Investment Plans 1736 views November 30, 2020

Reliance Nippon Life Milestone Plan

When you see your life closely, you will realize it is a mixture of milestones at different points. Every individual wants to prepare for these milestones and financial goals. With the Reliance Nippon Life Milestone Plan, you can ensure that your family can get to these milestones without any problem even when you are not around. This non-linked, participating, individual, savings life insurance plan helps accumulate lump sum benefit at maturity and lump sum insurance cover in the case of any unfortunate eventualities.

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One of the best features of the Reliance Nippon Life Milestone Plan is that individuals can choose from two options – Life Option and Life Plus Option. In the latter option, a proposer is a person other than the life assured who is responsible for paying the premiums. You can choose the option at the time of policy inception. However, you can’t change the option at a late date.

Want to know more features of this Reliance Nippon Life Insurance plan? In this article, we will discuss the same along with its benefits, eligibility, etc. Read on to know more!

Key Benefits of Reliance Nippon Life Milestone Plan

Want to choose Reliance Nippon Life Milestone Plan? Well, before this, you should know its key benefits so that you can understand better. We are showing them below. Do check!

  1. You will get a Lump Sum benefit at the time of maturity of your policy with which you can meet your financial goals and milestones
  2. You can also convert this lump sum amount into regular income with the settlement option for a period of 5, 10, or 15 years on an annual, half-yearly, quarterly, or monthly basis with a minimum amount of INR 5,000
  3. Remember your premiums will vary according to the plan you choose from- Life and Life Plus option, the two options which we told above
  4. Under the Life Plus option, individuals can also get a waiver of premium benefit rider that will protect your family, in case you are not around
  5. With Reliance Nippon Life Milestone Plan, you can enhance your savings with an accumulated bonus from the first year onward of your policy
  6. One of the best features of this plan is that you can choose to pay premiums for 5, 7, 10, or 15 years according to your financial goals
  7. Tax benefits up to INR 1,50,000 are also available on the premium paid toward the policy and the maturity payouts under different sections of the Income Tax Act, 1961
  8. Policyholders can also get a loan amount up to 80% of the surrender value until maturity at an interest rate of 9% per annum for FY 2019-20

Let’s know the Benefits in Detail!

If you want to understand several benefits of the Reliance Nippon Life Milestone Plan in detail, you can look at below where we are showing them.

Maturity Benefit

If the policyholder survives until the maturity of the policy (if the policy is in force and all due premiums have been paid), the company will provide the sum of the following benefits.

  1. Basic Sum Assured on Maturity
  2. Accumulated Compounded Reversionary Bonus (if any)
  3. Terminal Bonus (if any)

Bonus Benefits

As you must have seen the two bonus benefits with Reliance Nippon Life Milestone Plan, let’s understand what are these benefits? Compounded Reversionary Bonus is a percentage of the basic sum assured and accumulated reversionary bonus. While the terminal bonus will be paid on maturity, death or surrender from the end of the premium payment term of fully-paid up policies. Remember that both these benefits are not guaranteed benefits and depend on several factors.

Death Benefit

Reliance Nippon provides death benefits according to the option one chooses in the case of the demise of the insured person. We are showing them below. Please check. Under both the options, the insured person will receive the higher of the following two options.

  1. Sum Assured amount on Death plus Accumulated Compound Reversionary Bonus and Terminal Bonus (if any)
  2. 105% of all the premium until the date of death

However, with the Life Plus Option, if the proposer dies during the premium payment term, all future premiums will be waived off. Life Assured persons will continue to enjoy all the benefits.

Discounts to Have When You Pay High Premiums Towards Your Policy

Reliance Nippon also provides a discount on the premium rates when you choose to pay a higher premium. To know the exact discount, check out the table below.

Annualized Premium Range Discounts (In %)
Less than INR 1,00,000 0%
INR 1,00,000 to less than INR 3,00,000 2%
INR 3,00,000 and above 3%

Reliance Nippon Life Milestone Plan Eligibility Criteria

There are a few conditions that an individual needs to meet before choosing the Reliance Nippon Life Milestone Plan. Want to know them? Have a look!

  1. For the Life Option, the age at entry for Life Assured ranges from 8 to 60 years according to the premium payment term and frequency. The age at maturity ranges from 18 to 75 years of age.
  2. For the Life Plus Option, the age at entry for the Life Assured ranges from 8 to 45 years according to the premium payment term and frequency. The age at maturity ranges from 18 to 65 years. However, for the proposer, the age at entry ranges from 18 to 55 years, and maturity age ranges from 28 to 55 years.
  3. The premium payment term will be 5, 7, 10, and 15 years for the policy term of 10, 12, 15, and 20 years.
  4. The minimum premium amount for your policy stands at INR 50,000, while there is no maximum limit.
  5. Policyholders can choose to pay the premium from Annual, Half-yearly, Quarterly and Monthly mode options.

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