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  • Reliance Pension Builder Plan

    Reliance Nippon Life Pension Builder Plan is a non-linked, participating and deferred pension plan that helps you save money regularly at present, so that you can live a secured retired life. This plan offers guaranteed income to the customers throughout their retirement. The company through this plan provides customized retirement plans and customers can select when they wish to start their pension. Apart from this, the plan offers various pension options to the customers.

    Eligibility Criteria for Reliance Nippon Life Pension Builder Plan:

    Customers have to meet the following eligibility criteria, if they want to apply for the Reliance Nippon Life Pension Builder Plan:

    Particulars Minimum Maximum
    Age at Entry 25 years 65 years
    Vesting Age 45 years 75 years

    Key Features of Reliance Nippon Life Pension Builder Plan:

    Some of the features of Reliance Nippon Life Pension Builder Plan are as follows:

    Type of plan Non-linked, participating and deferred pension plan.
    Modes of Premium payment Yearly, half yearly, quarterly and monthly payments via electronic payment modes such as ECS. In case of monthly mode, the premium for the first 2 months will be collected in advance by the company at the time of issuing the policy.
    Free look period 15 days (30 days for Distance Marketing channel).
    Grace period
    • 15 days for monthly premium payment.
    • 30 days for other premium payments.
    • No grace period is applicable for Single Premium payment.
    Policy Revival Within 2 years from the date of the 1st unpaid premium instalment, but before policy vesting. You can do so by paying all the outstanding premiums along with the interest. The interest for revival will be set by the company.
    Nomination Nominations can be made as per the policy terms and conditions.
    Sum Assured Minimum – Rs.2,00,000 Maximum – No Limit
    Annual Premium Minimum:
    • For Regular Pay – Rs.25,000
    • For Limited Pay of 10 years – Rs.25,000
    • For Limited Pay of 5 years and 7 years – Rs.35,000
    Maximum – No Limit
    Premium Payment Term There are 2 types of Premium Payment Terms. They are:
    • Regular Pay – It is equal to the policy term
    • Limited Pay – 5 years, 7 years and 10 years
    Policy Term
    • For Regular Pay – 10 years to 40 years
    • For Limited Pay of 5 years and 7 years – 10 years to 20 years.
    • For Limited Pay of 10 years – 15 years to 20 years.

    Benefits/Advantages of the Reliance Nippon Life Pension Builder Plan:

    Mentioned below are some of the benefits offered by Reliance Nippon Life Pension Builder Plan:

    • Flexible TenuresReliance Nippon Life Pension Builder Policyholders can choose the term of their Policy based on when they plan to retire.
    • Increase Retirement Savings – Policyholders can increase their retirement savings with Terminal Bonus and regular Simple Reversionary Bonus, if any. The Simple Reversionary Bonus is a percentage of the base Sum Assured and will be accrued every year, starting from the 1st year of the policy until the end of the term. Terminal bonus will be paid on maturity or death from the 10th year and will be acknowledged as a percentage of Vested Reversionary Bonus.
    • Protect Loved Ones – Policyholders can use the guaranteed income or the lump sum amount that they will receive from the policy to protect their family in case of any unfortunate event.
    • Guaranteed Income – They will receive guaranteed income regularly after they retire.
    • Tax Benefits – Policyholders can avail tax benefits on returns, investments, etc., as per the present Income Tax Law.
    • Vesting Benefit – If policyholders survives till the end of the policy term, they will receive Vesting Benefits, which is the Sum Assured plus Terminal Bonus and Vested Simple Reversionary Bonus, if any, on the vesting date. The Vesting benefit will be at least 105% of the total paid premiums (excluding taxes and cess). This benefit can be used to:
      • Commute to the extent allowed by the present IT Laws and the balance can be used to buy Immediate Annuity from the Company at the current Annuity Rates, or
      • To buy a Single Premium deferred pension plan from the Company, or
      • Extend the deferment or accumulation period under the same plan, provided the age of the policyholder is below 55 years and maximum age at vesting is not above 75 years.
    • Death Benefit – In case the policyholder passes away during this Life Insurance Policy Term, then his/her nominee will receive the following:
      • 105% of the all the premiums that have been paid (excluding taxes and cess) on the date of death, plus
      • Terminal Bonus and Vested Simple Reversionary Bonus, if any, on the date of the policyholder’s death.

    The nominee can choose to withdraw the entire benefit proceeds or use the benefit partly or fully for buying an Immediate Annuity from the Company.

    • High Sum Assured Discount – If eligible, policyholders will receive High Sum Assured Discount.
    Base Sum Assured Per 1000 of Base Sum Assured
    Below Rs.3 Lakhs Nil
    Rs.3,00,001 to Rs.4,49,999 Rs.1
    Rs.4,50,000 to Rs.5,99,999 Rs.1.65
    Rs.6,00,000 to Rs.7,99,999 Rs.2.25
    Rs.8,00,000 to Rs.9,99,999 Rs.2.65
    Rs.10 Lakhs and above Rs.3

    How the Reliance Nippon Life Pension Builder Plan Works?

    Reliance Nippon Life Pension Builder Plan helps people save money for their life after retirement. The working process of this policy is simple to understand.

    Let’s take the example of 35 years old Mr. Malhotra, who works in a private company and chooses to buy Reliance Nippon Life Pension Builder Plan with a policy term of 20 years, Sum Assured of Rs.5,00,000 and 10 years premium payment term. The annual premium for him is Rs.51,695 (after calculating the High Sum Assured Discount). This amount is not inclusive of tax and cess. He makes his elder daughter, Sanjana, a nominee.

    If Mr. Malhotra is alive till the end of the policy term, then he will receive Vested Simple Reversionary Bonus (Rs.3,50,000), Terminal Bonus (Rs.2,80,000) and Sum Assured (Rs.5,00,000).

    The Vesting benefit is at least 105% of the total paid premiums (excluding taxes and cess), which can be used by him to do the following:

    • Commute to the extent allowed by the present IT Laws and the balance can be used to buy Immediate Annuity from the Company at the current Annuity Rates, or
    • To buy a Single Premium deferred pension plan from the Company, or
    • Extend the deferment or accumulation period under the same plan, provided the age of the policyholder is below 55 years and maximum age at vesting is not above 75 years.

    If he dies by end of the 8th policy year, his nominee Sanjana will receive Death Benefit, which is 105% of the Total Premiums that have been paid plus the Vested Simple Reversionary Bonus. She can choose to get the entire proceeds of the death benefit or she can use the full amount or a part of it to buy an Annuity from the Company.

    Benefit on Death Amount @8% Amount @4%
    105% of the Total Premiums that have been paid (excludes the service tax and cess) Rs.4,34,238 Rs.4,34,238
    Vested Simple Reversionary Bonus Rs.1,40,000 Rs.40,000
    Total Death benefit Rs.5,74,238 Rs.4,74,238

    Note – The figures mentioned above are indicative.  

    This Insurance Company has not partnered with BankBazaar.com. For more details, please visit its website/branch office. The trademarks, logos and other subject matters of intellectual property belong to their respective owners.

    GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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