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  • Reliance Whole Life Income Plan

    In general, all human beings have two major financial needs – how to take care of the family and how to lead a comfortable life. The Reliance Whole Life Income Plan is designed to take care of the regular income that is needed by an individual to lead a happy and smooth life. This particular plan also allows the policyholder to leave something as a legacy for the next generation. The Reliance Whole Life Income Plan provides the policyholder with regular income till the age of 85 years and also takes care of his/her family’s financial needs arising from an unfortunate event.

    Eligibility for Reliance Whole Life Income Plan:

    In order to be eligible for the Reliance Nippon Life Whole Life Income, one must meet certain criteria. These are mentioned below:

    Minimum age at entry 0 years
    Maximum age at entry 55 years
    Minimum age at the time of maturity 85 years
    Maximum age at the time of maturity 85 years
    Policy term 85 – Age at entry
    Premium Payment Term 10 & 15
    Minimum Annual Premium Rs.16,328
    Maximum Annual Premium No limit

    Key features of Reliance Whole Life Income Plan:

    The Reliance Whole Life 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.1,00,000
    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

    Benefits of Reliance Whole Life Income Plan:

    The Whole Life Income planoffered by Reliance Life comes with a myriad of benefits. These benefits are as follows:

    • Income Benefit – If the policyholder survives till the age of 85 years and the policy still remains in force with all premium payments cleared, following benefits will be paid:
      • Guaranteed Income – The policy holder will be able to avail guaranteed income which is payable as a percentage of the Base Assured Sum. This would start from the 10th Policy year.
    Base Assured Sum Guaranteed Income (% of Base Assured Sum)
    Rs.5,00,000 and above 6.75%
    Rs.2,50,000 or more but lower than Rs.5,00,000 6.50%
    Lower than Rs.2,50,000 6.00%
    • Cash Bonuses – Additionally, the policyholder will receive cash bonuses which is payable every year. This is also a percentage of the Base Assured Sum that starts from the beginning of 6th Policy year. These cash bonuses are not guaranteed and they depend on how the participating fund or investment performs under this particular product.
    • 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 as on the death date. 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 the 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 this Life Insurance policy will be terminated.

    Riders for Reliance Nippon Life Future Income:

    The following riders are offered by Reliance Life Insurance 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?

    Vivek is a 30 year old man who chooses to go with the Reliance Whole Life Income Plan. He selects 15 years as his premium payment term. The assured sum that he chooses is an amount of Rs.2,00,000.

    Base Assured Sum Policy Term (up to the age of 85 years) Premium Payment Term
    Rs.2,00,000 55 years 15 years
    • Vivek pays an amount of Rs.35,496 every year as annual premium, assuming he is in good health.
    • The premium rate stands at Rs.177.48 per Rs.1,000 of the Base Assured Sum in this case. So, the Base Assured Sum comes up to (1000 x 35,496)/177.48 which is Rs.2,00,000.
    • Vivek avails cash bonuses from the beginning of 6th policy year.
    • He gets guaranteed income from the beginning of 10th policy year.

    Scenario 1 – Vivek is alive till the age of 85, when the policy term comes to an end:

    Premium Paid Rs.5,32.440
    Benefits @4% @8%
    Maturity Benefit Rs.2,00,000 Rs.2,00,000
    Total Cash Bonus Rs.1,00,000 Rs.5,80,000
    Guaranteed Income Rs.5,52,000 Rs.5,52,000
    Total Benefit Rs.8,52,000 Rs.13,32,000

    Scenario 2 – Vivek passes away at the age of 85 in an unfortunate event:

    Premium Paid Rs.5,32.440    
    Benefits @4% @8%
    Death benefit that is received by the nominee Rs.5,59.052 Rs.5,59,052
    Guaranteed income up to age 85 years Rs.5,52,000 Rs.5,52,000
    Cash bonus up to 85 years Rs.1,00,000 Rs.5,80,000
    Total Benefit Rs.12,11,062 Rs.16,91,062

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

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