Reliance Online Term Insurance Plan-Is it really cheaper plan?

Reliance Online Term Insurance PlanReliance Online Term Insurance Plan Review


These days there are several advertisements seen on websites and blogs about Reliance Online Term plan indicating this as cheapest plan. The advertisement indicates “Get 1 Crore life cover at just Rs 15 per day” with a slogan “Baniye apni Family Ka Farista” . Generally Online Term Insurance plan comes with lower premiums. Reliance Life launched Online Term Insurance Plans in Apr-2014. How good is Reliance Online Term Insurance Plan? In this article, I would review about Online Term Insurance Policy of Reliance Life, its features and benefits. This post is based on request from Mrs.Jyothika from Gurgoan (through email) where she is planning to take term insurance plan and asked the view about this term plan.

Also Read: LIC e-Term Insurance Plan Vs Other Term Insurance Plans – Which is better?

Features of Reliance Online Term Insurance Plan


  • Non linked, non participating, pure and simple term insurance plan
  • Flexibility to decide the life protection
  • Low premiums for high life coverage.
  • Reliance claims that application process is simple.
  • Medical examination process done by a medical practitioner / representative at the life’s assured door step. All such expenses are borne by the company itself.
  • Non smoker are eligible for lower premium rates. Healthy life style individuals are eligible for further low premiums.
  • No riders are available
  • Free look-in period of 15 days. In case you are not satisfied with the insurance policy after taking it, you can return the policy within 15 days from the date of the receipt of the policy.
  • The policy cannot be called in question on ground of mistakes after 2 years from policy (Section 45 of Insurance Act, 1938).
  • In case of suicide of life insured within 12 months, the nominee would get only 80% of premiums paid.

Reliance Online Term insurance plan-Features

What are the unique features of Reliance Life Online Term insurance plan?


  • The claim settlement ratio is 93.67% (claims settled against claims received) as on 31st March, 2013. Currently, LIC, ICICI Life, HDFC Life claims settlement ratios are between 97% to 94%.
  • Claim settlement guaranteed in just 12 days.

What are the benefits in Reliance Online Term Insurance Policy?


1) Death Benefits: Unfortunate death of the life assured during the policy term, the nominee would get maximum of the following:

  • Sum Assured
  • 10 times of annualized premiums
  • 105% of premium paid as of the date of the death.

2) Maturity Benefits: Since this is a pure term insurance plan, there are no maturity benefits.

3) Tax Benefits: Premiums paid for this term insurance plan are eligible for tax deduction u/s 80C.

What are the premiums in Reliance Online Term Insurance Plan?


Reliance Online Term insurance plan-Premiums

How do the premiums compare with other online term insurance plans?


Quick comparison of premiums across various term plans are indicated below.

Reliance Online term plan Vs-other-online-term-insurance-plans

Source: Economic Times

Also Read: What are the best term insurance plans in India for risk coverage?

What are the documents to be submitted for claim in case of death of life insured?


Below are the documents required for Death claim

  • Claim form A: This form need to be filled by the nominee or claimant
  • Claim form B – Certificate of last illness to be filled, signed and stamped by the doctor in attendance during the last illness of the deceased life assured.
  • Original policy documents
  • Original death certificate by Death and Birth Registrar
  • Death certificate from the doctor confirming the cause of death
  • Nominees photo identification card copy attested by the insurance company official
  • All hospital reports, if hospitalized during the last sickness
  • Post Mortem Report and Viscera report, if performed

Conclusion: Reliance Life Online Term Insurance Plan comes with similar features what other term insurance plans are offered. I do not know about how customer support is available for Reliance Life. Unique feature is about settling the claims within 12 days is good. High settlement ratio of 93.67% also makes this term insurance plan attractive.

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Suresh
Reliance Online Term Insurance Plan Review

Suresh KP

25 comments

  • Nikhil

    Suresh ji,

    I have 1 question regarding Insurance Claim.

    Currently I am a non-smoker and i will declare the same in the Term Policy. But in the future say a few years later, I start consuming tobacco and i die because of that. While claiming the sum assured, will the company pass the claim or they will reject it citing the insurer died because of tobacco and its mentioned in the policy as a non-tobacco user.

    I contacted HDFC life for this and the contact representative said that the claim will get processed.

    Need your thoughts on this.

    Thanks!!!

  • Amit

    Hi Suresh,

    Recently I have purchased a term insurance (25 lakhs sum assured) from HDFC (click 2 protect). They have accepted my application and approved the policy without medical.

    The problem is, I haven’t received my policy documents yet. It’s been almost 2 months. I received email notification stating my policy is approved and the policy documents should be mailed out to you within 10-15 days along with policy no, premium paid receipt. I can see my policy info on HDFC website under my newly created account. When i called them for policy documents, they said they will send out the documents as soon as the issues gets resolved. I asked them what issues? Is it from your end or my end? Should I worry about the issues? They said the issues are from their end and I don’t need to worry about.

    Should I wait longer for the documents or should I call them and request one more time? Should I complaint to IRDA, if they don’t send documents soon? Please help.

    Thanks.

  • vivek

    Hi Suresh,

    Thanks for your detailed analysis on Reliance Online term Insurance Plan. Can you please explain its pros and cons against LIC e-term Insurance policy.
    I find no logic to go for LIC e term except its a public company.

    • Vivek, while there are minor variances, settlement ratio is big variance. LIC comes with 98% claim settlement ratio while Reliance comes iwth 94% claim settlement ratio.

  • Venkat

    Plz let me know abot AegonReligare settlement ratio and Is it good company?

  • Neeraj

    Hello Suresh,

    Good Read. I read your blogs more often.
    Recently, i took Term Plan from Aegon Religare, which is also a better competitor.

    Thanks!

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