This paper aims at refining an experimentally based reliability model for the insulation of power components subjected to the randomly varying harmonics generated by power electronic converters. Compared to previous papers of the same authors and to the existing literature, here the model is re-formulated from the theoretical viewpoint focusing on the foremost role played by low percentiles of time to failure—in particular by the 1st percentile—selected as the rated life in the framework of modern probabilistic design of components. This is not only more correct from the viewpoint of component design, but also on the safe side as for the reliability of devices. Moreover, the application of the model is broadened to treat the whole sequence of odd voltage harmonics from the 5th to the 25th, i.e., those taken as the most significant in power systems according to international standards. The limits to voltage distortion set in Standard EN50160 are the reference for establishing parametrically a series of typical distorted voltage waveshape analyzed in the applicative part, which account for the possible phase-shift angles between voltage harmonics. The effect of current harmonics is also considered, from both the theoretical and applicative viewpoint. As a last, but not least novelty, the reliability model is used here for life and reliability estimates not only of Medium Voltage (MV)/Low Voltage (LV) capacitors and cables—already studied in the previous stages of this investigation—but also of induction motors and transformers in the presence of harmonics from power converters.