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Is the Reliance Nippon Life Wealth and Insurance Plan the right solution for both your investment and insurance goals?
Is the Reliance Nippon Life Wealth and Insurance Plan a smart way to grow your wealth while staying protected, or are there better-performing ULIPs out there?
Does the Reliance Nippon Life Wealth and Insurance Plan offer real value for money, or are the charges quietly eating into your returns?
In this review, we take a closer look at the key features, benefits, and drawbacks of the Reliance Nippon Life Wealth and Insurance Plan, along with detailed illustrations to help you understand how the plan actually works.
Table of Contents:
What is the Reliance Nippon Life Wealth and Insurance Plan?
What are the features of the Reliance Nippon Life Wealth and Insurance Plan?
Who is eligible for the Reliance Nippon Life Wealth and Insurance Plan?
What are the benefits of the Reliance Nippon Life Wealth and Insurance Plan?
What are the charges in the Reliance Nippon Life Wealth and Insurance Plan?
Grace Period, Discontinuance and Revival of Reliance Nippon Life Wealth and Insurance Plan
Free Look Period for Reliance Nippon Life Wealth and Insurance Plan
Surrendering the Reliance Nippon Life Wealth and Insurance Plan
What are the advantages of the Reliance Nippon Life Wealth and Insurance Plan?
What are the disadvantages of the Reliance Nippon Life Wealth and Insurance Plan?
Research Methodology of Reliance Nippon Life Wealth and Insurance Plan
Benefit Illustration – IRR Analysis of Reliance Nippon Life Wealth and Insurance Plan
Reliance Nippon Life Wealth and Insurance Plan Vs. Other Investments
Reliance Nippon Life Wealth and Insurance Plan Vs. Pure-term + PPF/ELSS
Final Verdict on Reliance Nippon Life Wealth and Insurance Plan
What is the Reliance Nippon Life Wealth and Insurance Plan?
Reliance Nippon Life Wealth and Insurance Plan is a Unit-Linked, Non-Participating, Individual Life Insurance Plan. The plan allows you the flexibility to balance the protection and investment needs during its tenure, in an active or systematic manner.
What are the features of the Reliance Nippon Life Wealth and Insurance Plan?
- A single plan that combines wealth creation with life cover
- Flexible premium payment options: choose from Single Pay, Limited Pay, or Regular Pay
- Customise your life insurance coverage to match your financial goals
- Switch between Active and Auto-Managed investment strategies as per your preference
- Receive Wealth Boosters annually starting from the end of the 8th policy year
- Access your investments during financial emergencies
- Enjoy tax benefits as per applicable tax laws
Who is eligible for the Reliance Nippon Life Wealth and Insurance Plan?
| Parameters | Minimum | Maximum |
| Age at Entry (years) | 30 days | 60 |
| Age at Maturity (years) | 18 | 70 |
| Premium Payment Term (years) | Regular Pay | Equal to Policy Term |
| Limited Pay | 5, 7, 10 years | |
| Single Pay | One-time payment | |
| Policy Term (years) | Regular Pay | 10 to 30 years |
| Limited Pay | Limited Pay for 5 & 7 years – 10 to 30 years Limited Pay for 10 years – 15 to 30 years |
|
| Single Pay | 10 to 30 years | |
| Premium | Regular Pay – ₹ 200000 | No Limit |
| Limited Pay – ₹ 200000 | ||
| Single Pay – ₹ 500000 | ||
| Top-up Premium | ₹ 10,000 | Equal to 100% of premiums paid |
| Frequency of Premium Payment | Yearly, Half-Yearly, Quarterly and Monthly for Regular Pay and Limited Pay | |
What are the benefits of the Reliance Nippon Life Wealth and Insurance Plan?
1. Maturity Benefit
On survival of the Life Assured till the end of the Reliance Nippon Life Wealth and Insurance Plan Policy Term, the total Fund Value, which is the sum of Base Fund Value and Top-up Fund Value, will be payable.
You will have the option to receive the Maturity Benefit as a lump sum or as a structured payout using the Settlement Option.
2. Death Benefit
In the unfortunate event of the death of the Life Assured, while the Reliance Nippon Life Wealth and Insurance Plan Policy is in force, the nominee will receive the highest of:
- Base Sum Assured net of all “Deductible Partial Withdrawals”, if any; and
- Base Fund Value; and
- 105% of the total premiums paid (excluding Top-up premiums) less “Deductible Partial Withdrawals”, if any
In addition to this, provided the policyholder has a Top-up Fund Value, for every Top-up premium, the highest of:
- Top-up Sum Assured; and
- Top-up Fund Value; and
- 105% of the Top-up premium paid
3. Wealth Boosters
Wealth Boosters in the form of additional units will be added to your Reliance Nippon Life Wealth and Insurance Plan Policy every Policy year, starting from the end of the eighth Policy year.
Each Wealth Booster will be a percentage of the average of daily Fund Value in the preceding 12 months of the base plan in the same Policy year
- 0.30% per annum for Regular/Limited Pay policies
- 0.50% per annum for Single Pay policies
What are the investment strategies and fund options of the Reliance Nippon Life Wealth and Insurance Plan?
Reliance Nippon Life Wealth and Insurance Plan offers you two investment strategies to manage your funds. At inception, you have to choose between the Self-Managed Option and the Auto-Managed Option.
i.) Self-Managed Option
Under this investment strategy, you manage your investments by choosing among the seven investment funds in proportions of your choice.
You have the option of switching among these funds and may choose premium redirection for your future premiums, depending on your changing risk appetite and market conditions.
| Asset Category | |||||
| S. No | Fund Name | Equities | Debt | Money Market | Risk Profile |
| 1 | Life Large Cap Fund | 60-100% | 0-10% | 0-40% | High |
| 2 | Life Equity Fund 3 | 75-100% | 0 | 0-25% | High |
| 3 | Life Pure Equity Fund 2 | 60-100% | 0 | 0-40% | High |
| 4 | Make in India Fund | 60-100% | 0-20% | 0-20% | High |
| 5 | Life Balanced Fund 1 | 0-40% | 60-100% | 0-25% | Low to Moderate |
| 6 | Life Corporate Bond Fund 1 | 0 | 75-100% | 0-25% | Low to Moderate |
| 7 | Life Money Market Fund 1 | 0 | 0 | 100% | Low |
ii.)Auto-Managed Option
Under the Auto-Managed Option, you can choose between the Target Maturity Option and the Life Stage Option. You can opt in or out of these options at any time during the Reliance Nippon Life Wealth and Insurance Plan Policy Term.
iii.) Target Maturity Option (Based on the outstanding term of the Policy)
Under this option, your investments will be allocated between Life Equity Fund 3 and Life Corporate Bond Fund 1. During the first five Policy years, 100% of the allocation will be in Life Equity Fund 3. From the sixth Policy year, any renewal premium or Top-up that you invest will be allocated between Life Equity Fund 3 and Life Corporate Bond Fund 1 based on the allocation schedule for that Policy year.
Allocation in Life Equity Fund 3 = (Outstanding Policy Term – 1) / (Policy Term – 5)
iv.) Life stage option
At the inception of your Policy, your investments will be distributed between two funds, Life Equity Fund 3 and Life Corporate Bond Fund 1, based on attained age.
As you move from one age band to another, the renewal premiums and top-up premiums will be allocated based on the attained age.
| Attained age of Life Assured (years) | Life Equity Fund 3 | Life Corporate Bond Fund 1 |
| 1 to 10 | 90% | 10% |
| 11 to 20 | 80% | 20% |
| 21 to 25 | 75% | 25% |
| 26 to 30 | 70% | 30% |
| 31 to 35 | 65% | 35% |
| 36 to 40 | 60% | 40% |
| 41 to 45 | 55% | 45% |
| 46 to 50 | 50% | 50% |
| 51 to 55 | 45% | 55% |
| 56 to 60 | 40% | 60% |
| 61 to 65 | 35% | 65% |
| 66 to 70 | 30% | 70% |
What are the charges in the Reliance Nippon Life Wealth and Insurance Plan?
A. Premium Allocation Charges
The Premium Allocation Charge as a percentage of the premium will be deducted from the premium amount at the time of premium payment, and the balance premium will be used to allocate units in the chosen investment fund/s thereafter.
The Premium Allocation Charges for Regular & Limited Pay policies are as below:
| Policy year | 1 | 2 to 4 | 5 | 6 onwards |
| Premium Allocation Charges | 4% | 3.00% | 2.75% | 1.50% |
| Single Premium | Less than ₹ 10,00,000 – 1.5% | ₹ 10,00,000 & Above – 1% | ||
B. Policy Administration Charges
The monthly Policy Administration Charges, for Regular/Limited Pay, will be deducted at a rate of ₹ 300 at the start of every Policy month by cancelling units proportionately from each investment fund you have at that time.
Similarly, the monthly Policy Administration Charge for Single Pay will be ₹ 200.
C. Mortality Charges
The Mortality Charges will vary depending on the amount of life insurance cover, attained age, occupation, health of the Life Assured and the Fund Value.
| Age | 35 | 45 | 55 |
| Mortality charge (per ₹ 1000 Sum at Risk) | 0.792 | 1.8212 | 4.9292 |
D. Fund Management Charges (FMC)
| S. No | Fund Name | Fund Management Charge |
| 1 | Life Large Cap Fund | 1.35% |
| 2 | Life Equity Fund 3 | 1.35% |
| 3 | Life Pure Equity Fund | 1.35% |
| 4 | Make in India Fund | 1.35% |
| 5 | Life Balanced Fund 1 | 1.25% |
| 6 | Life Corporate Bond Fund 1 | 1.25% |
| 7 | Life Money Market Fund 1 | 1.25% |
| Discontinued Policy Fund | 0.50% |
E. Partial Withdrawal Charges
Two Partial Withdrawals in a Policy year are free. And ₹ 100 will be deducted from the fund withdrawn on every extra Partial Withdrawal
F. Discontinuance Charges
The discontinuance charges depend on the year of discontinuance, the premium amount, and the premium paying term. There are no discontinuance charges from the 5th policy year onwards.
G. Switching Charges
There are 52 free switches during any Policy year. Subsequent switches, if any, will have a fixed charge of ₹ 100 per switch.
Inference from the charges: These charges increase the overall cost for investors, especially since similar charges are not found in other market-linked products.
Many of these deductions persist throughout the policy term, and over time, they can considerably erode your investment returns.
Grace Period, Discontinuance and Revival of Reliance Nippon Life Wealth and Insurance Plan
Other than Single premium policies
Grace Period
There is a grace period of 30 days from the due date for payment of the premium. In the case of monthly frequency, the grace period is 15 days.
Discontinuance
Discontinuance of Policy during the first five Policy years i.e. during the Lock-in Period – If the due premium has not been paid within the grace period, the total fund value after deducting the applicable discontinuance charges, shall be credited to the Discontinued Policy Fund and the risk cover and rider benefits (if any) shall cease.
At the end of the fifth Policy year, the proceeds of the discontinuance fund shall be paid to the policyholder, and the Policy shall terminate
Discontinuance of Policy after the first five Policy years, i.e. after the Lock-in Period: If the due premium has not been paid within the grace period, the Policy shall be converted into a reduced paid-up Policy with the paid-up Sum Assured.
Revival
The Reliance Nippon Life Wealth and Insurance Plan policyholder may revive the policy within the Revival Period of three consecutive complete years from the date of the first unpaid premium.
Free Look Period for Reliance Nippon Life Wealth and Insurance Plan
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 15 days (30 days if the Policy is purchased through the Distance Marketing channel) beginning from the date of receipt of the policy document.
Surrendering the Reliance Nippon Life Wealth and Insurance Plan
For Single pay policies
During Lock-in Period: You have the option to surrender at any time during the first five Policy years.
On receiving your request for surrender, the fund value after deducting the applicable discontinuance charge shall be credited to the discontinuance Policy fund and risk cover and rider cover, if any, shall cease.
The Policy shall continue to be invested in the Discontinued Policy Fund, and the proceeds shall be paid at the end of the first five Policy years. Only Fund Management Charges are applicable during this period
After Lock-in Period: You have the option to surrender the Policy at any time. Upon receipt of your request for surrender, the fund value as on the date of surrender shall be payable.
For other than Single pay policies
During Lock-in Period: You have the option to surrender the Policy anytime, and you will be entitled to the Discontinued Policy Fund Value at the end of the fifth Policy year or the date of surrender, whichever is later, and the Policy will be terminated
After Lock-in Period: The policyholder has the option to surrender the Policy anytime during the revival period, and the fund value shall be payable, and the Policy will terminate.
What are the advantages of the Reliance Nippon Life Wealth and Insurance Plan?
- Option to make top-up premium payments for enhanced investment
- Fulfil emergency fund needs through partial withdrawals after 5 policy years
- With the Self-Managed strategy, switch freely among seven available funds during the policy term based on your goals and market view
- Flexibility to redirect future premiums under the Self-Managed investment approach
- At maturity, choose between a lump sum payout or a structured income through the Settlement Option
What are the disadvantages of the Reliance Nippon Life Wealth and Insurance Plan?
- Loans cannot be availed against this policy
- Limited access to your investment during the first five policy years
- Applicable charges are deducted before investing the premiums, which reduces the initial investment amount
Research Methodology of Reliance Nippon Life Wealth and Insurance Plan
The Reliance Nippon Life Wealth and Insurance Plan combines life insurance with market-linked investment options. However, before committing to such a plan, it’s essential to assess its potential returns.
One effective way to do this is by calculating the Internal Rate of Return (IRR)—a measure that helps determine whether your investment can keep pace with inflation.
Benefit Illustration – IRR Analysis of Reliance Nippon Life Wealth and Insurance Plan
Let’s consider an example from the policy brochure: A 35-year-old male opts for this plan with a 20-year policy term, paying an annual premium of ₹2.5 lakhs. The sum assured is ₹25 lakhs.
| Male | 35 years |
| Sum Assured | ₹ 2,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 2,50,000 |
By the end of the policy term, he receives the fund value along with wealth boosters, assuming consistent premium payments. The brochure provides illustrative returns at 4% and 8% (non-guaranteed).
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 36 | 2 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 37 | 3 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 38 | 4 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 39 | 5 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 40 | 6 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 41 | 7 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 42 | 8 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 43 | 9 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 44 | 10 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 45 | 11 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 46 | 12 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 47 | 13 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 48 | 14 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 49 | 15 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 50 | 16 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 51 | 17 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 52 | 18 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 53 | 19 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 54 | 20 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 55 | 63,42,408 | 99,32,826 | |||
| IRR | 2.21% | 6.16% | |||
At 4% return, the fund value is ₹63.42 lakhs, yielding an IRR of just 2.21% as per the Reliance Nippon Life Wealth and Insurance Plan maturity calculator.
At 8% return, the fund value is ₹99.32 lakhs, with an IRR of 6.16% as per the Reliance Nippon Life Wealth and Insurance Plan maturity calculator.
Despite the long-term horizon, both IRRs fall short of typical inflation rates, meaning the real value of returns is likely to be eroded over time. This makes the plan an ineffective tool for achieving long-term financial goals.
Moreover, the life insurance cover of ₹25 lakhs is inadequate for most individuals, especially when compared to the recommended levels based on income and financial responsibilities.
In summary, the Reliance Nippon Life Wealth and Insurance Plan underdelivers on both fronts—insurance protection and investment growth—and may not align well with a sound financial strategy.
Reliance Nippon Life Wealth and Insurance Plan Vs. Other Investments
Instead of opting for the Reliance Nippon Life Wealth and Insurance Plan, a more efficient strategy is to separate your insurance and investment needs.
By purchasing a standalone term life insurance policy and investing the remaining amount independently, you can potentially earn significantly better returns. Let’s evaluate this approach using the same financial parameters as before.
Reliance Nippon Life Wealth and Insurance Plan Vs. Pure-term + PPF/ELSS
A pure-term life insurance policy with a ₹25 lakh sum assured costs approximately ₹8,700 per year for a 35-year-old male over a 20-year term.
This leaves ₹2,41,300 annually from the original ₹2.5 lakh budget, which can be invested based on your risk tolerance.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 2,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 8,700 |
| Investment | ₹ 2,41,300 |
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 36 | 2 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 37 | 3 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 38 | 4 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 39 | 5 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 40 | 6 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 41 | 7 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 42 | 8 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 43 | 9 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 44 | 10 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 45 | 11 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 46 | 12 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 47 | 13 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 48 | 14 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 49 | 15 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 50 | 16 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 51 | 17 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 52 | 18 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 53 | 19 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 54 | 20 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 55 | 1,07,10,966 | 1,76,57,404 | |||
| IRR | 6.80% | 10.93% | |||
Low-Risk Investor (PPF Scenario)
The annual PPF investment limit is ₹1.5 lakhs. Although the investment amount in this scenario exceeds that limit, it is used purely for illustration.
Investing the surplus in a Public Provident Fund (PPF) results in a maturity value of ₹1.07 crores, delivering an IRR of 6.80%.
Despite being a debt instrument, PPF outperforms the Reliance plan’s IRR, even in its higher 8% illustration scenario, demonstrating its strength as a safe, long-term investment.
High-Risk Investor (ELSS Scenario)
If the same amount is invested in an Equity Linked Savings Scheme (ELSS), the maturity value grows to ₹1.94 crores. After adjusting for capital gains tax, the post-tax corpus stands at ₹1.76 crores, yielding a robust IRR of 10.93%.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 1,94,72,605 |
| Purchase price | 48,26,000 |
| Long-Term Capital Gains | 1,46,46,605 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,45,21,605 |
| Tax paid on LTCG | 18,15,201 |
| Maturity value after tax | 1,76,57,404 |
This comparison clearly shows that separating insurance from investment is a more effective strategy. Not only does it generate higher returns, but it also offers greater flexibility and liquidity.
The Reliance Nippon Life Wealth and Insurance Plan falls short on both counts, proving that combining insurance with wealth creation offers no real advantage.
Final Verdict on Reliance Nippon Life Wealth and Insurance Plan
As the name suggests, the Reliance Nippon Life Wealth and Insurance Plan combines market-linked investments with life insurance coverage. While it offers wealth boosters to enhance the fund value, the various charges associated with the plan gradually eat into your returns.
Compared to other market-linked investment options, the plan’s overall performance is less competitive, making its risk-return profile less attractive and it also has a high agent commission.
For long-term investors, beating inflation is key. Relying on a product that delivers subpar returns can hinder your ability to meet important financial goals.
The Reliance Nippon Life Wealth and Insurance Plan, unfortunately, may fall short in supporting long-term wealth creation and could disrupt your broader financial strategy.
A more effective alternative is to purchase a standalone term life insurance policy, which provides affordable and sufficient life cover.
The remaining funds can then be invested separately in alignment with your risk appetite, time horizon, and financial goals. Building a diversified investment portfolio is crucial for reaching life goals efficiently and sustainably.
It’s best to avoid ULIPs if your primary goal is wealth accumulation. Instead, evaluate financial products carefully and make informed choices.
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And if you find the process of planning your finances challenging, consider seeking guidance from a Certified Financial Planner. They can help craft a personalised financial roadmap tailored to your unique needs and long-term objectives.
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