Life Insurance Plan
While you take all the required measures to take care of the emotional needs of your family members, it's important to consider financial needs too.
A life insurance plan takes care of the financial n...Read More
What is Life Insurance Policy?
A life insurance policy refers to the contract between an insurance provider and an individual,[1]. As per the agreement, the policyholders pay a certain amount as the policy premium while the insurer pays a specific amount to their family on untimely demise of life insured.
With death being the only sure thing in life, it is crucial to buy the best life insurance policy that suits your financial needs.
Why Choose Life Insurance Plans?
A life insurance policy helps you safeguard the financial interests of your family when you are not around. Millions of people buy life insurance for reasons that are often difficult to put into words. It forms a crucial component of a sound financial plan because of the following benefits:
1. Financial Protection for Family
A life insurance policy will provide a specified sum to your family (the chosen nominee) at the time of your untimely demise. They can use the sum assured to fulfil various financial needs.2. Critical Illness Benefit
You can opt for critical illness rider with a life insurance policy, which offer protection against critical health ailments, such as cancer, kidney failures, and cardiovascular issues. This way, you or your family need not worry about the financial side of medical emergencies.Who can purchase Life Insurance Policy?
Any individual, either male or female, falling into the age-group of 18-65 years, can buy life insurance in India as per the life insurance terms & conditions
Age Group | Importance of Buying Life Insurance in a Specific Age |
---|---|
20-30 | Significant coverage at a low premium which will help in repaying education loan if any along with other financial needs |
30-40 | Financial protection for the entire family and regular monthly income as per the life insurance plan chosen |
40-50 | Opportunity to create wealth child’s higher education and retirement planning |
50 and Above | Ease of repaying huge financial debts for the family if any along with other benefits |
Here are some other related aspects of buying life insurance you must know:
At Max Life Insurance, we offer life insurance policies to individuals having pre-existing illnesses.
Life Insurance Policy[4] Important Terms

What are the Types of Life Insurance Plans?

Every policy buyer must understand different types of life insurance[2]before buying any of them.
How to Select the best Life Insurance Policy?

With a multitude of life insurance plans available in the market, it is critical to choose the right one. The selection of a life insurance plan must be based on a broad spectrum of financial needs.
Here are a few steps to consider while buying the best life insurance policy:
How to choose the best Life Insurance Company?
The selection of the right life insurance provider is essential to ensure that you or your loved ones will get the benefits they seek from the purchase plan.
Consider the following aspects while choosing the best life insurance provider:
1. Claim Settlement Ratio (CSR)
This ratio defines the claims settled by an insurer over the ones received in a financial year. The higher the CSR, the higher are the chances of getting your life insurance claim paid.
2. Solvency Ratio
It refers to how well an insurance company can manage sufficient cash flow to deal with the debts. An insurer can provide hassle-free claim settlement if this ratio depicts its strength to meet the related liabilities.
3. Premium
All life insurance plans are priced differently. Thus, you need to choose the one that seems cost-effective to you. In order to avoid the risk of losing the life cover, make sure you do not select a plan with premium is too high and unaffordable.
4. Persistency Ratio
It defines the percentage of policyholders that pay the premium over the total active policyholders. It is a good indicator of customer satisfaction delivered by the insurer.
5. Claim Settlement Process
A simplified claim settlement procedure implies, your family will not have to face any hassle to receive life insurance benefits. It is advisable to choose an insurance company which follows a streamlined process to settle claims.
Why Buy Life Insurance Policy Online?

Every policy buyer must understand different types of life insurance[2] before buying any of them.
There are several reasons that support the decision to buy life insurance online, including
Documents Required to Get Life Insurance Plan
You need the following officially valid documents[3][5][6]while purchasing life insurance from a renowned insurer:
- Passport
- Voter ID
- NREGA job card
- Aadhar Card
- PAN Card/Form 60
In case these documents do not contain the updated address, you need the following documents:
How Do You Save Tax with Life Insurance Plan?
Life insurance policies are considered efficient tools for tax-planning. It is because the policyholder is eligible to get tax benefits4 under the Income Tax Act, 1961. The premiums paid for various life insurance schemes are tax-deductible Section 80C, while the payout or maturity benefit is tax-exempt under Section 10(10D) of the Act.
How Can You Pay for Life Insurance Policy?
You can choose to pay the premium of life insurance plans in one go or with regular payments over time. Life insurance policies usually provide the option to choose between a single (one time) payment, regular (throughout the policy tenure) payment and limited premium payment tenure (for a payment tenure less than the policy coverage period).
With regular premium payment mode, you can select any of the following payment options:
You must also know that the life insurance premiums paid online are processed through secure payment gateways, thus ensuring the safety of transactions.
How Will Your Family Receive the Life Insurance Claim Money?
After your (Life insured) untimely demise, your loved ones will get the policy benefits by claiming the same from your insurer.
Follow these steps to claim life insurance policy benefits:
The nominee of a policy should not wait too long after the insured’s demise to ensure quick and easy claim settlement.
Which Life Insurance Plan Suits Your Need?

Everyone has different financial needs and life goals, based on which he/she should choose a life insurance plan.
With Max Life Insurance, you get the flexibility to buy life insurance plans that can be personalized to meet your specific needs. Here is a small guide to help you select the right plan:
1.Life Stage/Need: 20 – 25 years (Young and unmarried)
Plans to Consider
- Max Life Online Savings Plan(A Unit Linked Non Participating Individual Life Insurance Plan UIN: 104L098V03)
- Max Life Cancer Insurance Plan(A Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Plan UIN: 104N093V03)
Benefits
- Adequate coverage at a low premium
- Convenience to buy life insurance plans anytime and from anywhere
- Flexibility to choose policy tenure and sum assured
2.Life Stage/Need: 25 – 30 years (Married with no children)
Plans to Consider
- Max Life Smart Secure Plus Plan( A Non-Linked Non Participating Individual Pure Risk Premium Plan Life Insurance Plan | UIN 104N118V02)
- Max Life Online Savings Plan(A Unit Linked Non Participating Individual Life Insurance Plan UIN: 104L098V03)
- Max Life Cancer Insurance Plan(A Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Plan UIN: 104N093V03)
Benefits
- Dual benefit of insurance and investment
- Protection against various critical illnesses
- Return of total premium at maturity (with Smart term plan premium back variant)
- Flexible investment options
3.Life Stage/Need: 30 – 35 years (Married with young children)
Plans to Consider
- Max Life Smart Secure Plus Plan( A Non-Linked Non Participating Individual Pure Risk Premium Plan Life Insurance Plan | UIN 104N118V02)
- Max Life Online Savings Plan(A Unit Linked Non Participating Individual Life Insurance Plan UIN: 104L098V03)
- Max Life Cancer Insurance Plan(A Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Plan UIN: 104N093V03)
- Max Life Future Genius Education Plan(A Non-Linked Participating Individual Life Insurance Savings Plan UIN: 104N094V03)
- Max Life Shiksha Plus Super(A Unit-Linked Non-Participating Individual Life Insurance Plan UIN: 104L084V04)
Benefits
- Increasing life cover as defined in the policy terms to beat inflation
- Tax benefits under various sections of the Income Tax Act
- Additional riders for enhanced protection
4.Life Stage/Need: 35 – 45 years (Parents with teenage children)
Plans to Consider
- Max Life Smart Secure Plus Plan( A Non-Linked Non Participating Individual Pure Risk Premium Plan Life Insurance Plan | UIN 104N118V02)
- Max Life Online Savings Plan(A Unit Linked Non Participating Individual Life Insurance Plan UIN: 104L098V03)
- Max Life Cancer Insurance Plan(A Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Plan UIN: 104N093V03)
- Max Life Future Genius Education Plan(A Non-Linked Participating Individual Life Insurance Savings Plan UIN: 104N094V03)
- Max Life Shiksha Plus Super(A Unit-Linked Non-Participating Individual Life Insurance Plan UIN: 104L084V04)
Benefits
- Flexible payout options
- Comprehensive cover at affordable prices
- Survival benefit as per the chosen plan
5.Life Stage/Need: Nearing retirement
Plans to Consider
- Max Life Smart Secure Plus Plan( A Non-Linked Non Participating Individual Pure Risk Premium Plan Life Insurance Plan | UIN 104N118V02)
- Max Life Online Savings Plan(A Unit Linked Non Participating Individual Life Insurance Plan UIN: 104L098V03)
- Max Life Cancer Insurance Plan(A Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Plan UIN: 104N093V03)
Benefits
- Financial security for retirement goals
- Wealth creation opportunities for your child’s future goals
What is the Right Life Insurance Cover for You?
Once you have decided to buy life insurance, the next big step is to choose a specific life cover, or sum assured. Here are some aspects to keep in mind while determining a ballpark figure for the life cover:
A life insurance plan serves as an income replacement tool. Hence, you need to consider the number of active working years it would replace while choosing the sum assured. For instance, if you are 25 right now and have planned your retirement at the age of 50, you have 25 future earning years to consider.
The sum assured should cover recurring financial outgoes, including household expenses, bills, and existing loan EMIs on a year-on-year basis. By charting out these expenses for a specific period, you will get a better idea of the sum assured to be chosen.
Certain stages or events in life require large lump sum amounts. These include wedding, retirement, or child’s higher education. The sum assured should cover them all majorly to ensure your family will not face a financial burden after you.
Difference Between Life Insurance, General Insurance, and Health Insurance
The following table summarizes the differences between various types of insurance plans:
Parameters | General Insurance | Life Insurance | Health Insurance |
---|---|---|---|
Basic Benefit | Insurance coverage for non-life assets, like home, health, and travel | Life cover benefit to be given to the family | Health cover to deal with medical emergencies in life |
Premium Payment | The entire premium is usually paid at the time of buying/ renewing the policy | A fixed amount to be paid for a specific tenure (in years) | A specific amount to be paid at first and then after every year for policy renewal |
Policy Duration | Short term | Long term | Short term |
Claim of insurance | In case of unfortunate events defined in the policy terms | Either on the insured’s death or maturity | During a healthcare emergency |
Tax benefit Under income tax act 1961 | Under section 80D (for health insurance) | Under section 80C | Under section 80D |
Life Insurance Policy FAQs

A life insurance policy provides a sum assured to the nominee in case of the untimely demise of the life insured individual. There are different types of life insurance plans that you can choose based on your goals and protection needs.
A term plan is the least expensive variant of life insurance, which does not offer any survival benefits. The plan expires when the policy period ends. However, term plans with return of premium is another variant of term insurance which provides survival benefits.
You can avail deductions under section of the Income Tax Act, 1961, of up to Rs. 1.5 Lakh per annum on the premium paid towards life insurance. Alongside, the life insurance payouts received by the nominee are exempt from tax under Section 10(10D).
With life insurance, you can make sure that the financial security of your loved ones in your absence, is never compromised. The insurance benefits they receive will help them finance their regular expenses and life goals.
The right age to buy the best life insurance policy is when you are young and shoulder the least number of financial liabilities. The earlier you buy a plan; the lesser will be its premium.
ARN NO: PCP/LIP/0732022
www.policyholder.gov.in/YouandYourLifeInsurancePolicyFAQs.aspx
www.policyholder.gov.in/WhatLifeInsurancetoBuy.aspx
www.irdai.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo2061
www.maxlifeinsurance.com/content/dam/corporate/Brochures/Term-plans/English/smart-term-plan/smart-term-plan-policy-contract.pdf
www.maxlifeinsurance.com/blog/term-insurance/what-are-the-documents-required-for-term-plan
www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11865&Mode=0
www.maxlifeinsurance.com/claims-centre/documents-required
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