Investment Plans 372 views December 2, 2020

Reliance Nippon Life Lifelong Saving Plan

We all dream of a better future, but sometimes due to unexpected events, we find it hard to meet them. In such situations, our savings are exhausted and our future gets compromised to an extent. But don’t worry, with the Reliance Nippon Life Lifelong Saving Plan, you can tide over such uncertainties and achieve your goals easily. Reliance Nippon Life Lifelong Saving Plan is a Non-Linked, Participating, Individual, Savings Life Insurance Plan that helps an individual plan for his/her family’s future whether it is retirement, child education, marriage, etc. Under Reliance Nippon Life Lifelong Saving Plan, you will have two options – either you can choose a standard plan or an extended plan. On a standard cover, the insured will get a lump sum amount on maturity and get financial cover for his/her family in case he/she dies during the Policy Term. On the other hand, if you have chosen the extended cover, you will get a lump sum amount on maturity and can have financial cover for families even after the Policy Term. Read this post to collect more information on this policy.

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Maturity Benefit

If your all due premiums paid in full and the policy is in force, you will receive the

Sum Assured on Maturity + Vested Reversionary Bonuses and Terminal Bonus (if any)

Your Sum Assured on Maturity is equal to the Base Sum Assured plus all the payable Guaranteed Additions.

If you have the Standard Cover Option, the policy will terminate after the payment of the maturity benefit. Under an Extended Cover Option, the maturity benefit will be payable at the end of the policy term. After the expiry of the policy term, no maturity benefit will be payable. Only the death benefit is active in the extended period, which the nominee will receive.

Death Benefit

If the Life Assured dies during the policy term, provided that the policy is in force on the date of death and all due premiums paid in full, your nominee will get the following benefits based on the cover option of the Life Assured:

  •  If Life Assured Dies During the Policy Term (For both Cover Options)

Death Benefits = Sum Assured on Death + Vested Reversionary Bonus + Terminal Bonus (if any)

  • If Life Assured Dies After the Policy Term (Extended Cover Option)

Death Benefit = Base Sum Assured.

This extended cover option Death Benefit is subject to a minimum of 105% of Total Paid Premiums till the date of death. And the policy will terminate after the Death Benefit payment.

Guaranteed Additions

Under Reliance Nippon Life Lifelong Saving Plan, the Life Assured gets Guaranteed Additions. And it is calculated at a simple rate of 4% p.a. of the Base Sum Assured at the end of each Policy year. This benefit is provided during the first five policy years if the policy is in force and all due premiums paid till that point of time.

Bonuses

A simple reversionary bonus will accrue on Reliance Nippon Life Lifelong Saving Plan every year, starting from the sixth policy year till the end of the term if the policy is in force and all due premiums paid. The terminal bonus on Reliance Nippon Life Lifelong Saving Plan, if any, will be payable on death or maturity starting from the ninth policy year if the policy is in force and all due premiums are paid.

Note – Reliance Nippon Life Lifelong Saving Plan Terminal bonus declared as a percentage of the Vested Reversionary Bonus.

Points to Remember

  1. Cover Options: The Life Assured must choose between Standard and Extended Cover Options at the time of Policy inception.
  2. Premium Payment Term: You can choose to pay the premium either for a limited period of 10 years or a regular payment for the entire policy term.
  3. Premium Payment Mode: Yearly, Half-yearly, Quarterly or Monthly
  4. Liquidity: Life Assured can borrow a loan against his/her policy once the policy acquires a surrender value. The loan limit is a maximum of 80% of the surrender value.
  5. Riders: Under the Reliance Nippon Life Lifelong Saving Plan riders will be allowed as and when they are approved by the IRDAI. You can choose your riders at the inception of the policy or any subsequent policy anniversary year.
  6. Grace Period: You have 30 days to pay your due premiums starting from the date of the first unpaid premium (for a monthly premium payment mode, the grace period will be 15 days only).
  7. Free Look Period: Within 15 days of policy receipt, you can cancel the policy if you have any disagreements with its terms & conditions.The free look period can extend to 30 days if the policy is obtained through Distance Marketing mode. The company will refund the paid premium after deducting the risk premium, medical examination fee, and stamp duty charge if you cancel the policy during this period.
  8. Exclusion: If the Life Assured commits suicide within 12 months from the date of commencement of risk or policy revival and dies, the nominee or beneficiary of the policyholder is entitled to at least 80% of the Total Paid Premiums or the policy surrender value as on the date of death, whichever is higher.
  9. Revival: Lifelong Saving Plan revival period is for 5 years starting from the due date of the first unpaid premium or date of maturity (whichever is earlier).
  10. High Sum Assured Discount: A discount per thousand Sum Assured is applicable for premiums, excluding the underwriting extra premiums and rider premiums (if any)
  11. Lapse: If you haven’t paid Reliance Nippon Life Lifelong Saving Plan premiums for the first two consecutive years, the policy will lapse at the end of the grace period.
  12. Tax Benefits: You can claim tax deductions for the payment of Reliance Nippon Life Lifelong Saving Plan premiums as per the prevailing income tax laws. These tax benefits are subject to change from time to time, so it would be better if you take expert advice on this.

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