Reliance Life Insurance Company offers two kinds of Pension Plans. One Reliance retirement plan is a traditional annuity plan, while the other is a Unit Linked Insurance Plan which fabricates a corpus through market investment. Both Reliance retirement plans presented by the company assist a person with having a peaceful retired existence.
WHAT ARE PENSION PLANS?
Otherwise called ‘Annuity Plans,’ pension plans guarantee ordinary income for individuals, particularly after they have retired from employment. Ordinarily, when you resign, a massive loss of income is contrasted with your compensation while working. This drop in your standard income level influences all parts of your life. We as a whole realize that the basics and necessities of each individual are unique, and a traditional pension helps somewhat cover these expenses.
Notwithstanding, with a pension plan, you can keep on carrying on with your retired life similarly to when you were utilized. Some Pension plans are additionally intended to give investment returns and go about as life insurance contracts. With pension plans, you can now sit back and relax, realizing that your investment sum will provide excellent returns because of compounding. It will assist with beating the pace of expansion a long time before your arrangement develops and empowers you to keep carrying on with a comfortable life that you are accustomed to living.
Pension plans will be plans that take care of your income stream after your retirement. After retirement, in any event, when there is no type of revenue, your lifestyle expenses will continuously be there. You are expected to orchestrate to meet your everyday expenses. It is when retirement proves to be helpful, as it fills in as a wellspring of average income, empowering you to partake in your retirement period without stress.
RELIANCE RETIREMENT PLANS – SUMMARY
|Reliance Retirement Plan||Features and Benefits||Eligibility Criteria|
|Reliance Immediate Annuity Plan||Annuity payments start immediately after the payment of a single premium, depending on the frequency. Three different choices for annuity payouts under the Reliance retirement plan: Life Annuity Life Annuity with Purchase Price return on death life Annuity guaranteed for 5 / 10 / 15 years and then payable for life single premium does not attract tax under Section 80CCC||Entry Age: 20 yrs (min); 80 yrs (max)Annual Premium Amount: Rs.1,000 (min); No limit (max)Purchase Price: Rs. 1 lakh (min); No limit (max)Annuity Payout Frequency: Yearly, half-yearly, quarterly, or monthly|
|Reliance Smart Pension Plan||Premiums can be paid regularly for the entire tenure, for a limited term, or at one lump sum premiums invested in the Pension Smart Fund 1On Maturity of the Reliance retirement plan, the higher the Fund Value or 110% of aggregate premiums paid is payable if the insured dies unexpectedly, an amount that is higher than fund value or equal to 105% of all premiums paid is payable. Nominees in the Reliance retirement plan can take the entire benefit in cash or as pension payout loyalty Additions accrue under the Reliance retirement plan @1% from the end of the 6th policy year; increases by 1% after every three years top-ups can be made by paying additional premiums to increase fund value. The minimum value of top-up allowed is Rs. 5,000. Premium paid under this Reliance retirement plan is exempt under Section 80CCC; claim in case of death exempt under Section 10(10D); commuted Pension exempt under Section 10(10A)||Entry Age: 18 yrs (min); 65 yrs (max)Vesting Age: 45 yrs (min); 75 yrs (max)Policy Term: Single Pay – 10 years, Regular or Limited Pay – 15 years (min); 30 years (max)Annual Premium Amount: Regular pay – Rs.20,000, Limited Pay – Rs.24,000, Single Pay – Rs.50,000 (min); No limit (max)Premium Payment Term: 10 yrs (min); 30 yrs (max)Premium Paying Frequency: Yearly, half-yearly, quarterly or monthly|
RELIANCE IMMEDIATE ANNUITY PLAN
Reliance on life insurance is among the nations. It has a broad dispersion channel north of 800 branches the country over. It follows a client-driven approach and has a claim settlement ratio of 91%, with more than 10 million strategies in force. The Reliance Immediate Annuity plan assists you with putting away your cash by changing over a single amount or a corpus into a decent customary income, empowering you to carry on with life to its fullest. It offers an assortment of annuity choices, and you begin getting ordinary annuity income depending on the kind of annuity and payout recurrence picked.
|Age at Entry||The minimum age of entry is 20 years as at last birthday||The maximum age of entry is 80 years as at last birthday|
|Purchase Price||RS 1,00,000 is the minimum purchase price||There is no limit on the maximum purchase price|
|Annuity Installment||RS 1000 is the minimum Annuity Installment||There is no maximum Annuity Installment|
RELIANCE SMART PENSION PLAN
Reliance Smart Pension Plan permits the guaranteed to make a fruitful retirement plan by beginning right on time to fabricate a retirement store. With the steadily expanding expansion, it would be very savvy to start constructing a retirement reserve early. This plan permits the safeguarded to begin saving methodically to fabricate the single amount that is expected to turn out a consistent revenue post-retirement.
|Age at Entry||The minimum age of entry is 18 years as of last birthday||The maximum age of entry is 65 years as at last birthday|
|Policy Term||Single Premium payment has a policy term of 10 years. Regular premium payment has a policy term of 15 years||Their maximum policy term is 30 years|
|Vesting age or Maturity||The Minimum maturity age is 45 years||The maximum maturity age is 75 years|
|Payment term of premium||The minimum premium paying term is ten years||The maximum premium paying time is 30 years|
|Single Premium pay||The minimum amount to make a single premium payment is RS 50,000||There is no maximum limit|
|Top Up||The minimum amount to make a top-up payment is RS 5000||There is no maximum limit|
APPLYING FOR A PENSION PLAN FROM THE COMPANY:
- Online: The Company offers detailed Reliance retirement plans, which are accessible online, as it were. The client has to sign in to the company’s site, pick the necessary Reliance retirement plan, pick the inclusion and give the subtleties. The premium will be resolved to utilize the filled subtleties. The client then needs to pay the premium online through Mastercard, check card, or online banking, and the policy will be given.
- Intermediaries: Reliance retirement plans not accessible online can be bought from specialists, intermediaries, banks, and so on, where the intermediaries assist with the application interaction.
WHY SHOULD YOU INVEST IN A PENSION PLAN, AND WHEN?
There are various reasons why you should invest in a Pension plan. Here are some reasons you should consider:
- Efficient savings for the long-term: If you decide to make a lumpsum investment or make average premium payments, the pension plan guarantees reserve funds for the long run. Rather than conventional blessing insurance plans, the pension plan will create an annuity that can then be contributed to ensuring daily income after retirement.
- Effective against Inflation: Pension plans are made with the goal that it turns out to be not challenging to confront the possible inflation after you resign. As around 1/third of the total guaranteed is paid as a lump sum on your strategy’s maturity (vesting) date, it assists with dealing with prompt expenses. In contrast, the leftover 2/third of the total is given out in regular installments, enhancing your provident fund payouts.
- Insurance and Investment: Pension plans act like conventional insurance plans, as you get a critical part of the total guaranteed at the time of Maturity of your pension plan when the premium payment is finished. It is a magnificent mix of investment and insurance intended to offer ordinary income to the policyholder. It gives lump sum benefits and bonuses to the beneficiaries in the event of the awkward death of the policyholder.
Many of you ask what the perfect time to invest in a pension plan is. Well, there’s no such perfect timing to invest in a pension plan. But according to various experts, investing in a pension plan in the mid-’50s or before that is advisable.
THE NEED FOR RETIREMENT PLANNING AND, THEREFORE, PENSION PLANS
Retirement is a crucial stage in life because one is past one’s heyday, and the body has aged and keeps on doing as such at a faster rate. One is more helpless to health issues. Regular income would have stopped probably. The primary reasons why retirement planning, and subsequently pension plans, for example, Reliance retirement plans, are required are explained underneath:
- Higher Life Spans: The average life spans are increasing worldwide and in India, too, leading to longer retirement years.
- Inflation: Inflation is the sustained increase in the general degree of prices of goods and administrations. Because of the yearly ascent in inflation, each rupee purchases fewer goods and administrations. This way, the value of savings will also decrease over the long run, and this will be a significant issue during retirement years when a steady type of revenue has stopped.
- Financial Independence Post Retirement: Judicious retirement planning via investment in a Reliance retirement plan will guarantee financial freedom after retirement.
- Maintain Living Standard: Reliance retirement plans give financial security so an individual can live proudly without settling on expectations for everyday comforts to which they have been utilized throughout the long term.
- Means to Pursue Hobbies: Retirement is when one has all the time and not much to do. With a lot of time available, it is a decent opportunity to pursue interests and hobbies that one has been avoiding all through working years because of lack of time.
THINGS TO KEEP IN MIND WHILE PURCHASING A RELIANCE RETIREMENT PLAN:
- Start Early: The earlier one starts retirement planning, the better it is. It is because the more extended the time of one’s investment, the more one will accumulate.
- Diversify: When it comes to putting away cash, it’s a good idea to diversify and not concentrate all the investment in one asset class. Assuming that something turns out badly with one sort of investment, all savings won’t be lost. There are various investment avenues to browse – equities, fixed stores, gold, property, bonds, etc.
- Role of Equities: The role of equities cannot be focused on enough. Whether as actual stocks, unit-linked pension plans, or mutual funds, they should play a central role in retirement planning.
- PPF is Not Enough: Contribution to PPF (public provident fund) or EPF (representative’s provident fund) alone is inadequate for retirement planning. It is naive of individuals to accept that they have taken care of their business by simply putting in PPF. The profits on PPF are always in single digits, and a large portion is taken away by inflation, leaving a paltry total for the future.
Q1. HOW TO PAY PREMIUM FOR RELIANCE RETIREMENT PLANS? WHAT ARE THE MODES OF PAYMENT AVAILABLE?
Ans – You can pay the premium through their website or an agent. The modes of payment available are online, cash, etc.
Q2. HOW CAN I CHECK POLICY STATUS FOR RELIANCE LIFE PENSION PLANS?
Ans – Online
Electronic Clearance System (ECS)
Q3. WHAT IS THE POLICY RENEWAL PROCESS FOR RELIANCE LIFE PENSION PLANS
Ans – For the Online renewal process, log in to your account and click on the required renewal tab after selecting the payment mode. Payment can be made via cash, cheque, or net banking.
For renewing the policies using Credit Card Mode, fill in the required mandatory form and a photocopy of the Credit Card. Within ten days, the credit card information will be registered for renewal.
Q4. WHAT IS THE COMPANY’S PROCESS TO SETTLE CLAIMS FOR RELIANCE LIFE PENSION PLANS?
Ans – Attachment of the correct Reliance retirement plan documents with the claims form is a must. After that, you need to send it to the nearest branch office in your city.
Q5. WHAT IS THE POLICY CANCELLATION PROCESS FOR RELIANCE LIFE PENSION PLANS?
Ans – The Reliance retirement plan policy cancellation process requires the customer to submit a duly filled surrender form and relevant documents in any branch. Upon receiving and verifying the documents, the Reliance retirement plan policy is deemed canceled per the bank accounts record.