Reliance Life Smart Pension Plan

In this plan, premium can be paid in a Lumpsum under Single Premium Paying Term, for a Limited Period under Limited Premium Paying Term and also for the entire policy tenure under Regular Premium Paying Term. There is Loyalty Additions in this plan which starts from the end of sixth policy year and paid at the end of every third policy year.

The premium, net of charges is invested in the Pension Smart Fund 1

There are 2 stages in this plan- Accumulation Stage and Distribution Stage. In the Accumulation Stage, the premium needs to be paid to build up the desired Fund Value for the Annuity Corpus. In the Distribution Stage at policy maturity, i.e. at Vesting, the Annuity Phase starts according to the Annuity Option chosen.

When the policy matures, the higher of the Fund Value or the Assured Benefit of 101% of all regular Premium Paid Is paid to the policyholder as Vesting Benefit which on Vesting, the Annuitant has the following options:

• Withdraw 1/3rd of the Vesting Benefit as Tax Free under section 10(10)A and utilize the remaining to purchase annuity from Reliance Life
• Use the entire amount to purchase annuity from Reliance Life
• Can defer the Distribution Stage by extending the Accumulation Stage for another 5 years, provider the annuitant’s age is less than 55 years of age at that time

At the time of Vesting, there are 3 available options for Annuity now, which is taken from Reliance Immediate Annuity Plan.

• Life Annuity- Annuity continues as long as the Annuitant is alive and nothing is payable thereafter
• Life Annuity with Return of Purchase Price on death- Annuity continues as long as Annuitant is alive and when the Annuitant dies, the entire Purchase Price, i.e. the amount paid as Single Premium to purchase the Annuity, would be returned to the nominee of the Annuitant as Death Benefit and the policy terminates thereafter
• Annuity Guaranteed for 5, 10 or 15 years and then Life thereafter- Annuity would be paid for a minimum period of 5, 10 or 15 years as chosen irrespective of whether the Annuitant is alive or not and if the Annuitant outlives that period, Annuity would be paid as long as the Annuitant is alive and nothing is payable thereafter

In case of death of the Annuitant within the Policy Tenure, i.e. before the Annuity payout starts, the nominee will receive the higher of the Fund Value or 105% of total premiums paid till date as Death Benefit which can be taken by the nominee as a lumpsum or as annuity.
However, if the Annuitant dies after the Annuity has begun, Death Benefit depends upon the Annuity Option chosen:

• Life Annuity- Nothing is payable to the nominee after the death of the Annuitant
• Life Annuity with Return of Purchase Price- the entire Purchase Price is payable to the nominee after the death of the Annuitant
• Annuity Certain and then Life thereafter- If the Annuitant dies:
  • Within the Certain Period of 5, 10 or 15 years as chosen, the Annuity continues till the remaining Certain Period and then the policy terminates
  • After the Certain Period, nothing is payable to the Annuitant

Charges in Reliance Life Smart Pension Plan

Premium Allocation Charge – This charge is deducted from the Premium Paid by you

Policy Administration Charge—This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.  For Regular and Limited Plans, Rs 40 p.m. from 6^th Policy Year onwards.

Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure

Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.

Service Tax would be applicable on the charges depending on the applicable rates.