Reliance Nippon Life Insurance Annuity Plan

What is a Reliance Nippon Life Insurance Annuity Plan?

Reliance Nippon Life Annuity Plan is a financial product that is geared towards turning a lump sum into a stream of fixed income, either monthly or annually. These types of annuity plans provide a fixed, assurance-based investment, whereby you get fixed annuity payments depending on the option selected over a set time or over a lifetime.

In the case of unit-linked pension options, the policyholder bears the market risk in the accumulation period, and the annuity rates are calculated at the time of vesting period. Depending on the type of plan, you may invest using a lump-sum payment or periodic payments.

In immediate annuity plans like the Immediate Annuity and Saral Pension, only a single amount of premium payment is made, and the income begins shortly after purchase. However, in contrast to this, deferred plans such as Smart Pension (ULIP) and Nishchit Pension can permit regular or limited unit payments.

Types of Reliance Nippon Life Insurance Annuity Plans

There are many types of annuity plans provided by Reliance Nippon Life Insurance to meet the needs of various retirees. These plans offer a variety of options, whether you would prefer to receive money now or save to receive it later. A brief description of all types of annuity plans is as follows:

• Reliance Nippon Life Immediate Annuity Plan: It allows the investor to have lifetime income that commences immediately after the investment. It is flexible to various types of annuities with options of return of purchase price to bring more security.
• Reliance Nippon Saral Pension Plan: Reliance Nippon Saral Pension Plan is a typical immediate annuity scheme, which provides guaranteed lifetime income. It offers two alternatives: return of purchase price or joint life income with return of purchase price, which provides long-term financial security to the annuitant and his or her loved ones.
• Reliance Nippon Life Nishchit Pension Plan: The plan is a deferred annuity that enables an investor to save within a period and after the deferment period, may commence receiving guaranteed lifetime earnings.
• Reliance Nippon Life Smart Pension Plan: It is a unit-linked and non-participating pension scheme that is a systematic savings plan to enable you to accumulate a corpus of regular income post-retirement. It provides financial security by turning your savings into an income stream when you retire.

Reliance Nippon Life Immediate Annuity Plan

The Reliance Nippon Life Immediate Annuity Plan is a single-premium, non-linked, non-participating, individual immediate annuity plan that provides guaranteed lifelong income by converting a lump-sum amount into regular periodic payouts after retirement. It helps ensure financial stability for the annuitant–s post-retirement years.

Key Features of the Reliance Nippon Life Immediate Annuity Plan

Note: Annuity rates depend on the annuitant–s age, purchase price, and chosen annuity option. Please refer to the latest official rate sheet or consult Reliance Nippon Life for updated values at the time of purchase.

Reliance Nippon Life Saral Pension Plan

The Reliance Nippon Life Saral Pension Plan is a single-premium, non-linked, non-participating immediate annuity plan. It offers a guaranteed lifelong income to the annuitant. With this plan, you can choose between two options:

• Life Annuity with Return of 100% of Purchase Price (ROP): Enjoy lifetime guaranteed income. The purchase price (i.e., single premium) is returned to your nominee after your demise.
• Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP): Enjoy lifetime guaranteed income, as long as either you or your spouse is alive. The purchase price (i.e., single premium) is returned to the nominee after the demise of the last survivor.

1. Key Features of Reliance Nippon Life Saral Pension Plan

   Feature	Details
   Plan Type	Single Premium, Non-Linked, Non-Participating Individual Immediate Annuity Plan
   Entry Age (Years)	- Minimum: 40 - Maximum: 80
   Policy Term	Whole Life (as long as the annuitant is alive)
   Purchase Price	- Minimum: ₹1,00,000 - Maximum: No Limit
   Annuity Installment	- Monthly: ₹1,000 - Quarterly: ₹3,000 - Half-Yearly: ₹6,000 - Annually: ₹12,000
   Annuity Payment Frequency	Monthly, Quarterly, Half-Yearly, Annually
   Annuity Options	1. Life Annuity with Return of 100% of Purchase Price (ROP) 2. Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP)
   Surrender Benefit	Available after 6 months from policy commencement on diagnosis of a specified critical illness. The surrender value equals 95% of the Purchase Price minus any outstanding loan and interest.
   Loan Facility	Available after 6 months from the policy commencement
   Free-Look Period	30 days from the date of receipt of the policy document (physical or electronic)

2. Sample Illustration - Reliance Nippon Life Saral Pension Plan (Monthly Payout)

   The illustrative table below shows monthly annuity payouts for a ₹10 Lakh Purchase Price (i.e., Single Premium) for an annuitant–s age as on their last birthday. It includes different annuity options and the corresponding payout amounts.

   Age of Annuitant	Life Annuity with Return of 100% of Purchase Price (ROP)	Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP)
   40	₹51,250	₹51,090
   50	₹51,490	₹51,280
   60	₹51,750	₹51,570
   65	₹51,850	₹51,740
   70	₹51,870	₹51,910
   80	₹51,450	₹52,090

Note:

• The Purchase Price (i.e., Single Premium) referred to above excludes any applicable taxes and other statutory levies, if applicable. The Annuity Amount displayed is for an Annual annuity payout frequency and is applicable for sales through non-online channels.
• Once selected, the annuity option cannot be changed after policy issuance.

Reliance Nippon Life Smart Pension Plan

The Reliance Nippon Life Smart Pension Plan is a Unit Linked, Non-Participating, Individual Pension Plan that helps you accumulate wealth systematically for your retirement. It allows you to save during the accumulation phase and receive a lifelong income through annuity options after vesting.

1. Key Features of Reliance Nippon Life Smart Pension Plan

   Parameter	Details
   Plan Type	Unit Linked, Non-Participating, Individual Pension Plan
   Premium Payment Options	Single, Regular, or Limited Premium
   Age at Entry (Last Birthday)	Minimum 18 years, Maximum 65 years
   Deferment Period	5 to 15 years (depending on the option chosen)
   Premium Payment Term	5, 6, 7, 8, or 10 years
   Maximum Premium	No limit
   Payout Frequency	Monthly, Quarterly, Half-Yearly, Annually
   Tax Benefits	As per the Income Tax Act, Section 80CCC
   Loan Facility	Not available
   Nomination	Allowed as per Section 39 of the Insurance Act, 1938

2. Sample Illustration - Reliance Nippon Life Smart Pension Plan

   Amar, aged 35, chooses the Reliance Nippon Life Smart Pension Plan and opts for the following conditions:

   • Premium Payment Term: 10 years
   • Policy Term: 20 years
   • Annual Premium: ₹50,000
   • Guaranteed Benefit on Vesting: ₹5,05,000
   • Loyalty Addition: Accrued in the policy account

   Upon completing the Accumulation Phase, Amar is presented with two options:

   Option 1:

   Withdraw up to 60% of the Fund Value and use the remaining amount to purchase a lifetime-guaranteed annuity.

   Benefit at Vesting	@ 8% Return	@ 4% Return
   Maturity/Vesting Benefit	₹12,20,096	₹6,71,406
   Commuted Value at Vesting	₹7,32,058	₹4,02,844
   Annuity for Lifetime p.a.	₹35,349	₹19,452

   Assured Benefit: ₹ 5,05,000

   Option 2:

   Utilise the entire Fund Value to purchase an annuity guaranteed for lifetime.

   Benefit at Vesting	@ 8% Return	@ 4% Return
   Maturity/Vesting Benefit	₹12,20,096	₹6,71,406
   Commuted Value at Vesting	₹0	₹0
   Annuity for Lifetime p.a.	₹88,372	₹48,630

   Assured Benefit: ₹ 5,05,000

Reliance Nippon Life Nishchit Pension Plan

The Reliance Nippon Life Nishchit Pension Plan is a non-linked, non-participating, individual deferred annuity plan designed to provide guaranteed lifelong income after retirement. It helps you secure your post-retirement years with assured payouts and multiple annuity options that you can tailor to meet your financial goals.

1. Key Features of Reliance Nippon Life Nishchit Pension Plan

   Feature	Details
   Plan Type	Non-linked, Non-participating, Individual Deferred Annuity Plan
   Annuity Options	1. Single Life Annuity 2. Single Life Annuity with Return of Premium plus CI / TPD benefit 3. Single Life Annuity with Return of Balance of Premium 4. Joint Life Annuity 5. Joint Life Annuity with Return of Premium plus CI / TPD Benefit
   Age at Entry	Minimum: 30 years Maximum: 75 years
   Deferment Period	5 to 15 years (depending on the option chosen)
   Premium Payment Term	5, 6, 7, 8, or 10 years
   Minimum Premium	Options 1, 3, 4, 5 – ₹1,00,000 Option 2 – ₹75,000
   Maximum Premium	No limit
   Annuity Payment Frequency	Monthly, Quarterly, Half-Yearly, or Annually
   Loan Facility	Available under Option 2 and Option 5 (up to 70% of the surrender value)
   Surrender Benefit	Available after 2 policy years (Guaranteed or Special Surrender Value, whichever is higher)
   Free-Look Period	30 days from the receipt of the policy document (physical or electronic)
   Tax Benefits	Eligible for tax benefits under Section 80CCC of the Income Tax Act, as per prevailing laws

2. Sample Illustration - Reliance Nippon Life Nishchit Pension Plan

   Mr Singh, aged 50, pays ₹10 lakh annually for 5 years (total ₹50 lakh) and chooses a deferment period of 10 years. At the end of the deferment period, from age 60, he starts receiving the following guaranteed annuity based on the chosen option:

   Option Type	Annual Annuity	Key Benefit
   Option 1 – Single Life Annuity	₹5,71,860	Guaranteed annuity for life.
   Option 2 – Single Life Annuity with ROP + CI/TPD Benefit	₹4,85,600	Guaranteed annuity for life, with the nominee receiving ₹50 lakh on death.
   Option 3 – Single Life Annuity with Return of Balance Premium	₹5,62,860	Guaranteed annuity for life, with return of balance premium.
   Option 4 – Joint Life Annuity	₹4,91,960	Lifetime income for the primary and secondary life assured.
   Option 5 – Joint Life Annuity with ROP + CI/TPD Benefit	₹4,52,890	Lifetime income continues till the last survivor; the nominee receives ₹50 lakh on death.

   Note: The above values are indicative and taken directly from the official brochure illustration. Actual annuity will depend on age, deferment period, premium, and the option chosen.

Key Takeaways

The Reliance Nippon Life plans are a solid and adaptable method of ensuring a stable income during retirement. These plans are structured to meet the various needs of investors, considering they have four plans, such as immediate and deferred annuity plans. In the annuity and pension schemes of Reliance Nippon Life, there are ages of entry of between 18 years (Smart Pension) to 80 years (Immediate or Saral Pension), depending on the scheme. In the case of immediate annuities (Immediate and Saral), the minimum instalment is ₹1,000 per month, and the minimum purchase price is usually ₹1,00,000.