Reliance Life Saral Pension

Reliance Life Saral Pension is a retirement plan designed to provide a steady income for life. It's a single premium policy, meaning you invest a lump sum amount upfront. The plan is non-linked, which means your returns are not tied to market performance and non-participating, so there are no additional bonuses. Essentially, it offers a guaranteed income stream starting immediately after purchase, helping you secure your financial future.

What is Reliance Life Saral Pension?

Reliance Nippon Life Saral Pension is a retirement plan designed to offer financial security in your golden years. It's a single premium, non-linked, and non-participating plan that guarantees a steady income for life, either for you alone or for both you and your spouse. By making a one-time payment, you can eliminate the worry of outliving your savings.

Features of Reliance Life Saral Pension

Features of Reliance Life Saral Pension plan:

Pay Once, Enjoy Lifetime Income: Invest a lump sum today and receive regular income for the rest of your life.

Flexible Payment Options: Choose to receive your pension monthly, quarterly, half-yearly, or annually to suit your needs.

Two Annuity Options: Select from Life Annuity with Return of Purchase Price or Joint Life Last Survivor Annuity with Return of Purchase Price to match your preferences.

Guaranteed Income: Enjoy a secure and predictable income stream throughout your retirement years.

Return of Purchase Price: In case of the policyholder's death, the purchase amount is returned to the nominee.

Critical Illness Cover: Get financial support in case of a critical illness diagnosis by surrendering the policy.

Loan Facility: Access funds when needed by availing a loan after six months of policy commencement.

Potential Tax Benefits: Enjoy potential tax advantages as per prevailing income tax laws.

Eligibility Criteria for Reliance Life Saral Pension

Parameters

Minimum

Maximum

Entry Age (in years)

Policy Term

Whole Life

Purchase Price (₹)

1,00,000

No Limit

Annuity Installment

Mode

Amount (₹)

No Limit

Monthly

1,000

Quarterly

3,000

Half Yearly

6,000

Yearly

12,000

Annuity Payout Frequency

Monthly, Quarterly, Half-Yearly, Annually

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Invest ₹10K/Month YOU GET ₹1.5 LAKHS^* MONTHLY PENSION View Plans

Invest ₹7K/Month YOU GET ₹1 LAKHS^* MONTHLY PENSION View Plans

Invest ₹5K/Month YOU GET ₹75 THOUSAND* MONTHLY PENSION View Plans

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Benefits of Reliance Life Saral Pension

Below are the benefits of Reliance Life Saral Pension:

Life Annuity: Provides a regular income for as long as you live.

Joint Life Last Survivor Annuity: Ensures a continuous income for both you and your spouse, with payments continuing to the surviving partner.

Death Benefit: Upon the death of the last surviving annuitant, your invested amount is returned to the nominee.

Choose Your Payment Schedule: Select from yearly, half-yearly, quarterly, or monthly annuity payments to suit your income needs.

Financial Support: You can borrow against your policy after six months, providing a financial safety net.

Interest Rate: Loan interest is capped at a competitive rate, ensuring affordability.

Surrender Benefit: You can surrender the policy and receive 95% of the purchase price if diagnosed with a critical illness as defined in the policy.

Policy Details of Reliance Life Saral Pension

Alterations: No alterations are allowed under this policy.

Suicide Clause: There is no suicide exclusion under this policy. Claims for death due to suicide will be treated the same as the Death Benefit.

Free Look Period: In the free look period, if you disagree with the terms and conditions of the policy, you can cancel it within 15 days of receipt (30 days for Distance Marketing purchases). The company will refund the premium paid after deducting any annuity paid and stamp duty charges. The policy will terminate upon this refund, extinguishing all rights and benefits.

Cancellation Process:

The refund will be returned to the policyholder for standalone immediate annuity policies.
If the policy was purchased using proceeds from a deferred pension plan from another insurance company, the refund will be sent back to that company.
The refund may be transferred to another insurer if the policyholder chooses for policies purchased using proceeds from Reliance Nippon Life Insurance.
The free look option is not available if the policy was purchased from a deferred annuity plan of Reliance Nippon Life Insurance where the Open Market Option is not available, and annuitizing the vesting benefit is mandatory.

FAQs

What annuity options are available under the Reliance Life Saral Pension plan?

At the inception of the policy, you can choose from two annuity options:

Life Annuity with Return of 100% of Purchase Price (ROP): Under this option, annuity payments are made throughout the life of the annuitant. Upon the annuitant's death, 100% of the purchase price (i.e., the single premium) is returned to the claimant as a lump sum, and the policy terminates.
Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on Death of the Last Survivor: This option is designed for joint lives, typically spouses. Annuity payments continue as long as either the primary or secondary annuitant is alive. Upon the death of the last surviving annuitant, 100% of the purchase price is returned to the claimant, and the policy terminates.

Can I change my annuity option after selecting it?

No, once you select an annuity option at the inception of the policy, it cannot be altered subsequently.

Is there a maturity benefit under the Reliance Life Saral Pension plan?

No, there is no maturity benefit available under this plan.

Can I avail of a loan under this policy?

Yes, you can avail of a loan any time after six months from the date of policy commencement. The maximum loan amount is such that the effective annual interest payable on the loan does not exceed 50% of the annual annuity amount.

Who can avail of the loan under the Joint Life Last Survivor Annuity option?

Under the Joint Life Last Survivor Annuity with ROP, the loan can be availed by the primary annuitant. If the primary annuitant is not alive, the secondary annuitant can avail of the loan.

What is the interest rate on the policy loan?

The interest rate on the loan is based on the 10-year G-Sec rate as of April 1st of the relevant financial year, plus up to 200 basis points. For FY 21-22, the interest rate was 8.00% per annum. Please contact the company to know the current prevailing rate.

What happens to the annuity payments if a loan is taken out and one of the joint annuitants dies?

If a loan is outstanding and one of the joint annuitants dies, the interest on the loan will continue to be recovered from the annuity amount. The remaining balance, if any, will be paid to the surviving annuitant.

Can I repay the loan during the annuity payment period?

Yes, you have the flexibility to repay the loan principal at any time during the currency of the annuity payments.

Is there a surrender benefit under the Reliance Life Saral Pension plan?

Yes, the policy can be surrendered after six months from the commencement date if the annuitant, their spouse, or children are diagnosed with any of the critical illnesses specified in the policy. The surrender value is 95% of the purchase price, less any outstanding loan amount and interest.