Generally, the failure rate of a sealed relay is regarded as a constant value, no matter where and how it is used. However, the failure processes of sealed relays won't be the same under different conditions, even for one relay, its failure rate also will be changed during operations. This paper studies the failure process of a kind of sealed relay by analyzing the variations of its time parameters. Among contact resistance and all those time parameters, it is found that closing gap time can indicate the failure process of tested relay very well. For the purpose of verifying this conclusion derived from time parameters, the contacts are observed by microscope after the tested relay failed. Both theoretical calculation result of contacts gap and photos taken by microscope show that the hypothetic failure mode derived from time parameters is reasonable. Based on the failure analysis, the paper also proposes a dynamic reliability estimation method with closing gap time.