Reliance Nippon Smart Pension Plan: Features & Review

Updated: 28-02-2024 12:45:33 PM

The insurance sector of India has experienced a significant growth in the recent years. Many insurance products are introduced each year leading to a tough competition among the insurance providers. Reliance Nippon Life Insurance Company is a reputed name in the insurance sector with many insurance related solutions to suit everyone’s needs. With above 10 million policyholders in more than 800 branches, the company has evolved to be one of the dominant non-bank aided private life insurance company. Reliance Nippon Life Insurance Company offers a wide range of insurance products to their customers based on their varying requirements, viz. Protection Plans, Solutions for Groups, Retirement Plans, Health Plans, Child Plans, Unit Linked Plans, Savings, and Investment Plans. The Reliance Nippon Smart Pension Plan is a non-participating unit-linked insurance plan from Reliance Insurance Company which provides insurance cover and helps to maximize your wealth.

What is the Plan all about?

 

The Reliance Smart Pension Plan offers a guaranteed regular income to its policyholder post-retirement. The term of the smart pension policy ranges from 10 years to 30 years, and the plan attracts loyalty additions along with the flexibility to accelerate the gathered funds with top-ups. The vesting age initiates from 45 years and the maximum age for vesting is 75 years. Additionally, you get the facility to make 1/3^rd partial withdrawals from the accumulated funds, tax-free.  As per Section 80C of the Indian Income Tax Act, you can also avail tax deductions by investing in this plan.

Why should you have a Pension Plan?

When you plan for your retirement years, a pension plan would be one of the crucial factors. Pension plans offer financial security in your retirement years when you lack a regular income from your job or other sources. Pension plans promise you a regular income if you wish for an independent and stress-free life after retirement. Although retirement planning has a long-term objective, it calls for a wise and observant outlining. The Reliance Smart Pension Plan will assure you financially qualified planning for the unpredictability of your life ahead, especially after retirement.

Key Features of the Plan

 

1. The Reliance Smart Pension Plan is a unit-linked plan.
2. You have the option to choose the mode of premium payment from a single, regular and limited term.
3. Even though your account did not accumulate enough corpus, you will get the minimum assured value as returns with the guaranteed returns facility.
4. The premiums paid are invested in the Pension Smart Fund 1
5. Three options are available for receiving the annuity:

• Option I: Life Annuity

The annuity is paid to the policyholder till he/she is alive. No annuity shall be paid after the death of the policyholder

• Option II: Assured Life Annuity for 5, 10, or 15 years

The annuity is affirmed for 5, 10, or 15 years and then the annuity is regularly paid for a lifetime. In case the insured dies between the guaranteed annuity period, the annuity is still paid to the designated nominees.

• Option III: Life Annuity with Purchase Price Return on DeathThe annuity is paid regularly until the demise of the policyholder, and after that, the purchase price is payable to the nominee.
• If the policyholder fails to make the premium payment on time, a grace period of 15 days for monthly payment and 30 days for other payment is provided. However, it is important to make premium payment in the grace period, without which the policy will have lapsed.

 

• After 5 policy years, the policyholder has the option to surrender the policy. This surrender value can either be used to purchase a deferred annuity plan or trade 1/3^rd of the accumulated corpus and use the rest to purchase annuity plan.

 

• If you aren’t satisfied with the policy terms and conditions, you have an option to return the pension policy to the insurer within 15 days of receiving the receipt of the policy documents.

 

 

Benefits of the Plan

1. A higher of the total unit account balance or 101% of all the paid premiums will be payable at the time of maturity of the plan to the policy holder. Following are the ways one can use their survival benefit Purchasing an immediate annuity

• ByPurchasing a single premium deferred pension plan from the insurance company to utlize the entire and remaining proceeds
• If you are younger than 55 years, you can extend the deferment period.

2. In the incident of the policyholder’s death, a higher fund value of 105% of the total paid premiums till the date of intimation of death will be payable. The nominee can choose to receive this money in a lump sum amount or in the form of annuity payments.
3. The policy holder will get income tax benefits on the traded percentage of money under Section 10(10A) of the Income Tax Act as well ason the premiums paid under the Section 80C of the Income Tax Act of India.
4. After the 6^th policy year, loyalty additions @ 1% will be added to the accumulated corpus. This ratio increases by 1% after every 3 years.
5. In order to increase your corpus, you can make additional premium payments with the top-up facility. However, the minimum top-up amount is mandatorily Rs. 5000.
6. In case of a suicide attempt within 12 months of the inception of the policy, the fund value accumulated till then is payable.

Eligibility to Apply for Reliance Smart Pension Plan

 

Entry Age	Min: 18 years Max: 65 years
Maturity/Vesting  Age	Min: 45 years Max: 75 years
Policy Term (PT)	Single Payment Min: 10 years Max: 30 years Limited Payment/Regular Payment Min: 15 years Max: 30 years
Premium Paying Term (PPT)	Min: 10 years Max: 30 years
Premium Paying Frequency	Monthly Quarterly Bi-Annually Annually
Yearly Premium	Premium Paying Term Min: 10 years to 14 years Max: No limits		Premium Paying Term Min: 15 years to 19 years Max: No limits		Premium Paying Term Min: 20 years and more Max: No limits
Limited Premium	Monthly	Min: Rs. 4000 Max: No limits		Min: Rs. 4000 Max: No limits	Min: Rs. 3000 Max: No limits
	Quarterly	Min: Rs. 12,000 Max: No limits		Min: Rs. 12,000 Max: No limits	Min: Rs. 6000 Max: No limits
	Bi-Annually	Min: Rs. 24,000 Max: No limits		Min: Rs. 24,000 Max: No limits	Min: Rs. 12,000 Max: No limits
	Annually	Min: Rs. 48,000 Max: No limits		Min: Rs. 48,000 Max: No limits	Min: Rs. 24,000 Max: No limits
Regular Premium	Monthly	NA		Min: Min: Rs. 3000 Max: No limits	Min: Rs. 2000 Max: No limits
	Quarterly			Min: Rs. 9000 Max: No limits	Min: Rs. 5000 Max: No limits
	Bi-Annually			Min: Rs. 18,000 Max: No limits	Min: Rs. 10,000 Max: No limits
	Annually			Min: Rs. 36,000 Max: No limits	Min: Rs. 20,000 Max: No limits
Single Payment		Min: Rs. 50,000 Max: No limits
Annuity Per Annum		Policy Term: 15 Years @ 8% Rs. 81, 880 Policy Term: 15 Years @ 4% Rs 58,896 Policy Term: 20 Years @ 8% Rs. 1,39,891 Policy Term: 20 Years @ 4% Rs 89,543
Fund Value @ 8%		Policy Term: 15 Years Rs. 1,23,466 Policy Term: 20 Years Rs. 19,31,443

 

How to apply for Pension Plans from Reliance Insurance Company?

You can apply for Reliance Insurance pension plans through an online medium. The policyholder needs to:

1. Log in to the website
2. Choose the retirement plan as per the requirement
3. Choose the coverage
4. Submit a few necessary details
5. The premium can be determined with the provided details
6. The applicant then pay the premium online using a credit card, debit card, or net banking

As soon as you complete the steps mentioned above, your policy shall be issued. In case you do not find a few retirement plans for the online purchase, you can purchase it from banks, brokers, agents, etc. who can aid in finishing the application process of availing the pension plan from Reliance Insurance Company.

Frequently Asked Questions

1. What are the consequences of discontinuing the premium payment?

If you discontinue the premium payment, you will be provided with a grace period of 15-30 days as per your plan. It is ideal to pay the premium at the least in this grace period but if you fail to do so, your policy will be  lapsed. However, you have got the option to revive the lapsed policy within two years of the policy lasing date provided the insurer is convinced with a valid reasoning proof for not making the premium payment during the grace period. For this, you need to pay the remaining premiums of the plan with the prevailing rate of interest.

2. What are the modes available for premium payment for Reliance Smart Pension Plan?

You can make premium payments in two modes, they are:

• Net banking facilities.
• Debit card or credit card payment

 

3. How can I contact Reliance Insurance Company to avail the Reliance Smart Pension Plan?

You can contact the Reliance Insurance Company by calling the toll-free number, 1800 102 1010. For customers outside India, the customer care number is (+91) 022 4882 7000. For queries regarding your claims, you can contact the numbers, 1800 102 3330 and 022 3000 2700. However, justmake sure that you make the calls in between 9:00 am to 6:00 pm (IST) from Monday to Saturday excluding the national holidays. Also, you need not add any prefix for making domestic calls.