Reliance Life Immediate Annuity Plan

Benefits:

The benefits of Reliance Immediate Annuity Plan are below:

• Hassle free enrollment: The Reliance Immediate Annuity Plan has a smooth enrollment process with minimal paperwork required. It also can be acquired without having to go through various medical tests.
• It provides tax benefits on the premium you pay and the benefits you receive as per applicable income tax laws.
• It has a one time payment of premium. Policyholder is required to make a one time premium payment in the form of the desired lump sum or corpus.
• The policy is flexible. It offers 3 options from which you can choose your annuity payout. They are life annuity, life annuity guaranteed for 5, 10 or 15 years and payable for life thereafter.
• It offers a variety of annuity payout frequencies. You can choose to have your annuity paid out annually, half-yearly, quarterly or monthly.
• The policy guarantees whole life income or annuity.

Eligibility:

Below are the criteria for eligibility for Reliance Immediate Annuity Plan:

The Annuity Payout modes are monthly, quarterly, half-yearly and yearly. The payout is a minimum of RS 1000 regardless of any mode chosen.

How the Plan works?

Let us assume Mr Sandeep aged 60 years opts for a Reliance Immediate Annuity Plan. He makes a one-time premium payment of RS 5,00,000 excluding service tax. If he selects the Annuity option of Life Annuity with return of purchase price on death and chooses the annuity payout mode as monthly he would be receiving a guaranteed monthly income of RS 2371 per month or RS 28, 455 per annum. Assuming Mr Sandeep dies at the age of 80, he would have received RS 5.7 lac through the 20 year period. The purchasing price of RS 5 lac excluding service tax would be returned to the beneficiary in the form of a lump sum.

The Annuity Payout options are as follows:

• Life Annuity with return of purchase price: This option is explained in the above example. The policyholder is paid annuity throughout his life. Upon his/her death the purchase price minus the service tax charges will be paid out to the nominee chosen by the policyholder in the form of a lump sum and the policy is then terminated.
• Life Annuity: In this option, the Annuity is paid throughout the life of the policyholder and upon his/her death, the policy is terminated and no further benefit is given.
• Life Annuity guaranteed for 5, 10 or 15 years and payable for life thereafter: In this option the annuity will be paid to the policyholder for a guaranteed period of 5, 10 or 15 years and after that period and thereafter will be payable for life of the policyholder.

If the policyholder dies within the guaranteed period of 5, 10 or 15 years, Annuity is paid to the nominee chosen by the policyholder till the end of the payout period. After the payout period expires, the policy is terminated.

In case the policyholder dies after the guaranteed payout period, no further payouts will be made and the policy will be terminated.

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