Life Insurance
Reliance Nippon Life
Erstwhile Reliance Life Insurance which was originally founded in 2001 recently became a partnership between Reliance Capital and Japan based Nippon Life Insurance in 2019. A leading private life insurer, the company offers individual and group term plans, savings and retirement plans and ULIP plans
| Annual Business | ₹524 cr. |
| Claims Settled | 98.73% |
| Claims settled within 30 days | 91.52% |
Term Insurance offered by Reliance Nippon Life
Life Protection Plus
There are multiple plan options available so you can choose whatever suits your specific needs. This policy also has a life stage benefit so that you can increase your sum assured at major milestones in life.
This policy gives four plan options:
- Level Cover Plan:
This is the most basic plan. Sum assured is paid as a lump sum on death.
- Increasing Cover Plan:
Your sum assured increases by 5% every year up to a maximum of 100% of the base sum assured.
- Level Cover Plus Income Plan:
Sum Assured is paid as a lump sum on death. In addition, a monthly income equal to 1% of the base sum assured is paid for 10 years
- Whole of Life Cover Plan:
Sum Assured is paid on death and this plan does not have any maximum maturity, meaning it covers you for your whole life
Riders you can buy with this policy:
- Reliance Nippon Life Accidental Death and Disability Plus Rider:
An additional lump sum amount is paid over and above the base sum assured in case of death due to accident or annual income is paid for 10 years and future premiums are waived in case of disability
- Reliance Nippon Life Accidental Death and Disability Rider:
An additional lump sum amount is paid over and above the base sum assured in case of death due to accident or annual income is paid for 10 years in case of disability
- Reliance Nippon Life Critical Illness Rider:
A lump sum amount is paid if you are diagnosed with any of the 25 critical illnesses listed in the rider
- Reliance Nippon Life Accidental Death Benefit Rider:
An additional lump sum amount is paid over and above the base death benefit if the cause of death is an accident
Life Digi-Term
This policy comes with multiple variants and payout options and also has a life stage benefit option to increase your cover at certain milestones and an in-built terminal illness benefit
This policy gives four plan options:
- Level Cover Plan:
This is the most basic plan. Sum assured is paid as a lump sum on death.
- Increasing Cover Plan:
Your sum assured increases by 5% every year up to a maximum of 100% of the base sum assured.
- Level Cover Plus Income Plan:
Sum Assured is paid as a lump sum on death. In addition, a monthly income equal to 1% of the base sum assured is paid for 10 years
- Whole of Life Cover Plan:
Sum Assured is paid on death and this plan does not have any maximum maturity, meaning it covers you for your whole life
Riders you can buy with this policy:
- Reliance Nippon Life Accidental Death and Disability Plus Rider:
An additional lump sum amount is paid over and above the base sum assured in case of death due to accident or annual income is paid for 10 years and future premiums are waived in case of disability
- Reliance Nippon Life Accidental Death and Disability Rider:
An additional lump sum amount is paid over and above the base sum assured in case of death due to accident or annual income is paid for 10 years in case of disability
- Reliance Nippon Life Critical Illness Rider:
A lump sum amount is paid if you are diagnosed with any of the 25 critical illnesses listed in the rider
- Reliance Nippon Life Accidental Death Benefit Rider:
An additional lump sum amount is paid over and above the base death benefit if the cause of death is an accident
Reliance Nippon Life Term Insurance plan details
| Plan Name | Entry Age | Sum Assured | Policy payment options |
|---|---|---|---|
Life Protection Plus | Whole life- 25 to 55 | ₹25,00,000-unlimited | Annual, half annually |
Life Digi-Term | Whole life- 25 to 60 | ₹25,00,000-unlimited | Annual, half annually |
ULIP Plans
Unit Linked Insurance Plans or widely known as ULIPs are part insurance, part investment plans. So the premium that you pay, some of it is allocated towards providing a death cover and the rest is invested in equity and debt funds, whichever you choose. So if something were to happen to you, your family either gets death cover or the fund value, whichever is higher at that time.
Say you’re paying a premium of 1 lakh every year for 20 years and for a death cover of 10 lakhs. You die after 15 years and your family naturally gets 10 lakhs. However if at that time the value of your invested premiums is 13 lakhs, your family gets this 13 lakhs. But if the fund doesn’t earn good returns and values at 8 lacs, then you get the death cover. So 10 lacs, i.e., your death cover is the minimum payout. But if you survive after 20 years, then you get all those invested funds back, whatever the value is at that time. That’s your maturity payout.
But there are other things to look for as well. Firstly, there is a lock-in period of 5 years, meaning you won’t be able to get back your premiums before 5 years. It’s only after 5 years that you’re allowed to withdraw some funds and even that is partial withdrawal. You can never withdraw the entire amount. Also, there are different charges that are deducted from your premium every year like premium allocation charge, policy administration charge, fund management charge, etc. So the entire 1 lakh is never invested.
Make sure you read the policy document diligently. And remember ULIPs are largely dependent on how the market is performing, both stocks and bonds.
ULIP Plans offered by Reliance Nippon Life
| Plan Name | Entry Age | No. of Funds |
|---|---|---|
| Smart Savings Plan | Minimum- 1 year Maximum- Regular Pay: 60 yrs 10 Pay: 60 yrs 7 Pay: 55 yrs 5 Pay: 50 yrs | Total: 7 Equity: 5 Debt: 2 |
| Life Prosperity Plus | 1-60 | Total: 7 Equity: 5 Debt: 2 |
| Premium wealth Plan | 30 days-60 | Total: 7 Equity: 5 Debt: 2 |
| Classic Plan II | 7-60 | Total: 7 Equity: 5 Debt: 2 |