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.
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
Here is a rundown to key features and core benefits of term insurance plans offered by 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.
There are a host of benefits accrued to the policyholder of the Reliance Term Insurance Plan. Some of the major ones are:
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 |
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:
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 |
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 |
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.
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 |
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 |
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.
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
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:
Riders: The exclusions related to riders are required to be ascertained from Reliance Nippon Life Insurance Company directly.
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:
Claim Assessment and Submission of additional documents, if any
The different claims can be classified as:
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.
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.
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.
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:
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
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.
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.
Here is a rundown to key features and core benefits of term insurance plans offered by Reliance Term Insurance:
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