Reliance Smart Pension Plan

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Introduction/Overview

Reliance Smart Pension Plan is a non-participating Unit-linked pension plan which enables the policyholder to build a retirement corpus for a tension free retirement. The corpus is also subject to market participation through investment in units so as to maximize wealth.

Key Features

  • It is a unit linked pension plan which also promises Guaranteed Additions.
  • Even if the unit account is less, the capital guarantee feature ensures minimum repayment of the premiums paid
  • Premiums can be paid regularly, in a single time or for limited term
  • Premiums paid are invested in the Pension Smart Fund 1
  • There are 3 options of receiving annuity namely:
    • Life annuity
    • Life annuity with Return of Purchase Price
    • Life annuity guaranteed for 5, 10 or 15 years and thereafter payable for life

Benefits

  • On maturity, higher of the Fund Value or 110% of all premiums paid is payable
  • The maturity amount can be used in the following ways:
    • Commute 1/3rd of the corpus and receive immediate annuity form the remaining corpus
    • Purchase a single premium deferred annuity plan form the insurer
    • Extend the deferment period in the same policy if age is lower than 55 years
    • On death, higher of the fund value or 105% of total premiums paid is returned to the nominee
    • The death benefit can be withdrawn or used to buy an annuity form the company
    • Income tax benefit on the commuted part of the corpus under Section 10(10A) and on the premiums paid under Section 80C of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

18 years

65 years

Maturity Age (Last Birthday)

45

75

Policy Term (PT) in years

Single pay – 10

Limited or Regular Pay - 15

30

Premium Paying Term (PPT) in years

10

30

Premium Paying Frequency

Annual, half-yearly, quarterly, monthly

Yearly Premium

 

PPT 10-14 yrs.

PPT 15-19 yrs.

PPT 20 yrs. & above

No limit

Regular Pay

Annually

NA

36,000

20,000

Half-yearly

18,000

10,000

Quarterly

9,000

5,000

Monthly

3,000

2,000

Limited Pay

Annually

48,000

48,000

24,000

Half-yearly

24,000

24,000

12,000

Quarterly

12,000

12,000

6,000

Monthly

4,000

4,000

3,000

Single Pay

50,000

No limit

Details About Premium

Benefit illustration for an annual premium of Rs.50,000 for a 35 year male

 

Policy Term 15 years

Policy term 20 years

Annuity p.a.

81,880

139,891

Fund Value @ 8%

123,466

19,31,443

Policy Details

Grace Period: 15 days grace period is allowed for payment of premium in monthly mode and 30 days in other modes. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 5 years. The surrender value can be either used to buy a deferred annuity plan form the company or 1/3rd of the value can be commuted and the rest has to be used to buy annuity.

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

  • Top-ups are allowed to increase investment with a minimum of Rs.5000

Additional Features or Riders

  • Loyalty Additions @ 1% start from the end of the 6th policy year and increase every 3 years by another 1%

Exclusions

  • If suicide is committed within 12 months of policy inception or revival o nly the fund value as on that date is payable

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents.