Reliance Nippon Life Smart Savings Insurance Plan

• 2 investment options to choose from
• Invest in any 6 available funds
• Manage investments depending on the market conditions
• Wealth Boosters & Loyalty Additions to boost fund value
• Get rewarded for staying invested for a longer period
• Limited or Regular policy term
• Access cash through partial withdrawals
• Top-up Premium facility available
• Life insurance cover based on your needs
• Switching facility is available
• Avail premium re-direction
• Enjoy tax benefits

This policy offers following 6 investment funds and you have the option to invest in any one or combination of fund options.

• Life Equity Fund 3
• Life Pure Equity Fund 2
• Make in India Fund
• Life Balanced Fund 1
• Life Corporate Bond Fund 1
• Life Money Market Fund 1

You have the option to choose from following two investment strategies that help manage your funds.

Self-Managed Option: This investment strategy provides you the flexibility to invest amongst 6 available investment funds. With this investment strategy, you can avail switching and premium re-direction facility.

Auto-Managed Option: This option suits best to you, in case you want automated options to manage your investments. Under this investment strategy, you can opt for Target Maturity Option (a tailor-made solution through automatic asset allocation between equity and debt) or Life Stage Option (Create a balance between equity and debt through a systematic asset allocation strategy based on your life-stage).

You have the flexibility to change the Investment Option twice during a policy year and this facility is available free of cost.

Death Benefit

In the event of death of the life assured while the policy is in-force, the Death Benefit payable is higher of Base Sum Assured less partial withdrawals#, 105% of the total premiums paid, or Base Fund Value.

In case of top-up premium, it is higher of all top-up sum assured, 105% of all the top-up premiums paid, or top-up fund value.

Base Sum Assured is your Annualized Premium multiplied by,

• The higher of 10 or Policy Term divided by 2, for entry ages below 45 years
• The higher of 10 or Policy Term divided by 4, for entry ages 45 years & above
   

Top-up Sum Assured is your Top-up Premium multiplied by,

• 125% if the attained age is below 45 years
• 110% if the attained age is 45 years & above
   

#Before age 60 years of the life insured, Base Sum Assured is reduced to the extent of Partial Withdrawals made during the last two years prior the date of death. After attaining 60 years of age, Base Sum Assured is reduced to the extent of all Partial Withdrawals made after attaining 58 years.

Maturity Benefit

On survival of the life insured till the end of the policy term, the Total Fund Value including top-up fund value is payable at maturity. You can receive this benefit as a lump sum or through a structured payout by using ‘Settlement Option’.

Loyalty Addition

Loyalty Addition in  the form of additional units is added to the policy, starting from the end of the 10^th policy year and every five years thereafter. Each Loyalty Addition is a percentage of the base premiums paid during the last 60 months. It is added to the fund, provided the policy is in-force. Once credited, Loyalty Addition cannot be taken back by the company and it is payable on surrender, maturity, death or partial withdrawal.

Settlement Option

On maturity, you can opt to receive your money in annually, semi annually, quarterly or monthly installments over a period of 1 to 5 years, after the date of maturity. You also have the option to completely withdraw the fund value at any time during the settlement period. No life cover is applicable during this settlement period. Partial withdrawals and switches are not allowed during the settlement period.

Wealth Boosters

Wealth Boosters in the form of additional units are added under the policy, starting from the end of 6th policy year (11^th Policy Year for Band 1) till maturity of the policy. Each Wealth Booster is a percentage of the average of daily Fund Value in preceding 12 months of the Base Plan. It varies from 0.20% to 1.00% is payable, provided the policy is in-force. Once credited, Wealth Boosters cannot be taken back by the company.

Top-Ups

Facility for Top-up Premium is available through the entire policy term, except during the last five years of the policy. The minimum top-up premium allowed is Rs 10,000. The total top-up premium should not exceed the total of base premiums paid at that point of time.

Partial Withdrawal from top-up fund value is allowed on completion of first five policy years or on attaining 18 years, whichever is later, except complete surrender under the policy.

Switching

You can switch among 6 available fund options to suit your changing investment needs. This option is available, when opted for self-managed option.

Premium Re-direction

Premium Re-direction facility is available to alter future premium allocation and it will apply to your subsequent premiums, when opted for self-managed option.

Partial Withdrawal

Partial Withdrawal is allowed from 6^th policy year onwards (in case of minor lives, life assured attains 18 years). The minimum partial withdrawal amount allowed is Rs 10,000. The maximum partial withdrawal amount allowed shall not exceed 25% of the total fund value (including top-up fund value), provided the fund balance post such withdrawal should be at least equal to 125% of annualized premium.

Non-Negative Claw Back Addition

The Non-Negative Claw Back Additions are available at various intervals of time, after the first 5 years under the policy. It is available to comply with the prevailing reduction in yield criteria.

Bonus

The plan is not eligible for the bonuses, as it is a non-participating insurance plan.

Loan Benefit

No loan benefit can be availed under this plan.

Revival

You can revive a discontinued policy within 2 consecutive years from the discontinuance of the policy, on payment of all due and unpaid premiums.

Surrender Value

Upon surrendering the policy with-in the lock-in period of 5 years, the Fund Value (including top-up fund value) less applicable discontinuance charges is credited to the ‘Discontinued Policy Fund’ and it is refunded upon completion of the lock-in period. A fund management charge of 0.50% per annum of the Discontinued Policy Fund is applicable. The proceeds after addition of interest subject to a minimum guaranteed interest rate of 4% per annum or as stipulated by IRDAI is payable after the end of the lock-in period.

Upon surrendering the policy after the lock-in period of 5 years, the Fund Value (including top-up fund value) as on the date of surrender is payable immediately.

No rider is available under this plan.

Premium Allocation Charges: This charge is deducted from the premiums paid and the balance amount is then allocated to funds chosen. It varies from 3.75% to 6.50% for year 1 and 2.75% to 4.50% from year 2 onwards. For top-up premium, the premium allocation charge is 1% of the top-up amount.

Policy Administration Charge: The policy administration charge is different for different premium bands, subject to a maximum of Rs 500 per month (Rs 6,000 per annum). It is deducted by cancellation of appropriate units from the fund value.

Mortality Charges: Mortality charge is based on the age of the life insured, life insurance cover, occupation of life insured, health of life insured, and the fund value. This charge is deducted every month by cancellation of units.

Fund Management Charges: Fund management charge levied is a percentage of the Fund Value. It is 1.35% p.a for Life Equity Fund 3, Life Pure Equity Fund 2, & Make in India Fund, 1.25% p.a for Life Balanced Fund 1, Life Corporate Bond Fund 1, & Life Money Market Fund 1, 0.50% p.a for Discontinued Policy Fund. The maximum Fund management charge can be revised up to 1.35% p.a for any fund excluding Discontinued Policy Fund for which it will be 0.50% p.a.

Discontinuance Charge: This charge is levied, in case the policy is discontinued during the first 4 policy years. This charge is levied as applicable under the policy terms & conditions. For more details, please refer the policy brochure.

Switching Charge: 52 free switches are available free of cost during a policy year. A charge of Rs 100 is levied when opted for subsequent switching in the same policy year, subject to a maximum of Rs 500 upon prior approval from IRDAI. No option is there to carry forward the unused switches.

Partial Withdrawal: 2 free partial withdrawals are allowed during a policy year. A charge of Rs 100 is levied when opted for subsequent withdrawal in the same policy year, subject to a maximum of Rs 500 upon prior approval from IRDAI. No option is there to carry forward the unused partial withdrawals.

Service Tax: The charges mentioned under this plan are subject to applicable tax and cess, as applicable.

Tax benefits can be availed under section 80C & 10(10D) under the Income Tax Act, subject to change in tax laws.

Mr. Shivam Awasthi at 30 years of age seeking to make an investment that can help him achieve the financial goals. He thus opts for Reliance Nippon Life Smart Savings Insurance Plan (Life Equity Fund 3) with the policy term of 30 years (regular pay), annual premium of Rs 1,00,000 and sum assured of Rs 15,00,000.

Scenario A- Maturity Benefit: In case of his survival till maturity of the policy, the Total Fund Value including top-up fund value is payable at maturity. You will also receive Loyalty Addition and Wealth Boosters that boost the fund value under the policy.





Scenario B- Death Benefit: In the event of his death during the policy term, the Death Benefit payable is higher of Base Sum Assured (less partial withdrawals), 105% of the total premiums paid, or Base Fund Value.