What is Life Insurance?

In addition to giving you, and your family, financial protection investing in life insurance offers many other benefits.

• Encourages the habit of saving so you are provided with financial security at the time of retirement or your family is provided with financial assistance at the time of your demise.    
• Through a Life Insurance policy you can claim a tax benefit under section 80C of the Income Tax Act, up to Rs. 1,00,000.
• The maturity benefits from a life insurance policy are tax free under section 10(10D) of the Income Tax Act.
• You can invest in a policy that offers you a loan against your amount invested, if you need financial assistance in the case of an emergency. You can also take a loan from a bank or financial institution and put your policy up as collateral for the loan.
• You can invest in a policy that allows you to withdraw a part of your investment at the time of a financial emergency.
• You can add a critical illness rider to your policy, which offers you medical aid in case you are inflicted by a serious illness or injury. Under this rider you can also claim a tax benefit up to Rs. 15,000 as specified in section 80D of the Income Tax Act.
• You can also invest in policies in the name of your spouse and children and claimtax benefit, under section 80C, on those policies as well.

Life Insurance is not necessary but is a smart investment to make, especially if you have a dependent spouse and children.

It offers your family the benefit of financial support even after your death. In addition to this, it offers a number of advantages and provides a lot of flexibility on your investment. For example, you can add a  critical illness rider  to cover the cost of expensive for surgeries and operations; you can withdraw a part of your maturity benefit in case of an emergency or for your child's education or marriage, etc. Life Insurance policies come with a lot of flexibility.

While deciding the cover, it is important to remember that the objective of insurance is to provide financial support to your family and/or dependents, in case you (as the primary breadwinner) are no more, or are unable to earn because of a permanent disability or illness. The life cover you decide on should be adequate to help your family maintain the standard of living you would have provided for them always.

You should keep the following things in mind as you go about the calculations:

• Your current annual income
• Your current and future financial liabilities
• Your financial goals
• Your age at the time of policy purchase & number of working years left
• Number of dependent family members & their expenses

Max Life’s claim assurance is one of the best among private insurance companies in India. The company has an impressive individual death claims paid percentage of 98.26% in FY'18 (Src: Max Life Public Disclosure FY 2017-18). Such a healthy claim settlement ratio means that you are more than likely to get your claims on time, and at the time when you probably need it the most.

The ability of Max Life to offer feature-rich products has demonstrated the company’s robust financial strength and stability.

In the FY 17, the company posted its best finances in a decade. The gross written premium touched Rs. 10,780 crore, which was higher by 17% than the FY 16. Moreover, the net profit of the company grew by 50% and reached Rs. 660 crore, while the renewal premium grew by 12% and reached Rs. 7,114 crore. The solvency ratio reached 309%, for FY 17- way above the mandatory requirement of 150%.

Another great thing about Max Life is that they offer personalized assistance during claims. A dedicated claim settlement officer engages the customer within 5 working days after the submission of a claim.