Reliance Nippon Life Endowment Plan

Updated: 04-09-2023 09:47:50 AM

Reliance Nippon Life Endowment Plan helps you create a corpus for the future, rewards you with periodic bonuses and gives you lump sum benefit. It is a non-linked, participating and non-variable endowment insurance plan that you can use to create a corpus by investing your savings systematically. Regular bonuses help you to grow your savings over time and enable you to use these savings for specific purposes whether it is your child’s wedding, your dream vacation, or paying off the home loan.

Reliance Nippon Life Endowment Plan Details

Eligibility 

Particulars	Details
Policy Name	Reliance Nippon Life Endowment Plan
Policy Type	Non-linked, Participating, Non-variable Endowment Plan
Entry Age	5 years – 50 years
Policy Term	10 years/15 years/20 years/25years
Maximum Maturity Age	18 years- 75 years
Premium Payment Option	Regular Pay
Premium Payment Frequency	Yearly, Half-yearly, Quarterly, Monthly
Minimum Sum Assured	Rs. 65,261

Features 

Some of the features of the Reliance Nippon Life Endowment Plan have been briefly discussed here:

• Grow Your Savings through Bonus Additions: Since the Reliance Nippon Life Endowment Plan is a participating insurance plan, you are eligible to receive a part of the profit declared as a bonus by the company. Reliance Nippon Life Insurance company declares the Reversionary Bonus at the end of each financial year depending on the performance of the company and the prevailing market conditions. This bonus is attached to the policy and accrues until the end of the policy term. These bonus additions are paid at maturity, surrender or death, if earlier.
• Create a Wealth Corpus for Future: Saving money is a good habit that people should develop. However, it is easier said than done. By going for an insurance plan, such as Reliance Nippon Life Endowment Plan, people can save money and create a wealth corpus for the future that they can use to pay off a loan, pay for child’s education, pay for child’s wedding, take a dream vacation, etc.
• Choose Your Policy Term and Premium Payment Modes Based on Your Preference: You get the option to choose for policy term in the range of 10 to 25 years based on your preferences if you go for the Reliance Nippon Life Endowment Plan. You can also choose your own Premium Payment Mode depending on whether you want to pay your premium annually, semi-annually, quarterly or monthly.
• Free Look Period: In case the terms and conditions of this policy are such that you do not agree with them, you can cancel this policy by sending back the documents of the policy to the provider within 15 days of receiving it. This is called free look period (applicable to all distribution channels except Distance Marketing channel for which it is 30 days). In this situation, the provider happens to refund the premiums paid by you with certain conditions.
• Grace Period to Pay Premiums: In case you missed paying the premium by the mentioned due date, you get a grace period of 30 days from the due date of payment of premiums. This is valid for premium paid annually, half-yearly or quarterly. In case the premiums to be paid are on a monthly basis , the grace period will be 15 days.

Riders under Reliance Nippon Life Endowment Plan 

You can also go for additional benefits within this insurance plan in the form of riders. This can be enjoyed within the payment term and only on the payment of additional premium apart from the ongoing base premium. This depends on factors like entry age, policy term and Sum Assured.

The Sum Assured for the rider cannot be higher than that given on the death under the base plan. Even the payment term of premium for the rider should not be more than that of the Base Plan. These additional benefits end the moment you surrender the base plan.

Also Know: Reliance Nippon Super Endowment Plan

Surrender Value for Reliance Nippon Life Endowment Plan

For any reason, if you want to surrender the policy, you also have that benefit, though with certain terms and conditions. On surrendering the policy,  you receive the Surrender Value. The Surrender

Value is higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) of the policy.

One can get this Surrender Value only on the full payment of first Annualised Premium.

However, if the policy is surrendered before the completion of three years of the Policy, the applicable Surrender Value will be paid only after 3 years of buying the policy, provided the first Annualised Premium is fully paid.

Consider this scenario. In case the Life Assured dies before the completion of 3 years of the policy, he/she will get the applicable Surrender Value.

Revival of Reliance Nippon Life Endowment Plan

In case a policy lapses, it can be reinstated within 2 years. This can be done by paying the arrears of premium(s) and the interest at the rate of 9% p.a. It will be considered valid from the due date of the first unpaid premium,  but before the maturity date.

However, the revival of the plan depends on the valid underwriting policy of the Provider’s Board. For instance, a medical test for the Life Assured, etc. The Company can also revise the applicable interest rate. And this depends on various factors like economic environment and experience.

Also Read: Reliance Bluechip Savings Insurance Plan

Benefits of Reliance Nippon Life Endowment Plan 

The Reliance Nippon Life Endowment Plan offers a range of benefits to the policyholders. Some  of them are:

Maturity Benefit: If the Life Insured survives the policy term and all due premiums have been paid then he/she is eligible to receive the Maturity Benefit calculated as:

• Base Sum Assured + Vested Bonuses OR
• 101% of all the premiums paid excluding the top-up premiums, GST and other levies

Death Benefit: In the case of the unfortunate death of the policyholder before the end of the policy term, the nominee will be paid Death Benefit, which is calculated as:

• Higher of Base Sum Assured or 10 times Annualised Premium + Vested Bonuses OR
• 105% of the total premiums paid excluding top-up premiums, GST and other levies (until the date of death of the policyholder)

Reversionary Bonus: The Reliance Nippon Life Endowment Plan participates in the company’s profits and the policyholders are eligible to receive the bonus declared by the company at the end of every financial year depending on the company’s performance and the prevailing market conditions. Known as the Reversionary Bonus, it is credited to the policy and is payable at maturity, surrender or death, if earlier. Once the bonus is declared and credited, it becomes a guaranteed benefit.

Loan Facility: Once your insurance plan acquires a Surrender Value, you can avail a loan against it subject to a maximum of 80% of the Surrender Value of the base plan. The minimum loan amount is Rs. 1,000.

Tax Benefit: Reliance Nippon Life Endowment Plan offers tax benefits under Sections 80C and Section 10 (10D) of the Income Tax Act, 1961 to the policyholder subject to the fulfilment of terms and conditions prescribed.

Also Read: Reliance Nippon Life Insurance Money Back Plans

Documents 

In the event of claim for maturity benefits or death benefits, policyholders need the documents mentioned below:

• List of documents for Maturity Benefits:

1. Original Policy Document
2. Discharge Form
3. Address Proof
4. Identity Proof
5. ECS mandate/Canceled Cheque/Self-attested passbook copy of the claimant
6. Any other documents, as and when required by the company

• List of documents required for Death Benefits:

1. Original Policy Document
2. Original Death Certificate
3. Discharge Summary
4. Hospitalization Document
5. Claim Form (A) to be filled by claimant

Also Read: Reliance Nippon Life Term Plan

FAQs

Q1. What are the Premium Payment Modes available for the Reliance Nippon Life Endowment Plan?

You can pay your insurance premium on either yearly, half-yearly, quarterly or monthly basis. Loading charges on premium payment are calculated as mentioned here:

Premium Payment Mode	Loading on Premium
Annually	Yearly Premium
Semi-annually	51% of Yearly Premium
Quarterly	26% of Yearly Premium
Monthly	1/12 of Yearly Premium

You can only pay your premium on a quarterly or monthly basis if you pay your premium electronically.

Q2. Can I avail a loan against the Reliance Nippon Life Endowment Plan? What is the maximum loan amount I can avail on this insurance plan?

Yes, you can apply for a loan against your Reliance Nippon Life  Endowment Plan once your policy has acquired a Surrender Value. The maximum loan amount available is 80% of the Surrender Value of the plan while the minimum loan amount is Rs. 1,000. If the outstanding loan amount exceeds the Surrender Value of the loan at any time during the policy term then the policy will lapse and the benefits will cease automatically.

Q3. What is the difference between a Lapsed policy and a Paid-up Policy?

An insurance policy acquires a Lapsed or Paid-up status if the policyholder does not pay due premiums on time. Here are a few details you need to know about lapsed and paid-up policy:

Lapsed Policy:

• If the first Annualised Premium is not paid in full then the insurance policy lapses at the end of the grace period which is up to 30 days from the due date of the last unpaid premium. In this case, benefits are not payable if the policyholder does not revive the policy within the revival period by paying the due premiums with interest to the company.
• If the first Annualised Premium has been paid in full but the next two have not been paid in full then the insurance cover ceases to exist at the end of the grace period. The policy will acquire a Surrender Value in this case which is payable at the end of the revival period or after the completion of 3 policy years, whichever is later.
• If the lapsed policy is not revived within the revival period then it is terminated.

Paid-up Policy:

• If the first three Annualised Premiums have been paid, the insurance policy acquires a Surrender Value. However, if the subsequent premiums are not paid then the policy acquires a Paid-up status and the Sum Assured is reduced to the Paid-up Sum Assured.
• The bonuses already attached to the policy are payable but the policy stops participating in the future profits of the company.
• A Paid-up policy can be revived during the revival period subject to the company’s underwriting policy. The revival period is two years from the due date of the last unpaid premium but before the maturity date.

Q4. How can I contact a Reliance Nippon Life representative?

You can also get in touch with the representatives of the Reliance Nippon Life company in the ways mentioned here:

Call	Within India: 1800 102 1010 (Toll-free)
	Outside India: +91 22 4882 7000
	For claim-related queries: 1800 102 3330, 022 3000 2700
Email	rnlife.customerservice@relianceada.com

Q5. Can I change the Sum Assured or Policy Term of my insurance policy during the policy term?

No. You cannot change the Sum Assured or Policy Term after the commencement of the policy.

Q6. Can I reinstate an insurance policy that I have surrendered?

No. You cannot reinstate a policy that has been surrendered. This is because the policy is terminated once it is surrendered and the associated benefits of the insurance plan also cease automatically.