Reliance Life Term Plans - Reliance Life Term Insurance Plans

Reliance Life Insurance Company Limited is part of Reliance Capital which belongs to the Reliance Group of Industries. The Reliance Group was founded by Dhirubhai Ambani, one of the most respected industrialists of his time. Reliance Life Insurance is today counted among the top 5 life insurers in the sector in context of the Weighted Received Premium (WRP) and new business WRP. The company is the largest non-bank supported private life insurer having a customer base of over 10 million policy holders, a pan India presence of over 800 branches and a Claim Settlement Ratio of 93% as on June 30, 2015. As per the Brand Equity-Nielsen Most Trusted Brands Survey 2014, Reliance Life Insurance was ranked the top 2 most trusted private life insurance service brand. The product range offered by Reliance Life Insurance include Protection plans in the form of Reliance term insurance plans, Savings and Investment Plans which are available in both conventional or ULIPs form, Child Plans, and pension plans. With a wide range of products, the company strives to meet every individual’s insurance related requirement at a single source. 

What is a Term Insurance Plan?

Technically, term Insurance is the only form of pure insurance product. Insurance plans like Reliance term insurance provide cover for a limited period of time, called the term. The coverage is contingent on regular fixed payments. Term plans like Reliance term insurance are the cheapest from of life insurance that has a corresponding large death benefit. Like most insurance plans, a tern insurance plan is a pure risk cover. Reliance term insurance plans may have additional riders and options that offer other benefits. 

As the name suggests, plans like the Reliance term insurance are not permanent or life-long. At the expiration of the period or cover, or term, the Reliance term insurance or any other insurance plan, further coverage may be offered with different rates and conditions. Should the client choose not to continue with the Reliance term insurance plan, all coverage expires. 

As a death benefit, term insurance plans offer security and protection against debt, mortgages, funeral costs, etc. It is also useful for a dependent’s care, education, healthcare, and maintenance of lifestyle. 

Term plans such as reliance term insurance products are considerable cheaper than permanent life insurance. While the costs can be at their minimum when started early in life, option for Reliance term insurance at an advanced age is never prohibitively expensive. Even with the negative impacts of being a regular smoker or history of inheritable diseases in the family, premium costs with Reliance term insurance cover do not rise too high. 

The most common form of term insurance plans have fixed premiums, where the cost of the premium to be paid stays the same until the expiry of the term. Terms are usually for 10, 15, 20, or 30 years. The cost of the premium is calculated based on several factors including the annual renewable rates and monetary value adjustments due to time passed. Consequently, premiums are higher for longer terms. This is a justifiable rise as the risk of death also rises considerably as the time period increases. Even so, the premiums are relatively free from the influence of the volatility of market conditions. 

Reliance term insurance products come with various riders that add more benefits to your Reliance term insurance plan. There are options for renewal and extending live cover in case of conditions that are diagnosed at a later point in time after the cover begins. These are subject to various terms and conditions, and interested buyers are requested to refer to their Reliance term insurance documentation for complete details.

Other variations of Reliance term insurance plans include Reliance term insurance monthly income plans where a monthly payout accompanies the sum assured. The dual payout of the death benefit of Reliance term insurance plans extends until the completion of the term or for a period of 10 years, whichever is later.

 Reliance term insurance also provides an online plan that does away with the hassle of paperwork that often plagues insurance transactions. A secure online access to a Reliance term insurance plan along with options for online payments significantly simplifies the process of applying as well as paying premiums. Reliance term insurance online plans are available both through intermediaries and on their official website. Compared to regular Reliance term insurance plans, the online Reliance term insurance products have a lower entry age requirement of 18 years versus the 21 years required in the former. The online Reliance term insurance income plan’s dual payout benefit is ideal for individuals looking to protect their families financial and lifestyle interests in the event of their death. 

Reliance Term Insurance products simplify the process of buying cover for you and your family. The application process in Reliance term insurance can be completed online for some products. In order to submit relevant documents, one may simply scan and upload them. Payments for Reliance term insurance can be made through various channels including net banking, and debit and credit cards online and also in person at various centres. Refer to your documentation or contact customer service to learn more about payment options for Reliance term insurance and locate your nearest payment centres. 

The emotional loss of a loved one can never be replaced. But Reliance term insurance plans can ensure that the future of your loved ones is secure even in your absence. Be it for education, marriage, or simply to provide for your family, the sum assured and other benefits under Reliance term insurance can take care of all their needs. 

Reliance Life Term Plans

Reliance Life, a leading insurer sells different kinds of term plans which offer great benefits at cheapest rates. 

Reliance Term Plan

A pure term plan which provides high coverage at minimal cost to provide financial assistance to the family of the insured on demise of the insured. 

The Reliance Term Plan is designed for streamlining the acquisition of protection for your loved ones. It is a simple and straightforward plan, a hallmark of Reliance term Insurance products. This plan is also available through intermediaries. This Reliance term insurance plan extends adequate cover based on you liabilities and secures your loved ones in case of any unforeseen eventuality. With a minimum entry age of 21 years, the Reliance term insurance cover is well suited for young adults who have just started out on their careers. The Reliance term insurance plan is equally beneficial for new and young families. The plan comes with several riders to allow individuals to tweak their Reliance term insurance plan further. 

The features of the plan are as follows: 

• If the individual dies the Sum Assured under Reliance term insurance chosen by him is paid as the death benefit
• If the Reliance term insurance plan attains maturity, no benefit will accrue because it is a pure term plan.
• There are five additional riders under this Reliance term insurance plan that can be added to the base plan at a fraction of the cost to ensure a comprehensive coverage. The riders include the following:
  • Reliance Major Surgical Benefit Rider – the rider promises a lump sum amount to be paid to the insured if the insured undergoes any of the 33 surgeries covered under the rider of this Reliance term insurance plan.
  • Reliance Critical Conditions (25) Rider – under this rider a lump sum amount is paid to the insured if he/ she is diagnosed with any of the 25 covered critical illnesses.
  • Reliance Family Income Benefit Rider – under this rider, if the insured dies or suffers total and permanent disability due to an accident, a monthly payout of 1% of Sum Assured will be payable to the nominee until the end of the rider term or till 10 years whichever is later.
  • Reliance Accidental Death and Total and Permanent Disablement Rider (Regular Premium) – the rider promises payment of an additional lump sum amount if the insured dies or suffers total and permanent disability directly due to an accident. Moreover, future premiums are waived off and the Reliance term insurance plan continues unaffected.
  • Reliance Accidental Death and Total and Permanent Disablement Rider (Limited Premium) – the rider promises the payment of an additional lump sum amount if the insured dies or suffers total and permanent disability directly due to an accident. Moreover, future premiums are waived off and the Reliance term insurance plan continues unaffected. 

Eligibility Details

Reliance Online Term Plan

It’s a pure term plan available online through the company’s website at lesser rates of premium. 

This Reliance Online Term insurance product is well suited for the savvy modern generation. At its core, this Reliance term insurance plan does away with a majority of the paperwork, leading to a smooth and hassle-free experience. The entry age of 18 years under this Reliance term insurance cover is perfect for those wishing to start early. Good health or opting for a Sum Assured of Rs. 50 Lakhs or more qualifies you for rebates on the premium amount in this Reliance term insurance. This is a simple and efficacious plan that provides protection and cover at low cost. There are no riders available with this Reliance term insurance plan. 

The other characteristics are: 

• This Reliance term insurance cover is an online Term Plan available online lowering the premium and avoiding the hassles of unnecessary paperwork
• The death benefit payable under this Reliance term insurance cover will be the applicable Sum Assured
• There is no provision of a maturity benefit in this Reliance term insurance plan
• The medical tests required for granting the Reliance term insurance plan can be arranged to be done at the customer’s doorstep without him having to undertake the hassles to complete the tests. The date and time can be arranged with the company under the Reliance term insurance plan after which the medical practitioner visits the proposer’s home and gets the tests completed, the cost of which is to be borne by the company.
• People maintaining a healthy lifestyle are rewarded with lower premiums under this Reliance term insurance policy
• The death benefit under this Reliance term insurance plan will be calculated as the higher of the Sum Assured or 10 times the annual premium or 105% of all premiums paid till the date of death.

Eligibility Details

Sample Premium Rates

With a Sum Assured assumed to be Rs.1 crore, the table illustrates specimen premium rates. 

Reliance Online Income Plan

The plan promises dual payout benefits on death during the tenure. 

The Online Income Plan is a Reliance term insurance product that allows you to protect the lifestyle and provide cover for your family in the unfortunate event of your demise. It is a dual benefit plan in that it provides a monthly income in addition to the Sum Assured. This Reliance term insurance product is perfect for individuals who realize that a onetime payment is not enough to provide adequate cover for their family. The Reliance term insurance plan takes care of the recurrent expenses such as fees, EMIs, and other household expenses even when you are no longer there to provide it. No riders are available with this Reliance term insurance plan. 

Other characteristics of this Reliance term insurance plan include: 

• The Sum Assured and a monthly income benefit is paid on death under this Reliance term insurance
• Under the Monthly Income Benefit option, post death of the life insured, 0.50% of Sum Assured will be paid monthly following the month from the date of death of the life insured. The monthly payouts under this Reliance term insurance will continue till the end of the term of the policy or till 10 years whichever is later.
• There is no maturity benefit under this Reliance term insurance plan
• Regular premiums have to be paid during the entire term of the Reliance term insurance plan
• People maintaining a healthy lifestyle are rewarded with lower premiums
• The death benefit payable immediately in lump sum at the time of death will be calculated as the higher of the Sum Assured or 10 times the annual premium or 105% of all premiums paid till the date of death.
• If suicide is committed within 12 months of taking the Reliance term insurance plan or on its revival, 80% of premiums paid will only be returned and no Death Benefit will be paid under the plan. 

Eligibility Details

Sample Premium Rates

The premium rates are depicted below for a coverage option of Rs.1 crore 

Applying for a Term Insurance Plan from the company: 

Online

The company offers both online plans available only through the website of the company or normal plans available through intermediaries. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued 

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process. 

How much Increasing Term Life Insurance coverage do you need?

Increasing term life insurance is a form of term plan where the value of the sum assured increases every year. It is a beneficial type of insurance for those people who want to protect their family from the rising costs of the future. 

How to determine the amount of increasing term insurance coverage that is needed?

To determine the amount of increasing term life insurance coverage that you require, you need to keep the following points in mind: 

1. Inflation – Inflation is one of the main reasons why people opt for increasing term plans. Did you notice how quickly the price of fuel is increasing? And what about the fruits and vegetables? A kilogram of mango that cot Rs. 40 last year now costs Rs. 55. So we can see how the price increases with time, and the insurance cover you have today may not be sufficient for your family 20 years down the line.
2. Liabilities – As you grow older, your liabilities increase as well. So when you may have bought the term plan, you may have been young and single. But now, with time, you have a spouse and children and the amount of coverage you have on your term plan may not be sufficient to meet all their needs. Therefore, since with age our liabilities increase, we would benefit from an increasing term life insurance plan.
3. Age – If you had bought your life insurance policy at a young age, then in all probability you have gotten a large cover at a very low cost. If this is the case, you may or may not need an increasing term life insurance. However, if you do not have enough coverage on your life insurance plan, and you realize you are getting older, it is a good idea to buy an increasing term plan.
4. Health – One of the most remarkable features of an increasing term plan is that the policyholder’s current health (health at the time of the commencement of the policy) is taken into account throughout the policy period. Since health plays a role in determining the premium, the insurance company sets the premium after evaluating the health of the person when the policy is being bought. Even if at a later stage during the policy the policyholder gets ills or contracts a disease, he won't be held accountable for that in respect to the premium. So if you are young and healthy, but feel you have a chance of getting sick later, buy an increasing term plan. 

Will these factors help me calculate the amount of increasing term life insurance coverage I need?

Yes, the above mentioned factors are indicators of how much increasing term insurance coverage you need. So keep these points in mind and discuss them with your financial advisor. Only then will you have a proper idea of the exact amount of increasing term coverage you need. 

What is Increasing Term Life Insurance?

The Increasing Term Life Insurance Plan is a hedge against increasing liabilities and lifestyle. It is a term life insurance plan wherein the sum assured keeps increasing as the policy period proceeds. The premium at which the value increases is pre-determined and so is the premium. Life Insurance policies can do this as they have a Level premium concept, whereby the premium is pre-determined for the entire policy tenure. Thus, even though the sum assured Increases, the premium remains constant throughout the policy. An Increasing term plan is usually bought to protect the family members against Inflation and provide a security against rising liabilities and lifestyle. 

How does an Increasing Term Plan work?

In an Increasing term plan, the sum assured or the death benefit rises throughout the policy period, maybe till a threshold limit and then remains constant. This varies from policy to policy and also on the policy tenure chosen at the time of policy inception. This is because such a plan is normally bought to protect one against inflation. So as with time you pay premium and the policy proceeds, the coverage for the life insured rises. 

Let us understand this with an example. Rajesh opts for an Increasing term Plan for Rs. 50 lacs for 30 years. He has to pay Rs. 10,000 every month (and Rs. 1,20,000 annually) as the premium and the policy coverage till rise by 5% every year upto a maximum of 100% in 20 years and then remain constant for the next 10 years. 

Sum Assured 

10 Years                               20 Years                                    30 Years 

Policy Tenure                                                

As a result, his term plan’s face value also Increases by Rs. 1,20,000 every year. By the end of the term (which is equivalent to the loan period, i.e. 30 years), the face value will reach double the initial Sum Assured. However, if he happens to die during the tenure of the policy, his nominees will receives the corresponding  sum assured and the policy terminates. 

To know about Investment Plans check at Reliance Life Investment plans 

Reliance Life Term Insurance Plans - FAQ 

1. How to pay premium? What are the modes of payment available? 

RELIANCE LIFE Insurance offers basic 4 modes of premium payment. They are as follows: 

• Online- Requires you to login through your client Id and password, select the online medium to pay the premium.
• IVR method- Call on the toll free number 1800 3000 8181 and follow the instructions. Keep handy details of policy number and date of birth.
• Pay at Suvidha Center- This helps to locate the nearest branch office wherein payment can be done via cheque or cash.
• Bill Junction or Bill Desk option- This requires registering oneself in the site and clicking on the Pay Reliance Life Insurance option to authorize the payment. 

For online payment mode, the policyholder can pay via:

• Credit Card
• Debit Card
• Netbanking facility 

One can also avail Electronic Clearance System ECS) for paying premium of renewed policies. 

2. How can I check policy status for Reliance Life term insurance plans?

For checking the policy you must register first on e-portal. After generating the password, login to your account. Then click on the ‘Policy Details’ tab to get the status of the desired policy number. 

3. What is the policy renewal process for Reliance Life term insurance plans?

Renewal of policy can be done by two modes: 

• Online
• Electronic Clearance System(ECS) 

For Online renewal process, login to your account and click on the required renewal tab after selecting the payment mode. Payment can be done via cash, cheque or through net banking. 

For renewing the policies using Credit Card Mode, fill in the required mandatory form along with photocopy of Credit card. Within a period of 10 days, the credit card information will be registered for renewal process. 

ECS facility can be availed by filling in the desired form and submitting the required documents. The bank will process the information within 30 days of receipt of the same. In case the premium renewal date falls on a holiday, the amount will be debited on the next working day. 

4. What is the company’s process to settle claim for Reliance Life term insurance plans?

The company guarantees 12-day claims settlement policy. You must attach the correct documents with the claims form and send it to the nearest branch office in your city. To find the relevant documents for the particular claim, please visit the Claims Overview Section. 

After receiving the particular documents and completion of the verification process, the cheque will be dispatched to the nearest branch within 3 working days. From there one can collect the cheque after verifying the identity proof. 

5. What is the policy cancellation process for Reliance Life term insurance plans?

The policy cancellation process requires the customer to submit a duly filled surrender form along with relevant documents in any branch. Upon receiving and verification of the documents, the policy is deemed cancelled as per bank accounts record.