Retirement plans or pension plans are insurance schemes aimed at making your post-retirement life secure and worry-free in terms of availability of money. These are long-term plans that require more commitment and investment. They also have a life insurance cover so that in case you pass away before your retirement, your family’s financial situation will be secured. The government also actively encourages retirement savings and annuity plans, which makes these schemes tax-deductible and hassle-free.
Reliance Nippon Life Insurance Company is owned jointly by Reliance Capital and Japan’s Nippon Life Insurance. The company’s insurance portfolio is relevant to the Indian environment while having a global outlook. Reliance Nippon offers term insurance plans, investment-cum-insurance plans, ULIPs, pension plans, group insurance policies and various other insurance-based schemes. The company also offers online plans for the convenience of its tech-savvy customers.
Benefits of Reliance Nippon Life Retirement/Pension Plans:
Some of the important benefits of having a Retirement/Pension plan from Reliance Nippon Life are given below:
- You can save for your golden years while ensuring a protection on your life. This dual benefit will help reduce your financial fears.
- You can customise the retirement plans to your needs and goals. You can also choose to retire earlier than prescribed age and select a policy accordingly.
- There are several options to choose from in terms of plans as well as funds.
- Reliance Nippon Pension Plans give you a guaranteed income once your retirement years begin.
- You also get regular bonuses to add to your income/savings.
List of Reliance Nippon Life Retirement/Pension Plans:
There are three plans under Reliance Nippon’s Retirement/Pension category:
Reliance Nippon Life Pension Builder: This is a simple pension policy that give you a fixed regular income for your retirement life and also provides the family with a lump sum amount if you die unexpectedly. You can choose when to retire and decide the policy tenure accordingly. You can make limited or regular premium payments as per your financial condition. You will also receive reversionary and terminal bonuses as applicable. Here are the salient features of the Pension Builder plan:
Entry age: 25 years to 65 years
Vesting age (the age from which you start getting pension): 45 years to 75 years
Policy tenure: 10 to 20 years for 5-year and 7-year Limited Pay plans; 15 to 20 years for 10-year Limited Pay policies; 10 to 40 years for Regular Pay schemes.
Premium payment: As long as the policy is active for Regular Pay plans and 5, 7 or 10 years for Limited Pay policies.
Minimum premium amount: Rs.25,000 per year for Regular and 10-year Limited Pay plans; Rs.35,000 for 5-year and 7-year Limited Pay schemes.
Minimum sum assured: Rs.2 lakh
Premium payment frequency: Once in a month, once in a quarter, twice a year or once a year
Riders available: None
Reliance Nippon Life Immediate Annuity Plan: This is a Single Premium plan that offers a regular pension after your retirement. You can opt for one of the three annuity plans – Life Annuity, Life Annuity with Return of Purchase Price or Life Annuity guaranteed for 5, 10 or 15 years and lifetime. You don’t need to undergo any medical tests to get this policy. The important features of this policy are mentioned below:
Entry age: 20 years to 80 years
Minimum premium amount: Rs.1 lakh
Minimum annuity instalment: Rs.1,000
Annuity payment frequency: Monthly, quarterly, semi-annually or yearly
Riders available: None.
Reliance Nippon Life Smart Pension Plan: You can select between 10 and 30 years of policy period, and retire at any age from 45 to 75 years under this policy. You can invest in equity funds and pay top-up premiums to increase your wealth. Apart from monthly pension, you also get loyalty additions for longer-term policies. If you are in need of funds, you can withdraw up to 1/3rd of the total policy amount at the time of retirement. All this, apart from a lump sum payment to your family in case of your untimely demise.
Entry age: 18 years to 65 years
Vesting age: 45 years to 75 years
Policy tenure: 10 to 30 years for Single Premium plans; 15 to 30 years for Regular and Limited Premium schemes.
Premium payment: Regular, Limited and Single premium payment modes are available.
Minimum premium amount: Rs.50,000 for Single Pay plans and variable rates for Regular and Limited Pay policies, as per age and policy period. The minimum top-up amount is Rs.5,000.
Premium payment frequency: Yearly, half-yearly, quarterly and monthly
Riders available: None.
A brief summary of the policies is given in the table below:
|Reliance Nippon Life Pension Builder
||25 years to 65 years
||45 years to 75 years
||Rs.25,000 per year for Regular and 10-year Limited Pay plans
Rs.35,000 for 5-year and 7-year Limited Pay schemes
|Reliance Nippon Life Immediate Annuity Plan
||20 years to 80 years
|Reliance Nippon Life Smart Pension Plan
||18 years to 65 years
||45 years to 75 years
||Rs.50,000 for Single Pay plans
Rs.48,000 for Limited Pay 10 to 19 years in annual mode
Rs.24,000 for Limited Pay 20 years or more in annual mode
Rs.24,000 for Limited Pay 10 to 19 years in semi-annual mode
Rs.12,000 for Limited Pay 20 years or more in semi-annual mode
Rs.12,000 for Limited Pay 10 to 19 years in quarterly mode
Rs.6,000 for Limited Pay 20 years or more in quarterly mode
Rs.4,000 for Limited Pay 10 to 19 years in monthly mode
Rs.3,000 for Limited Pay 20 years or more in monthly mode
Rs.36,000 under annual mode for Regular Pay 15 to 19 years
Rs.20,000 under annual mode for Regular Pay 20 years or more
Rs.18,000 under half-yearly mode for Regular Pay 15 to 19 years
Rs.10,000 under half-yearly mode for Regular Pay 20 years or more
Rs.9,000 under quarterly mode for Regular Pay 15 to 19 years
Rs.5,000 under quarterly mode for Regular Pay 20 years or more
Rs.3,000 under monthly mode for Regular Pay 15 to 19 years
Rs.2,000 under monthly mode for Regular Pay 20 years or more
Why you need Reliance Nippon Life Retirement/Pension Plans?
If you are looking for reasons to opt for Reliance Nippon Life Retirement/Pension policies, here are some:
Tax benefits: Annuity plans and retirement plans have tax benefits in the Income Tax Act. You can claim deductions on premium payments, annuity payouts as well as death benefits as per the applicable laws.
Easy application process: Reliance Nippon pension plans can be bought very easily and there are no medical tests to undergo. You can also buy the policies online.
Easy to understand: Reliance Nippon pension plans are simple to understand, which allows you to be in control of your financial planning.
Easy claims process: The Claim Settlement Ratio of Reliance Nippon Life as on March 2016, is 95.01%. This indicates that 95 out of 100 claims were approved and processed by the company. The process of making a claim is also simple and accessible. The time taken to process a claim can range from 12 days to 21 days as per the amount of verification required.