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Reliance Nippon Life Protection Plus Plan

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Summary of Reliance Nippon Life Protection Plus Plan

Reliance Nippon Life Protection Plus Plan offers financial security to your family at affordable costs. It is easy to understand and is especially useful for first time term insurance buyers of pure protection term insurance plans. You can enhance your cover at key milestones in your life. The plan offers lower premiums for non-tobacco consumers and those with healthier lifestyles. We will understand these benefits in detail with examples. 
 
Plan Name Reliance Nippon Life Protection Plus
Policy Type Term Insurance
UIN 121N137V01


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Key Features of Reliance Nippon Life Protection Plus Policy

  • High cover amount at affordable premiums
  • Option to customise your plan
  • Option to enhance protection at key milestones in your life
  • Low premiums for non-smokers and those with healthy lifestyles 
  • Premiums can be paid monthly, quarterly, half-yearly or annually
  • Tax Benefits on Premiums paid and Death Benefit
 

Benefits of Reliance Nippon Life Protection Plus Policy


This plan has 4 options to choose from. You can choose these options only at the time of purchase. We will understand these options in detail below.

Option 1 - Level Cover Benefit

In this option, the policyholder pays the premiums regularly and in case of the death of the policyholder at any time during the policy term, the sum assured will be paid in lumpsum to the nominee and the policy stops.

There is no maturity benefit or return of premium at the end of the policy.

Example: Vikram who is 30 years old takes this plan for a 35 years policy term. His premium will be Rs. 9,331 per year for 1 crore cover amount if he is healthy and a non-smoker.

So he has this cover till the age of 65 years. In case of any unfortunate event within these 35 years, his nominee will receive Rs. 1 crore and the policy will terminate.


Option 2 - Increasing Cover

In this option, the cover amount increases by 5% every year, to a maximum cover amount of 2 times the base cover amount. The policyholder pays the premiums regularly and in case of the death of the policyholder at any time during the policy term, the last increased sum assured will be paid in lumpsum to the nominee and the policy stops.

The premium does not increase every year. There is no maturity benefit or return of premium at the end of the policy.

Example: Vikram who is 30 years old takes this plan for a 35 years policy term. His premium will be Rs. 14,713 per year for 1 crore cover amount if he is healthy and a non-smoker.

His cover amount will increase by 5% of 1 crore every year = Rs. 5 lakhs. Once the cover amount becomes 2 times, that is 2 crore, there will be no more increase and it will stay at 2 crores for the rest of the policy term. So in case of the death of Vikram after the 20th policy year, his nominee will receive Rs. 2 crores in lumpsum and the policy terminates.


Option 3 - Level Cover Plus Income

This option is good in case the policyholder wants to leave a regular monthly income for the nominee in addition to the lumpsum amount payable on death. In case of the policyholder’s death during the policy term, the sum assured will be paid as lumpsum and a monthly income of 1% of the sum assured will be paid every month for the next 10 years.

Example: Vikram who is 27 years old takes this plan for a 35 years policy term. His premium will be Rs. 15,322 per year for 1 crore cover amount if he is healthy and a non-smoker.

So in case of the death of Vikram after the 20th policy year, his nominee will receive Rs. 1 crore in lumpsum. Additionally, his nominee will receive 1% of 1 crore, that is Rs. 1 lakh, every month for the next 10 years. During the income period, the nominee can choose to take the discounted value of all future income payouts, at the prevailing interest rate, in lumpsum.


Option 4 - Whole Life Cover

This is a whole life cover, which means the cover continues for the entire life of the policyholder. The premiums need to be paid only till the age of 65 years and the cover continues for the rest of his life.

Example: Vikram who is 30 years old takes this whole life plan.There is no specific policy term. His premium will be Rs. 62,970 per year for 1 crore cover amount if he is healthy and a non-smoker. He needs to pay the premiums till the age of 65 years.

So in case of the death of Vikram at any point of time, his nominee will receive Rs. 1 crore in lumpsum. He has to pay premiums till the age of 65 years.


Optional Benefits

Enhanced Coverage Benefit

You can increase the cover amount on specific events during the term of the policy. You can avail this rider benefit by paying extra premiums. The increase can be as follows:
 
Event Additional Sum Assured
Marriage (1st marriage only) 50% (Max 50 lakhs)
Birth / Legal adoption of 1st child 25% (Max 25 lakhs) 
Birth / Legal adoption of 2nd child 25% (Max 25 lakhs) 
Home loan taken by Life Assured 50% of Loan amount  (Max 50 lakhs)

You have to make this increase within 180 days of the event.


Top Up Benefit

You can increase your life insurance coverage by 10% on the 3rd, 4th, 5th and 6th policy anniversaries. Each increase can be of maximum Rs. 5 lakhs and the collective increases should be a maximum of Rs. 20 lakhs. You have to exercise this option within 30 days of the anniversary.

Note: 
The above mentioned additional benefits can only be availed before the policyholder turns 45 years old
The outstanding policy term is at least 5 years 
 

Eligibility Parameters for the Reliance Nippon Life Protection Plus Policy

Parameter Whole Life Cover Option All other Options
Entry Age 25 to 55 years 18 to 60 years
Max Age at Maturity Whole life 28 to 75 years
Sum Assured 25 lakhs No limit
Policy Term Whole life 10 to 40 years
Premium Payment Term 65 - Entry age Same as policy term
Premium Payment Mode Monthly, Quarterly, Half-yearly, Annually
 

Other Features of Reliance Nippon Life Protection Plus Policy


Freelook Period - In case you are not satisfied with the policy after receiving the policy documents, you can cancel the policy and get a refund. The can cancel the policy within the freelook period as defined here:
  • Within 15 days in case the policy is not purchased electronically or through distance marketing
  • Within 30 days in case the policy is purchased electronically or through distance marketing

Surrender Value - You can surrender the plan only in the case of the Whole Life Option. This can be done if 3 years of premiums have been paid. Surrender Value = 70% of Total Premiums Paid multiplied by (Maximum of 0 and (100 less Age at surrender) divided by (100 less Age at Entry))

Revival - In case you have missed the premiums and the policy has lapsed, you can revive the policy within 5 years from the last unpaid due date, but before the policy term expiry. You will have to pay all unpaid premiums without any interest.

Suicide Exclusion - In case of death of the polilcyholder due to suicide with 12 months of commencement of risk, the sum assured will not be paid to the nominee. Only a part of the premiums paid will be refunded as follows:
  • For regular premium plans - 80% of the premiums paid will be refunded  

This pretty much explains the working of this plan. In case you have any questions on this plan, please drop a comment and we will get back to you.

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