Reliance Nippon Life Fixed Savings Plan is suitable for people who are looking to secure their future with fixed returns, wish to have a strong financial portfolio, prefers to protect their loved ones, and wants to enjoy tax benefits. This is a non-linked, non-participating, non-variable, endowment insurance plan that helps the insured person to stay financially safe in case of any unforeseen expenses. Apart from guaranteed benefits like a lump sum amount at maturity and life cover for the insured’s family, this plan also accrues fixed additions every year.
To be eligible to purchase the Reliance Nippon Life Fixed Savings Plan, individuals will have to meet the below mentioned eligibility criteria:
|Plan Type||Non-linked, non-participating, non-variable, endowment insurance plan|
|Minimum Entry Age||8 years|
|Maximum Entry Age||60 years|
|Minimum Age at Maturity||20 years|
|Maximum Age at Maturity||80 years|
|Policy Term||12, 15, and 20 years|
Sum Assured and Premium Range – What You Get and What It Costs
While purchasing the Reliance Nippon Life Fixed Savings Plan, the policyholder will be given an option to select the sum assured amount. For more information on the sum assured and the premium range under the Reliance Nippon Life Fixed Savings Plan, read on.
|Sum Assured||At maturity, the policyholder will get the guaranteed sum assured which will be equal to the annualised premiums multiplied by the premium payment term plus fixed maturity additions, if any.|
|Premium Payment Options||Limited pay|
|Minimum Annualised Premium||Rs.25,000|
|Maximum Annualised Premium||No limit|
|Premium Payment Term||5, 7, and 10 years|
|Premium Payment Modes||Yearly, Half-yearly, Quarterly and Monthly|
Following are the benefits offered by the Reliance Nippon Life Fixed Savings Plan:
|Fixed Regular Additions||If the insured person pays all due premiums in full, they are eligible to receive fixed regular additions which is a percentage of the annualised premiums. Fixed regular additions will be accrued at the start of each policy year. It will be accrued in the following manner:
|Maturity Benefit||The Reliance Nippon Life Fixed Savings Plan also offers maturity benefit. If the insured person survives till the maturity of the policy, he/she is eligible to receive the maturity benefit. The guaranteed sum assured at maturity is equal to the annualised premium multiplied by the premium payment term plus the fixed maturity addition, if any, plus accrued fixed regular additions if not paid earlier and guaranteed sum assured on maturity.|
|Guaranteed Death Benefit||In the event of death of the policyholder, guaranteed death benefit is given. This benefit is payable only when the insured person dies during the policy term and provided the policy is in active status. The nominee will receive the sum assured amount on death and 105% of all the premiums paid, excluding the underwriting extra premiums, as on the date of the death. Please note that the death benefit will be chosen by the insured person while purchasing the policy and it cannot be changed during the policy term.|
|Guaranteed Surrender Value||Policyholders will have an option to surrender the policy. For premium payment term of 5 and 7 years, the policy will acquire the surrender value only if the first 2 policy years have been paid in full. For premium payment term of 10 years, the surrender value is payable if the premium for first 3 years have been paid in full. The guaranteed surrender value is equal to the total premiums paid excluding the premium paid towards service tax, underwriting, and rider minus accrued fixed regular additions already paid multiplied by GSV premium factor plus cash value of the accrued fixed regular additions.|
|Special Surrender Value||Based on the expected present value of the guaranteed sum assured on maturity and expected present value of accrued fixed regular additions applicable at the time of surrender, the special surrender value will be calculated. Reliance Nippon will provide a special surrender factors, as approved by the IRDAI.|
|Paid-up Benefit||If the policy has already acquired the surrender value and and no future payments are paid, then the policy will be marked as Paid-up policy. The benefits available to a paid-up policy is as follows:
Riders/Add-On Plans – Additional Coverage Under the Reliance Nippon Life Fixed Savings Plan
Under the Reliance Nippon Life Fixed Savings Plan, policyholders are allowed to customise their protective cover by attaching riders to their policy by paying a small amount extra. The add-ons that can be attached to the Reliance Nippon Life Fixed Savings Plan are:
Please note that these riders can be added during the inception of the policy or on any policy anniversary during the premium payment term. Also, the rider sum assured cannot be more than the sum assured on death under the base plan. The total of rider premiums should not exceed 30% of premiums paid under the base plan.
Other Key Features
Following are some of the other key features of the Reliance Nippon Life Fixed Savings Plan:
|Grace Period||The Reliance Nippon Life Fixed Savings Plan has a grace period of 15 days for monthly mode and 30 days for other modes of premium payment.|
|Lapse||For 5 and 7 years premium payment terms, if the premiums for the first 2 policy years are not paid in full, the policy will lapse by the end of the grace period and no benefits will be payable. For premium payment term of 10 years, if the premiums for the first 2 policy years are not paid in full, the policy will lapse by the end of the grace period and no benefits are payable.|
|Revival / Renewal||A lapsed policy can be reinstated for full benefits by reviving it within two years from the date of the first unpaid premium. The insured has to pay the total outstanding premiums with interest to reinstate the policy. Currently, the interest rate is 9%.|
|Free Look Period||The Reliance Nippon Life Fixed Savings Plan has a free look period of 15 days within which the policyholder can cancel the policy and and get the premiums paid refunded. For policies purchased through distance marketing, the free look period is 30 days from the receipt of the policy document.|
|Policy Loan Facility||Under the Reliance Nippon Life Fixed Savings Plan, policyholders are not eligible to avail a loan.|
|Assignment||Assignments are allowed under the Reliance Nippon Life Fixed Savings Plan. It should comply with provisions of Section 38 of the Insurance Act, 1938.|
|Nomination||Nominations are allowed under the Reliance Nippon Life Fixed Savings Plan. It should comply with the provisions of Section 39 of the Insurance Act, 1938.|
Exclusions – What is Excluded from the Reliance Nippon Life Fixed Savings Plan
There is one exclusion under the Reliance Nippon Life Fixed Savings Plan which is the suicide exclusion.
Suicide exclusion: If the life insured commits suicide within one year from the date of issue of the insurance policy, the nominee will be eligible to receive 80% of the premiums paid excluding service tax, provided the policy is active. If the insured commits suicide within one year from the date of revival of the policy, higher of 80% of premium paid, excluding service tax till the date of death or the surrender value as available on the date of death will be payable.
Tax Benefits – How You Can Save with the Reliance Nippon Life Fixed Savings Plan
Policyholders who have purchased the Reliance Nippon Life Fixed Savings Plan will enjoy tax benefits under Section 10(10D) and Section 80C of the Income Tax Act, 1961.
It is very important that we buy insurance plan from a reputable insurance provider. Reliance Nippon Life Insurance Company is one of the leading private sector insurance companies in India. According to the Brand Equity‘s Most Trusted Brands Survey 2015, Reliance Nippon Life Insurance Company is one among the top 3 most trusted life insurance service brands in the country. The company has set its feet in five distinct sectors, namely protection, insurance for children, retirement plans, saving and investment, and Health. Most of their plans are offered to both individuals as well as groups. If you are looking to set a strong financial portfolio, Reliance Nippon Life Fixed Savings Plan will be the perfect fit.