Reliance Nippon Life Protection Plus

Reliance Nippon Life Protection Plus is a Non-Linked, Non-Participating, Individual Pure Risk Life Insurance Plan which helps you to protect yourself and your loved ones financially in uncertain times. Unfortunate events may happen anytime and anywhere, and events like these may fall apart your family financially and emotionally. Thus, this plan is an affordable way to secure your family’s future without disrupting your present. It offers you flexibility by giving 4 plan options so that you can choose the best plan suiting your needs.

The plan also provides additional enhanced coverage options for securing the key stages of your life. It also provides a free-look period of 15 days (30 days if policy is bought through distance marketing mode), thus if you are dissatisfied with the terms and conditions of the policy you can return it by stating the reasons. The premium will be refunded to you after charging some expense charges such as medical examination charges and stamp duty charges. Your refund will be processed under 15 days of return request.

Best Features of Reliance Nippon Life Protection Plus 

Below mentioned are some of the features of the plan which makes this plan distinctive from other plans:

• The plan provides whole life protection under the whole of life cover plan variant and 10-40 years under other 3 plan variants namely level cover plan, increasing level cover plan and level cover plus income plan.
• The death benefit is paid in lump sum under all the plans. Additionally, Level Cover Plus income plan provides 1% income payment of the sum assured to the nominee each month.
• Enhanced coverage plan options are also available to assist you in events like marriage, birth or a legal adoption of a child and home loan taken by life assured.
• Top -Up benefit option increases the insurance coverage at the 3 rd, 4 th, 5th and 6 th policy anniversary by 10% p.a.
• The plan also provides 2 riders - Accidental Death Benefit rider and Accidental Total and Permanent Disability Benefit.
• Premiums paid under Reliance Nippon Life Protection Plus and Riders are eligible for tax exemptions. You can consult your tax advisor for the same.
• You have an option to pay premium payments monthly, half-yearly and quarterly and yearly.
• If your policy and riders lapses, you can revive them for full coverage within 5 years from the due date of the first unpaid premium.

Benefits of Reliance Nippon Life Protection Plus

Listed below are some benefits you get after choosing Reliance Nippon Life Protection Plus:

• Death Benefit

 In case of the death of the life assured during the term of policy, the death benefit will be paid to the nominee as per the plan option they opted for. The amount of the sum assured depends on the variant you chose at the commencement of the policy. Sum assured is paid in lump sum in all the plans in addition to the income which is received in the level cover plus income plan.

•  Enhanced Coverage Benefit Option

Under this option, the policy provides you some coverage options which increases the base sum assured during the key events in your life which require large funds. No additional underwriting  is necessary at the time of the main event, additional premium is charged to increase the coverage.

Below is a table which shows the events and the increase in sum assured:

• Top-Up Benefit Option

Top-Up Benefit Option allows you to increase your insurance coverage at the 3 rd, 4 th, 5th and 6 th  policy anniversary. The increase is by 10% p.a of base sum assured, subject to a maximum of 5 Lakh per increase.  This increase can be availed under 30 days of the 3 rd, 4 th, 5th and 6 th  policy anniversary. In case you decide not to exercise the option on any of the anniversaries, the same will not be carried on to the next year. If the rider benefit has been paid during the policy term then the chosen benefit option cannot be availed.

• Rider Benefit

The plan provides 2 rider benefits named Accidental Death Benefit rider and Accidental Total and Permanent Disability Benefit. The financial compensation is paid within 180 days of the accident. Rider Benefits provides more support when a sudden accident or an unfortunate event occurs and leaves the assured incapable of earning.

 What is Covered?

The coverage provided under Reliance Nippon Life Protection Plus depends on the plan variant chosen by you. The coverage details of the 4 plan options are as follow:

Level Cover Plan

Under this variant only death benefit is included.

• Death Benefit

The sum assured on the death of the assured is payable to the nominee as lump sum if the death occurs under the policy term. No additional income and payment is paid under this variant and after the payment of the death benefit to the nominee the policy terminates.

How the level cover plan works-

• Example

• Benefits Payable

If Mr. Arora dies within the term of the policy, the nominee named by Mr.Arora will be given 25 Lakh as lump sum and after the payment the policy terminates.

Increasing Cover Plan

Only death benefit is available under this variant:

• Death Benefit

Under this variant, if the assured dies within the policy term the nominee will be paid sum assured in lump sum. Moreover in Increasing Cover Plan the base sum assured increases by 5% p.a at each policy anniversary to a maximum increase of 100% of the base sum assured. However, the premium does not increase with increase in base sum assured and the policy terminates after acquiring death benefit.

How the Increasing Cover Plan works-

•  Example 

• Benefits Payable 

If Mr. Arora dies within the term of the policy, his nominee is entitled to the basic sum assured as lump sum but due to the variant the basic sum assured will increase by 5% p.a each policy anniversary.  Suppose if Mr. Arora died at the age of 40  and it was his 16 th policy year where the basic sum assured was 1 Crore, then at the time of his death the nominee will get  75 lakh more than the decided basic sum assured.

Level Cover Plus Income 

 Only death variant is included in this variant:

• Death Benefit

Level Cover Plus Income provides lump sum payment of death benefit if the assured dies within the policy term. In addition to the death benefit, the nominee gets monthly income benefit i.e 1% of the basic sum assured. The monthly payment will be made till a fixed period of 10 years to the nominee. If the nominee decides to receive the future income payments as lump sum, they are allowed to do so. The lump sum will be the discounted value of the future income payments at the prevailing revival interest rate.

How the Level Cover Plus Income works-

• Example

• Benefits Payable

 If Mr. Arora dies during the tenure period, the nominee is entitled to the death benefit i.e INR 1 Crore in lump sum.  Under this variant the nominee receives a lump sum amount along with the monthly  income, So the nominee of Mr. Arora will also receive 1% of the basic sum assured i.e INR 1 Lakh each month as income for the coming 10 years.

Whole of Life Cover Plan

Following 2 coverage benefits are available under this plan - 

• Death Benefit

Under the Whole of Life Cover Plan, the assured life gets death benefit as a lump sum if the death occurs when the policy is in force. After paying the death benefit the policy gets terminated. This variant also provides the protection for whole life i.e there is no age limit or policy year term, the policy continues until or unless the assured dies. It also offers the limited pay option which means that the assured only has to pay the premium for a limited period of time i.e 65 Years in the Whole of Life Cover Plan.

How the Whole of Life Cover works -

• Example 

• Benefit Payable

If Mr. Arora dies after his Premium Payment Term ends, the nominee gets the basic sum assured i.e INR 1 Crore and Mr. Arora only has to pay the premium payment till the age of 65. Suppose he dies unfortunately at the age of 85, his life insurance cover will continue even though the Premium Payment Term ended.

Surrender Benefit

Only this variant of the plan offers Surrender Benefit. The assured gets surrender value if he pays full premium payment for three consecutive years. If the assured decides to give-up his policy in between surrender benefits are payable to him. Calculation of surrender value can be done using the below formula:

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))

What is not Covered?

Sucide is the main exclusion that affects the death benefit of the assured, in case of sucide the nominee receives premium payments made by the assured not the death benefit. 

If the sucide occurs within the 12 months from :

• The  date of the commencement of the risk of the policy, the nominee is entitled to 80% of the premium paid by the assured only if the policy is active.
• The date of revival of the policy  then the nominee receives more than 80% of the premium paid till the date of death.

Eligibility Criteria for Reliance Nippon Life Protection Plus

Reliance Nippon Life Protection Plus Claim Process 

Reliance Nippon Life Insurance offers a 3-step hassle-free, fast and easy claim process. There are different types of claims and each claim has different documents required.   

Step 1: The first step is to find the documents required while registering for different types of claims. List of documents required for death claim are as follows-

Documents Required for Death Claims - 

• Claim Form A which has to be filled by the nominee.
• Claim Form B which medical attendant certificate which is filled, signed and stamped by the treating doctor.
• Claim Form C certificate of identity which has to be filled by a person other than the nominee.
• Original Death Certificate issued by Local Municipal Corporation.
• Copy of all medical records such as admission notes, discharge summary and test reports.
• Copy of Medico- Legal cause of death certificate by the doctor confirming the cause of death.
• Original policy documents.
• KYC document of nominee.
• Bank details of the nominee.

Documents Required For Survival Benefit Claim (available under Whole of Life variant only)

• Request letter for updating the bank details if the correct one is not updated with the insurance provider.
• Personalised cancelled cheque or self-attested copy of passbook or self-attested copy of bank statement with IFSC and bank account number.

Step 2: Submit the above documents at the nearest RNLIC branch or send them to the claim department.

Step 3: Reliance Nippon Life Protection Plus provides a 10-day settlement guarantee where 4 or more annual premiums have been paid.

Reliance Nippon Life Protection Plus Riders

The policy mentioned above offers 2 additional riders in the case of uncertain accidents which are:

• Accidental Death Benefit

Accidental death means that the life assured suffers any bodily injury which ultimately becomes the cause of the death.In an unfortunate event where the assured loses his life due to an accident, rider sum assured is payable to the nominee within 180 Days from the occurrence of the accident. There are many exclusions such as death committed by any breach of law, death occurs as a result of attempted suicide, death as a result of war etc.

• Accidental Total and Permanent Disability Benefit

If any unfortunate event, the assured meets with an accident which leaves him total and permanent disable then the Accidental Total and Permanent Disability rider covers the loss. Within 180 Days from the accident, an equal rider sum  is paid to the assured for the period of 10 years and future premium payments are waived if any.

Reliance Nippon Life Protection Plus Review

Reliance Nippon Life Protection Plus is an economical policy with multiple benefits which helps to look after your family financially when unfortunately you are not able to. The policy provides 4 plan options,  2 additional riders, multiple premium payment options and enhancing options for assisting in main events in life. The premium is also cheap so that the present financial condition does not get affected by the premium payments. It also provides less premium to Non-Tobacco users with healthier lifestyles.

This plan offers a grace period of 30 Days (15 days in case of monthly payment mode) if the assured is not able to pay the premium on time. All the benefits of the policy will continue until the grace period ends and if the grace period ends you can also revive your policy. Reliance has been awarded as ‘ Best Claim Service Provider of the Year’ at 5th Annual Insurance Summit 2020. The Claim Settlement Ratio for Reliance Nippon Life Protection Plus stood at  97.7% in FY19. This plan is suitable for individuals who are looking for adequate coverage benefits at affordable premium rates.