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Reliance Nippon Life Smart Pension Plan

What is the Plan all About?

Reliance Nippon Life Smart Pension Plan is a unit linked, non-participating pension plan that enables you to save systematically and build up a lump sum amount, so you can get a regular income after your retirement. This plan provides regular income for a lifetime and ensures you to lead a financially independent life.

What are the Key Features?

  • Build adequate retirement corpus
  • Receive regular income
  • Assurance of capital guarantee
  • Boost retirement corpus through loyalty additions
  • Increase your fund with Top-ups
  • Financial protection for family
  • Flexibility to choose vesting age
  • Flexible policy term
  • Single/Limited/Regular premium pay option
  • Get tax benefits

What are the Fund Investment Options?

This policy offers ‘Pension Smart Fund 1’, where your funds will be invested to grow its value.

What are the Plan Benefits?

Death Benefit

    In case of unfortunate demise of the life insured provided the Policy is in-force, the higher of the total of the balances in the unit account or 105% of the total premiums paid, as on the date of intimation of death is payable to the nominee. The policy terminates after payment of the death benefit.

    The nominee/beneficiary may use the death benefit by utilizing the proceeds of the policy or part thereof for purchasing an annuity at the prevailing rate or withdraw the entire proceeds of the policy.

    In case of top-up premium, there is a guarantee of payment for at least 105% of total top-up premium paid.

Vesting/Maturity Benefit

    On survival till vesting, the higher of the total of the balances in the unit account or 101% of the total premiums paid as on the Maturity/Vesting Date is payable to the policyholder.

    This survival benefit shall be used in either of the following ways.

    • Commute to the extent allowed under the Income Tax Act.
    • Utilize the entire/remaining proceeds to purchase a Single Premium deferred pension
    • Extend the accumulation period/deferment period in the same policy.


    At the time of Vesting, the policyholder will have 3 Annuity options.

    • Life Annuity
    • Life Annuity with return of purchase price on death
    • Annuity guaranteed for 5, 10 or 15 years and payable for life thereafter


    In case of top-up premium, there is a guarantee of payment of not less than 101% of total top-up premium paid

Commutation Benefit

    Take up to 33.33% of the benefit as tax-free cash lump sum as per the current income tax regulations. The rest of the amount must be converted to an annuity at the then prevailing annuity rates.

Loyalty Additions

    Starting from the end of 6th policy year, a loyalty addition is given at the end of every 3rd policy year. Loyalty Additions are added in the fund. Guaranteed loyalty additions vary from 1% to 9% of annualized premium/single premium.

Top-up Premium

    Top-up Premium is allowed to increase your investments at any time during the policy term. The minimum top-up premium is Rs 5,000. Unlimited Top-up premiums are allowed under this policy.

Deferment of Vesting Benefits

    The deferment of vesting date (retirement date) can be intimated any time, provided the policyholder is aged below 55 years and base Policy Term plus extended deferment period should be less than or equal to 30 years. The minimum deferment period should be 5 years.

Switching/Premium Redirection

    Switching & premium re-direction is not available under this plan.

Bonus

    No bonus is applicable, as it is a non-participating pension plan.

Loan Benefit

    Loan benefit is not available under this plan.

Surrender Value

    Upon surrendering the policy with-in the lock-in period of 5 years, the Fund Value (including top-up fund value) less applicable discontinuance charges is credited to the ‘Pension Discontinued Policy Fund’. The minimum guaranteed interest rate applicable on the Pension Discontinued Policy Fund is 4% compounding annually. The proceeds of the discontinued policy is payable only on the completion of 5 policy anniversaries.

    Upon surrendering the policy after the lock-in period of 5 years, Fund Value under the base policy (including Top-ups) less applicable Discontinuance Charges will be paid to the policyholder.

Who can Buy the Plan?

Factor Minimum Maximum
Age (as on last birthday) 18 Years 65 Years
Age at Vesting 45 Years 75 Years
Policy Tenure* 10 Years (single Premium), 15 Years (limited/regular Premium) 30 Years
Premium Paying Term (PPT) 10 Years 30 Years
Premium Paying Mode Single Pay,Annually, Semi Annually, Quarterly & Monthly -
Premium Amount For Regular Premium Payment: Rs 20,000 (annually) For Limited Premium Payment: Rs 24,000 For Single Premium Payment: Rs 50,000 No Limit
Freelook Period 15 Days/30 Days (for Distance Marketing Channel) From The Receipt Of The Policy -
Grace Period 30 Days (15 Days For Monthly Mode) -
Plan Type Offline -

Is any Rider Available with this Plan?

No rider can be opted under this plan.

What are the Plan Charges?

Premium Allocation Charges: Premium Allocation Charge is deducted as a percentage of the premium before allocation of the units. For Regular Premium and Limited Premium payment policies, it is 8%/5.5%/5%/3% for 1st policy year/2nd to 5th policy year/6th to 9th policy year/10th policy year onwards, respectively.

The Premium Allocation Charge on the Single Premiums is 2% of the Single Premium and for top-up, it is 2% of the Top-up amount.

Policy Administration Charge: For Regular Premium and Limited Premium policies, the policy administration charge is Rs 40 per month deducted from 6th policy year till the end of the Policy Term. For Single Premium policies, it is 1.50%/0.75% for 2nd to 5th policy year/6th policy year onwards, respectively.

Mortality Charges: The mortality charge is deducted from the Fund Value under the Base Plan and Top-up premium(s). The Mortality Charges will vary on the amount of life insurance cover, the attained age of Life Insured, the occupation of the Life Insured, the health of the Life Assured and the Fund Value.

Fund Management Charges: The Fund Management Charge is 1.35 % p.a of fund value for ‘Pension Smart Fund 1’ and it is 0.50% p.a for Pension Discontinued Policy Fund.

Switching Charge: No switching charge is applicable.

Discontinuance Charge: This charge is levied, in case the policy is discontinued during the first 4 policy years. This charge is levied as applicable under the policy terms & conditions. For more details, please refer the policy brochure.

Service Tax Charges: The service tax on charges will be deducted by cancellation of units.

Is the Plan, eligible for Tax Benefit?

Premiums paid under this plan are eligible for tax deduction subject to prevailing Income Tax Laws.

How the Plan Works?

Amar at 35 years of age, opts for Reliance Nippon Life Smart Pension Plan with the policy term of 20 years, premium payment term of 10 years with the annualized premium of Rs 50,000. He chooses the equity participation of up to 20% with a minimum guarantee of Rs 5,05,000 on vesting.

Scenario A: Amar Survives the Policy Term

On vesting/maturity, Amar has 2 options:

Option I: Commute up to 1/3rd of the Fund Value and purchase annuity guaranteed for the lifetime from the balance amount.

Reliance Nippon Life Smart Pension Plan Scenario A Option-1

Option II: Utilize the entire Fund Value to purchase annuity guaranteed for lifetime
 

Reliance Nippon Life Smart Pension Plan Scenario A Option-2

Scenario B: Amar dies during the Policy Term

In case of demise of Amar provided the Policy is in-force, the higher of the total of the balances in the unit account or 105% of the total premiums paid, is payable to the nominee.