Reliance Immediate Annuity Plan

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The Reliance Immediate Annuity Plan provides the support to its insurance holders who are planning to retire early. Reliance Life Insurance understands the needs of an individual from an insurance product. This immediate annuity plan is a traditional pension plan where annuity starts immediately and thus it allows the policyholder to plan for retirement. It helps the policy holders to build a corpus for their life after retirement so that they can live their life happily to the fullest.

Reliance Immediate Annuity - Key Features

  • It is an Immediate Annuity Plan with single premium option where the annuity starts immediately after premium   payment from the next chosen date
  • There are 3 annuity options of:
      • Life Annuity
      • Life Annuity with Return of Purchase Price
      • Life Annuity guaranteed for 5/10 or 15 years and thereafter payable for life
  • No medical tests are required 

Reliance Immediate Annuity - Benefits

  • Annuity payouts will be paid as per the frequency is chosen immediately after the premium paid
  • In the case of Life Annuity with Return of Purchase Price option, the purchase price (single premium paid at commencement) shall be payable to the nominees besides the annuity installments already paid
  • In the case of Life Annuity guaranteed for 5, 10 or 15 years, the annuity continues to be paid for the guaranteed time even if the policyholder dies during that time
  • Tax Benefits: Income tax benefit on the premium paid as per Section 80C of Income Tax Act. 

Reliance Immediate Annuity - Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

20 years

80 years

Purchase Price

100,000

No limit

Annuity Payout

1000

No limit

Annuity payout Frequency

Monthly, quarterly, half-yearly, yearly

 

Reliance Immediate Annuity - Policy Details

Grace Period: On failure of premium payments, no grace period is provided since it is a single premium plan.

Policy Termination or Surrender Benefit: The policyholder cannot surrender his plan anytime he wants to.

Free Look Period: If the policyholder feels dissatisfied with the coverage or the terms and conditions of his policy, then he has the option to cancel his plan within 15 days of receiving the policy documents, provided no claims have been done yet.

Inclusions

Loan Benefits: This plan does not provide any loan benefits under it.

Exclusions

No benefit is paid if the policyholder commits suicide. But if the Life Annuity with Return of purchase Price option is chosen, then the purchase price is payable to the nominees.

Documents Required

The policyholder has to submit an Application form / proposal form with an accurate history of medical records with address proofs and other KYC documents. In some cases, the additional medical examination might also be required, based on the sum assured and the age of the insured person.

You may also like to read: Reliance Life Pension Plans

Frequently Asked Questions: 

1.  What are the Annuity rates under the plan?

The annuity rates under the plan might be revised at frequent intervals of time. The policyholder may ask for an updated annuity rate while buying the annuity policy. Once the policyholder buys an annuity the rates shall be guaranteed throughout the life.

2.  What is the exit option available under the plan?

The policyholder has no exit option under the annuity plan.

3.  What are the types of annuity available under the plan?

Below are the annuities available under the plan:

Annuity for 5/ 10/ 15 years and subsequently for life:

Under this annuity option, the annuity shall be payable for a certain period of time for 5/ 10/ 15 years as per annuitant’s choice and subsequently for the annuitant’s life.

Life annuity with return of purchase price:

Under this annuity option, the annuity is payable for the annuitant’s lifetime, and in case of the death of the annuitant, the purchase price is paid to the nominees.

Annuity for life:

Under this annuity option, the annuity is payable throughout the annuitant’s life.

4.  What are the conditions of forfeiture of the plan?

If the policyholder makes any inappropriate or incorrect statement in the policy declaration, proposal or any of the policy related documents which are in connection with the annuity plan, then the as per the current laws the annuity plan shall be void and all the benefits is subject to cease along with the premiums that have been paid under the plan shall remain forfeited.

5.  How are the taxes applicable under the plan?

All the taxes under the plan shall be according to the current tax laws of Income Tax Act. The service taxes and education fee will be additionally charged according to the current applicable rate. The tax laws are subject to amendments on frequent time intervals as per current ruling body or regulatory authority.

6.     What are the conditions for nominations under the plan?

The policyholder is allowed for nominations under this plan under section 39 of the Insurance Act 1938. The insured may make a nomination at any time during the policy term with the purpose of payments of benefits in the event of his death. In a case, where the nominee is a minor the policyholder can also appoint an “Appointee” to the person who shall receive the benefits during the minority of the nominee.

7.  Does this plan provide an insurance coverage?

Yes, your immediate annuity also provides insurance coverage. Insurance under this plan is a subject to a solicitation, which the policyholder can choose to avail along with his annuity benefits.

8.  What is the prohibition of rebates under this plan?

No insured individual under the Reliance Immediate Annuity plan shall be allowed to offer an inducement to any other individual either directly or indirectly to avail or renew or continue the insurance plan with respect to any kind of risks to any individual or property in India, any rebate of the whole or partly of the commissions payable etc., allowed in accordance with the published prospectuses. Given that acceptance by an insurance counselor of the commissions in connection the policy of the life insurance on his own life shall not be deemed to be acceptance of rebate of premiums.

Any policyholder found making defaults in obeying the provisions of this section shall be considered punishable with a fine amount as declared by the company. The fine amount can be a maximum of Rs 500.