Reliance Nippon Life Super Assured Future Endowment Plan: Good or Bad? An Insightful Review
Is the Reliance Nippon Life Super Assured Future Endowment Plan truly the safe investment option you’ve been searching for, or does it fall short compared to other plans?
Is Reliance Nippon Life Super Assured Future Endowment Plan the best way to grow your savings steadily, or could more flexible alternatives serve you better?
Does this Reliance Nippon Life Super Assured Future Endowment Plan offer the right balance between risk and reward for your long-term goals, or might other investment avenues outperform it?
This review dives deep into the plan’s features, highlights its pros and cons, and most importantly, helps you decide whether it’s truly worth investing in.
What is Reliance Nippon Life SAFE?
What are the features of the Reliance Nippon Life SAFE?
Who is eligible for the Reliance Nippon Life SAFE?
What are the benefits of the Reliance Nippon Life SAFE?
4. Guaranteed Loyalty Additions GLA
Grace Period, Discontinuance and Revival of Reliance Nippon Life SAFE
Free Look Period for Reliance Nippon Life SAFE
Surrendering Reliance Nippon Life SAFE
What are the advantages of Reliance Nippon Life SAFE?
What are the disadvantages of Reliance Nippon Life SAFE?
Research Methodology of Reliance Nippon Life SAFE
Benefit Illustration – IRR Analysis of Reliance Nippon Life SAFE
Reliance Nippon Life SAFE Vs. Other Investments
Reliance Nippon Life SAFE Vs. Pure-term + PPF/ELSS
Final Verdict on Reliance Nippon Life Super Assured Future Endowment Plan
Reliance Nippon Life Super Assured Future Endowment is a Non-Linked, Non-Participating, Individual Savings Life Insurance Plan.
It provides both life insurance protection and guaranteed savings, allowing you to systematically build a strong financial foundation over time.
| Parameters | Minimum | Maximum |
| Age at entry (Years) | 1 | 55 |
| Age at Maturity (Years) | 18 | 76 |
| Annualized Premium (Rs.) | Rs. 35,000 | No limit (subject to Board-approved underwriting policy) |
| Premium payment frequency | Yearly, Half-yearly, Quarterly and Monthly | |
| Premium Payment Term & Policy Term (Years) | Premium Payment Term | Policy Term |
| 5,7,8,10 | 15,16,20,21 | |
| 12 | 20,21 | |
| Premium Payment Option | Limited Pay | |
In case of the unfortunate demise of the life assured during the policy term, provided the policy is in force, the nominee shall receive the following benefits as a lump sum: The higher of:
Where, Sum Assured on Death is higher of 11 times Annualised Premium or Base Sum Assured
On survival of the life assured till the end of the Reliance Nippon Life Super Assured Future Endowment Plan policy term, provided the policy is in force, the following benefits will be paid.
Where, Sum Assured on Maturity is equal to the Base Sum Assured chosen under the policy.
Guaranteed Additions are expressed as a percentage of the Sum Assured on Maturity and will accrue at the end of every policy year till the end of the policy term, provided the policy is in force.
Guaranteed Loyalty Additions is expressed as a percentage of Sum Assured on Maturity and will accrue at the end of every policy year from GLA Start Year till the end of the policy term, provided all due premiums have been paid till the end of GLA Start Year in full and the policy is in force.
Any accrued Guaranteed Loyalty Addition will be payable on maturity or death, whichever is earlier.
You will be given a grace period of 15 days, where the policyholder pays the premium on a monthly basis and 30 days in all other cases.
Lapse: If all due premiums have not been paid in full for at least the first policy year, your 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 when the policy is in lapsed status.
Paid-up Benefits: If all due premiums have been paid in full for at least the first policy year and no future premiums are paid, the policy will move to paid-up (or reduced paid-up) status.
On your policy becoming paid-up, the benefits under the plan will be reduced.
A Reliance Nippon Life Super Assured Future Endowment Plan 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, but before the policy maturity date.
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, whether received electronically or otherwise.
The Reliance Nippon Life Super Assured Future Endowment 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 is higher of: Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
The Reliance Nippon Life SAFE Plan provides guaranteed benefits along with a loyalty addition at the end of the policy term. However, these benefits can only be claimed either upon maturity or in the event of the policyholder’s death.
Before investing, it’s crucial to evaluate the plan’s returns in percentage terms to assess its true value.
Let’s look at an example from the policy brochure: A 35-year-old male opts for the SAFE Plan with a base sum assured of ₹9,54,836. The death benefit starts at ₹11 lakhs and increases every year from the second policy year over a 20-year term. He pays an annual premium of ₹1 lakh.
| Male | 35 years |
| Base Sum Assured | ₹ 9,54,836 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualized Premium | ₹ 1,00,000 |
At maturity, he receives a total benefit of ₹21 lakhs, including guaranteed additions.
The internal rate of return (IRR) for this investment is 4.84% as per the Reliance Nippon Life Super Assured Future Endowment Plan maturity calculator, which is lower than what typical debt instruments offer.
| Age | Year | Annualized premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 11,00,000 |
| 36 | 2 | -1,00,000 | 11,09,548 |
| 37 | 3 | -1,00,000 | 11,19,097 |
| 38 | 4 | -1,00,000 | 11,28,645 |
| 39 | 5 | -1,00,000 | 11,38,193 |
| 40 | 6 | -1,00,000 | 11,71,613 |
| 41 | 7 | -1,00,000 | 12,24,129 |
| 42 | 8 | -1,00,000 | 12,76,645 |
| 43 | 9 | -1,00,000 | 13,29,161 |
| 44 | 10 | -1,00,000 | 13,81,677 |
| 45 | 11 | 0 | 14,34,193 |
| 46 | 12 | 0 | 15,05,805 |
| 47 | 13 | 0 | 15,77,418 |
| 48 | 14 | 0 | 16,49,031 |
| 49 | 15 | 0 | 17,20,643 |
| 50 | 16 | 0 | 17,92,256 |
| 51 | 17 | 0 | 18,82,966 |
| 52 | 18 | 0 | 19,73,675 |
| 53 | 19 | 0 | 20,64,384 |
| 54 | 20 | 0 | 21,55,094 |
| 55 | 21,00,640 | ||
| IRR | 4.84% |
The modest returns are primarily due to a large portion of the premium being used to fund the increasing life cover, leaving a limited amount for actual investment growth.
As a result, the Reliance Nippon Life SAFE Plan proves to be sub optimal, both as an insurance solution and as an investment avenue.
The rigid cash flow structure, rising death benefit, and modest returns make the Reliance Nippon Life SAFE Plan less appealing to many investors. A clearer decision can be made by comparing its returns with alternative options using the same illustration metrics.
In the SAFE Plan, the sum assured increases annually, whereas a pure-term life insurance policy provides a fixed life cover throughout the term.
For instance, a 20-year term plan offering ₹22 lakhs in coverage (roughly equal to the highest sum assured in the earlier example) costs just ₹14,100 per year.
This leaves an annual surplus of ₹85,900 that can be invested based on your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 22,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualized Premium | ₹ 14,100 |
| Investment | ₹ 85,900 |
Low-risk investors may prefer traditional debt instruments like the Public Provident Fund (PPF). Growth-oriented investors may opt for market-linked products like Equity-Linked Savings Schemes (ELSS). For this comparison, we’ll consider both options.
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 36 | 2 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 37 | 3 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 38 | 4 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 39 | 5 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 40 | 6 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 41 | 7 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 42 | 8 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 43 | 9 | -1,00,000 | 22,00,000 | -1,00,000 | 22,00,000 |
| 44 | 10 | -97,500 | 22,00,000 | -1,00,000 | 22,00,000 |
| 45 | 11 | -500 | 22,00,000 | 0 | 22,00,000 |
| 46 | 12 | -500 | 22,00,000 | 0 | 22,00,000 |
| 47 | 13 | -500 | 22,00,000 | 0 | 22,00,000 |
| 48 | 14 | -500 | 22,00,000 | 0 | 22,00,000 |
| 49 | 15 | -500 | 22,00,000 | 0 | 22,00,000 |
| 50 | 16 | 0 | 22,00,000 | 0 | 22,00,000 |
| 51 | 17 | 0 | 22,00,000 | 0 | 22,00,000 |
| 52 | 18 | 0 | 22,00,000 | 0 | 22,00,000 |
| 53 | 19 | 0 | 22,00,000 | 0 | 22,00,000 |
| 54 | 20 | 0 | 22,00,000 | 0 | 22,00,000 |
| 55 | 25,34,894 | 47,11,231 | |||
| IRR | 6.09% | 10.24% | |||
The PPF investment was adjusted to meet the minimum 15-year contribution rule. At the end of 20 years, the account grows to ₹25.34 lakhs, yielding an IRR of 6.09%.
The ELSS fund, on the other hand, could accumulate to ₹52.43 lakhs (pre-tax). After deducting capital gains tax, the post-tax value stands at ₹47.11 lakhs, with a post-tax IRR of 10.24%.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 52,43,693 |
| Purchase price | 8,59,000 |
| Long-Term Capital Gains | 43,84,693 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 42,59,693 |
| Tax paid on LTCG | 5,32,462 |
| Maturity value after tax | 47,11,231 |
In both scenarios, the returns significantly outperform those of the Reliance Nippon Life SAFE Plan.
This clearly demonstrates that keeping insurance and investment separate is a more efficient strategy for long-term wealth creation, helping you reach your financial goals faster.
The Reliance Nippon Life Super Assured Future Endowment Plan features an annually increasing death cover throughout the policy term.
While this may be positioned as a key benefit, in practical financial planning, it isn’t necessary for the life cover to increase every year.
What truly matters is having a sum assured that adequately covers your future financial needs, life goals, and outstanding liabilities.
Additional life cover is typically only needed during major life events, such as marriage, the birth of a child, or taking on new financial responsibilities, not as a built-in annual increment.
This automatic increase adds no real value to the policyholder, and it also has a high agent commission.
Instead, it contributes to higher premium costs without proportionate benefits. The plan’s return analysis further confirms it is a low-yielding product. Despite offering guaranteed benefits, the overall returns are unattractive for long-term investors.
A more effective approach is to opt for a pure-term life insurance policy with a sufficient sum assured to cover all your future obligations. When your financial situation changes, you can reassess and increase your cover accordingly.
For building wealth and meeting long-term goals, it’s far better to invest in a well-diversified portfolio aligned with your risk profile.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Before beginning your investment journey, take time to evaluate your risk tolerance.
For a tailored and effective strategy, consider consulting a Certified Financial Planner (CFP) who can help you select the right mix of insurance and investment products based on your unique financial situation.
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