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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Reliance Online Term Insurance Plan Review

Suresh KP


  1. myself sriniwas rao s male d.o.b is 20-02-1965 want 13 lakh onlie term plan for 20 or 25 years which`s low plan suite to me
    as well as i want to take 50 lakh term plan for my only daughter dob is 5-11-98 just 18 yrs for max term
    pls advice me

  2. Deer Blogger,
    I am A 25 years old male. I am looking for the online term plans. I have a doubt while buying online policy, hope you will help me out for the same.

    If Insured died his natural death and he did not got any medical aid neither hospitalisation nor any first aid , so in this situation his family would not be having any medical summary of the insured. while applying for the claim most of the companies asked for submitting the medical summary/last medical attended (LMA)/Attending Physician’s statement for the cause of death/any certificate issued by medical practitioner clarifying the cause of death of the insured.
    So in this case (In absence of any medical history by doctors/hospitals)would the nominee be eligible for gerting the claim amount..

    Thanks in advance

    1. Hi Harshit, If it is natural death, you need to get death certificate from local authorities and need to submit. If it is death due to unwell/disease, hospital anyway would give the certificate which can be used to submit to insurance company.

  3. I have a small query. You have mentioned in the end that reliance has high claim settlement ratio and its an advantage.. but 94% looks very less compared to HDFC and icici and LIC na?
    I mean how is it considered as a advantage.
    Please help me out with the same.
    Thanks in advance

  4. since as per sec 45, a policy cannot be called in question on ground of mistake after 2 years, does it mean the policy will be honoured 100% post 2 years, making the claim settlement ratio immaterial?

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