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Is the Reliance Nippon Life Nishchit Ace Plan your golden ticket to guaranteed returns and life cover, or is there more beneath the surface?
Does the Reliance Nippon Life Nishchit Ace Plan live up to its name by offering assured financial growth, or is it another marketing mirage?
Is Reliance Nippon’s Nishchit Ace Plan a smart strategy for risk-averse investors, or are there smarter alternatives out there?
In this review, we break down the features, benefits, and drawbacks of the Reliance Nippon Life Nishchit Ace Plan—complete with detailed illustrations—to help you make an informed decision.
Table of Contents:
What is the Reliance Nippon Life Nishchit Ace?
What are the features of the Reliance Nippon Life Nishchit Ace?
Who is eligible for the Reliance Nippon Life Nishchit Ace?
What are the benefits of the Reliance Nippon Life Nishchit Ace?
Grace Period, Premium Discontinuance and Revival of Reliance Nippon Life Nishchit Ace
Free Look Period for Reliance Nippon Life Nishchit Ace
Surrendering Reliance Nippon Life Nishchit Ace
What are the advantages of the Reliance Nippon Life Nishchit Ace?
What are the disadvantages of the Reliance Nippon Life Nishchit Ace?
Research Methodology of Reliance Nippon Life Nishchit Ace
Benefit Illustration – IRR Analysis of Reliance Nippon Life Nishchit Ace
Reliance Nippon Life Nishchit Ace Plan Vs. Other Investments
Reliance Nippon Life Nishchit Ace Plan Vs. Pure-term + ELSS
Final Verdict on Reliance Nippon Life Nishchit Ace Plan
What is the Reliance Nippon Life Nishchit Ace?
Reliance Nippon Life Nishchit Ace Plan is a Non-Linked Non-Participating Individual Savings Life Insurance Plan. It provides you with guaranteed step-up regular income every year for your chosen income period.
It also offers you a lump sum benefit at maturity that will help you to meet various financial objectives.
What are the features of the Reliance Nippon Life Nishchit Ace?
- Enjoy life insurance coverage throughout the Reliance Nippon Life Nishchit Ace Plan policy term, ensuring your family’s financial security.
- Choose from flexible premium payment options of 5, 6, 7, 8, or 10 years.
- Receive a Guaranteed Annual Income for 15, 20, 25, or 30 years, with payouts increasing by 20% every five years.
- Benefit from long-term income certainty with returns guaranteed for up to 40 years.
- Get a lump sum payout at the end of the Reliance Nippon Life Nishchit Ace Plan policy term.
- Boost your income potential with the Flexi Wallet feature, allowing withdrawals whenever needed.
- Strengthen your coverage with optional rider benefits.
- Enjoy tax advantages as per current tax regulations.
Who is eligible for the Reliance Nippon Life Nishchit Ace?
| Premium Payment Term – PPT (in years) | 5 | 6 | 7 | 8 | 10 |
| Deferment Period – DP (in years) | 5 | 4 | 3 | 2 | 0 |
| Income Period – IP (in years) | 15 / 20 / 25/ 30 | ||||
| Policy Term – PT (in years) | PPT + DP + IP | ||||
| Minimum Age at Entry1 (in years) | 1 year | ||||
| Maximum Age at Entry1 (in years) | 55 years | ||||
| Minimum Age at Maturity1 (in years) | 26 years | ||||
| Maximum Age at Maturity1 (in years) | 85 years | ||||
| Minimum Annualised Premium (in Rs.) | 75000 | ||||
| Maximum Annualised Premium (in Rs.) | No limit, subject to Board-approved Underwriting Policy | ||||
| Coverage for | All Individuals (Male | Female | Transgender) | ||||
What are the benefits of the Reliance Nippon Life Nishchit Ace?
1. Death benefit
In case of the unfortunate death of the Life Assured during the Reliance Nippon Life Nishchit Ace Plan Policy Term, the following lump sum Benefit shall be payable to the Claimant(s): Higher of:
- Sum Assured on Death; and
- Death Benefit Factor, as mentioned below, multiplied by Total Premium Paid as on the date of death of the Life Assured
Where Sum Assured on Death is higher of 11 times Annualised Premium and Base Sum Assured.
Death benefit factor:
| Premium Payment Term | Death Benefit Factor for Annualised Premium <₹4,50,000 | Death Benefit Factor for Annualised Premium >=₹4,50,000 |
| 5 years | 105% | 105% |
| 6 years | 105% | 105% |
| 7 years | 150% | 150% |
| 8 years | 150% | 160% |
| 10 years | 150% | 165% |
2. Survival benefit
Annual Income shall be payable on the survival of the Life Assured at the end of every Policy Year, and it shall increase at a simple rate of 20% every five years during the Income Period, provided the Policy is in force.
The Annual Income shall be equal to Annual Income Rate multiplied by Sum Assured at Maturity, where Sum Assured at Maturity is equal to Base Sum Assured.
Annual Income Rate depends on Premium Paying Term (PPT) and Policy Year (PY).
3. Maturity benefit
On survival of the Life Assured till the end of the Reliance Nippon Life Nishchit Ace Plan Policy Term, provided the Policy is in force, Sum Assured on Maturity shall be payable along with the last instalment of Annual Income, plus outstanding balance, if any, in the Flexi Wallet.
Where the Sum Assured on Maturity is defined as an amount equal to the Base Sum Assured under the Policy.
Grace Period, Premium Discontinuance and Revival of Reliance Nippon Life Nishchit Ace
Grace period
If you are unable to pay your premium by the due date, you will be given a grace period of 30 days (15 days for monthly frequency).
Premium Discontinuance
If all due premiums have not been paid in full for at least the first policy year, your Reliance Nippon Life Nishchit Ace Plan policy will lapse at the end of the grace period, and the death benefit and rider benefit, if any, will cease immediately, and no benefits will be paid.
If the Policy has acquired a Surrender Value (on payment of the first year’s premium) and no future Premiums are paid, the Policy may continue as a reduced paid-up Policy.
Revival
A policy in Lapsed or Paid-up state can be revived within the revival period of five years from the due date of the first unpaid premium
Free Look Period for Reliance Nippon Life Nishchit Ace
In the event you disagree with any of the Policy terms or conditions, or otherwise and have not made any claim, you shall have the option to return the Policy within 30 days beginning from the date of receipt of the Policy Document.
Surrendering Reliance Nippon Life Nishchit Ace
The Reliance Nippon Life Nishchit Ace Plan Policy shall acquire a Surrender Value after completion of the first Policy Year, provided one full year’s premium has been paid.
The Surrender Value payable during the Policy Term is the higher of [Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV)], plus the outstanding balance in Flexi Wallet, if any.
What are the advantages of the Reliance Nippon Life Nishchit Ace?
- Instead of receiving annual income as periodic payouts, you can choose to accumulate it in the Flexi Wallet for future withdrawals.
- You can avail a loan of up to 70% of the policy’s surrender value, if needed.
- Enhance your protection by adding optional riders to the base policy.
- Enjoy flexible premium payment modes—choose to pay annually, half-yearly, quarterly, or monthly as per your convenience.
What are the disadvantages of the Reliance Nippon Life Nishchit Ace?
- Survival benefits are often used for non-essential spending, reducing long-term financial efficiency.
- The plan delivers comparatively low returns for a long-term investment.
- Regular annual withdrawals from survival benefits disrupt the power of compounding, impacting wealth accumulation.
Research Methodology of Reliance Nippon Life Nishchit Ace
The Reliance Nippon Life Nishchit Ace Plan provides flexibility with a steady, increasing income stream along with a lump sum payout at maturity.
However, it’s essential to evaluate whether the returns truly justify the long-term commitment. Let’s break it down using an illustration from the policy brochure:
Benefit Illustration – IRR Analysis of Reliance Nippon Life Nishchit Ace
A 45-year-old male purchases the plan with a premium payment term of 10 years and no deferment period. The income is paid out over 30 years, making the total policy term 40 years. He pays an annual premium of ₹2 lakhs.
| Male | 45 years |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 40 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 2,00,000 |
Starting from the 11th policy year, he begins receiving an Annual Income of ₹1.17 lakhs, which increases by 20% every five years based on the initial income.
At the end of the 40-year term, he also receives a lump sum maturity benefit of ₹22.99 lakhs. The Internal Rate of Return (IRR) for this cash flow comes out to 5.57% as per the Reliance Nippon Life Nishchit Ace Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 45 | 1 | -2,00,000 | 30,00,000 |
| 46 | 2 | -2,00,000 | 30,00,000 |
| 47 | 3 | -2,00,000 | 30,00,000 |
| 48 | 4 | -2,00,000 | 30,00,000 |
| 49 | 5 | -2,00,000 | 30,00,000 |
| 50 | 6 | -2,00,000 | 30,00,000 |
| 51 | 7 | -2,00,000 | 30,00,000 |
| 52 | 8 | -2,00,000 | 30,00,000 |
| 53 | 9 | -2,00,000 | 30,00,000 |
| 54 | 10 | -2,00,000 | 30,00,000 |
| 55 | 11 | 0 | 30,00,000 |
| 56 | 12 | 1,17,000 | 30,00,000 |
| 57 | 13 | 1,17,000 | 30,00,000 |
| 58 | 14 | 1,17,000 | 30,00,000 |
| 59 | 15 | 1,17,000 | 30,00,000 |
| 60 | 16 | 1,17,000 | 30,00,000 |
| 61 | 17 | 1,40,400 | 30,00,000 |
| 62 | 18 | 1,40,400 | 30,00,000 |
| 63 | 19 | 1,40,400 | 30,00,000 |
| 64 | 20 | 1,40,400 | 30,00,000 |
| 65 | 21 | 1,40,400 | 30,00,000 |
| 66 | 22 | 1,63,800 | 30,00,000 |
| 67 | 23 | 1,63,800 | 30,00,000 |
| 68 | 24 | 1,63,800 | 30,00,000 |
| 69 | 25 | 1,63,800 | 30,00,000 |
| 70 | 26 | 1,63,800 | 30,00,000 |
| 71 | 27 | 1,87,200 | 30,00,000 |
| 72 | 28 | 1,87,200 | 30,00,000 |
| 73 | 29 | 1,87,200 | 30,00,000 |
| 74 | 30 | 1,87,200 | 30,00,000 |
| 75 | 31 | 1,87,200 | 30,00,000 |
| 76 | 32 | 2,10,600 | 30,00,000 |
| 77 | 33 | 2,10,600 | 30,00,000 |
| 78 | 34 | 2,10,600 | 30,00,000 |
| 79 | 35 | 2,10,600 | 30,00,000 |
| 80 | 36 | 2,10,600 | 30,00,000 |
| 81 | 37 | 2,34,000 | 30,00,000 |
| 82 | 38 | 2,34,000 | 30,00,000 |
| 83 | 39 | 2,34,000 | 30,00,000 |
| 84 | 40 | 2,34,000 | 30,00,000 |
| 85 | 25,33,000 | ||
| IRR | 5.57% |
This return is lower than many traditional debt instruments and falls short for such a long-term investment horizon, especially when accounting for inflation.
Over 40 years, this level of return is unlikely to help build a substantial corpus to meet future financial goals.
Moreover, the sum assured under the plan is relatively low, offering limited financial protection to the family in case of an untimely event.
While the plan does promise guaranteed income and a maturity benefit, the returns are not compelling, making the Reliance Nippon Life Nishchit Ace Plan a less suitable choice for long-term wealth creation or robust financial security.
Reliance Nippon Life Nishchit Ace Plan Vs. Other Investments
While the Reliance Nippon Life Nishchit Ace Plan offers a guaranteed regular income stream, investing in a low-yield product over the long term is not advisable.
To make a more informed choice, let’s compare its returns with an alternative approach, by separating insurance and investment components, using the same parameters as in the earlier example.
Reliance Nippon Life Nishchit Ace Plan Vs. Pure-term + ELSS
In this comparison, we consider a pure-term insurance policy with a sum assured of ₹50 lakhs (minimum Sum assured for a pure-term plan).
The annual premium for a 25-year term with a 10-year payment period comes to just ₹39,500. This leaves ₹1,60,500 each year available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 39,500 |
| Investment | ₹ 1,60,500 |
Depending on risk appetite, Low-risk investors could choose instruments like Public Provident Fund (PPF), and High-risk investors might prefer Equity Linked Savings Schemes (ELSS). For this illustration, we assume the investment is made in an ELSS fund.
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 45 | 1 | -2,00,000 | 30,00,000 |
| 46 | 2 | -2,00,000 | 30,00,000 |
| 47 | 3 | -2,00,000 | 30,00,000 |
| 48 | 4 | -2,00,000 | 30,00,000 |
| 49 | 5 | -2,00,000 | 30,00,000 |
| 50 | 6 | -2,00,000 | 30,00,000 |
| 51 | 7 | -2,00,000 | 30,00,000 |
| 52 | 8 | -2,00,000 | 30,00,000 |
| 53 | 9 | -2,00,000 | 30,00,000 |
| 54 | 10 | -2,00,000 | 30,00,000 |
| 55 | 11 | 0 | 30,00,000 |
| 56 | 12 | 1,17,000 | 30,00,000 |
| 57 | 13 | 1,17,000 | 30,00,000 |
| 58 | 14 | 1,17,000 | 30,00,000 |
| 59 | 15 | 1,17,000 | 30,00,000 |
| 60 | 16 | 1,17,000 | 30,00,000 |
| 61 | 17 | 1,40,400 | 30,00,000 |
| 62 | 18 | 1,40,400 | 30,00,000 |
| 63 | 19 | 1,40,400 | 30,00,000 |
| 64 | 20 | 1,40,400 | 30,00,000 |
| 65 | 21 | 1,40,400 | 30,00,000 |
| 66 | 22 | 1,63,800 | 30,00,000 |
| 67 | 23 | 1,63,800 | 30,00,000 |
| 68 | 24 | 1,63,800 | 30,00,000 |
| 69 | 25 | 1,63,800 | 30,00,000 |
| 70 | 26 | 1,63,800 | 30,00,000 |
| 71 | 27 | 1,87,200 | |
| 72 | 28 | 1,87,200 | |
| 73 | 29 | 1,87,200 | |
| 74 | 30 | 1,87,200 | |
| 75 | 31 | 1,87,200 | |
| 76 | 32 | 2,10,600 | |
| 77 | 33 | 2,10,600 | |
| 78 | 34 | 2,10,600 | |
| 79 | 35 | 2,10,600 | |
| 80 | 36 | 2,10,600 | |
| 81 | 37 | 2,34,000 | |
| 82 | 38 | 2,34,000 | |
| 83 | 39 | 2,34,000 | |
| 84 | 40 | 2,34,000 | |
| 85 | 83,54,680 | ||
| IRR | 7.03% | ||
By the end of the accumulation period, the ELSS investment grows to ₹31.54 lakhs (pre-tax). After applying capital gains tax, the post-tax corpus is ₹29.76 lakhs.
This amount is then reinvested in a product offering 7% returns, from which annual withdrawals—mirroring the RNL Nishchit Ace Plan—are made.
At the end of the term, the remaining investment is fully withdrawn to align with the plan’s maturity benefit.
| ELSS Tax Calculation | |
| Maturity value after 10 years | 31,54,561 |
| Purchase price | 16,05,000 |
| Long-Term Capital Gains | 15,49,561 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 14,24,561 |
| Tax paid on LTCG | 1,78,070 |
| Maturity value after tax | 29,76,491 |
This results in a final maturity value of ₹83.54 lakhs—nearly triple what the RNL Nishchit Ace Plan offers. The Internal Rate of Return (IRR) in this alternative scenario stands at 7.03%. If you choose not to make annual withdrawals, the return could be even higher.
Beyond higher returns, this strategy also offers greater flexibility and liquidity:
- You can adjust withdrawals based on your needs or inflation.
- You have the freedom to redeploy funds depending on interest rate trends or financial goals.
This level of control and adaptability is missing in the RNL Nishchit Ace Plan, making the alternative approach a more efficient and goal-oriented investment strategy.
Final Verdict on Reliance Nippon Life Nishchit Ace Plan
The Reliance Nippon Life Nishchit Ace Plan offers limited premium payments, life insurance coverage, regular income, and a lump sum benefit at maturity.
It also provides the flexibility to defer or accumulate survival benefits in a Flexi Wallet and withdraw funds when needed. However, this flexibility is the plan’s only real advantage. At its core, it functions like a basic traditional endowment policy, with limited life cover and relatively poor returns.
Our returns analysis highlights that the plan is low-yielding, especially over a long-term horizon. Regular survival benefits interrupt the power of compounding, which significantly affects wealth accumulation.
Given the combination of inadequate insurance coverage and suboptimal returns, this plan falls short on both protection and investment fronts and it also has a high agent commission.
A more effective approach to securing your family’s financial future would be to opt for a pure-term life insurance policy that offers higher coverage at a lower premium.
Build a diversified investment portfolio aligned with your risk appetite and financial goals. It’s important to remember that insurance is for protection, and investment is for wealth creation—the two should be kept separate.
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For a personalised and effective financial strategy, consider consulting a Certified Financial Planner. A professional can help you create a roadmap tailored to your life goals and long-term financial success.
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