The Money Multiplier Plan from Reliance Nippon Life is a non-linked, non-variable, non-participating endowment plan that has been designed to help customers save a lump sum amount through which they can purchase an asset, or take their family on a long vacation, as well as avail double protection in case of unforeseen emergencies. Through this plan, customers can rest assured that their nominees will be able to fulfil their objectives even in the absence of the policyholder.
Reliance Nippon Life’s Money Multiplier Plan offers three guaranteed maturity benefits, which include the sum assured, the guaranteed maturity addition, and the guaranteed maturity additions that are accrued at the end of every policy year. Customers who purchase this plan have the option to choose the policy term based on their own requirements, and the plan also offers tax benefits on the investment as well as the returns, making it a great savings instrument too.
In order to purchase Reliance Nippon Life’s Money Multiplier Plan, customers should adhere to certain age requirements and choose a policy term. Following are the eligibility criteria that must be met to purchase Reliance Nippon Life’s Money Multiplier Plan:
|Minimum Entry Age||18 years|
|Maximum Entry Age||55 years|
|Minimum Maturity Age||28 years|
|Maximum Maturity Age||75 years|
|Policy Term||10 years / 15 years / 20 years|
Sum Assured and Premium Range – What you get and what it costs
Customers who purchase Reliance Nippon Life’s Money Multiplier Plan will have to insure their lives for a minimum of Rs.60,000 and pick the premium payment they are willing to make on a regular basis. Since this is a Regular Pay policy, customers can choose their premium payment mode based on their convenience. Following are some of the important details regarding the sum assured and premium range associated with Reliance Nippon Life’s Money Multiplier Plan:
|Minimum Sum Assured||Rs.60,000|
|Maximum Sum Assured||No limit, subject to Reliance Nippon Life’s board approved underwriting policy|
|Premium Payment Term||Same as policy term – 10 years / 15 years / 20 years|
|Premium Payment Options||Regular Pay|
|Premium Payment Modes||Annual / Semi-annual / Quarterly / Monthly|
Following are the benefits offered by Reliance Nippon Life’s Money Multiplier Plan:
|Maturity Benefit||In case the life assured survives the tenure of the plan, he/she will be eligible for the maturity benefit which includes the sum assured, guaranteed loyalty additions, and guaranteed maturity additions. The sum assured will be a lump sum amount that is guaranteed when the policy matures. Guaranteed loyalty additions accumulate at the end of each policy year and are added to the sum assured as long as the policy remains active and all due premiums have been fully paid. The loyalty additions will be paid either on the demise of the life assured, maturity of the policy, or surrender of the policy, whichever is earliest. By the completion of the fifth policy year, the guaranteed loyalty additions will be 5% of the sum assured. By the tenth year, the addition will be 10% of the sum assured. By end of the 15th and 20th policy year, the addition will be 15% and 20% of the sum assured, respectively. Guaranteed maturity additions will be paid if all due premium payments have been made in full and the policy is active at the time of maturity. The guaranteed maturity addition will be a percentage of the sum assured and will depend upon the policy term. In case of a 10-year policy term, the guaranteed maturity addition will be 10% of the sum assured. For a 15-year term, the addition will be 15%, and for a 20-year term, the addition will be 20%.|
|Death Benefit||In case of the untimely death of the life assured when the policy term is in progress, the nominee will be eligible for the death benefit which include the higher of 2 x sum assured, or 10 x annualised premium, or 105% of premiums paid, along with guaranteed loyalty additions, if any. The policy shall terminate once the death benefit is paid.|
Other Key Features
Following are some of the other key features of Reliance Nippon Life’s Money Multiplier Plan:
|Frequency Loading||Customers who purchase Reliance Nippon Life’s Money Multiplier Plan have the choice to pay the premiums either on a monthly, quarterly, semi-annual, annual basis. The modal factors for premiums for the semi-annual and quarterly mode will be 1.02 and 1.04 respectively, and 1.00 for annual and monthly modes.|
|Grace Period||Customers who fail to pay their premiums on time will receive a grace period of 30 days in case of quarterly, semi-annual and annual premium payment modes. Customers who choose the monthly mode will receive a grace period of 15 days to ensure that due premiums have been paid.|
|Discontinuance of Premium||Reliance Nippon Life’s Money Multiplier Plan will either lapse or become paid-up in case the customer discontinues the payment of premiums.|
|Lapse||In case a customer does not pay the first annualised premium, the policy will lapse at the completion of the grace period and the coverage provided by the policy shall cease immediately. In such cases, the policyholder will not be eligible for any benefits if the policy is not revived within the specified revival period. In case the first annualised premium is not fully paid and annualised premiums are not fully paid prior to the completion of the grace period, the insurance cover shall cease at the completion of the grace period. In such a case, the policy will acquire a surrender value, and this value will be paid only at the end of three policy years or at the completion of the revival period, whichever is later.|
|Paid-Up||In case a customer makes premium payments for a minimum of the first three policy years and then discontinues the payment of further premiums, the policy shall acquire a paid-up status. The benefits for a paid-up policy under the base plan also change. In case of the death of the life assured, the paid-up death benefit will be two times the sum assured x (number of premiums paid / total number of premiums payable) + accrued guaranteed loyalty additions. The maturity benefit for a paid-up policy will be sum assured x (number of premiums paid / total number of premiums payable) + accrued guaranteed loyalty additions. After a policy acquires the paid-up status, further guaranteed maturity additions and guaranteed loyalty additions shall not be payable and the policy shall terminate after the payment of the paid-up value on maturity or death.|
|Revival||A paid-up or lapsed policy can be revived during the revival period by ensuring that due premiums have been paid along with the applicable interest rate. Once the policy has been revived, it will gain eligibility for future guaranteed maturity additions and guaranteed loyalty additions. All the due loyalty additions shall also be added to the plan, but revival is subject to satisfactory financial and medial underwriting of Reliance Nippon Life. The revival period for this policy is two years from the due date of the first unpaid premium.|
|Surrender||Customers who purchase Reliance Nippon Life’s Money Multiplier Plan will receive the surrender value when they surrender the policy. The surrender value will be the higher of the guaranteed surrender value or the special surrender value of the plan. The surrender value will be acquired by the policy only if the first annualised premium is fully paid. In case the first annualised premium is fully paid and the policy is surrendered prior to the completion of three policy years, the surrender value will be paid to the customer only at the end of the third policy year. The guaranteed surrender value will be the total premium paid x guaranteed surrender value factor. The special surrender value will be an amount equal to the surrender value factor x the paid-up value payable at maturity. Once the surrender value is paid, the policy will terminate and cannot be reinstated.|
|Loan||A loan can be taken against the policy and the maximum amount you can avail through it is 80% of the surrender value.|
|Free Look Period||Customers who are not satisfied with the terms and conditions of the policy can return the same within 15 days of receiving the policy. Customers who purchase Reliance Nippon Life’s Money Multiplier Plan through the distance marketing mode can return the same within 30 days.|
|Nomination||Nomination can be done in accordance with Section 39 of the Insurance Act, 1938.|
|Assignment||Assignment can be done in accordance with Section 38 of the Insurance Act, 1938.|
Exclusions – What is excluded from Reliance Nippon Life’s Money Multiplier Plan
Suicide – In case the life assured commits suicide within 12 month of the inception of the policy, whether sane or insane, the nominee shall be eligible for 80% of the premium paid. If the suicide is committed within 12 months from the date on which the policy was revived, the death benefit will be 80% of the premiums paid until the date of death or the date on which the policy was surrendered.
Tax Benefits – How you can save with Reliance Nippon Life’s Money Multiplier Plan
The premiums paid towards Reliance Nippon Life’s Money Multiplier Plan are eligible for tax deductions under the Income Tax Act. However, tax laws are subject to change from time to time, which means the benefits will also likely change. Consult a tax expert for a clear understanding of the tax benefits available.
The Money Multiplier Plan from Reliance Nippon Life is an ideal investment cum protection option as it not only helps in saving money for immediate requirements such as family holiday or the purchase of an asset, but also because it ensures that your family is financially secure in case of your unfortunate and untimely demise. The money from this plan can be used to save for retirement, pay for your child’s education or wedding, or even pay off your home loan. Moreover, Reliance Nippon Life Insurance Company has developed a reputation for being one of India’s best private sector life insurance companies with more than 800 branches across the country. It also employs more than one lakh advisors, making it relatively easy for customers to get all the help they need to find the insurance plan that will best suit their unique requirements.