Investment Plans 889 views November 30, 2020

Reliance Nippon Life Increasing Income Insurance Plan

You must have planned for a bigger house, an expensive car, or your child’s admission to the best college in the future. But are your savings enough to fulfill your dreams? No! With Reliance Nippon Life Increasing Income Insurance Plan, you can plan a guaranteed income for the future that helps fulfill such dreams. This is a non-linked, non-participating, life insurance plan that ensures a lump sum for you at the end of the policy term. Along with good returns, the insurance plan safeguards the family of the insured in case he/she dies during the policy term. Read this article to further to know the details of this insurance plan.

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Key Benefits

  1. Option to choose from two income plans
  2. Guaranteed Monthly income
  3. Flexible Premium Payment Term
  4. Protection to your family
  5. Tax Benefits

Policy Benefits

As per your requirements, you can choose any of the following income options at the time of inception:

  1. Income with Maturity Benefit: A regular monthly income which increases every policy year, and at maturity, you will receive a lump sum amount
  2. Only Income: A higher regular monthly income that increases every policy year.

Guaranteed Monthly Income Benefit

You will receive a Guaranteed Monthly Income after the end of the Premium Payment Term.

  1. Income with Maturity Benefit Option: A Guaranteed Monthly Income of 1% of your policy Base Sum Assured. This will increase by 0.25% in the subsequent policy years at a simple rate of interest.
  2. Only Income Option: A Guaranteed Monthly Income of 2% of your policy Base Sum Assured. This will increase by 0.50% in the subsequent policy years at a simple rate of interest.

Reliance Nippon Life Increasing Income Insurance Plan Maturity

On policy maturity, a Maturity Benefit is applicable if you have chosen the Income with Maturity Benefit option. The benefit is also subject to the policy being in force with all due premiums having been paid. The Guaranteed Sum Assured on Maturity is defined as follows:

  • It is equal to 2X of the Base Sum Assured

Note – In Income Option, you won’t get any Maturity Benefit

What if Insured Dies?

In an unfortunate demise of the insured during the policy term, provided the policy is in force and all due premiums have been paid, the claimant will receive the following benefits based on their selected Death Benefit Option –

Death Benefit Option 11X

The higher of the following two will be payable to the claimant

  1. Sum Assured on Death
  2. 105% of total paid premiums

Sum Assured on Death is the highest of the following three –

  1. 11X Annualized Premium
  2. Base Sum Assured
  3. Guaranteed Sum Assured on Maturity

Death Benefit Option 7X

The one is payable whichever is higher of the following:

  1. Sum Assured on Death
  2. 105% of total paid premiums

Sum Assured on Death is the highest of the following three

  1. 7X Annualized Premium
  2. Base Sum Assured
  3. Guaranteed Sum Assured on Maturity

The death benefit under Reliance Nippon Life Increasing Income Insurance Plan is payable irrespective of any already paid Guaranteed Monthly Income benefits. Once the death benefit is paid, the policy will terminate. You can choose your death benefit option at the inception of the policy.

Reliance Nippon Life Increasing Income Insurance Plan Riders

The optional riders will be allowed under the policy as and when it is approved by the IRDAI. You can select the riders at the time of policy inception or on any subsequent policy anniversary year. Please note that the Rider Sum Assured cannot be higher than the Sum Assured on Death (base policy). The optional riders will be offered only where the outstanding Premium Payment Term is for a minimum of 5 years.

Premium Payment Term for riders cannot be more than the Premium Payment Term of the base policy. And your policy riders will terminate immediately if the base policy has lapsed, surrendered or forfeited.

Exclusions

In case the insured dies due to suicide within 12 months from the date of policy risk commencement or the date of revival, the nominee or beneficiary will get at least 80% of the Total Paid Premiums or the surrender value (as on the date of death whichever is higher) if the policy is in force.

Free Look Period

In case of disagreement with the company terms or conditions, you can cancel the plan by stating the reasons for your disagreement within 15 days of the free look period. This free look period can be extended to 30 days if the policy has been obtained through Distance Marketing mode.

When the company receives such notice, they will refund the paid premium amount after deducting a proportionate risk premium, medical examination, and stamp duty charges.

Note – If you get this policy through an Insurance Repository (‘IR’), the computation of the said Free Look Period will be from the date of the email informing policy credit in IR.

Tax Benefits

The premium payable under this insurance plan makes you eligible for tax exemptions as per the applicable tax laws and conditions. Tax benefits may change from time to time by the government of India.

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