Reliance Life Pension Plans

4.9 / 5 based on 4 User Reviews
*Please note that the quotes shown will be from our partners

Reliance Life Insurance Company Limited is part of Reliance Capital which belongs to the Reliance Group of Industries. The Reliance Group was founded by Dhirubhai Ambani, one of the most respected industrialists of his time. Reliance Life Insurance is today counted among the top 5 life insurers in the sector in context of the Weighted Received Premium (WRP) and new business WRP. The company is the largest non-bank supported private life insurer having a customer base of over 10 million policy holders, a pan India presence of over 800 branches and a Claim Settlement Ratio of 93% as on June 30, 2015. As per the Brand Equity-Nielsen Most Trusted Brands Survey 2014, Reliance Life Insurance was ranked the top 2 most trusted private life insurance service brand.

What are Pension Plans?

Reliance retirement plans or pension plans provide for annuity payouts post retirement when the income of a person stops. Some common features of these Reliance retirement plans are discussed below:

  • There are two available plan variants of Deferred Annuity and Immediate Annuity in Reliance retirement plans
  • Deferred Annuity plans promise annuity payments after a deferment period (waiting period) where the policyholder is supposed to make premium payments. If he dies, a death benefit will be paid to him. When the tenure ends, it is called Vesting and annuity payouts commence.
  • Immediate Annuity plans promise payouts soon post the premium is deposited with the insurer and annuity stop when the annuitant dies
  • Annuity payouts are taxable in the annuitant’s hands. Only the withdrawn part allowed up to 1/3rdpart of the corpus is tax free.

Reliance Life Pension Plans

Reliance Life Insurance Company offers two types of Pension Plans. One Reliance retirement plan is a traditional annuity plan while the other is a Unit Linked Insurance Plan which builds a corpus through market participation. Both Reliance retirement plans offered by the company help an individual to lead a comfortable retired life. Let us take a look at the types of Reliance retirement plans offered by the company and the features and benefits of each of these Reliance retirement plans.

Reliance Retirement Plans – Summary

 

Reliance Retirement Plan

Features and Benefits

Eligibility Criteria

  • Reliance Immediate Annuity Plan
  • Annuity payments start immediately after the payment of single premium depending on frequency
  • 3 different choices for annuity payouts under the Reliance retirement plan:
    • Life Annuity
    • Life Annuity with Purchase Price return on death
    • Life Annuity guaranteed for 5 / 10 / 15 years and then payable for life
  • No medical check-up requirement before enrolling in the Reliance retirement plan
  • Single premium does not attract tax under Section 80CCC
  • Entry Age: 20 yrs (min); 80 yrs (max)
  • Annual Premium Amount: Rs.1,000 (min); No limit (max)
  • Purchase Price: Rs. 1 lakh (min); No limit (max)
  • Annuity Payout Frequency: Yearly, half-yearly, quarterly or monthly
  • Reliance Smart Pension Plan
  • Premiums can be paid regularly for the entire tenure, for a limited tenure or at one lump sum
  • Premiums invested in the Pension Smart Fund 1
  • On maturity of the Reliance retirement plan, higher of the Fund Value or 110% of aggregate premiums paid is payable
  • Policyholder can utilise proceeds to avail a Deferred Annuity plan with one-time premium from the company or withdraw 1/3rd amount of the corpus and use 2/3rds for annuity payouts
  • Deferment of vesting age is possible if age of policyholder below 55 years
  • 3 annuity options to choose from under the Reliance retirement plan if policyholder commutes 1/3rd of the corpus and avails annuity from rest:
    • Life Annuity
    • Life Annuity with Purchase Price return on death
    • Life Annuity guaranteed for 5 / 10 / 15 years and then payable for life
  • If the insured dies unexpectedly, an amount that is higher of fund value or equal to 105% of all premiums paid is payable. Nominee in the Reliance retirement plan can take the entire benefit in cash or as pension payouts
  • Loyalty Additions accrue under the Reliance retirement plan @1% from the end of the 6th policy year; increases by 1% after every 3 years
  • Top-ups can be made by paying additional premiums to increase fund value. Minimum value of top-up allowed is Rs. 5,000.
  • Premium paid under this Reliance retirement plan is exempt under Section 80CCC; claim in case of death exempt under Section 10(10D); commuted pension exempt under Section 10(10A)
  • Entry Age: 18 yrs (min); 65 yrs (max)
  • Vesting Age: 45 yrs (min); 75 yrs (max)
  • Policy Term: Single Pay – 10 years, Regular or Limited Pay – 15 years (min); 30 years (max)
  • Annual Premium Amount: Regular pay – Rs.20,000, Limited Pay – Rs.24,000, Single Pay – Rs.50,000 (min); No limit (max)
  • Premium Payment Term: 10 yrs (min); 30 yrs (max)
  • Premium Paying Frequency: Yearly, half-yearly, quarterly or monthly

 

Reliance Immediate Annuity Plan

A Reliance retirement plan which promises annuity payouts right after the payment of single premium called the Purchase Price.

  • Under this Reliance retirement plan, the annuity payments will start immediately from the next chosen frequency (monthly, quarterly, half-yearly or annually) after the payment of single premium
  • There are different choices under this Reliance retirement plan to get the annuity payouts like -
    • Life Annuity
    • Life Annuity where the Purchase Price is returned on death
    • Life Annuity guaranteed for 5, 10 or 15 years and thereafter payable for life
  • There is no requirement of a medical check-up before enrolling in this Reliance retirement plan
  • Under the Reliance retirement plan, the single premium which is paid to secure payouts does not attract tax under Section 80CCC

Eligibility Details

 

 

Minimum

Maximum

Entry Age

20 years

80 years

Annual Annuity Amount

Rs.1000

No limit

Purchase Price

Rs.1 lakh

No limit

Annuity Payout Frequency

Yearly, half-yearly, quarterly or monthly

 

Reliance Smart Pension Plan

A unit linked pension plan which gives growth through market participation as well as a guaranteed benefit to protect against market volatility.

  • The premiums under this Reliance retirement plan can be paid regularly for the entire tenure under the Regular Pay option, for a limited tenure under the Limited Pay option or at one lump sum under the Single Pay option
  • Under this Reliance retirement plan, the premiums paid net of charges are invested in the Pension Smart Fund 1
  • On maturity of this Reliance retirement plan, higher of the Fund Value or 110% of aggregate premiums paid is payable. The policyholder can utilise the maturity proceeds to avail a Deferred Annuity plan with one-time premium from the company or withdraw 1/3rd amount of the corpus thereby leaving 2/3rds for annuity payouts.
  • Under this Reliance retirement plan, deferment of vesting age is possible if the age of the policyholder is below 55 years
  • There are three annuity options under the Reliance retirement plan to choose from if the policyholder commutes 1/3rd of the corpus and avails annuity from the remainder. The options are:
    • Life Annuity
    • Life Annuity where Purchase Price is returned intact on death
    • Life Annuity guaranteed for 5, 10 or 15 years and thereafter payable for life
  • Under this Reliance retirement plan, if the insured meets with unexpected death, an amount which would be higher of fund value or an amount equal to 105% of all premiums paid is payable. The nominee can take the entire benefit in cash or as pension payouts.
  • Loyalty Additions accrue under this Reliance retirement plan @1% from the end of the 6th policy year and thereafter increases by 1% after every block of 3 years
  • Top-ups can be made under the Reliance retirement plan by paying additional premiums to increase the fund value. The minimum value of top-up allowed is Rs.5000.
  • The premium payable for the Reliance retirement plan is exempt under Section 80CCC, the claim received in case of death is exempt under Section 10(10D) while the commuted pension is exempt under Section 10(10A)

 

Eligibility Details

 

 

Minimum

Maximum

Entry Age

18 years

65 years

Vesting Age

45 years

75 years

Policy Term

Single Pay – 10 years
Regular or Limited Pay – 15 years

30 years

Annual Premium Amount

Regular Pay – Rs.20, 000
Limited Pay – Rs.24, 000
Single Pay – Rs.50, 000

No limit

Premium Payment Term

10 years

30 years

Premium Paying Frequency

Yearly, half-yearly, quarterly or monthly

 

Applying For A Pension Plan From The Company:

Online

The company offers specific Reliance retirement plans which are available online only. The customer only needs to log into the company’s website, choose the required Reliance retirement plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued.

Intermediaries

Reliance retirement plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Why Should You Invest in a Pension Plan and When?

A pension plan should be an essential part of your financial planning process if you want to save for your retirement. The plan would provide a financial support in your retirement days when you are threatened with the absence of regular income. You work hard for your entire life to create sufficient investments which would be required for your future. After your retirement your investments should work hard to provide you with enough finances so that the expenses you face in the old age would be easily met. Pension plans ensure the same and provide you with a source of regular income which is guaranteed in nature.

As per the next question as to when should you buy the plan, the answer is simple. Retirement planning is resorted to by individuals in their older middle-ages when retirement is 10-15 years ahead. Ideally, you should make provisions for your retirement through pension plans earlier after you cross 40 years of age. This is because you would have ample time to build a considerable corpus by making small payments over the years which would not pinch your pocket. This would leave you to make savings for those other important financial goals which are to be met in the near future. After you cross the age of 40, there would be about 20-25 years left for your retirement. Buying a longer tenure deferred pension plan would ensure that you utilise these 20-25 years in deferring the plan and making premium payments. Your premiums paid along with the interest that they would earn over this long time horizon would build a sizeable fund which would pay a sizeable pension sufficient to meet the sizeable expenses post retirement.

To know about Reliance retirement plans, check at Reliance Life Investment plans

The Need for Retirement Planning and Therefore Pension Plans

Retirement is a crucial stage in life because one is past one’s prime, the body has aged and continues to do so at a faster rate. One is more susceptible to health issues. Regular income would have stopped in all likelihood.

Though retirement may appear to be far off and is relatively a long-term goal, it requires careful planning. Pension plans such as Reliance retirement plan help ensure that one is financially well prepared for the twilight years so that one can lead a happy stress-free life post-retirement.

The primary reasons why retirement planning, and consequently pension plans such as Reliance retirement plans are required are explained below:

Higher Life Spans

The average life spans are increasing world-over and in India too, leading to longer retirement years. This presents everyone with a unique situation. If not addressed properly and in time, life after retirement may be full of strife, pain and worry. It is extremely important to start investing in a Reliance retirement plan to have a peaceful life.

Inflation

Inflation is the sustained increase in the general level of prices of goods and services. Due to yearly rise in inflation, every rupee buys less goods and services. Therefore, the value of savings will also decrease over time and this will be a big problem during retirement years when a steady source of income has stopped. This makes it vital to plan for life after retirement with the help of Reliance retirement plans to pay the bills and live comfortably. Good retirement planning with Reliance retirement plans will help counter the effects of inflation.

Financial Independence Post Retirement

Nobody likes to be dependent on others for survival, even if is one’s own children. Judicious retirement planning by way of investment in a Reliance retirement plan will ensure financial independence after retirement. That way one can spend money as one deems it fit without answering to someone else.

Maintain Living Standard

Reliance retirement plans provide financial security so that an individual can live with pride without compromising on living standards that he / she has been used to over the years. Retirement planning done well with a Reliance retirement plan ensures that one does not have to resort to living a frugal life by drastically cut down expenses.

Means to Pursue Hobbies

Retirement is a time when one has all the time and not much to do. With plenty of time available, it is a good opportunity to pursue interests and hobbies which one has been avoiding all throughout working years due to lack of time. But the pursuit of any activity requires money. Sound retirement planning by investment in Reliance retirement plans grants the means to pursue a pastime of choice.

Guiding Principles When Buying a Retirement Plan

Retirement planning is a financial responsibility that every person owes to himself / herself and his / her dependent family members. With a marked increase in life expectancy over the decades, inflation and general rise in cost of living, retirement planning has become more important than ever. These reasons are why it should be at the top of every individual’s priority list.

Mentioned below are things to keep in mind while purchasing a Reliance retirement plan:

Start Early

The earlier one starts retirement planning, the better it is. This is because the longer the period of one’s investment, the more one will accumulate. How and why? This is made possible by the principle of compounding. Compounding in a Reliance retirement plan creates a snowball effect when it comes to money. The earnings next year are always a little more than the previous year as the base keeps on increasing. As a result, with time, earnings contribute more towards the total value of investment. The power of compounding is the ability of an asset to generate earnings, which are again reinvested to generate more earnings. It dictates that one start early. In fact one should begin saving for one’s golden years right from the time one starts working.

Diversify

The idiom ‘don't put all your eggs in one basket’ is most true when it comes to one’s investments. Diversification is often underrated. However, when it comes to investing money, it makes sense to diversify and not concentrate all the investment in one asset class. This way if something goes wrong with one type of investments, all savings will not be lost. There are various investment avenues to choose from – equities, fixed deposits, gold, property, bonds etc. The allocation of funds to each of these assets should be done carefully after considering their returns over a period of time and respective pros and cons. A well balanced portfolio will ensure that one has a comfortable life post-retirement.

Role of Equities

The role of equities cannot be stressed enough. Whether in the form of actual stocks, unit-linked pension plans or mutual funds, they ought to play a central role in retirement planning. Research studies have demonstrated that equities add significant value over long periods of time. Long term investment in equities also offers tax advantages. Besides, these are very liquid in nature, unlike assets like property etc. If required, they can be sold to make funds available. It is also easy to keep track of the value of equity investment as this information is readily available online as well as offline in newspapers. Using a Reliance retirement plan that invests in equities ensures that individuals can take make the best use of the equities market

PPF is Not Enough

Contribution to PPF (public provident fund) or EPF (employee’s provident fund) alone is not sufficient for retirement planning. It is naive of people to believe that they have done their job by investing just in PPF. The returns on PPF are always in single digits and most of it is taken away by inflation, leaving a paltry sum for future. Therefore, it is imperative that one also invest in other investment avenues besides PPF like a Reliance retirement plan, equities, gold etc.

Importance of a Financial Advisor / Planner

Retirement planning should be given serious thought as it has considerable long term implications. The task of retirement planning is made complex due to many variables in the form of different asset classes – their risks and returns, advantages and disadvantages, tax implications among other factors. A qualified and experienced financial advisor / planner can be of great help in developing a sound retirement plan for the individual, keeping in mind his/her unique circumstances so that he / she can have the maximum possible funds available during retirement years.

Reliance Life Term Insurance Plans - FAQ

1. How to pay premium for Reliance retirement plans? What are the modes of payment available?

Reliance Life Insurance offers basic 4 modes of premium payment for Reliance retirement plan. They are as follows:

  • Online – Requires you to login through your client Id and password, select the online medium to pay the premium.
  • IVR method – Call on the toll free number 1800 3000 8181 and follow the instructions. Keep handy details of the policy number of the Reliance retirement plan and date of birth.
  • Pay at Suvidha Center – This helps to locate the nearest branch office wherein payment can be done via cheque or cash.
  • Bill Junction or Bill Desk option – This requires registering oneself in the site and clicking on the Pay Reliance Life Insurance option to authorise the payment.

For online payment mode, the policyholder can pay via;

  • Credit Card
  • Debit Card
  • Net Banking Facility

One can also avail Electronic Clearance System (ECS) for paying premium of renewed policies.

2. How can I check policy status for Reliance Life pension plans?

For checking the policy status of a Reliance retirement plan, you must first register on the e-portal. After generating the password, login to your account. Then click on the ‘Policy Details’ tab to get the status of the desired Reliance retirement plan policy number.

3. What is the policy renewal process for Reliance Life pension plans?

Renewal of policy of a Reliance retirement plan can be done by two modes:

  • Online
  • Electronic Clearance System (ECS)

For Online renewal process, login to your account and click on the required renewal tab after selecting the payment mode. Payment can be done via cash, cheque or through net banking.

For renewing the policies using Credit Card Mode, fill in the required mandatory form along with photocopy of Credit Card. Within a period of 10 days, the credit card information will be registered for renewal process.

ECS facility can be availed by filling in the desired form and submitting the required documents. The bank will process the information within 30 days of receipt of the same. In case the premium renewal date falls on a holiday, the amount will be debited on the next working day.

4. What is the company’s process to settle claim for Reliance Life pension plans?

The company guarantees 12-day claims settlement policy for a Reliance retirement plan. You must attach the correct Reliance retirement plan documents with the claims form and send it to the nearest branch office in your city. To find the relevant documents for the particular claim of a Reliance retirement plan, please visit the Claims Overview Section.

After receiving the particular documents and completion of the verification process, the cheque will be dispatched to the nearest branch within 3 working days. From there one can collect the cheque after verifying the identity proof.

5. What is the policy cancellation process for Reliance Life pension plans?

Reliance retirement plan policy cancellation process requires the customer to submit a duly filled surrender form along with relevant documents in any branch. Upon receiving and verification of the documents, the Reliance retirement plan policy is deemed cancelled as per bank accounts record.

Reliance Life Pension Plans Reviews

TOTAL REVIEWS (4)
Ritesh
Dwarka
August 26, 2016

Retirement policy

The pension plan from reliance life insurance company ltd. is awesome with large number of benefits. Policy coverage is high ~90% and the claims are big. Service provided by you is fast which reduces waiting time. Updates are also mailed about insurance policy.

Bhasker
Raj_nagar
July 26, 2016

Pension Plan

Service is fantastic provided by you guys. I'm fully satisfied with your services and the plan is awesome i.e., reliance retirement fund. Policy coverage is high and claims are even better and easy to sanctioned. The policy covers maximum expenditures.

Abhishek
Bengaluru
July 26, 2016

Coverage Is Good

My future is secure with reliance retirement fund. The returns are very much high as compared to premiums. Good service facilitate by the company members. Updates are mailed daily to email address and renewals are done easily on online portal.

Umang
Manesar
May 16, 2016

Good Future Investment

I purchase reliance life pension plan. Really good policy which has low premiums. The policy coverage is high ~89% and the claims are even better. Claiming process is easy because service is given by the executives, very fast and on time. Good future investment and it saving my taxes too. I like the policy.