Reliance Nippon Life Pension Builder is a non-linked, participating, deferred pension plan that helps the policyholders in saving regularly towards building a reserve for their retirement. With an option to choose from various pension plans, this scheme also offers customization abilities. The policyholder decides the start of the pension based on his/her requirements and earns guaranteed income for the whole of life. The policy term can be chosen based on when the policyholder wants to retire. The premium can be paid for five, seven, ten years or throughout the policy term. The plan also allows the policyholders to boost their retirement savings through any regular simple reversionary bonus or terminal bonus.
The plan functions as a savings avenue for the policyholder by building a nest-egg for the pensions. In the event of policyholder's demise, their family is protected with a lump sum amount or guaranteed income.
Individuals who wish to build a reserve for their retirement through regular savings should consider this plan for various reasons and benefits. With this policy, a policyholder can plan on retiring early with the nest-egg to engage in other activities that interest him/her. The premiums for this plan can be paid in yearly, half-yearly, quarterly, and monthly intervals based on the premium payment term. In order to buy the Reliance Nippon Life Pension Builder Policy, the policyholder is required to meet certain eligibility criteria listed in the following table:
|Minimum age at entry||25 years|
|Maximum age at entry||65 years|
|Maturity age||Minimum of 45 years and maximum of 75 years|
|Policy term||Regular pay - 10 to 40 years Limited pay - 5 to 20 years|
|Sum assured||Minimum of Rs.2,00,000 and no limits on the maximum|
Sum Assured and Premium Range- What You Get and What It Costs
Sum Assured –Under the Reliance Nippon Life Pension Builder Plan, the policyholder is entitled to a guaranteed amount of money referred to as the sum assured. The sum assured is guaranteed amount that is payable at the end of the policy term or in the event of the policyholder’s death. The plan offers a minimum of Rs.2,00,000 as the sum assured amount. Moreover, the maximum sum assured amount has no limits and depends on the contribution decided by the policyholder at the inception of the policy. The policyholder is also entitled to a host of benefits apart from the sum assured amount.
Premium –The premium or contribution is the amount that the policyholder decides to pay at different intervals as agreed at the inception of the policy. The plan allows the premiums to be paid in a wide range of payment methods including NEFT, cash at a branch, cheques, etc. If the policyholder fails to make a premium payment within the due time, a grace period of 30 days is offered for payments made in Yearly, Half-yearly or Quarterly mode. For premiums paid in monthly basis, a grace period of 15 days is applicable.
The non-linked, participating, deferred pension plan works as a savings plan for the retirement. In addition to the sum assured and other benefits, the plan provides financial protection for the policyholder’s family in case of unfortunate death. The individuals who are planning to save money for an early retirement, this policy can turn out to be a suitable plan for them. The nest-egg built through regular savings can help the policyholder in pursuing hobbies, going for holidays, etc. The Reliance Nippon Life Pension Builder Plan offers the following benefits:
|Death Benefits||In the unfortunate event of the policyholder’s death during the policy term, the nominee will be entitled to105% of all the premiums paid (excluding Service Tax and cess, if any) along with the vested simple reversionary bonus and terminal bonus, if any. The nominee can choose to withdraw the entire death benefit proceed or utilize the death benefit fully or partly for buying an Immediate Annuity from the insurer at the prevailing Annuity Rate and plan availability.|
|Maturity Benefits||The maturity benefits are payable at the end of the policy term. On survival of the policyholder till the end of the Policy Term, the policyholder will receive the sum assured along with the Vested Simple Reversionary Bonus and Terminal Bonus, if any. The Vesting Benefit will be also be subject to a minimum of 105% of total contributions. On the maturity of the policy, the policyholder can utilize the balance amount to purchase Immediate Annuity from Reliance Nippon Life Insurance Company at the applicable Annuity Rate or choose to utilize the entire benefit to purchase a Single Premium deferred pension plan from Reliance Nippon Life Insurance Company. Additionally, the policyholder has an option to extend the policy term based on the eligibility factors.|
|Bonuses||The Simple Reversionary Bonus and Vested Reversionary Bonus are a percentage of certain amount that is provided as benefits under this plan. The Simple Reversionary Bonus is a percentage of Sum Assured which accrues every year throughout the policy term. The terminal bonus, if any is payable on death of the policyholder or at maturity from the 10th policy year onwards. The terminal bonus is added as a percentage of the Vested Reversionary Bonus.|
Riders / Add-On Plans – Additional coverage under the Reliance Nippon Life Pension Builder Plan
No riders or add-on plans are available under the Reliance Nippon Life Pension Builder Plan.
Exclusions - What the Reliance Nippon Life Pension Builder Plan doesn’t cover
In case of death of the policyholder due to suicide within 12 months of starting the policy, the nominee of the life insured will be entitled to80% of the premiums paid. The plan doesn’t provide any loan facility to the policyholders.
Other Key Features – Freelook Period, Surrender Values, Grace Period, etc.
|Free Look Period||If the policyholder doesn’t agree with the terms and conditions of the policy, he/she may return or cancel the policy by returning it to Reliance Nippon Life Insurance Company. In case the policyholder decides to return/cancel the policy, the original policy document along with a written statement of objection needs to be submitted to the insurer within 15 days. If the policy is bought from one of the Distance Marketing channels, the policyholder will have 30 days of free look period to return the policy. In the event of cancellation/return of policy, the insurer will refund the premiums paid by the policyholder after the deduction of the proportionate risk premium, medical examination and stamp duty charges. Policy bought through telephone-calling, Short Messaging Services (SMS), Electronic mode which includes e-mail, internet and interactive television (DTH), direct postal mail, newspaper, and magazine are considered as Distance Marketing Channels.|
|Surrender Values||Once the policy has acquired a Surrender Value and the policyholder chooses to discontinue your Policy, he/she will be entitled to the Surrender Value. The surrender value is higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value(SSV) of the Policy. When the policyholder decides to surrender the policy, it will be terminated and can’t be reinstated. The surrender benefits can be utilized for various purpose.|
|Grace Period||Reliance Nippon Life Pension Builder Plan offers a grace period of 30 days that is applicable from the due date of payment of premiums for Yearly, Half-yearly or Quarterly payments. If the premiums are paid on a monthly basis, a grace period of 15 days is allowed.|
|Nomination||The nominee's details for this plan can be amended by contacting Reliance Nippon Life Insurance Company. The policyholder is required to submit an application with necessary documents in order to change the details of the nominee.|
|Flexible Premium Payment Modes||The Reliance Nippon Life Pension Builder Plan enables the policyholder to make flexible contribution/premium payments in yearly, half-yearly, quarterly and monthly intervals.|
Tax benefits – How you can save with the Reliance Nippon Life Pension Builder Plan
The premiums paid and returns earned from Reliance Nippon Life Pension Builder Plan are eligible for tax deduction. The Income Tax benefits for a non-linked, participating, deferred pension plan are subject to changes from time to time. Customers are recommended to discuss the details of tax benefits with a qualified tax consultant before investing in this plan. The plan is also subject to applicable Service Tax and Cess will as per the rates declared by the Government (subject to change). For any increase in the tax amount, the insurer may pass on the charges to the policyholder with a notification stating the change.
Other benefits – How you can save with the Reliance Nippon Life Pension Builder Plan
In addition to being eligible for tax deductions under the Reliance Nippon Life Pension Builder Plan, the Section 10(10D) of the Income Tax Act, 1961, enables the death benefits, maturity benefits, etc. to be eligible for tax deductions as well. The plan helps the policyholders in saving regularly towards their nest-egg that return more benefits and also to plan an early retirement.
Reliance Nippon Life Insurance Company Limited is counted among one of the largest life insurance companies in India. The company is also known as Reliance Nippon Life Insurance Company. The company offers a broad range of products and services related to financial/health protection, insurance, children plans, retirement plans, and various other products that are customised to suit an individual's requirements. The company has a vast distribution network of over 8,000 outlets and an excellent customer support team that helps in delivering quality, reliable, efficient services to over 1 crore customers. With a claim settlement ratio of 95.01%, Reliance Nippon Life Insurance Company comes under the top 3 most trusted life insurance brand in India.
Reliance Nippon Life Pension Builder Plan enables the policyholder to save money for a retirement where he/she can decide on the payment term, pension start date, etc. to receive a certain amount of money for the whole of life post retirement. In case of unfortunate death of the policyholder, the plan offers financial protection to the policyholder's family through assured death benefits along with other benefits. The plan allows the policyholder to make regular or limited payments through based on different types of payment terms and policy term. With options to boost retirement savings, flexible payment mode, and term, tax benefits, financial protection, etc. the plan is suitable for anyone who wishes to have a regular or early retirement with healthy pension amount that can help the policyholder is planning the life after retirement more efficiently with pride.