The Future Income insurance plan offered by Reliance Life Insurance helps to secure the future by allowing additional income. Along with coverage for life, the Reliance Nippon Life Future Income scheme offers great flexibility while choosing the term for investment and payment mode. The policyholder can select the options as per his/her convenience. The premiums that accumulate every year are given as payouts to the policy holder’s family for helping them with their growing financial requirements.
Eligibility criteria for Reliance Nippon Life Future Income:
In order to be eligible for the Reliance Nippon Life Future Income, one must meet certain criteria. These are mentioned below:
|Minimum age at entry||8 years|
|Maximum age at entry||55 years|
|Minimum age at the time of maturity||22 years|
|Maximum age at the time of maturity||75 years|
|Premium Payment Term||Half of the Policy Term|
|Minimum Annual Premium||Rs.15,680|
|Maximum Annual Premium||No limit|
Key features of Reliance Nippon Life Future Income:
The Reliance Nippon Life Future Income plan comes with several features. These features are as follows:
|Modes of premium payment||Monthly, Quarterly, Half Yearly and Annually|
|Base assured sum||Rs.2,00,000|
|Maximum assured sum||There is no limit|
|Tax benefits||Avail tax benefit on premiums and the benefits listed under this policy according to the current Income Tax Laws|
|Flexibility||Choose to make payments for the premiums for a term of 7 years to 12 years|
Benefits of Reliance Nippon Life Future Income:
The Reliance Nippon Life Future Income comes with a myriad of benefits. These benefits are as follows:
- Income Benefit – In case the life insured survives, and provided the policy is still in force and the entire premium payment is cleared, the insured will be getting an Income Benefit after the end of every policy year. This happens after the premium payment term. The base assured sum along with reversionary bonus multiplied the income benefit factor is equal to the income benefit. The IB factor is provided below as the percentage of the Bass Assured Sum along with the vested Reversionary Bonus:
|Term of the Policy||14||16||18||20||22||24|
|Total no. of equal annual installments of the Income Benefit||7||8||9||10||11||12|
|IB starts from the end of the policy year||8||9||10||11||12||13|
|Income Benefit Factor||14.28%||12.50%||11.11%||10%||9.09%||8.33%|
- Maturity Benefit – If the insured individual survives till the end of the policy term and the policy is still in force, then the insured will receive terminal bonus and last installment of the income benefit.
- Death Benefit – In the event of demise of the life insured, provided the policy is still in force and all premium payments have been cleared, the nominee will get the assured sum along with reversionary bonus as on the death date. The nominee will also receive the terminal bonus, if any. These are applicable if the death of the assured happens during premium payment term. In case death of the insured happens after premium payment term, then the nominee gets the assured sum along with reversionary bonus as on the death date. The nominee will also receive the terminal bonus, if any. The Death Benefit is subject to 105% of the premiums paid. However, this is excluding the taxes and extra premium.
- Loan – Once the Surrender Value has been acquired, the insured can get a loan against this policy. The maximum amount that can be availed as loan is 80% of the Surrender Value. The rates of interest associated with this loan will be as per current market standards.
- Grace period for Premium Payment – In case the insured is not able to make payments for the premiums by the due date, a certain grace period will be offered to him/her. This grace period is a span of 30 days and the policy stays in force during this time. The policy is cancelled if the premiums are not paid even after the end of the grace period.
- Surrender – In case this life insurance policy has a surrender value but the insured decides to discontinue the policy, he/she will get the Surrender Value. This is more than the SSV (Special Surrender Value) and GSV (Guaranteed Surrender Value).
- Revival - A policy which has lapsed for not paying the premiums within grace period can be revived within a time span of two years from the date of first unpaid premium. In case it is not revived, then the Surrender Value will be cleared and the policy will be terminated.
Riders for Reliance Nippon Life Future Income:
The following riders are offered by Reliance to safeguard the insured and his/her loved ones:
- Reliance Accidental Death Benefit and TPD Rider
- Reliance Major Surgical Benefit Rider
- Reliance Critical Conditions Rider
- Reliance Term Life Insurance Benefit Rider
How Reliance Nippon Life Future Income Plan Works?
Shyam is a 30 year old man and is a salaried employee with an organization. His wife, Radha and their 5 year old son Praful stay with him. Shyam wants Praful to receive the best education possible and grow up as a successful man. He also wants to save a lot of money when he is at the zenith of his career.
Shyam chooses to go with Reliance Future Income plan with a base assured sum of Rs.3 lakh and a term of 20 years. He pays a premium amount of Rs.28,302 for a period of 10 years.
Scenario 1 – In case Shyam survives till the maturity of the policy benefits:
- During the term of premium payment, simple reversionary bonus will accrue.
- Estimated 8% return of the simple reversionary bonus will be Rs.1,29,000.
- For a 20 year policy term, the IB factor is 10%. So, IB payable after the policy year ends at an estimated 8% return is going to be Rs.3,00,000 plus Rs.1,29,000 multiplied by 10%. This would amount to Rs.42,900
- When the policy term ends, Shyam will be getting a huge benefit of Rs.1,00,950.
Scenario 2 - In case there is an unfortunate event where Shyam expires at the eighth policy year:
|Assured Sum on death||Rs.3,00,000||Rs.3,00,000|
|Vested Reversionary Bonus||Rs.36,000||Rs.1,03,200|
|Total Death Benefit||Rs.3,41,400||Rs.4,18,680|
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017