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Reliance Life Pension Plans

Retirement is that golden time of your life when you hope and wish to live a comfortable and financially stress free life. And retirement plans offers this convenience of stress-free second inning for the insured.

A pension plan must be a crucial part of your financial portfolio if you want to save for retirement. Pension plans provide financial security in your post-retirement days when there is an absence of regular income.

Reliance Nippon Life insurance is one of the reputed insurance companies in the private sector in India. The company is a joint venture between Reliance Capital and Japan’s Nippon Life insurance company. The company caters to the various financial goals and protection needs of its customers and help them to build a worry-free life for their family. Reliance Nippon Life Insurance ensures that you can live a peaceful life after retirement. It offers pension plans that help you to create a retirement corpus with your regular flow of income.

Types of Plans offered by Reliance Nippon Life Pension Plans

Reliance Life Insurance offers two types of pension plans. One is a traditional annuity plan while the other is the market-linked insurance plan. Both the plans provided by Reliance life insurance helps an individual to lead a comfortable post-retirement life.

Reliance Nippon Life Smart Pension Plan

Reliance smart pension plan allows the policyholder to create a corpus by starting early to build a retirement fund. With increasing inflation, it is advisable to begin investing at an early age to avoid financial pressure in your forties. This plan helps you to start investing systematically in order to create a lump sum amount to provide a steady income in your post-retirement life.

Benefits of Reliance Smart Pension Plan

  • The policyholder has an option to pay a regular premium for the entire policy term, or a limited tenure or at once in a lump sum.
  • On maturity, either the fund value or 110% of the total premiums paid whichever is higher, is payable to the policyholder.
  • The policyholder has an option to invest the proceeds in a deferred annuity plan with a one-time premium or can partially withdraw the fund and invest the rest.
  • Deferment of vesting age is possible if the age of insured is below 55 years.
  • If the policyholder dies unexpectedly, the fund value or 105% of the total premiums is payable.
  • Reliance Smart Pension Plan allows to increase the fund value by paying additional top-ups. The minimum amount allowed for top-ups is Rs. 5000.
  • Premiums paid under this plan is exempted from tax under Section 80CCC, death claim is exempted under Section 10(10D), commuted pension is exempted from tax under Section 10(10A).

Eligibility criteria

Parameter
Entry age18 years (min)65 Years (max)
Vesting age45 years (min)75 years (max)
Policy termSingle pay- 10 yearsRegular and limited pay – 15 years (min), 30 years (max)
Annual annuity amount
  • Regular pay – Rs. 20000
  • Limited pay – Rs. 24000
  • Single pay – 50000 (min)
  • Maximum – No Limit
Premium payment term10 years (min)30 years (max)
Premium paying frequencyYearly, half-yearly, quarterly or monthly.-

How does this plan work?

Reliance smart pension plan allows the policyholder to create a retirement fund where the insured can decide his/her retirement age. This plan gives the insured the freedom to live a financially independent life that ensures a regular income for the insured’s lifetime. Let’s understand how this plan works.

Example

Amar, who is 35 years opts for Reliance Smart Pension Plan with a premium payment tenure of 10 years and the policy tenure of 20 years. Amar pays an annual premium of Rs. 60,000.

Amar receives equity participation of 20% with a minimum return guarantee of Rs.6,06,000 upon vesting. Additionally, loyalty is accrued on this plan. Upon maturity, Amar has two options.

  • Option 1: Either Amar can commute up to one-third of the maturity amount to buy annuity guaranteed for a lifetime from the balance amount.
  • Option 2: Amar can choose to invest the entire maturity amount to buy annuity guaranteed for a lifetime.

Reliance Nippon Immediate Annuity Plan

Reliance Nippon Immediate Annuity Plan allows the policyholder to turn a lump sum amount into a regular flow of income for the lifetime. The policyholder will receive regular income based on the annuity option that he/she has opted for and the payout frequency that he/she has selected.

Features and benefits of Reliance Immediate Annuity Plan

  • The policyholder starts receiving the annuities immediately after making the payment of a single premium.
  • The insured is given three different choices for annuity payout under reliance immediate annuity plan.
    • Lifetime annuity
    • Lifetime annuity with return of policy purchase price on death of insured.
    • Life annuity which is guaranteed for 5,10 or 15 years, and then payable for a lifetime.
  • No medical check-up is required before entering into Reliance Nippon Immediate Annuity Plan.
  • Single premium paid under this policy is exempted from the tax under Section 80CCC of The Income Tax Act.

Eligibility criteria

ParameterMinimumMaximum
Entry age20 years80 Years
Annual annuity amountRs. 1000NA
Purchase priceRs. 100000NA
Annuity payout frequencyYearly, half-yearly, quarterly or monthly.-

How does this plan work?

Reliance Nippon an Immediate Annuity Plan ensures a regular income for the policyholder. This plan ensures a steady income for a lifetime while leaving behind financial protection for the family of the policyholder.

Example

Amit opts for Reliance Nippon Immediate Annuity Plan and pays a lump sum single premium of Rs. 7 lakhs. He receives a guaranteed income per month for the rest of his life. In the unfortunate event of the death of Amit, the nominee will receive the purchase price of Rs. 7 lakhs as a lump sum death benefit.

How to apply for Reliance Nippon Life Pension Plans

One can apply for Reliance Nippon Life Pension Plans online as well as through intermediaries. Applying online: Reliance Nippon offers specific pension plans which are available online only. The customers need to log in to the company's official website and choose the required Reliance pension plan. Provide details such as personal details and coverage amount.

The system will determine the premium using the details filled. The customer then needs to make the premium payment online through debit card, credit card or net banking facilities. The policy will be issued after making the payment successfully.

Applying through intermediaries: The Reliance Nippon pension plans that are not available online can be purchased from authorised agents, brokers, and banks.

FAQs on Reliance Nippon Life Pension Plans

Which is best pension plan in Reliance Nippon Life Pension Plans?

Reliance Nippon Life offers two types of pension plan. Traditional and unit-linked pension plan. You can choose any of them as per your requirements.

Which is the best pension plan of Reliance Nippon Life Pension Plans 2019?

Reliance Nippon Life offers two types of pension plan. Traditional and unit-linked pension plan. You can choose any of them as per your requirements.

Which is the best Reliance Nippon Life Pension Plan for the long term?

Reliance Smart Pension Plan and Reliance Immediate Annuity Plan both are the best long-term pension plans. However, Reliance Smart Pension Plan gives you more flexibility in terms of guaranteed income for life.

Why should I buy Reliance Nippon Life Pension Plan?

Reliance Nippon Life offers pension plans that do not only secure your post-retirement life but also takes care of your investment goals at present. It offers traditional pension plans as well as unit-linked plans that help you to build a corpus over a period of time.

How to pay a premium? What are the modes of payment available?

Reliance Nippon insurance offers four basic payment methods they are as follows.

Online

You can make payment online by login through your client id and password and can select a preferred mode of payment. To make payment online, the policyholder can make payment via credit card, debit card, net banking facility.

IVR method

You can call on toll-free number 1800 3000 8181 and follow the given instruction. Pay at Suvidha Center: You can make payment via cheque or cash by visiting the nearest branch office. Bill desk option: This requires you to register on the official website and click on the "Pay reliance life insurance" button to make the payment.

How can I check policy status for Reliance Nippon Life Pension Plans?

To check the status of your Reliance Pension Plans, you must first register on the e-portal of the company. Once you generate the password, log in to your account. Click on the "policy details" tab to check the status of the desired Reliance retirement plan.

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