Let’s take an example:
Kiran (Life Assured), aged 35 years, works as an Area Manager in a private organization. He opts for Reliance Nippon Life Pension Builder with a Sum Assured of Rs. 5,00,000, policy term of 20 years and premium payment term of 10 years. The annual premium applicable (after deducting the High Sum Assured Discount) is Rs. 51,695 (excluding service tax and cess). He nominates his wife Kirti as a beneficiary, in case of his unfortunate demise.
Vesting Benefit at the end of the 20th year will be Sum Assured + Vested Simple Reversionary Bonus + Terminal Bonus, if any.
This is subject to a minimum of 105% of all the premiums paid (excluding any extra mortality premium, service tax and education cess)
Kiran has following options at vesting:
- To commute/withdraw 1/3rd of the Vesting Benefit as per prevailing income tax laws and to utilize the balance amount to purchase immediate annuity from Reliance Nippon Life Insurance Company at the prevailing annuity rate; or
- To utilise the entire proceeds to purchase a single premium deferred pension plan from Reliance Nippon Life Insurance Company; or
- To extend the accumulation period/deferment period under the same plan, provided the policyholder's current age is below 55 years and maximum age at vesting is not more than 75 years
Scenario I: Kiran, survives till vesting and utilise the entire corpus to purchase Immediate Annuity Plan with Life Annuity with Return of Purchase price option from RNLIC.
|
Benefit at Vesting
|
Amount (Rs.)
@8%
|
Amount (Rs.)
@4%
|
|
Sum Assured
|
5,00,000
|
5,00,000
|
|
Vested Simple Reversionary Bonus
|
3,50,000
|
1,00,000
|
|
Terminal Bonus
|
2,80,000
|
80,000
|
|
Total Benefit
|
11,30,000
|
6,80,000
|
|
Annuity Amount p.a.*
|
63,574
|
38,257
|
|
Lumpsum on Death post-retirement
|
11,30,000
|
6,80,000
|
*Immediate Annuity Purchase Price considered for calculation of the Annuity Amount p.a. is exclusive of Service Tax and Cess, if any.
Scenario II: Unfortunately Kiran, dies at the end of eighth policy year; Kirti will be entitled to
|
Benefit on Death
|
Amount (Rs.)
@8%
|
Amount (Rs.)
@4%
|
|
105% of Total Premiums paid (excluding service tax and cess)
|
4,34,238
|
4,34,238
|
|
Vested Simple Reversionary Bonus
|
1,40,000
|
40,000
|
|
Total Death benefit
|
5,74,238
|
4,74,238
|
Kirti has following options:
- Receive entire proceeds of death benefit as a lump sum or
- Utilise the proceeds of death benefit, fully or partly, for purchasing an Annuity at the then prevailing rate from Reliance Nippon Life Insurance Company.
DisclaimerFor more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. UIN for Reliance Nippon Life Pension Builder:121N113V01