Online Term Plan Plus
Max Life brings to you Online Term Plan Plus that provides a secure financial future for your loved ones, against the risks of Death, Disease and Disability.
Online Term Plan Plus offers a life insurance cover of 1 crore at just Rs. 563 per month* only. (Standard Premium For 28-Year-Old Male, Non-Smoker, Base Plan Policy Term Of 30 Years, Premium Payment Term Of 30 Years)
What is a Term Plan?
Term insurance plan is a type of life insurance contract that offers to pay a lump-sum amount to the nominee (a family member nominated by the person who is insured to receive the policy benefits in case of his/her death) in case of insured dies during the policy term. Term insurance is called so because it covers the life of the insured for a limited period (or term).
Term plan does not offer a maturity value if the policyholder survives through the entire duration of the policy. This is one of the reasons why term plans are affordable.
Why Should you Buy Term Insurance?
Emergencies and unfortunate events like the loss of breadwinner can push a family financially backward and put their future at risk. With a term insurance policy, the breadwinner can ensure that the family continues to receive the financial support to maintain a respectable lifestyle
Term Plan Options Available to you
| PLAN | DESCRIPTION | UNIQUE FEATURES |
| BASIC LIFE COVER | A pure term plan with which pays a fixed amount (sum assured) to the family | • Lumpsum payment of death benefit to your nomine • Lifestage benefit to enhance insurance cover on important milestones like marriage, birth of a child • Benefit payment for up to 40 life threatening illnesses & disabilities(on payment of additional premium) • Pay until the age of 60 years for coverage up till the age of 85(on payment of additional premium |
| BASIC LIFE COVER + MONTHLY INCOME |
A pure term plan with which pays a fixed amount (sum assured) to the family + a fixed sum every month | • 0.4% of the Sum Assured (S.A.) is paid each month for 10 years as fixed monthly income • Monthly income benefit is payable over and above the base Sum Assured • The effective cost of this option is just Rs. 85/Lakh of S.A. (( Standard Premium For 28-Year-Old Male, Non-Smoker, Base Plan Policy Term Of 30 Years, Premium Payment Term Of 30 Years for Basic life cover+monthly income option for a sum assured of 1 crore) |
| BASIC TERM LIFE COVER + INCREASING MONTHLY INCOME |
A pure term plan with which pays a fixed amount (sum assured) to the family + a fixed sum every month payable for 10 years that keeps increasing by 5% every year to account for increasing living cost | • This plan pays 0.4% of S.A. each month in the first year as monthly income • The monthly income increases each year by 10% for the rest of the payout period • The monthly income benefit is payable over and above the base sum assured |
Benefits of Term Insurance Plan
The concept of insurance is based on community, and thus the term insurance plans too. Term insurance plans benefit not just the buyer and the families but the society at large:
Buyer of the Term Insurance Plan
a. Affordable premiums (Max Life Online Term Plan Plus offers 1 crore cover at just Rs. 563 per month*
(Standard Premium For 28-Year-Old Male, Non-Smoker, Base Plan Policy Term Of 30 Years, Premium Payment Term Of 30 Years)
b. Peace of Mind
c. Tax Savings under section 80C (As per existing tax laws)Max Life Online Term Plan Plus offers flexibility to choose the benefit amount that family receives – (3 options - lumpsum one time, lumpsum along with a monthly income or lumpsum with increasing monthly income)
d. Max Life Online Term Plan Plus offers flexibility to choose the duration of the cover (minimum 10 years to a maximum of 50 years)
The Family of person who is insured
a. A regular income to support basic essentials – food, rents, bills, EMI’s
b. Financial protection to the future of kids in the family by supporting the kid’s school fees or higher education goals c. Benefit amount received on death of person insured is exempt from tax under section 10(10D)^^ (Refer comment above)
The Society at large
a. Efficient protection of bereaved families
b. Freeing up individuals, businesses and governments from the financial burden of supporting the dependents of deceased
Key Features of Max Life Online Term Plan Plus
- Minimum age to buy is 18
- Maximum age for buying the cover can be up to 60 years
- Choice of regular income payout options
- Limited pay option for premium payment
- Option to add benefits like accidental death and dismemberment, premium waiver, and critical illness covers (On payment of additional premium
- Option to pay premiums monthly, quarterly, half yearly or annually
- Freelook period of 30 days (for online plans)
- A grace period of 15 days for payment of regular premium under monthly mode, 30 days for other modes
- Maximum covered age of life-insured can be up to 85 years for term plans.
- A lapsed term insurance policy can be revived within two years of the first unpaid premium
Steps to Buy Term Plan Online
Buying the term plan online is easy:
Step 1: Select your sum assured and term
The first step of buying the term cover online is to use the online term insurance calculator and estimate the premium for your desired sum assured and term of the plan.
Note: The ideal benefit amount for your term life insurance should be 10 to 15 times of your annual take home income.
Step 2: Add Riders
Select the add on benefits to the base cover. The additional benefits enhance your financial support in case of unfortunate events like disability and diagnosis of life threatening illnesses and are optional benefits available on payment of additional premium.
You can add the following four riders to your online term insurance plan:
* Critical illness cover covering up to 40 illnesses
* Accidental death and disability benefit
* Premium waiver benefit in case of diagnosis of critical illness or disability
Step 3: Pay the Premium
Once you are satisfied with the benefits and the premium amount you can complete personal information and pay the premium. You need to fill the following information and pay the premium:
* Income, profession and education details
* Details about the nominee
* Present Address (your medical test will be conducted in the location of this address)
You can pay the premium online using debit or credit card or netbanking and more
Step 4: Complete the Proposal Form
The proposal form is the detailed version of the application form for life insurance. It focuses on the information related to your life which can affect the claim in future. The important areas of a proposal form will include:
> Details of profession
> History of Health issues (including that of the immediate family and parents) > Lifestyle habits such as drinking and smoking
Step 5: Medical Tests
Medical tests happen in selected cases basis individual life-risk. It is done after successful completion of the proposal form and submission of all necessary documents. You may be prompted about the medical test, if needed by the company
How to Choose the Best Suited Term Insurance Plan For You?
Selecting best term insurance plan is a simple five step process:
Step 1: Select Your Life Insurer (or the company from whom you wish to buy life insurance)
Check the Claims Paid Percentage
Claims paid percentage of an insurance company is the ultimate proof of the moment of truth faced by the person insured. It shows the number of claims settled by the insurer in given financial year divided by total outstanding claims at the beginning of that year and reported during the year. A good claims paid percentage, is a testament to insurance company’s commitment and efficiency in managing customer’s claims.
Check Persistency Ratio
Persistency ratio indicates how satisfied current policyholders are. It is the number of customers who stay invested in their policy year after year. More satisfied policyholders will stay with the insurer for longer periods. A good persistency ratio indicates trust of customers on their insurance company and the product purchased. Max Life Insurance recorded a 13th month persistency of 81%.(As per Max Life Public Disclosures FY 17-18)
Step 2: Estimate the Sum Assured & duration of your plan
Sum assured, or the insurance cover amount, should be large enough to take care of both your family’s regular financial needs and major life goals for their entire life.
As a rule of thumb, you can opt for a sum assured anywhere between 10 to 15 times of your annual take home income.
It is advisable to take longest term possible. However, you must continue your cover for atleast your working years.
Step 3: Select the Add-on Benefits
Once you have decided the life insurance company of your choice, it’s time to start looking for the plan benefits. Term insurance plan is a pure life insurance cover and the money is paid only on the death of person who is insured. To enhance your term insurance cover, you may add various additional benefits or riders that may come at an additional minimal cost. Such optional benefits/riders cover additional risk, are very cost effective and can be availed on payment of additional premium. The optional benefits you should add to your term life cover are:
> Accidental death and dismemberment(ADD) cover ((On payment of additional premium for rider) - ADD pays additional amount to the family in case of death due to an accident.Also pays the selected sum assured in case of disabilities contracted from the accident.
> Premium waiver benefit (On payment of additional premium for rider) - In case of permanent disability, all future premiums for the term life cover are waived off, but the life cover continues.
> Critical illness (CI) benefit#(On payment of additional premium) - CI benefit offers financial support in case of diagnosis of a life-threatening illness or health condition. It can include up to 40 illnesses and conditions.
> Life Stage Benefit (On payment of additional premium) - This benefit helps you increase your life insurance cover on important milestones like marriage, birth of a child and on availing home loan
Step 4: Compare the Premium
Use online term plan calculators provided by various life insurance companies to estimate the premium amount for your cover. Most of the added benefits cost extra. Overall, the following factors will affect your premiums:
> Your age
> If you are a smoker premium can be slightly higher
> Tenure of the plan (longer tenure increases the premium)
> Tenure of premium payment (shorter tenure attracts higher premium)
> Sum assured under added benefits
> Mode of premium payment (there can be a discount on lumpsum premium payment)
Step 5: Buy the Plan
If the plan is available online, you can proceed to buy the cover once you have selected your benefits and estimated the premium cost. You can complete the formalities online including submission of documents.
In case you have chosen to buy a plan, which is not available online, you can set an appointment for the advisor to visit you and complete the formalities.
Who Should Buy Term Insurance?
Anyone who is earning should buy a term insurance plan to support the family’s financial future.
If you are single – Your parents may be currently or in future be dependent on you. It is essential to secure their lifestyle during retirement
If you are married with no kids – Your spouse may be completely or partially be dependent on you financially. It is important to secure their lifestyle in your absence.
If you are married and have kids – Your kids’ education and marriage expenses are two important goals that you need to secure. Aside, you also need to maintain current lifestyle for your partner, even in your absence. From eligibility perspective a person aged 18 years can buy a term plan. Maximum entry age may vary from one insurer to the other. With Max Life the maximum age to buy the term plan is 60 years.
Disclaimers
*The scenario is for a 28 year old healthy, non-smoking male for a policy term of 30 years
^^As per prevailing tax laws
Key features of Max Life Online Term Plan Plus
- Choice of death benefit options
- Option to pay your premiums till age 60 (you retire) and enjoy the benefit till coverage term.
- Additional Protection with Additional Liabilities.
- Comprehensive protection against Death, Dismemberment & Critical Illness
- Hassle free online application process
