It is vital that you plan for retirement years now, so that you have adequate funds to satisfy your dreams during those retirement days. Preparation for whatever plans you have made should start today. Just to assist you, Reliance Nippon Life Insurance Company has introduced a pension plan, that is, Reliance – Smart Pension. It is a non-participating unit linked pension plan that enables you to save money and to provide you with a regular income after retirement by creating a much needed lumpsum. During the first five years of plan, Linked Insurance Products do not give any liquidity. Until the end of the 5th year, the policyholder will be unable to withdraw any money invested in Linked Insurance Products. This plan operates in 2 stages:
Let us examine the main features of Reliance-Smart Pension:
Tax benefits on investment and on returns, as per applicable Income Tax Laws.
If the policyholder/annuitant dies within the tenure of policy, the nominee shall receive the total value of the fund in the account or 105% of the total premiums paid; whichever is higher as death benefit on the date of intimation of death of the annuitant. The policy ends with the death benefit payment. The nominee is entitled to make use of death benefit in the following ways:
When the policy matures, the policyholder/annuitant shall receive the total value of the fund in the account or 101% of the total premium paid; whichever is higher. This benefit can be availed only if the policyholder chooses any of the below options:
In the table below, you can see the eligibility criteria of the Reliance- Smart pension plan:
| Particular | Minimum | Maximum |
|---|---|---|
| Policy Term | 10 years: Single Premium 15 years: Regular/Limited Premium |
30 years |
| Entry age | 18 years as on last birthday | 65 years as on last birthday |
| Maturity/Vesting Age (n years) | 45 | 75 |
| Premium payment term for regular/limited premium option | 10 years | 30 years |
Details on premium payment of Reliance - Smart Pension are shown below in the table:
| Premium | Minimu | Maximum | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Regular Pay Premium Amount | - Premium payment term 10 to 14 years- Not Applicable
- Premium payment term 15 to 19 years:
|
There is no limit | ||||||||||||||||||||||||
| Limited Pay premium amount | - Premium payment term 10 to 14 years
|
There is no limit | ||||||||||||||||||||||||
| Single Pay premium amount | Rs. 50000 | No limit |
The pension guarantee Reliance- Smart Pension Plan is an outstanding choice to receive a guaranteed pension throughout the years and helps to lead a care free life after retirement. It helps to receive the fixed income in accordance with the selected frequency of the annuity payment.
The plan covers death if it occurs during the policy tenure. Moreover, when the plan matures, then maturity benefit is paid.
Further information on Reliance- Smart Pension plan is available below:
Reliance- Smart Pension plan is subject to certain charges:
a. Mortality Charges
This charge is deducted from the value of the fund under the base plan and Top-up premium. Depending on the following conditions the mortality charges may vary:
b.Fund Management Charges
The fund management fee is charged daily at the unit price of each fund. This is mostly calculated by adjustment of the NAV (Net Asset Value).
| Fund Type | Fund Management Charges |
|---|---|
| Pension Discontinued Policy Fund | 0.50% per annum |
| Pension Smart Fund 1 | 1.35% per month |
c.Policy Administration Charges
| Year of policy | Policy Administration Charges |
|---|---|
| 1st year | 0% |
| 2nd to 5th year | 1.50% per annum |
| 6th year onwards | 0.75% per annum |
At the beginning of the month, the monthly Policy Administration Charges shall be deducted from the fund.
d.Premium Allocation Charges
Premium Allocation Charges are deducted as a percentage of the premium each time the premium has been received before the units have been allocated.
| Year of Policy | Premium Allocation Charges |
|---|---|
| 1st year | 8% |
| 2nd to 5th year | 5.50% |
| 6th to 9th year | 5% |
| 10th year onwards | 3% |
e. Discontinuation Charges
The discontinuation charge shall be levied if a policy is discontinued by Reliance- Smart Pension policyholder and depends mainly on the year when the policy is discontinued.
The grace period for payment of regular premiums shall be 30 days from the due date. In the case of monthly premium payment mode, the grace period is 15 days.
If you do not agree to any terms and conditions of the policy, you may return the policy to the company within 15 days, which applies to all distribution channels, except for the Distance Marketing channel, which will have 30 days. The policyholder must state the objection, in which case, you have the right to the reimbursement of the premium paid, subject to deduction of expenses such as medical examination of the life assured and stamp duty charges, incurred by the insurer and the proportionate risk premium for the cover period.
The following set of documents are required to apply for Reliance- Smart Pension plan:
The main exclusions of the Reliance - Smart Pension scheme is that, in any event, if the life insured individual commits suicide within 12 months from the date of issue of the policy or the date of revival of policy, then this policy is cancelled. The nominee/beneficiary of the policyholder shall only be reimbursed for the amount of premium paid till date.
Reliance- Smart Pension plan is a non-participating unit linked plan which provides instant annuity. With retirement being an essential part of an individual’s life, every person aims at stress-free and relaxed life after retirement. This is only possible if you have a guaranteed source of income, even after retirement. Systematic and strategic retirement planning right from an early age will help you understand your expenses after retirement and how to manage certain investments to achieve your retirement goals.
How secure your investment is?
Reliance Life Smart Pension Plan is Unit Linked Insurance Plan and the investment risk in this product is borne by the policyholder.
What do you mean by Distance Marketing Channel?
Distance Marketing shall include every solicitation activity and as well as sale of the insurance products by the following modes:
What are the benefits for riders?
Reliance Life Insurance offers additional riders by which one can enhance their cover. The 5 riders offered by Reliance are:
In the event of the death of the life of policyholder, the assured/annuitant riders’ benefit is payable directly to the nominee/beneficiary.
What happens if the policyholder wishes to surrender/discontinue the policy?
In case policyholder wishes to surrender his/her policy, one has to submit a dully filled surrender form on receiving the application that the policy is cancelled and the due policy proceeds that the policyholder is eligible for is paid and the policy is terminated.
What happens if the policyholder wants to revive the policy?
Within two years from the date of discontinuance, policyholders may reactivate the discontinued policy by paying all remaining fees. The company shall ask the written approval from the policyholder for the policies which have not completed 2 years of revival period at the end of the lock-in period to either:
