Reliance term insurance plans help in protecting the policyholders’ (the breadwinner of the family) surviving family members from financial uncertainties and instabilities, in case something happens to the policyholder. The company provides three Reliance term plans, namely, Reliance Nippon Life Term Plan, Reliance Nippon Life Online Term Plan and Reliance Nippon Life Online Income Protect.

Reliance Nippon Life Insurance Company

Reliance Nippon Life Insurance Company is a venture between two successful enterprises: the Reliance Group of Industries and Reliance Capital wherein, the latter one holds a respectable position amongst non-banking sector and financial service providers in the Indian private sector.

The company is dealing with mutual funds, proprietary investments, general insurance, life insurance, stock broking, private equity, and many other services. Nippon Life has policies of bearing a value of more than 31 million in Japan. It deals in a wide range of products including Individual life insurance policies, Group life insurance policies and annual policies. In the year 2017, the company has achieved a rank of 111th globally in fortune 500 companies.

Reliance Nippon Life Insurance Company is a leading insurance company in the private sector in terms of the premium received and the sum assured given. It is one of the largest insurance companies wherein it provides life insurance to more than 10 million policyholders without getting support from any banking institution. The claim settlement ratio of the company is set as 95.17 per cent as recorded in March 2018.

Highlights of Reliance Nippon Life Insurance Company

  • As per the Brand Equity‘s Most Trusted Brands Survey 2018, Reliance Nippon Life Insurance Company is considered as one of the Top 3 Most Trusted Life Insurance Company.
  • Nippon Life Insurance has 49 per cent of shares in the Reliance Life. It is also known by the name of Nissay, which is the largest life insurance provider in Japan.
  • The company has the vision to provide financial independence to every individual who joins them.
  • Caters to five different segments such as –
    • Reliance Term Insurance or Protection Plans
    • Reliance Retirement Plans
    • Reliance Child Plans
    • Reliance Health Plans
    • Reliance Saving and Investment Plans
  • Their distribution network is very strong, having around 700 branches and approximately 65 thousand advisors working for Life Insurance.

Reliance Term Insurance Plans

Reliance Life Term Insurance offers many benefits such as benefits on income tax, different ways to pay the premium, protection for family, and many more.  

PlanPolicy TermEntry Age (Min-Max)Maturity AgeSum Assured (Min-Max)
Reliance Nippon Life Term Plan5 to 30 years21 – 60 years65 yearsRs.5,00,000 – No Limit
Reliance Nippon Life Online Term Plan10, 15, 20, 25, 30, 35 years18 -55 years75 yearsRs. 25,00,000 – No Limit
Reliance Nippon Life Online Income Protect10, 15, 20, 25, 30, 35 years18 – 55 years75 yearsRs. 35,00,000 – No Limit

Reliance Nippon Life Term Plan

This Reliance term insurance plan is a non-participating and non-linked plan offered by Reliance Nippon Life Insurance Company which helps the customers to protect their family from any unexpected eventualities. In this Reliance term insurance plan, the policyholders can choose their protection cover based on their needs.

Reliance Term Insurance Plan-Benefits & Features

Death Benefit:

In case of death of the life assured, the beneficiary will get an amount of sum assured as a lump sum. This will be applicable only when this reliance term insurance plan is still in active state on the day of death of the life assured. Once the death benefit is paid, there will be no other benefits payable to the nominee.

Maturity Benefit:

No benefit on maturity is provided under this Reliance term plan. If the life assured survives the policy term, the policy will get terminated and all the benefits of policy end with that.

Payment of Premium

There is an option of paying the premium annually, half-yearly or quarterly. However, in the quarterly mode, the premium is accepted through electronic transfer only. There are charges and policy fees on the premium as follows –

Mode of paymentChargesPolicy Fee
Annual0%500
Half Yearly2%260
Quarterly4%130

Premium amount for Reliance term insurance plans can be paid through any of the below-mentioned modes –

  • Cheque
  • Demand Draft
  • Cash at a branch office
  • Electronic fund transfer
  • Debit or Credit Cards
  • Internet Banking

Note: The applicants with critical medical conditions or any type of impairment as well as the applicants with smoking habits will be charged extra premium under Reliance term plans.

The Revival of Reliance Term Insurance Plan

If this Reliance term insurance plan is within the two years’ time frame from the last unpaid premium, it can be revived by paying all due premiums with interest as levied by the company. At present, the interest levied is around 9 per cent.

In case, the revival is done within six months of due date, the life assured needs to submit sufficient proof of insurability, as deemed by the designated team of Reliance term insurance plans. If the policy revival is done after six months, the life assured will have to undergo all the medical examinations again.

If the policy is not revived within the revival period, it will be terminated and cannot be reinstated again.

Riders – Reliance Nippon Life Term Plan

There are different riders available with this Reliance term insurance that will additionally safeguard the dependents of the policyholder in occurring of any unexpected eventualities. These riders can be purchased by paying a nominal amount.

  1. Major Surgical Benefit Rider – There is a list of 33 surgeries such as transplant of Kidney, lungs transplant, open heart surgery, cornea transplantation, and many more. If any of the listed surgeries have to be performed on a policyholder, s/he will receive a lump sum amount for the purpose.
  1. Critical Conditions Rider – It covers 25 critical diseases and if the policyholder suffers from any of the listed critical illnesses, s/he will receive a lump sum amount on the diagnosis.
  1. Family Income Benefit – If the policyholder suffers from any permanent disability which has occurred due to any sickness or an accident or death after buying the policy, s/he will receive a monthly benefit which is 1% of sum assured. This monthly benefit is paid till the death of policyholder or for 10 years, whichever is later.
  1. Accidental Death Benefit Rider – Under this rider, if the policyholder dies due to an accident, her/his nominee will receive an amount equal to sum assured.
  1. Accidental Death and Disability Rider – If the policyholder suffers from total and permanent disability due to an accident, an amount equal to sum assured will be given in equal instalments within a period of 10 years. In case, the policyholder died in the accident, her /his nominees will be paid the same amount as the sum assured.
  1. Accidental Death and Disability plus Rider – This rider has the same features as that of an Accidental Death and Disability Rider and along with a waiver of all the premiums those need to be paid.

These riders can opt while buying a Reliance term insurance or on the anniversary date of the policy. The policyholder needs to pay some extra amount over the premium of the base plan. Here, it’s important to realize that the sum assured taken in the rider cannot be more than the sum assured opted for in the base plan.

Similarly, the premium paid for all the riders taken should not be more than the premium paid for the base plan. In this Reliance term plan, the amount of premium for all the riders should not be more than 30 per cent of the base premium plan.

If a policyholder surrenders her/his Reliance term insurance, the riders adopted with will also be ceased automatically.

Reliance Life Online Term Plan

Reliance Nippon Life Online Term plan helps the policyholders in getting financial security for their families. This Reliance term insurance plan can be purchased online within no time, at one’s convenience. The medical test which is required will be performed at one’s home comfort.

Reliance Life Online Term Plan- Benefits and Features

Death Benefit:

I case of any unexpected mishappening with a policyholder, the nominee will receive the death benefit as a maximum of –

  1. Sum assured
  2. 10 times of the Annual premium
  3. 105% of Premium paid till the date of death, if any extra premiums have been paid then that will be excluded.

Once the nominee will receive the death benefit, this Reliance term plan will be terminated.

Maturity Benefit:

There will be no benefit given to the policyholder if they survive till the end of this Reliance term insurance plan and the policy will be terminated.

Payment of Premium

The premium payment mode is available in annual mode only. The payment for the premium can be done in either of the following ways –

  • Debit or Credit Cards
  • Internet Banking

The life assured who have to have critical medical conditions or any impairment will be charged an extra amount of premium.

Rewards for Maintaining a Healthy Lifestyle

There will be a discount on premiums if the policyholder is a non-smoker. Also, if a policyholder is purchasing the policy for a sum assured of Rs 50 lakhs or more, there will be extra rebate given on the premium rates if her/his health is in a good condition.

Revival of Policy

In case of non-payment of the premium, the policy will remain in lapse state for two years. If the policyholder pays the total due amount along with the interest accrued within that 2 years time frame, her/his policy will be revived. At present, the applicable interest rate is 9 per cent.

Note: The policy revival is only possible if the designated team of Reliance term insurance plans approve the policyholder’s application for the policy revival. The policyholder should be in good health to get the application approved or he may need to undergo a medical test.

Reliance Nippon Life Online Term Plan – Riders

To protect a family from many unexpected events, there are different riders available with this Reliance term insurance plan that a user can purchase by paying a nominal amount–

  1. Accidental Death Benefit Rider – An extra lump sum equal to the amount of sum assured will be given to the nominee if the death of a policyholder occurs due to an accident.
  1. Accidental Death and Disability Rider – In case a policyholder suffers from permanent disability due to an accident, an amount same as that of sum assured will be paid in equal instalments over the period of 10 years. In case, the life assured dies in the accident, the same amount as sum assured will be paid to the nominee.
  1. Accidental Death and Disability plus Rider – Under this rider offered by Reliance term plans, the policyholder will get an amount equal to sum assured in equal instalments over a period of 10 years if the policyholder suffers from permanent disability due to an accident and the remaining payment of premiums will be waived off. Or else, if the policyholder dies in the accident, an amount same as the sum assured will be paid to the nominee.

These riders can be bought at the time of buying the Reliance term insurance plan or on the policy anniversary date. The sum assured for all the riders cannot be more than sum assured of a base plan. In case the policyholder surrenders the base plan, riders taken with it will also be terminated.

Reliance Life Online Income Protect

Reliance Nippon Life Online Income Protect helps the family to repay all the liabilities of a policyholder as well as provide her/his family members with a regular income which will help them maintain the same standard of living as earlier, in case something happens to the policyholder. This policy can be bought online at a reasonable cost.

Reliance Life Online Income Protect – Benefits and Features

Death Benefit:

If this Reliance term insurance is in force and something happens to the policyholder such as in case of demise of the policyholder, her/his nominee will get –

  1. Sum assured in a lump sum
  2. Income on a monthly basis

0.5 per cent of sum assured will be received as monthly income by the nominee for 10 years or till the end of the policy, whichever is later. The nominee will not be able to change the monthly income as a lump sum payment. Besides that, a minimum of 105 per cent for the total premiums paid till date of death will be received by the nominee.

Sum assured on death will be given from the following, whichever is highest –

  • 10 times of Annual Premium
  • Sum assured of policy

Maturity Benefit:

Under this Reliance term plan, there will be no benefit given to the life assured in case of survival. In this situation, the policy will be terminated and all the benefits will be ceased. 

Payment of Premium

The payment of premium can only be done on annual basis. The payment can be submitted through –

  • Debit or Credit Cards
  • Internet Banking

The life assured who is suffering from any medical condition or impairment needs to pay an extra premium as decided by the company.

Rewards for Maintaining a Healthy Lifestyle

Policyholders opting for a policy of 1 Rs crore or above as well as non-smoker applicants will get a rebate in the policy premium.

Revival of Policy

In case of non-payment of the premium, the policy will remain in lapse state for two years. If the policyholder pays the total due amount along with the interest accrued within that 2 years time frame, her/his policy will be revived.

Note: The policy revival is only possible if the designated team of Reliance term plans approve the policyholder’s application for the policy revival. The policyholder should be in good health to get the application approved or he may need to undergo a medical test.

Reliance Nippon Life Online Income Protect Term Plan – Riders

To protect a family from many unexpected events, there are different riders available with this Reliance term plan that a user can purchase by paying a nominal amount–

  1. Accidental Death Benefit Rider – Under this rider offered by Reliance term insurance plans, the nominee will get an amount equal to sum assured in case the life assured dies due to an accident.
  1. Accidental Death and Disability Rider – In case a policyholder suffers from permanent disability due to an accident, an amount same as that of sum assured will be paid in equal instalments over the period of 10 years. In case, the life assured dies in the accident, the same amount as sum assured will be paid to the nominee.
  1. Accidental Death and Disability plus Rider – Under this rider offered by Reliance term insurance plans, the policyholder will get an amount equal to sum assured in equal instalments over a period of 10 years if the policyholder suffers from permanent disability due to an accident and the remaining payment of premiums will be waived off. Or else, if the policyholder dies in the accident, an amount same as the sum assured will be paid to the nominee.

These riders can be bought at the time of buying the Reliance term plan or on the policy anniversary date. The sum assured for all the riders cannot be more than sum assured of a base plan. In case the policyholder surrenders the base plan, riders taken with it will also be terminated.

Reliance Term Insurance Plan – Claim Settlement Process

The claim will be settled by Reliance term insurance plans in a period of 10 days if all the documents are provided by the nominee or policyholder within the specified timeframe. If the claim does not get settled within a period of 10 days, they will pay an interest of 6.5 per cent per annum for all delays.

Claim Settlement Process for Base Plan

In case of death of policyholder, there are different documents that need to be submitted by the nominee such as –

  • Form A need to be filled by the nominee.
  • Form B is a certificate which needs to be filled by the doctor with sign and stamp and stating the last illness of the policyholder.
  • All the policy documents should be original.
  • Death Certificate in original from Death and Birth Registrar.
  • Certificate of death by the doctor confirming the cause of death.
  • Identity card with photo attested by any official of Insurance Company.
  • Hospital records, if the policyholder was hospitalized due to the last sickness.
  • Reports such as post mortem or Viscera report (if performed).

Claim Settlement Process in an Event of Accident or Suicide

  • Along with form A and B, form C is required for a certificate of identity.
  • All the reports like FIR (First Information Report) and Police Investigation Report.
  • If there is any news in the newspaper related to the accident, a copy of that too.

Claim Settlement Process for Riders

  1. Critical Illness – The documents needed to be submitted in case of critical illness–
  • Form A -specifically designed for Critical illness (should be submitted by the policyholder).
  • Form B to be filled by attending doctor with sign and stamp.
  • All the policy documents in original.
  • All the reports of the hospital including lab reports, biopsy reports (if done), a summary of discharge, diagnosis certificate, notes of consultation from the very first time.

Notes –

  • The documents need to be submitted in original or as attested photocopies to the officials of Reliance term insurance plans.
  • The Company can ask for any additional documentation as required.
  1. Death or Permanent disability Occurred due to an Accident – In case of policyholder’s death or Permanent/total disability caused due to an accident, s/he or her/his nominee needs to submit the following documents –
  • Form A
  • Form B
  • All document of policy in original
  • All records of the hospital like a summary of discharge, notes of the first consultation, diagnosis certificate and report of the physician attending life assured.
  • All the reports like FIR (First Information Report) and Police Investigation Report.
  • If there is any news in the newspaper related to the accident, a copy of that too.

FAQs of Reliance Term Plans

Q1. When is the policy document received for Reliance term insurance plans?

Each policy document is sent through speed post at the earliest. This ensures speedy delivery to all the areas – may it be urban or semi-urban or rural areas. The time duration varies depending on the area.

Q2. How can I surrender my Reliance term insurance?

Once a Reliance term insurance plan has been surrendered, it won’t be reversed. All the benefits available in the policy will be ceased. All the options of partial withdrawal should be considered properly before surrendering the policy.

The policy can be surrendered after the lock-in period completion as mentioned in the policy documents. The policyholder needs to do –

  1. Fill the request form meant for surrendering the policy
  2. Details of saving bank account
  3. Cancelled cheque
  4. All documents of policy
  5. Copy of KYC self-attested

All these documents are needed to be submitted in the nearest branch office. The processing of the surrender request will be done in a span of 7 working days once the Company has received all the documents to process the request. In some policies, there are surrender charges applicable that needs to be checked before filling the surrender form.

Q3. How to change the nominee of a Reliance term plan? 

The name of the nominee can be changed anytime, even after the policy is issued. The policyholder needs to fill the form meant for Nomination and sign it. This nomination form needs to be submitted along with a copy of KYC (self-attested by the nominee) in the nearest branch office. The name of the nominee will be changed within a span of 2 days after submitting all the documents in the branch.

Q4. How the policy premium payment frequency can be changed in Reliance term insurance plans?

The premium payment option can be changed by submitting a request signed by the policyholder. The change in the payment mode will be done within a period of 2 working days after the request has been received with all the documents in the branch office.

This process should be performed by the policyholder prior to 15 days from the due date of the policy. Please note that the payment frequency can only be changed when there is an option available to do so in the plan.

Q5. How the premium payment mode can be changed to ECS or payment through a credit card? 

The mode of payment in policy to ECS can be changed by giving a cancelled cheque and to credit card by giving a photocopy of a credit card at the nearest branch office along with a request submitted by the policyholder.

The change in the mode of payment will be done within a period of 15 working days once the request with all the documents is received in the branch office and also on the basis of approval given by the policyholder’s bank.

Q6. How can one add riders to Reliance term plans? 

For adding a rider, the policyholder needs to fill and sign the designated at the nearest branch office. The addition or deletion of any rider in the policy can be done near to the policy anniversary date and will be shown in the record within 7 working days once the documents and forms are received at the branch office.

Q7. How to change the address of correspondence for Reliance term insurance plans? 

Policyholder needs to submit a self-attested request form in the nearest branch office along with the proof of address for the new address. The details of address will be changed within 2 working days once the document and signed request form are received at the branch office.