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Reliance Life Term Insurance Plans

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When it comes to offering customer-friendly life insurance solutions, Reliance Nippon Life Insurance Company is quite popular among the insurance buyers. Term insurance plans offered by the insurer are one of the most sought-after products in the market. The provider boasts an extensive distribution network of 727 branches ably supported by over 55K advisors as of 31st March 2019. Not surprisingly, Reliance Life has a policyholder base of 10 million. A substantial component of them subscribes to Reliance Term Insurance Plans, which offers them ample scope to meet individual preferences.

Why is Reliance Term Insurance?

Term Insurance Plans have emerged as one of the most popular tools in financial planning for the primary reason that it provides for the highest sum assured possible at the most affordable premium rates imaginable. This is possible as a Term Plan is a pure insurance protection product designed to secure the future of the family in the event of the death of the policyholder. In this regard, Reliance term insurance can be a good option for ones seeking to protect their family’s financial future in the days of financial hardship

Reliance Term Insurance - Features and Benefits

Here is a rundown to key features and core benefits of term insurance plans offered by Reliance Term Insurance:

  • Features of Reliance Term Insurance

    The specific attributes of Reliance Term Insurance Plans, spans the underlying philosophy to make Term Insurance Plan a choice life coverage instrument any policyholder will look forward to buying for the financial protection of dependant family in the event of demise. 

    • Reliance Term Plans offer comprehensive risk coverage, offering variants with multiple flavors covering all preferences
    • It protects the family from increasing financial volatility in the absence of the policyholder 
    • It offers risk coverage for all life goals and helping to fulfill dreams and aspirations of dependants 
    • Provides for additional life coverage with increasing responsibilities
    • Ample choice of riders to augment protection
    • The application process is extremely userfriendly and hassle-free
  • Benefits of Reliance Term Insurance:

    There are a host of benefits accrued to the policyholder of the Reliance Term Insurance Plan. Some of the major ones are:

    • Protection for a family in the event of death through benefit payout in the form of a lump-sum  or a combination of lump-sum  and monthly income at an affordable cost
    • Availability of multiple plan options customized to the needs of the policyholder 
    • Flexibility to enhance life coverage suitably matching essential life events like birth of child and marriage. The enhancements of different life stages defined in Reliance Term Plans are:
    • Marriage: 50% enhancement of the base sum assured for a maximum amount of Rs.50 Lakhs
    • 1st Child: 25% enhancement of base sum assured for a maximum amount of Rs.25 Lakhs
    • 2nd Child: Same as defined for the first child. 
    • Flexible enhanced coverage option against an additional premium 
    • Discounted premium rates to policyholders with healthy lifestyle habits
    • Facility to incorporate rider benefits matching the profile of the policyholder covering critical illness, accidental death, and disability
    • The accelerated sum assured payment on diagnosis of terminal illness 
    • Return of premium on maturity as survival benefit
    • Multiple premium payment options ranging from Yearly, Half-yearly, Quarterly, and Monthly 
    • Long-life coverage extending to Whole Life as an option 
    • Tax exemptions as per Income Tax Act, 1961 under various sections applicable to Life Insurance Products.

Reliance Term Insurance Plans - List:

There are two types of Reliance Term Insurance Plans, but they come with a host of options to match individual preferences. 

Name of the Plan Key Highlights 
Reliance Nippon Life Protection Plus Plan   Secure family from financial uncertainty Customized multiple plan options to suit every need Enhanced life cover at key life events The cheaper premium for a healthy lifestyle
Reliance Nippon Life Digi-Term Insurance Plan  Whole Life Coverage facility Yearly growing life cover facility A host of options to suit every need Refund of premium facility Offered for online purchase


Reliance Term Insurance Plans – Eligibility, Coverage, Premium

The policies under the Aviva Term Plan have some policy exclusions, regarding the coverage of the policy. All of the policy exclusions are mentioned below:

  • Reliance Nippon Life Protection Plus Plan

    • Level Cover Plan: This is a basic term plan where the nominee of the policyholder stands to receive a lump-sum death benefit in the event of his demise during the policy term provided it is in force. The insurance policy terminates immediately after the payout
    • Increasing Cover Plan: In tune with the name, the Base Sum Assured increases every policy anniversary by 5%, subject to a maximum of 100% of sum assured chosen at inception. The death benefit is paid in a lump-sum  to the nominee
    • Level Cover Plus Income Plan: Upon the death of the policyholder, the nominee will receive a lump-sum and, additionally, a monthly income also. The monthly income is quantified as 1% of the Base Sum Assured payable for ten years
    • Whole Life Cover Plan: The beneficiary will receive a lump-sum  amount in the event of the death of the policyholder during the currency of the policy

    Eligibility

    Age-related parameters
    Whole Life Plan Minimum Entry Age 25 – 55 years
    Age at Maturity Whole Life
    Policy Term  Whole Life
    All Other Plan Options Minimum Entry Age 18 – 60 years
    Age at Maturity 28 – 75 years
    Policy Term 10 – 40 years

    Other Features

    Plan Option Whole Life Plan All Other Plan Options
    Minimum Sum Assured Rs.25 lakhs
    Maximum Sum Assured No upper limit
    Premium Payment Term  65 years less  entry age Regular pay
    Premium Frequency Yearly, Half-yearly, Quarterly, and Monthly
  • Reliance Nippon Life Digi-Term Insurance Plan

    It is a new age Term Plan from the house of Reliance Nippon Life Insurance, offering a comprehensive protection plan ideally suited to the needs of today’s generation. There are a host of customized options of different flavors to suit every requirement and preference. The risk coverage provided in this term plan is not confined to life only, but also for critical illness and other similar eventualities by means of suitable riders. And the best part is that it can be purchased online with a few clicks of the mouse. For added convenience, the medical test can be accomplished in the comfort of the home of the purchaser. This term plan has a host of options to choose from, giving the policyholder a wide berth to make an informed selection.

    • Life Secure Plan: The beneficiary in this term plan receives lump-sum death benefits on the demise of the policyholder during the currency of the policy term. Additionally, the insured gets a lump-sum payout on diagnosis of critical illness.
    • Enhanced Life Secure Plan: The redeeming feature in this term plan is the increment of life coverage by a simple rate of 5% every policy anniversary, till 100% at the maximum of Base Sum Assured opted at the inception of the policy. The death benefit is in the form of a lump-sum amount equivalent to the sum assured. A similar amount is paid on diagnosis of listed terminal illnesses.
    • Life and Income Secure Plan (Level Income Benefit): In this term plan, the benefit is a lump-sum amount equal to the Base Sum Assured and, additionally a monthly 0.5% of the same for ten years in the event of death or diagnosis of critical illness, whichever is earlier.
    • Life and Income Secure Plan (Increasing Income Benefit): Here, the benefit is a combination of a lump-sum amount equal to the sum assured plus a monthly income of 0.5% of sum assured with its increment at 10% simple rate per annum for ten years. It is payable at earlier of the two events of death or diagnosis of a terminal illness.
    • Life Secure with Return of Premium Plan (50%): In this term plan, the final payout is a lump-sum amount equivalent to the sum assured to earlier of the events of death and diagnosis of a terminal illness. Unlike usual term plans, there is a provision of maturity benefit on the survival of the policyholder, which is 50% of the total of the premium paid.
    • Life Secure with Return of Premium Plan (100%): This term plan, too, has provision for payment of  100%  of the sum total of all the premium paid as maturity benefit, provided the policyholder has survived the policy term, in addition to the regular final payout. The final payout is in lump-sum payable to earlier death or diagnosis of critical illness.
    • Whole Life Secure Plan: Here, the policy term is not defined in specific years, and the sum assured is paid to the beneficiary on the death of the policyholder or diagnosis of listed critical illness, whichever is earlier of the two. The policy terminates on paying out the final benefit amount.

    Eligibility

    Age-related parameters
    Whole Life Plan Minimum Entry Age 25 – 60 years
    Age at Maturity Whole Life
    Policy Term  Whole Life
    Life Secure with ROP Plan Minimum Entry Age 18 – 60 years
    Age at Maturity 28 – 80 years
    Policy Term  10 – 35 years
    All Other Plan Options Minimum Entry Age 18 – 60 years
    Age at Maturity 28 – 80 years
    Policy Term  10 – 40 years


    Other Features

    Plan Option Whole Life Plan All Other Plan Options
    Minimum Sum Assured Rs.25 lakhs and multiples of Rs1 lakh 
    Maximum Sum Assured No upper limit
    Premium Payment Term  65 years less entry age Regular pay
    Premium Frequency Yearly, Half-yearly, Quarterly, and Monthly
  • Reliance Nippon Life Protection Plus Plan

    The specific attributes of Reliance Term Insurance Plans, spans the underlying philosophy to make Term Insurance Plan a choice life coverage instrument any policyholder will look forward to buying for the financial protection of dependant family in the event of demise. 

    • Reliance Term Plans offer comprehensive risk coverage, offering variants with multiple flavors covering all preferences
    • It protects the family from increasing financial volatility in the absence of the policyholder 
    • It offers risk coverage for all life goals and helping to fulfill dreams and aspirations of dependants 
    • Provides for additional life coverage with increasing responsibilities
    • Ample choice of riders to augment protection
    • The application process is extremely userfriendly and hassle-free

Summary - Reliance Nippon Life Digi-Term Insurance Plan

  • The policy term is determined in multiples of 5 years in a range of 10 to 40 years spread across all variants with specific tenures
  • Premium payment tenure is the same as the policy term

  • The minimum sum assured is Rs.25 lakhs increasing in multiples of Rs.1 lakh thereafter, without any defined upper limit

  • Tax benefit as per the guidelines under the Income Tax Act, 1961

  • The plan can be purchased online from the comfort of home with additional benefits 

Reliance Insurance Term Plan - What is not Covered?

An important aspect that has to be factored in by the purchaser of the Reliance Term Insurance Plan is the list of exclusions incorporated in the policy document. Here are some exclusions of Reliance term insurance plan:

  • Suicide: 80% of the total premium is paid to the beneficiary in the event of the death of the policyholder due to suicide occurring within 12 months of commencement of risk or revival of the policy.
  • Riders: The exclusions related to riders are required to be ascertained from Reliance Nippon Life Insurance Company directly.

Reliance Term Insurance – Claim Process

Reliance Nippon Insurance Company has achieved an impressive claim settlement ratio of 97.71% at the end of Financial Year 2019. The company has an elaborate claim settlement process, and with a “10 Day Claim Settlement Guarantee”, else pays interest at 6.5% pa for any delay. The initial step for the claim is to submit all the requisite documents to any Reliance Insurance Branch or to send the claim to their registered address

The entire claim process starts with an intimation of the claim and culminates in payment of the claim or its rejection or repudiation in 3 steps:

  • Intimation of the claim
  • Claim Assessment and Submission of additional documents, if any

  • Claim approval and payout

The different claims can be classified as:

  • Death Claim
  • Natural Death

  • Unnatural Death

  • Living Benefits or Rider Claims

  • Critical Illness or Major Surgery Benefit Claim

  • Total and Permanent Disability Benefit

Survival or Maturity Benefit: For Return of Premium option in a term plan.

Reliance Term Insurance – Tax Benefits:

There are several tax exemptions applicable to insurance products in India under the Income Tax Act, 1961 spread over various sections. Accordingly, the total premium paid in a Financial Year is exempt from income tax for a maximum amount of Rs.1.5 lakhs under Section 80C. The premium component of the Critical Illness rider is exempt under Section 80D. The total death benefit is exempt under Section 10(10D). It is to be importantly noted that the exemptions are subject to governed conditions under the act.

Reliance Term Insurance Plan - How to Buy?

There are two options for the purchase of Reliance Insurance Term Plans – offline and online. For offline, one can approach the nearest branch, and for online, which is limited to only one plan, one can access their portal or that of aggregators. The advantage of online purchase, apart from the comfort, also permits one to compare term plans and make use of the digital calculators to determine the best possible buy related to sum assured and ideal policy term.

Before making a purchase, it is wise to look for answers to a few questions. It is aimed to make an informed choice deciding the ideal sum assured, policy term, and additional riders for decent risk coverage.

  • The ideal cover: The usual thumb rule followed for determining the ideal sum assured is 10 to 12 times of annual income. Thus for an annual income of Rs.7.5 lakhs, the ideal sum assured should be a minimum Rs.75 lakhs. Additionally, the following should be factored in and added to the above-arrived sum assured:
  • Loans and liabilities

  • Cost of education of children

  • The ideal Policy Term: It is intrinsically linked to liquidation of loans and the retirement age, which are expected to converge. Accordingly, the ideal policy term should be arrived by the following:

  • Expected retirement less the current age of the purchaser; or

  • Expected age to liquidate all liabilities less the current age of the purchaser;

  • If the present age is 30 years, and the expected retirement age and zero liability age is 60 years, then the ideal policy term should be 30 years.

  • When to buy: This is crucial to determine the cost of the Reliance Insurance Term Plan. The earlier it is purchased, the better it is. It attracts the lowest premium along with the longest possible policy term sweetening the deal for the purchaser. With increasing age, lifestyle problems are likely to set in, making it difficult for the purchaser to land a reasonable settlement or not at all.

Having considered all these, it is sensible to go in for the online purchase of Reliance Insurance Term Plan for the following advantages:

  • Cost-effective with an offer of a discount
  • Convenient from the confines of the home

  • Customization with the facility to compare term plans and select the right riders as under:

  • Accidental Death Benefit Rider

  • Accidental Death and Disability Benefit Rider

  • Accidental Death and Disability Plus Benefit Rider

  • Major Surgical Benefit Rider

  • Critical Conditions (25) Benefit Rider

  • Being a fully digital process, it confirms to green initiative obviating any paperwork whatsoever

  • Assistance can be sought from 1800 266 7150 for purchasing a suitable term plan

Reliance Insurance Term Plan - How to Renew?

Renewal of the policy is automatic on payment of the premium as per the frequency of premium payment fixed during the purchase of the term plan. However, a grace period of 15 days for the monthly premium and 30 days for annual premium is permitted for renewal of the policy. 

A lapsed policy can be revived within two years of default from the premium payment due date to restore full coverage, including riders provided the total outstanding premiums along with applicable interest is paid in full.

Reliance Term Insurance Plans - Required documents

  • Purchase: The documents required for online purchase of term plan are
  • Valid KYC Documents covering the following

  • ID Proof with the help of valid photo identity cards like EPIC, PAN, Adhaar, Driving License, Passport

  • Date of Birth Proof: all the above cards applicable for ID proof.

  • Address Proof: Any of the above cards, other than PAN card where the address is not mentioned

  • Income Proof: Salary slips and bank account statements for a specified period. Additionally, ITR, Form 16, P&L Statement, and balance sheet where applicable.

  • Proposal form

  • Claim: The documentation is elaborated depending on the type of claim submitted by the claimant.

Maturity Benefits and Rider Claims

Here is a rundown to key features and core benefits of term insurance plans offered by Reliance Term Insurance:

  • Critical Illness / Major Surgical Benefit

    • Appropriate Claim Forms
    • KYC documents of the policyholder as defined under purchase
    • Copy of policy document
    • Copy of medical records and diagnosis report
    • Attending physician’s statement
    • Proof of Bank account details of the insured
  • Total and Permanent Disability Benefit

    • Appropriate Claim Forms
    • KYC documents of the policyholder
    • Copy of policy document
    • Copy of medical records
    • Disability Certificate from Appropriate Authority
    • Proof of Bank account details of the insured
  • Death Claim

    • Appropriate Claim Forms
    • KYC documents of the Nominee / Claimant
    • Copy of policy document
    • Copy of medical records
    • Copy of cause of death defined in medico-legal terms
    • Original  Death Certificate from Appropriate Authority
    • Proof of Bank account details of the beneficiary
    • Additional Documents for death due to accident/suicide etc.
    • Copy of FIR
    • Post Mortem Report
    • Final Police investigation report
    • Copy of Driving License of the insured

Faqs

Written By: Paisawiki - Updated: 22 September 2020