Reliance Nippon Fixed Savings Plan

Updated: 05-04-2019 10:00:59 AM

Reliance Nippon Life Insurance Company is one of the leading private sector life insurance service providers in the country. With more than 700 branch offices across the country, the insurance company serves to millions of customers. It provides life insurance solutions in 5 distinct segments – savings and investment, protection, retirement, child, health (for individuals, groups and corporate entities). In savings and investment category, they provide a total of 15 life insurance plans along with the Reliance Nippon Fixed Savings Plan which is designed to cater to the diversified needs of its extensive customer base.

Reliance Fixed Savings Insurance Plan

This is a non-participating, non-linked and non-variable endowment life insurance plan designed to help the customers build a strong corpus to face several uncertainties and unexpected expenses in the future. This plan helps the policyholder plan systematically over a period of time to make the most of this plan.  It provides the policyholder with guaranteed benefits along with fixed additions, additional and lump sum benefit at the end of the policy year and life insurance cover.

Benefits of Reliance Fixed Savings Plan

The insurance plan is aimed at providing various benefits to the insured and their family members and focuses on ensuring a stable financial scenario post-retirement or during an immediate financial need. The following are the benefits offered by Reliance Nippon Life under this plan:

Fixed Regular Additions: On survival of the policy owner till the beginning of the last policy term, the accrued fixed regular additions will be paid by the insurer on the first day of that policy term. This benefit is a percentage of annualised premiums as specified in the table below:

Policy Year/Term	1	2	3 onwards
Fixed Regular Additions (% of the annualised premium)	8%	9%	10%

Maturity Benefit: On survival of the policyholders till the end of the selected policy term, the life insured will get the maturity benefit in the form of guaranteed sum assured. This benefit will be equal to:

• Fixed maturity additions = Maturity factors x annualised premiums
• Annualised premiums x selected premium paying term

Here maturity factor is a percentage of the annualised premiums. This also depends on the entry age of the policy owner, chosen policy term, premium payment term and the death benefit option selected.

Death Benefit: In case of an unfortunate event like death of the policy owner during the policy tenure, the legal heir or nominee will get the death benefit. This particular benefit will be the maximum of the following:

• 105% of the total premiums paid (excluding the under additional premiums as on the date of the policyholder’s death)
• Sum assured benefit on death

Along with above-listed benefits, accrued fixed regular additions (till the date of death) will be paid, if not paid before. Apart from this, sum assured on death is usually the highest of:

• Guaranteed sum assured on maturity
• Annualised premiums x death benefit (as per the selected death benefit)

Death benefit can be selected on the basis of applicant’s entry age, policy term and premium payment term. Refer to the following table for more details:

Options  of Death Benefit	Multiples of Death Benefit	Policy Term	Premium Payment Term
			5	7	10
7x	7	12	45-58	45-60	NA
		15	45-60
		20		56-60
10x	10	12	8-44	8-55	8-59
		15			8-60
		20

One point to keep in mind is that the death benefit chosen at the beginning cannot be changed later or during the policy term.

Tax Benefit: Premiums paid under this insurance plan are eligible for tax benefits. However, the exemptions are subject to the prevailing and applicable income tax laws and its conditions. Income tax benefits under this life insurance plan will be provided on the basis of extant tax laws.

Eligibility of Reliance Fixed Savings Plan

Particular	Details
Entry Age	8-60 years
Maturity Age	20-80 years
Policy Term	12, 15 and 20 years
Premium Paying Term	5, 7 and 10 years
Annualised Premium Amount	Rs. 25,000 – No upper limit
Premium Payment Options	Limited pay
Premium Payment Frequency	Monthly, quarterly, half-yearly and yearly

How Reliance Fixed Savings Insurance Plan Works?

To understand how this plan actually works, let us take an example:

Abhinav is a 30-year old healthy working professional. He opts for this insurance plan and chooses policy term of 20 years and premium payment term of 7 years. He pays annual premium of Rs. 50,000 (exclusive of all taxes).

He will get the fixed regular addition which is a percentage of the annualised premium. This addition will be as the following:

• During the 1^st year of the policy: 8%
• During the 2^ndyear of the policy: 9%
• From the 3^rd year of the policy: 10%

On survival till the beginning of the last year of the policy, Abhinav will get the accrued ‘Fixed Regular Additions’. On maturity, he will receive the ‘Guaranteed Sum Assured’ at the end of the policy term, which is equal to the following:

• Fixed maturity addition = annualised premium x maturity factor
• Annualised premiums x premium payment term

Now, look at the following two possible scenarios:

Scenario 1: If Abhinav survives till maturity

Maturity Benefit	Amount
Annualised premium x premium payment term	Rs. 3,50,000
Fixed maturity additions	Rs. 2,67,025
Total Benefit	Rs. 6,17,025

 

Fixed Regular Additions	Amount
Accrued fixed regular additions	Rs. 98,500

Scenario 2: In case the life insured passes away during the policy term, legally appointed nominee or beneficiary will get a lump sum amount in the form of death benefit.

Frequently Asked Questions

Q1. Which riders can a policyholder add to their Reliance Nippon Life Fixed Savings Insurance Plus Plan?

A policyholder can enhance the coverage of their insurance plan by opting for a rider benefit. The riders’ options one can add to their insurance plan are:

• Reliance Nippon Life Term Life Insurance Benefit Rider
• Reliance Nippon Life Major Surgical Benefit Rider
• Reliance Nippon Life Critical Conditions (25)
• Reliance Nippon Life Family Income Benefit Rider
• Reliance Nippon Life Accidental Death Benefit Rider
• Reliance Nippon Life Accidental Death and Disability Rider
• Reliance Nippon Life Accidental Death and Disability Plus Rider

Q2. How to contact Reliance Nippon Life?

The insurance company provides several convenient ways for this. One can contact Reliance Nippon Life Insurance Company through:

Call: 1800 102 1010 (toll-free), (+91) 022 4882 7000 (for customer outside India), 1800 102 3330 and

022 3000 2700 (for claim-related queries)

Email: rnlife.customerservice@relianceada.com

Q3. How to find the nearest branch of Reliance Nippon Life Insurance Company?

It is quite a simple process to find or locate the nearest branch office of Reliance Nippon Life. One can use the branch locator tool on the official website of Reliance Life for quick and accurate results. Here are some simple steps to follow:

• Visit the official site of Reliance Nippon Life or click on www.reliancenipponlife.com
• On the top of the homepage, you will get to see the option ‘Branch Locator’, click on it
• A new page will open. Enter your city and state to get the address details of Reliance Nippon Life branches near you.

Q4. How to surrender an insurance policy?

One may surrender their insurance policy after the lock-in period is over. To surrender an insurance plan, the policyholder needs to submit a duly filled and signed ‘Surrender Request Form’ along with their savings bank account details, policy document, a cancelled cheque and self-attested copies of Know-Your-Customer (KYC) documents at their nearest Reliance Nippon Life branch.

The request will only be processed in the next 7 working days from the date of receiving the request. For more details on the same, it is suggested to refer to the policy document.

Q5. How to change the nominee of the insurance policy and the address of the life insured?

One can change their nominee anytime even during the policy term as well. To request the change, they just need to submit a duly filled and signed ‘Nomination Form’ along with the self-attested copies of KYC documents i.e. ID and address proof at the nearest branch of Reliance Nippon Life. The insurance will update the nominee details within 2 working days from the date of receiving the application.

For the address change, fill out the address change request form and submit it along with the new address proof. This change will also be updated in the records within 2 working days.