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Reliance Nippon Life Smart Pension Plan

With the increase in life expectancy as a result of the medical advancement in recent years, yet with our backs to the wall with the constant inflation of medical bills, Reliance Nippon Life Insurance has recently launched the Reliance Nippon Life Smart Pension Plan to take care of the retirement dreams of its customers. The Reliance Nippon Life Smart Pension Plan gives its customers to choose their retirement age, offering them a lump sum payout on retirement and the benefit of an annuity plan. Customers enrolled with the Reliance Nippon Life Smart Pension Plan can enhance their retirement corpus and can even make a partial tax free withdrawal from the corpus.

Eligibility -Who is the Reliance Nippon Life Smart Pension Plan for?

To be eligible for the Reliance Nippon Life Smart Pension Plan, customers have to meet certain criteria.

Parameters Details
Entry Age Minimum: 18 years Maximum: 65 years
Maturity Age Minimum: 45 years Maximum: 75 years
Premium paying years Minimum: 10 years Maximum: 30 years
Policy Term Minimum: 10 years Maximum: 30 years

* The minimum policy term for an 18-year-old customer will be 27 years

Sum Assured and Premium Range - What you get and what it costs

Sum Assured: The sum assured depends on the premium, the term of the policy and if there are any top-ups on the retirement corpus.

Premium: Subscribers to the Reliance Nippon Life Smart Pension Plan have the option of paying a Regular Premium, a Single Premium or a Limited Premium. The premium payment can be made either annually, half-yearly, quarterly or monthly.

Premium Amount Premium Payment Term 10 to 14 years Premium Payment Term 15 to 19 years Premium Payment Term 20 years and above Maximum
Regular Pay (Rs.) Annual Mode NA 36,000 20,000 No limit
Half-yearly Mode 18,000 10,000
Quarterly Mode 9,000 5,000
Monthly Mode 3,000 2,000
Limited Pay (Rs.) Annual Mode 48,000 48,000 24,000 No limit
Half-yearly Mode 24,000 24,000 12,000
Quarterly Mode 12,000 12,000 6,000
Monthly Mode 4,000 4,000 3,000
Single Pay (Rs.) 50,000 No limit
Top-up (Rs.) 50,000 No limit
Premium Frequency Annual, Half-yearly, Quarterly, Monthly

Plan coverage - What the Reliance Nippon Life Smart Pension Plan covers

The Reliance Nippon Life Smart Pension Plan offers policyholders with death benefits for the selected nominee and maturity benefits at the end of the policy term.

Death Benefits In case of untimely death of the policyholder, the nominee will be liable to the higher unit of the total balances in a specific unit or 105% of the total premiums paid. The nominee can also structure an annuity plan with the balance or can make a complete withdrawal of the retirement corpus.
Maturity Benefits On maturity of the policy term, the policyholder can:
  • Make a partial withdrawal (33%) of the total retirement corpus that is completely tax free.
  • Extend the policy accumulation period, provided he/she is less than 55 years of age and the term has not yet exceeded 30 years (maximum policy term).
  • Use part of the retirement corpus to buy a single premium deferred pension product.

Exclusions - What the Reliance Nippon Life Smart Pension Plan doesn’t cover

If in case the policyholder commits suicide within 12 months of initiating the plan or reviving the plan, the nominee of the policyholder is entitled to 80% of the premium paid till that point. No death benefits are applicable in the case of suicide.

Other Key Features – Free-look Period, Surrender Values, Grace Period, etc.

The Reliance Nippon Life Smart Pension Plan comes with a number of key features which are listed below:

Surrender benefits The policyholder can surrender the policy only after 5 complete years since the commencement of the Reliance Nippon Life Smart Pension Plan. On surrendering the policy, the policyholder can -
  • Claim the total Fund value over the base plan.
  • He/she can also structure an annuity plan.
  • Or use the retirement corpus to buy a single premium deferred pension product.
Once the policy has been surrendered, it cannot be revived.
Loyalty Addition Benefits From the commencement of the 6th year onwards, the policyholder is liable to loyalty benefits which are applicable every three years till the end of the policy term. The loyalty additions will be added to the base fund.
Policy Extension The policyholder can extend the term of accumulation of the retirement corpus even after the point of maturation, provided that he/she is below the age of 55 years of age and the policy term does not exceed 30 years. The minimum extension of the policy is for a period of 5 years.
Change of premium mode The policyholder can change the premium mode at the beginning of every term year.
Discontinuance of the premium If the policyholder has failed to pay the premium within the grace period, he/she will receive a revival notice within 15 days of the expiry of the grace period. The Policyholder then has 30 days from the notice to either completely discontinue the policy or revive it. If he/she chooses to discontinue, no insurance benefits will be further applicable, whereas mortality charges, administration charges, and applicable taxes will be applied on the total fund value.
Policy Revival The policyholder can revive the policy within 2 years of the first unpaid premium. A notice will be sent to the policyholder 45 days before the expiry of the revival period.
Free look period Policyholders are granted a free look period for a period of 15 days. If the policyholder disagrees with any of the terms and conditions of the policy, he/she can return the policy within 15 days of commencing the policy. If one returns the policy, he/she will receive a refund of the premium paid. Stamp duty and cancellation charges will be applicable.
Grace period Policyholders are given a grace period of 30 days for regular premiums and 15 days for monthly mode of premium payments.
Nomination Policyholders can make nominations as per Section 39 of the Insurance Act, 1938.
Service Tax Service tax is applicable over the base premium - depending on the tax rates set by the Government of India.
Top-ups A policyholder at any point can make a lump sum top-up towards the retirement corpus to increase one’s investment options. The minimum top-up should be Rs.5,000 and policyholders are liable to maturity and death benefits which include the top-up accumulated sum as well. A policyholder can make a top-up only when the premiums are paid up to date.

Tax benefits – How you can save with the Reliance Nippon Life Smart Pension Plan

Policyholder enrolled with the Reliance Nippon Life Smart Pension Plan are liable to tax benefits under the Income Tax Act of 1961. They can avail benefits under:

  • Section 80C of the Income Tax Act, 1961, for contributions (premium) made towards the scheme.
  • Section 10 (10D) of the Income Tax Act, 1961, for proceeds from death and maturity benefits.

Other benefits – How you can save with the Reliance Nippon Life Smart Pension Plan

The Reliance Nippon Life Smart Pension Plan comes with a number of benefits, some of them are mentioned below:

  • In case of untimely death of the policyholder, a lump sum payout is granted to the nominee. The nominee can also structure an annuity plan to benefit from a fixed income.
  • The Reliance Nippon Life Smart Pension Plan can be purchased online by following a few simple steps. Policyholders can purchase the plan through their net banking account or via credit card, debit card, e-wallet, etc.
  • Reliance Nippon Life Insurance has a claim settlement ratio of 95%.

Why you should buy the Reliance Nippon Life Smart Pension Plan from Reliance Nippon Life Insurance?

Now one of the largest insurance companies in the country - holding a market share of 5%, Reliance Nippon Life Insurance currently has over 7 million customers. The insurer also has over 1,200 branches spread across the country and has over 120,000 agents working round-the-clock to bring Reliance Nippon insurance products to the doorstep of customers. Apart from the easy access to products online, Reliance Nippon Life Insurance offers products at affordable premiums - targeting individuals and groups with protection plans, retirement plans, investment options for children, etc. In 2011, Reliance Nippon Life Insurance ranked number 81 in the Global Fortune 500 firms. Recently, it was rated “Top 3 Most Trusted Service Brands in the Insurance Category” by Brand Equity's “Most Trusted Brands Survey”.

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