Savings and investment plans are life insurance plans that provide policyholders with an opportunity to increase their savings. The savings would be returned to the policyholder in different ways – as a lump sum at maturity, as fixed regular returns over a period of time, as money back while the policy is active, or as death benefits if the insured person dies before the policy reaches due date.
Reliance Nippon Life Insurance Company offers several savings and investment schemes as well as many other types of life insurance plans. The company offers insurance plans that can be bought either online or through an authorised insurance agent.
The savings and investment schemes by Reliance Nippon are useful in a variety of ways. Some of the key benefits of these plans are:
A brief summary of the policies offered by Reliance Nippon Life are given in the table below:
|Plan Name||Entry Age||Maturity Age||Minimum Premium|
|Reliance Nippon Life Whole Life Income||0 to 55 years||85 years||Rs.16,328 p.a.|
|Reliance Nippon Life Fixed Savings||8 to 60 years||20 to 80 years||Rs.25,000 p.a.|
|Reliance Nippon Life Bluechip Savings Insurance Plan||8 to 60 years||18 to 75 years||Rs.15,000 to Rs.50,000 p.a.|
|Reliance Nippon Life Increasing Income Insurance Plan||14 to 60 years||26 to 80 years||Rs.15,000 p.a.|
|Reliance Nippon Life Lifelong Savings Plan||7 to 55 years||22 to 70 years||Rs.12,000 p.a.|
|Reliance Nippon Life Future Income||8 to 55 years||22 to 75 years||Rs.15,680 p.a.|
|Reliance Nippon Life's Money Multiplier Plan||18 to 55 years||28 to 75 years||Not available|
|Reliance Nippon Life Endowment Plan||5 to 50 years||18 to 75 years||Not available|
|Reliance Nippon Life's Super Endowment Plan||8 to 60 years||22 to 75 years||Not available|
|Reliance Nippon Life's Guaranteed Money Back Plan||18 to 58 years||33 to 75 years||Not available|
|Reliance Nippon Life Fixed Money Back Plan||18 to 55 years||33 to 75 years||Not available|
|Reliance Nippon Life Increasing Money Back Plan||15 to 55 years||30 to 70 years||Rs.18,000 p.a.|
|Reliance Nippon Life Super Money Back Plan||18 to 55 years||28 to 80 years||Not available|
|Reliance Nippon Life Smart Cash Plus Plan||14 to 55 years||24 to 70 years||Not available|
Here are some salient characteristics of the policies:
Reliance Nippon Life Whole Life Income – This policy is a participating, non-market-linked plan that covers your whole life and offers a regular income in your older years. You get an assured payout every year after 10 years of starting the policy, as well as a cash bonus every year from the 6th year of starting the policy. The amount promised as annual payout is 6% of the Base Sum Assured (BSA) if the BSA is less than Rs.2.5 lakh; 6.5% of the BSA if it is between Rs.2.5 lakh and Rs.5 lakh; and 6.75% of BSA if it is Rs.5 lakh or more.
Reliance Nippon Life Fixed Savings – This endowment policy is non-variable, unlinked and non-participating in nature. You get regular bonuses for the first three years if all premiums are paid till policy maturity. These additions are equal to 8% of annualised premium for the first year, 9% for the second year and 10% for the third year.
Reliance Nippon Life Bluechip Savings Insurance Plan – This is an endowment plan that is unlinked, non-participating and non-variable, and helps you build your savings corpus. You get vested bonus and terminal bonus along with the sum assured at maturity, and in case you meet your maker before the policy period ends, the death benefits would be either the sum assured plus bonuses, or 105% of total premiums paid, whichever is the higher amount.
Reliance Nippon Life Increasing Income Insurance Plan – This policy, which is not linked to the stock market or to the company’s profits, comes with two choices – Income With Maturity or Only Income. The payouts start after the premium payment duration is over. You can either get a regular income plus maturity and death benefits, or a regular income with death benefits.
Reliance Nippon Life Lifelong Savings Plan – This is an endowment policy that offers you a part of the company’s profits, but is unlinked to the market. You can go for either the Standard Cover – which gives you a lump sum amount at the end of policy period plus life insurance cover while the policy is active – or Extended Cover – which gives you additional life insurance protection for your entire life even after the policy term ends. Guaranteed additions, simple reversionary bonus, and terminal bonus will be added to the scheme amount during its tenure.
Reliance Nippon Life Future Income – This is a participating unlinked scheme that gives you simple reversionary bonus and terminal bonus along with the sum assured. After the premium payment period is completed, you will receive a regular annual income benefit, which is a portion of the base sum assured and any bonuses added to the policy. The maturity benefits will not be very high because you will receive the last instalment of the income benefit and the terminal bonus accrued. The death benefit promised will not be affected by the regular income benefit payments.
Reliance Nippon Life's Money Multiplier Plan – This endowment plan has no link to market instruments or the company’s profits, but it ensures that you receive guaranteed loyalty additions every year and maturity bonus at the end of the policy period. This is over and above the sum assured. In case of death of the policyholder, the sum assured and loyalty additions accumulated are paid.
Reliance Nippon Life Endowment Plan – This is a simple endowment plan that is not linked to a market fund. It gives you maturity benefits of sum assured plus vested bonus, and death benefits of 10 times annualised premium plus vested bonus or 105% of the total premiums paid (whichever is higher).
Reliance Nippon Life's Super Endowment Plan – With this scheme, you get endowment benefits on your life insurance policy. The benefits include sum assured on maturity and 105% of all premiums paid or 10 times the annualised premium (whichever amount is higher) as death benefit. You also get discounts on premiums if you make larger payments in annual and semi-annual modes.
Reliance Nippon Life's Guaranteed Money Back Plan – This is a money back plan that is not linked to the stock market but gives assured money back in the last 5 years of the policy. You also get loyalty additions of up to 40% of the sum assured, maturity bonus of up to 20% of the sum assured. Death benefits include 10 times the annualised premium, payment of the money back amounts, and waiver of any remaining premiums if the policy is still in force.
Reliance Nippon Life Fixed Money Back Plan – This is an anticipated endowment plan that gives you money back in the last 5 years of the policy. Other profits include loyalty additions of 3% of the base sum assured, and maturity bonus equal to the total accumulated loyalty additions. There are two plan options – one that gives additional amounts only on maturity and one that gives bonuses for both death and maturity claims.
Reliance Nippon Life Increasing Money Back Plan – This is another money back scheme in which you get payouts every three years until the end of the policy. Maturity benefit would be equal to the base sum assured, while death benefits would be whichever is higher among sum assured, 10 times the annualised premium, sum assured at maturity, or 105% of the paid premiums. You also get discounts on premium if you choose a sum assured of Rs.2.5 lakh or more.
Reliance Nippon Life Super Money Back Plan – This anticipated endowment plan comes with money back every 5 years until the end of the policy duration. After you stop paying the premium, you will receive fixed payouts every month until the policy matures. You are also given loyalty additions and maturity bonus. There are two options in death benefits – either 10 times the annualised premium or 7 times. The 10x option is available at any entry age, but the 7x option can be taken only if your entry age is 45 years or more. You are also eligible for discounts in premium if your selected sum assured is more than Rs.2.5 lakh.
Reliance Nippon Life Smart Cash Plus Plan – Under this policy, you get money back every three years and each payout will be higher than the previous one. You are eligible for vested bonus and a special bonus if you choose a sum assured higher than Rs.2.5 lakh. The policy gives up to 10 times the annualised premium as death benefit for your family.
Reliance Nippon Life Savings and Investment Plans help you save up money for your future needs and at the same time protects your life through insurance cover. This is a great way to create a large corpus of funds for use in the later years of life and to ensure that your family does not need to worry about money for at least a few years after your death. Here are some important reasons why you should buy a Reliance Nippon savings and investment plan: