laws.
The Reliance Nippon Life Classic Plan II is an ideal plan for those looking to build their wealth through investing in mutual funds while also receiving life coverage. The plan provides policyholders with guaranteed returns through the investments made at different points of time and also allows for the partial withdrawal of funds in the event of an emergency.
Policyholders looking to invest in the plan are required to meet the following eligibility criteria:
|Minimum entry age||7 years|
|Maximum entry age||60 years (as on last birthday)|
|Minimum maturity age||22 years|
|Maximum maturity age||75 years|
|Policy term||15-30 years|
|Premium paying term||One-time payment for single mode Equal to the policy term for regular mode|
Sum Assured and Premium Range- What You Get and What It Costs
The sum assured amount under the Reliance Nippon Life Classic Plan II would depend on the premium amount. The plan does not specify a minimum sum assured amount.
Policyholders who choose to invest in the Reliance Nippon Life Classic Plan II have a choice of 2 premium paying terms. Policyholders can either opt for a single premium payable at once or they can choose a regular premium and pay their premium amount monthly, half-yearly or yearly. The minimum amount payable as premium under the two premium payment terms is illustrated in the table below:
|Premium payment term||Minimum||Maximum|
|Regular (annual)||Rs.20,000||No limit|
|Regular (semi-annual)||Rs.30,000||No limit|
|Regular (monthly)||Rs.30,000||No limit|
The Reliance Nippon Life Classic Plan II works in the following way:
|Premium paying term||Entry age (less than 45 years)||Entry age (greater than 45 years)|
|Regular pay||Higher of:
|Single pay||125% of single premium||110% of single premium|
|Base sum assured||Entry age less than 45 years||Entry age greater than 45 years|
|125% of single premium||110% of single premium|
The coverage under the plan is mentioned in the table below:
|Death benefit||In the event of the policyholder’s death during the policy term and when the policy is in force, the following benefit will be payable:
|Maturity benefit||If the policyholder survives till the end of the policy term and if the policy is still in force and all premiums due were paid, the total fund value (the sum of the base fund value and top-up fund value) will be paid as maturity benefit.|
|Sum assured on accidental death||In the event of accidental death before 65 years, nominees stand to receive an additional amount that is equal to the base sum assured (up to a maximum of Rs.10 lakh).|
|Top-ups||If the premiums under the base policy are paid, top-us would be accepted at a minimum amount of Rs.5,000 per top-up. The maximum amount as top-up cannot exceed 100% of the value of the base premium.|
|Systematic Transfer Plan (STP)||STP permits the investment of a percentage of the premium or top-up into the equity market (through investment in the equity fund option). This amount would be switched periodically (up to 1/4th of the amount would be switched periodically). STP can be opted out of at a policy anniversary.|
Riders/ Add-on Coverage
The policy does not offer any riders/add-on coverage at present.
The Reliance Nippon Life Classic Plan II provides policyholders with a number of features and benefits under the policy. However, there are some exclusions in which case the policy benefits will not be payable. The exclusions under the policy are mentioned below:
Other Key Features- Freelook Period, Surrender Value, Grace Period etc.
The additional features provided under the Reliance Nippon Life Classic Plan II are listed below:
|Free look period||If the policyholder is dissatisfied with any of the provisions of the policy after receiving the physical policy document, he/she may return the document along with the reason for the same within the free look period at no cost. The free look period is 15 days from the date of receipt of the policy document or 30 days in the case of distance marketing policies.|
|Grace period||The policy provides policyholders with a grace period of 30 days from the due date of payment to pay any outstanding premium amount. For the monthly mode, the grace period is 15 days.|
|Partial withdrawal||The policy allows for partial withdrawals after 5 policy years from the date of payment or the policyholder attaining 18 years of age, whichever is later. Partial withdrawals of a minimum of Rs.5,000 can be made at a given time, but withdrawals cannot exceed 20% of the total fund value. Additionally, the minimum fund balance cannot be lower than 125% of the annualised premium amount for regular premium and 50% for single premium policies.|
|Fund switching||The policy allows for switching between funds, with a maximum of 52 free fund switches during one policy year. Unused free switches cannot be carried forward to the next year.|
|Surrender||The policy acquires surrender value on payment of the base premium and can be surrendered at any time during the policy tenure. Surrender value payable would be the fund value minus discontinuance charges, if applicable.|
|Premium discontinuance (before 5th policy year)||If the premium has not been paid during the grace period, one of the following options are to be selected by the policyholder:
|Premium discontinuance (after 5th policy year)||After the 5th policy year, if the premium has not been paid during the grace period, the policyholder is required to choose one of the below options:
|Policy revival||The policy can be revived within 2 years of the date of the last unpaid premium. At revival, the full policy benefits will be applicable.|
|Unit allocation||The company allocate units in the funds as per the specification of the policyholder.|
|Discontinued Policy Fund||During Discontinued Policy Fund period, the following will apply:
Tax Benefits- How You Can Save With Reliance Nippon Life Classic Plan II
The Reliance Nippon Life Classic Plan II enables policyholders to save tax through investing in the policy in the following ways:
It is to be noted, however, that tax rules are subject to change and it is advisable to consult with the company or an individual conversant with the latest tax laws for the current tax provisions.
Other Benefits- How You Can Save With Reliance Nippon Life Classic Plan II
The Reliance Nippon Life Classic Plan II provides policyholders with a range of features and benefits as part of the policy. In addition, policyholders can benefit from the following:
Reliance Nippon Life Insurance Limited is a relatively new entrant to the life insurance sector but has steadily distinguished itself as one of the key insurance providers in the country. The company was set up in 2001 as AMP Sanmar Life Insurance Company and was taken over by the Reliance Group in 2005. A joint venture between Reliance Capital, the parent company and Nippon Life was entered into in 2011. The company provides a range of life insurance products from savings and health plans to investment and ULIPs to customers.
Reliance Nippon blends the expertise of the Reliance Group, one of the largest business conglomerates in India and Nippon Life, one of the leading Japanese insurers to provide comprehensive insurance solutions to customers.
With a claim settlement ratio of 95.01% as on March 2016, the company has one of the best claim settlement ratios in the country. With over 800 branch offices across the country, Reliance Nippon Life Insurance assures accessibility coupled with its stellar customer service to ensure policyholders and customers receive the best service and range of products.