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Can the Reliance Nippon Life Nishchit Samrudhi Plan assure guaranteed returns for your long-term goals?
Can the Reliance Nippon Life Nishchit Samrudhi Plan ensure guaranteed wealth accumulation?
Can the Reliance Nippon Life Nishchit Samrudhi Plan offer the assurance you need to secure your future goals?
Let’s explore how this plan aligns with your needs by examining its features, benefits, drawbacks, and returns through an IRR analysis. This review will help you shape a well-rounded financial strategy.
Table of Contents:
What is the RNL Nishchit Samrudhi Plus?
What are the features of the RNL Nischit Samrudhi Plus?
Who is eligible for the RNL Nishchit Samrudhi Plus?
What are the benefits of the RNL Nishchit Samrudhi Plus?
Grace period, Discontinuance and Revival of RNL Nishchit Samrudhi Plus
Free Look Period for RNL Nishchit Samrudhi Plus
Surrendering RNL Nishchit Samrudhi Plus
What are the advantages of the RNL Nishchit Samrudhi Plus?
What are the disadvantages of the RNL Nishchit Samrudhi Plus?
Research Methodology of RNL Nishchit Samrudhi Plus
Benefit Illustration – IRR Analysis of RNL Nishchit Samrudhi Plus
RNL Nishchit Samrudhi Plus Vs. Other Investments
RNL Nishchit Samrudhi Plus Vs. Pure-term + ELSS
Final Verdict on RNL Nischit Samrudhi Plus
What is the RNL Nishchit Samrudhi Plus?
Reliance Nippon Life Nishchit Samrudhi Plus is a Non-Linked Non-Participating Individual Savings Life Insurance Plan. Reliance Nippon Life Nishchit Samrudhi Plus is a long-term guaranteed income life insurance product that offers flexibility and financial security. Through the Flexi-Wallet option, you can customize your savings strategy according to your specific needs.
What are the features of the RNL Nischit Samrudhi Plus?
- Life insurance coverage throughout the policy term, ensuring financial security for your family.
- Flexible premium payment options: choose to pay for 5, 8, 10, or 12 years.
- Growing benefits to match your increasing financial needs over time.
- Flexi Wallet feature allows you to withdraw income whenever required.
- Tax advantages, subject to current tax laws.
- Long-term guaranteed returns, extending up to 44 years.
Who is eligible for the RNL Nishchit Samrudhi Plus?
| Premium paying term (PPT) | 5 years | 8 years | 10 years | 12 years |
| Deferment period (DP) | 0/1/2 years | |||
| Income period (IP) | 10/15/20/25/30 years | 15/20/25/30 years | ||
| Policy term | PPT + DP + IP | |||
| Minimum age at entry | 0 years | |||
| Maximum age at entry | 55 years | 60 years | 60 years | 55 years |
| Minimum age at maturity | 18 years | 18 years | 20 years | 27 years |
| Maximum age at maturity | 92 years | 100 years | 100 years | 99 years |
| Minimum Annualised premium | ₹ 1,00,000 | |||
| Maximum Annualised premium | No limit | |||
What are the benefits of the RNL Nishchit Samrudhi Plus?
1.) Death Benefit
In case of an unfortunate death of the Life Assured the Claimant(s) shall receive higher of:
- Sum Assured on Death (11 times the Annualized Premium); or
- Death Benefit Factor multiplied by Total Premiums Paid as on the date of death of the Life Assured
Apart from the above, the Claimant(s) also shall receive an outstanding balance in the Flexi Wallet, if any.
2.) Survival Benefit
The Guaranteed Annual Income (GAI) shall be payable on survival of the Life Assured at the end of every Reliance Nippon Life Nishchit Samrudhi Plus policy year during the Income Period.
The GAI at the start of the Income Period shall be equal to the GAI rate multiplied by the Annualized Premium and the GAI shall increase every year at a simple rate of 5% per annum.
3.) Maturity Benefit
On survival of the Life Assured till the end of the Policy Term, Sum Assured on Maturity plus outstanding balance in Flexi Wallet, if any, shall be payable. Where the Sum Assured on Maturity is defined as an amount equal to the Annualized Premium multiplied by the Premium Payment Term.
Grace period, Discontinuance and Revival of RNL Nishchit Samrudhi Plus
Grace period
A grace period of 30 days (15 days for monthly mode) will be given to pay your premium.
Discontinuance
If all due premiums have not been paid for the first two consecutive policy years in full, the Reliance Nippon Life Nishchit Samrudhi Plus policy shall lapse at the end of the grace period.
Once a policy has acquired a surrender value (all due premiums have been paid for the first two consecutive policy years), and if the policyholder chooses to discontinue the premium payment, the policy will continue as a paid-up (or reduced paid-up) policy with reduced benefits.
Revival
A policy in lapsed or paid-up condition may be revived by the Reliance Nippon Life Nishchit Samrudhi Plus policyholder during the revival period of 5 years from the due date of the first unpaid due premium or date of maturity of the base policy whichever is earlier.
Free Look Period for RNL Nishchit Samrudhi Plus
In the event you disagree with any of the policy terms or conditions, you shall have the option to return the policy to the company for cancellation within 15 days of its receipt where the policy has been obtained through other than distance marketing (30 days of receipt where the policy has been obtained through Distance Marketing mode).
Surrendering RNL Nishchit Samrudhi Plus
The Reliance Nippon Life Nishchit Samrudhi Plus policy shall acquire a Surrender Value if all due premiums have been paid for the first two consecutive policy years in full.
The total Surrender Value payable during the Policy Term is higher than Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV)] plus the outstanding balance in Flexi Wallet, if any
What are the advantages of the RNL Nishchit Samrudhi Plus?
- You have the option to accumulate the Guaranteed Annual Income in the Flexi Wallet, rather than receiving it as periodic payments during the Income Period.
- Under the Settlement Option, you can leave the maturity benefit in the Flexi Wallet along with the outstanding amount in the Flexi Wallet
- A loan facility is available under the policy, up to 70% of the surrender value.
- Riders can be added to boost your coverage.
- Higher premium bands offer a higher Guaranteed Annual Income (GAI).
What are the disadvantages of the RNL Nishchit Samrudhi Plus?
- Survival benefits often get spent on discretionary expenses.
- The product offers relatively low returns.
- Annual withdrawals from survival benefits interrupt the compounding effect.
Research Methodology of RNL Nishchit Samrudhi Plus
The Reliance Nippon Life Nishchit Samrudhi Plus plan allows flexibility in customizing the survival benefits to meet your financial needs.
While the cash flow structure seems appealing, evaluating the plan’s returns is essential to determine its suitability. Let’s calculate the Internal Rate of Return (IRR) based on the figures provided in the policy brochure.
Benefit Illustration – IRR Analysis of RNL Nishchit Samrudhi Plus
Consider a 45-year-old male who chooses the RNL Nishchit Samrudhi Plus plan with an annual premium of ₹5 Lakhs. The premium payment term is 10 years, followed by a 2-year deferment period, and a 30-year income period, resulting in a total policy term of 42 years.
| Male | 45 years |
| Sum Assured | ₹ 55,00,000 |
| Policy Term | 42 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 5,00,000 |
After completing the premium payments and the deferment period, the survival benefits begin, increasing by 5% p.a. (simple interest) every year.
The first survival benefit is ₹3.78 Lakhs, and at age 87, he receives the final survival benefit along with the maturity benefit. The IRR for this cash flow is calculated at 6.51% as per the Reliance Nippon Life Nishchit Samrudhi Plus Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 45 | 1 | -5,00,000 | 55,00,000 |
| 46 | 2 | -5,00,000 | 55,00,000 |
| 47 | 3 | -5,00,000 | 55,00,000 |
| 48 | 4 | -5,00,000 | 55,00,000 |
| 49 | 5 | -5,00,000 | 55,00,000 |
| 50 | 6 | -5,00,000 | 55,00,000 |
| 51 | 7 | -5,00,000 | 55,00,000 |
| 52 | 8 | -5,00,000 | 55,00,000 |
| 53 | 9 | -5,00,000 | 55,00,000 |
| 54 | 10 | -5,00,000 | 55,00,000 |
| 55 | 11 | 0 | 72,50,000 |
| 56 | 12 | 0 | 72,50,000 |
| 57 | 13 | 0 | 72,50,000 |
| 58 | 14 | 3,78,000 | 72,50,000 |
| 59 | 15 | 3,96,900 | 72,50,000 |
| 60 | 16 | 4,15,800 | 72,50,000 |
| 61 | 17 | 4,34,700 | 72,50,000 |
| 62 | 18 | 4,53,600 | 72,50,000 |
| 63 | 19 | 4,72,500 | 72,50,000 |
| 64 | 20 | 4,91,400 | 72,50,000 |
| 65 | 21 | 5,10,300 | 72,50,000 |
| 66 | 22 | 5,29,200 | 72,50,000 |
| 67 | 23 | 5,48,100 | 72,50,000 |
| 68 | 24 | 5,67,000 | 72,50,000 |
| 69 | 25 | 5,85,900 | 72,50,000 |
| 70 | 26 | 6,04,800 | 72,50,000 |
| 71 | 27 | 6,23,700 | 72,50,000 |
| 72 | 28 | 6,42,600 | 72,50,000 |
| 73 | 29 | 6,61,500 | 72,50,000 |
| 74 | 30 | 6,80,400 | 72,50,000 |
| 75 | 31 | 6,99,300 | 72,50,000 |
| 76 | 32 | 7,18,200 | 72,50,000 |
| 77 | 33 | 7,37,100 | 72,50,000 |
| 78 | 34 | 7,56,000 | 72,50,000 |
| 79 | 35 | 7,74,900 | 72,50,000 |
| 80 | 36 | 7,93,800 | 72,50,000 |
| 81 | 37 | 8,12,700 | 72,50,000 |
| 82 | 38 | 8,31,600 | 72,50,000 |
| 83 | 39 | 8,50,500 | 72,50,000 |
| 84 | 40 | 8,69,400 | 72,50,000 |
| 85 | 41 | 8,88,300 | 72,50,000 |
| 86 | 42 | 9,07,200 | 72,50,000 |
| 87 | 59,26,100 | 72,50,000 | |
| IRR | 6.51% |
While this return may seem comparable to or slightly lower than that of debt instruments, it is not competitive for such a long-term investment, especially when accounting for inflation.
Given the 42-year policy term, the returns fall short of what one might expect for achieving long-term financial goals.
This analysis highlights the importance of evaluating potential returns before committing your savings to a financial product. In the case of the RNL Nishchit Samrudhi Plus, the plan does not deliver returns that adequately meet long-term financial objectives.
RNL Nishchit Samrudhi Plus Vs. Other Investments
Comparing the calculated returns with alternative products can help determine whether the RNL Nishchit Samrudhi Plus is the right choice.
For this comparison, we will use the same parameters as in the previous example. While the RNL Nishchit Samrudhi Plus offers both life insurance and investment opportunities, we will separate these into two distinct products for better analysis.
RNL Nishchit Samrudhi Plus Vs. Pure-term + ELSS
A pure-term life insurance policy with a ₹75 lakh sum assured has an annual premium of ₹1,01,000 for a 40-year term and a 10-year premium payment period. This leaves you with ₹3,99,000 each year, which can be invested according to your risk preference.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 75,00,000 |
| Policy Term | 40 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,01,000 |
| Investment | ₹ 3,99,000 |
Low-risk investors may prefer debt instruments like the Public Provident Fund (PPF), while high-risk investors could opt for equity-based products such as Equity-Linked Savings Schemes (ELSS). In this comparison, we have chosen the ELSS fund.
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 45 | 1 | -5,00,000 | 75,00,000 |
| 46 | 2 | -5,00,000 | 75,00,000 |
| 47 | 3 | -5,00,000 | 75,00,000 |
| 48 | 4 | -5,00,000 | 75,00,000 |
| 49 | 5 | -5,00,000 | 75,00,000 |
| 50 | 6 | -5,00,000 | 75,00,000 |
| 51 | 7 | -5,00,000 | 75,00,000 |
| 52 | 8 | -5,00,000 | 75,00,000 |
| 53 | 9 | -5,00,000 | 75,00,000 |
| 54 | 10 | -5,00,000 | 75,00,000 |
| 55 | 11 | 0 | 75,00,000 |
| 56 | 12 | 0 | 75,00,000 |
| 57 | 13 | 0 | 75,00,000 |
| 58 | 14 | 3,78,000 | 75,00,000 |
| 59 | 15 | 3,96,900 | 75,00,000 |
| 60 | 16 | 4,15,800 | 75,00,000 |
| 61 | 17 | 4,34,700 | 75,00,000 |
| 62 | 18 | 4,53,600 | 75,00,000 |
| 63 | 19 | 4,72,500 | 75,00,000 |
| 64 | 20 | 4,91,400 | 75,00,000 |
| 65 | 21 | 5,10,300 | 75,00,000 |
| 66 | 22 | 5,29,200 | 75,00,000 |
| 67 | 23 | 5,48,100 | 75,00,000 |
| 68 | 24 | 5,67,000 | 75,00,000 |
| 69 | 25 | 5,85,900 | 75,00,000 |
| 70 | 26 | 6,04,800 | 75,00,000 |
| 71 | 27 | 6,23,700 | 75,00,000 |
| 72 | 28 | 6,42,600 | 75,00,000 |
| 73 | 29 | 6,61,500 | 75,00,000 |
| 74 | 30 | 6,80,400 | 75,00,000 |
| 75 | 31 | 6,99,300 | 75,00,000 |
| 76 | 32 | 7,18,200 | 75,00,000 |
| 77 | 33 | 7,37,100 | 75,00,000 |
| 78 | 34 | 7,56,000 | 75,00,000 |
| 79 | 35 | 7,74,900 | 75,00,000 |
| 80 | 36 | 7,93,800 | 75,00,000 |
| 81 | 37 | 8,12,700 | 75,00,000 |
| 82 | 38 | 8,31,600 | 75,00,000 |
| 83 | 39 | 8,50,500 | 75,00,000 |
| 84 | 40 | 8,69,400 | 75,00,000 |
| 85 | 41 | 8,88,300 | 75,00,000 |
| 86 | 42 | 9,07,200 | 75,00,000 |
| 87 | 2,00,59,791 | 75,00,000 | |
| IRR | 7.49% |
By the end of the term, the ELSS fund would have accumulated ₹1.10 Crores (pre-tax). After deducting capital gains tax, the post-tax value is ₹1.01 Crores.
This amount is then reinvested in a product yielding 7% returns, enabling annual withdrawals similar to the RNL Nishchit Samrudhi Plus plan. At the end of the term, the full investment is withdrawn to match the maturity benefit of the RNL Nishchit Samrudhi Plus.
The final maturity value in this alternative approach amounts to ₹2 crores, nearly three times the maturity value offered by the RNL Nishchit Samrudhi Plan.
| ELSS Tax Calculation | |
| Maturity value after 13 years | 1,10,17,696 |
| Purchase price | 39,90,000 |
| Long-Term Capital Gains | 70,27,696 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 69,02,696 |
| Tax paid on LTCG | 8,62,837 |
| Maturity value after tax | 1,01,54,859 |
The IRR for this scenario is 7.49%. If you choose to avoid annual withdrawals, the returns could be even higher. You also retain complete flexibility to withdraw or reinvest based on your needs or adapt to changing interest rate conditions.
The relatively low returns of the RNL Nishchit Samrudhi Plus are a key drawback, largely due to the combination of insurance and investment in one plan. Separating the two can lead to better returns and more flexibility.
Final Verdict on RNL Nischit Samrudhi Plus
The RNL Nishchit Samrudhi Plan is a traditional endowment plan that offers flexibility to customize benefits based on your needs.
While the survival and maturity benefits are guaranteed and can be withdrawn, when necessary, the plan’s overall appeal for investment is limited, besides the Flexi benefit feature.
Return analysis shows that the RNL Nishchit Samrudhi Plan falls short as a long-term investment option.
Annual withdrawals hinder the compounding effect, resulting in lower returns. Additionally, the survival benefit may not be substantial enough to cover significant expenses and could end up being spent on non-essential items and also it has a high agent commission.
A better approach to building a flexible investment portfolio is to invest separately without combining it with life insurance. For life cover, pure-term insurance policies offer high coverage at affordable premiums, providing genuine financial protection for your family.
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