Smart Term Plan - Max Life Insurance
Max Life Smart Term Plan
Max Life Smart Term Plan: (UIN: 104N113V02) A customizable term plan that offers comprehensive protection against critical illness, disability, and death and while giving you an option to get all your premiums back^
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Max Life Smart Term Plan
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A customizable term plan that offers comprehensive protection against critical illness, disability, and death and while giving you an option to get all your premiums back^

Why Should You Choose MAX LIFE INSURANCE

Best Term Plan Company of the year*^*
98.74%**^ Claims Paid Ratio
IRDAI Registered Reg. No. 104

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Benefits of Buying
Max Life Smart Term Plan

Why Buy Max Life Smart Term Plan - Max Life Insurance
Get your premiums back Return of premium upon surviving the policy term under base policy*
Health component to your term insurance Comprehensive protection against 40 critical illnesses^, including kidney failure, heart attack, and cancer
Pay for shorter duration Multiple premium payment options^ such as limited pay, regular pay and pay till 60
Multiple payment options Flexible premium payment options as per your budget
Option to increase your cover later Option to increase insurance coverage upon achieving important milestones in life like getting married, buying a house or having a child
Tax savings Significant tax benefits~ under Section 80C, 80D and 10(10D) of income tax act 1961
Multiple ways to receive claim Multiple death benefit payout options including increasing monthly income and lump sum payouts
Option to enhance your cover Additional benefits in the form of riders such as Accidental Cover^
and more ...

Who Should Buy Max Life Smart Term Plan?

Max Life Smart Term Plan is a flexible plan that caters to people from different walks of life and age groups. Therefore, you can customize your insurance coverage by choosing the desired benefits accordingly. If you are earning, you should buy a term insurance plan to support your family’s financial future.

How to Bjuy Max Life Smart Term Plan - Max Life Insurance
1
If you are single Your parents may depend on you for financial support, especially after their retirement. You need term insurance to support their regular expenses in your absence.
2
If you are married with no kids Your spouse may have no one else but you, to look for financial support. Thus, it becomes crucial that you create a backup plan to secure his/her future in your absence.
3
If you are married and have kids Being a parent, you take care of your kids’ education and marriage expenses, besides supporting your spouse's expenses. A term plan will support your family in maintaining their current lifestyle, even in your absence.

Key Features of Max Life Smart Term Plan

Multiple Death Benefit Options Seven different variants for the death benefit payout
Multiple Payment Options Single Pay, Regular Pay, Pay till 60 and Limited pay option Limited Pay options are available for premium payment
Option to Return Your Policy Freelook period of 15 days
Long Term Coverage Life cover assurance up to 85 years
Customer Discount 5% loyalty discount for existing policyholders. Avail the discount if your policy is in premium paying stage or Paid-up stage
Coverage for Smokers too Coverage for smokers and non smokers with lower rates for non-smokers**
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Unique Case of Max Life Smart Term Plan - Max Life Insurance

What is a Smart Term Plan?

Max Life Smart Term Plan is a customizable term plan that offers comprehensive protection against critical illness, disability, and death. This term plan provides 360-degree financial protection to your family in your absence.

Example:A 24 year old Healthy, non-smoking male can secure a cover of Rs. ₹ 1 crore for his dependents for next 25 years, @ ₹493 per month

  • Return of premium upon surviving the policy term under base policy*
  • Comprehensive protection against 40 critical illnesses, including kidney failure, heart attack and cancer
  • Limited premium payment options such as limited pay, regular pay and pay till 60
  • Flexible premium payment options as per your budget
  • Option to increase insurance coverage upon achieving important milestones in life
  • Significant tax benefits under Section 80C, 80D and 10(10D) of income  tax act 1961
  • Multiple death benefit payout options including increasing monthly income and lump sum payouts
  • Additional benefits in the form of riders such as Accidental Cover
read more

What Do You Get From Max Life Smart Term Plan?

Every individual has different needs life. Whether it is about protecting their child’s future or making sure that they can repay their home loan, people have varied expectations with term life insurance. Max Life Smart Term Plan offers a plethora of life insurance benefits and policy variants to choose from. The plan helps each policyholder to create their personalized all-around protection through term insurance.

Here are a few reasons why you must buy Max Life Smart Term Plan

What Do You Get From Max Life Smart Term Plan?

Every individual has different needs life. Whether it is about protecting their child’s future or making sure that they can repay their home loan, people have varied expectations with term life insurance. Max Life Smart Term Plan offers a plethora of life insurance benefits and policy variants to choose from. The plan helps each policyholder to create their personalized all-around protection through term insurance.

Here are a few reasons why you must buy Max Life Smart Term Plan

In general, term insurance plans do not have a maturity value; these plans protect your family’s financial future in case of an eventuality. However, Max Life Smart Term Plan has an option of return of premium.

In other words, if you survive throughout the policy term, you will be eligible to receive the complete amount of annualized premiums that you had paid under the base policy* . After that, the policy will terminate.

The Premium Back feature is available under all the death benefit payout options, so there is no need to panic. You can create a personalized term insurance plan and then, avail the maturity benefit after surviving the policy term.

Please note, any additional premium amounts charged for optional benefits such as accelerated critical Illness benefit, accident cover option or rider add-ons will not be a part of the benefit (return of premium) that you will receive upon maturity.

Max Life Smart Term Plan offers you to pick a policy term that you desire, with life insurance term of up to 50 years and avail coverage ceasing age of 85 years.

The primary purpose of life insurance is to help you tackle emergencies. If it is an unexpected medical emergency, you need an insurance plan that is flexible enough to help you out in every situation. 

Take critical illnesses, for example. If you are diagnosed with any one of the severe health concern such as heart conditions or cancer, Max Life Smart Term Plan can help you avail immediate financial help in the form of accelerated payouts under its Accelerated Critical Illness (ACI) Benefit.

The ACI benefit covers you against as many as 40 critical illnesses. Not only this, you have the freedom of increasing the plan coverage during your policy term. In other words, Max Life Smart Term Plan will provide coverage that stays relevant to your age and health. As explained above, you can avail the Accelerated Critical Illness (ACI) benefit with Max Life Smart Term Plan. If youare diagnosed with any of the specified Critical Illness (as described within the policy document), the benefit is payable.

There are two options available under Accelerated Critical Illness (ACI) cover to choose from:

a) Level ACI Benefit

In this variant, you will receive a fixed and level amount of insurance benefit (or ACI Sum Assured) throughout a specific policy term (also known as the ACI policy term.)

You can choose the ACI Sum Assured in multiples of 5 lakhs as per the boundary conditions mentioned below: 

Minimum ACI Sum Assured

Maximum ACI Sum Assured

Rs. 5 lakhs

50% of the base policy Sum Assured (chosen at the time of policy purchase) or Rs. 50 lakhs, whichever is lower

b) Increasing ACI Benefit

In this variant, the benefit amount or ACI sum assured will increase annually at a simple rate of 5% of the total base policy coverage amount. 

You can choose the ACI Sum Assured in multiples of INR 5 lakhs as per the boundary conditions mentioned below: 

Minimum ACI Sum Assured

Maximum ACI Sum Assured

Rs. 5 lakhs

25% of base policy Sum Assured chosen at the inception of policy or Rs. 25 lakhs, whichever is lower

To summarize, the maximum increase that you can avail under the Accelerated Critical Illness benefit allowed will be:

  • 50 lacs, or
  • 50% of the base policy Sum Assured, or;
  • 200% of the ACI Sum Assured chosen at the time of policy purchase

Furthermore, you must understand that the ACI benefit is accelerated and not an additional benefit. In other words, once you avail the benefit, your policy will continue the protection. However, the term coverage amount under the base policy will get reduced by the amount equal to the ACI Sum Assured paid. 

Also, the maximum payout that you can avail under the ACI benefit is 100% of the ACI Sum Assured. Once you have exhausted the ACI Sum Assured, you cannot make further ACI claims.

At the time of purchase, you can also choose whether you want to pay the premium amount all at once, or you wish to pay the premium for a limited period only. In case you want to continue paying the premium amount throughout the policy tenure, you can do so too! 

Max Life Smart Term Plan enables you to select a premium payment mode as per your budget so that you have enough bandwidth to take care of other expenses as well. You have the flexibility to choose to pay the premiums annually, half-yearly, quarterly, or every month.

Here is a summary of the different policy and premium payment options available under Max Life Smart Term Plan: 

Variant

Policy Tenure

Minimum Premium Payment Tenure

Single Pay

10 to 50 years

Only once

Regular Pay

10 to 50 years

10 to 50 years

Limited Pay (5 Pay)

10 to 50 years

Up to 5 years

Limited Pay (10 Pay)

15 to 50 years

Up to 10 years

Limited Pay (12 Pay)

17 to 50 years

Up to 12 years

Limited Pay (15 Pay)

20 to 50 years

Up to 15 years

Pay till 60

The policy term will be higher than the tenure for premium payment (a maximum of 50 years)

 

16 years

 

For each one us, our needs and aspirations evolve with time. In our 20s, we may only think about earning as much money as possible. As we grow up, we look to start a family and plan for retirement.

In short, we need our life insurance plan to evolve with the changing life stages and goals. Max Life Smart Term Plan offers you the option of choosing the ‘Life Stage Add on Sum Assured’ benefit.

As a policyholder, you will be able to increase the total coverage amount under the plan (also known as Sum Assured) on reaching specific ‘Life Stage’ events such as marriage, becoming a parent or buying a house (will be available with additional premium) 

Like the Premium Back option, this benefit is only available when you purchase the policy; you cannot select the benefit later.

Here is a breakdown of the life stage events that are covered under Max Life Smart Term Plan: 

Life Stage events

Add on Sum Assured permissible

Marriage

(once during policy term, not available if married)

 

· You can add up to 50% of the death benefit Sum Assured selected at the time of policy purchase. 

· The Add on Sum Assured cannot exceed Rs. 50 lakhs

Becoming a Parent

(it is applicable for up to two children only)

· You can add up to 50% of the death benefit Sum Assured selected at the time of policy purchase. 

· The Add on Sum Assured cannot exceed Rs. 25 lakh, for each childbirth.

Taking up a House loan
(Once during the policy term)

· You can add up to 50% of the death benefit Sum Assured selected at the time of policy purchase. 

· The Add on Sum Assured cannot exceed Rs. 50 lakhs

**This option can't be exercised in case a Critical Illness claim has been made

 

If you believe that term insurance plans only offer lump-sum payouts, you need to think again. There are seven death benefit variants available under Max Life Smart Term Plan.

Each of these variants offers you complete freedom in deciding how your loved ones should receive the insurance money and use it.

For example, you have the option to choose whether your family should receive the insurance cover amount all at once or get it in the form of a monthly income.

You also have to option to choose whether you want to increase the monthly payouts at certain intervals to counter the rising inflation or increase the insurance coverage in your life as you achieve important milestones in life.

Here is a breakdown of the various payout options available: 

Variant

Description

Features

Life Cover

 Your family receives the insurance coverage all at once

Your family will get the insurance benefit in the form of a Lump Sum Payment

Income Protector

 Your family receives the coverage amount in the form of monthly incomes

· You can decide a certain amount of monthly income (in multiples of Rs. 5,000) 

· The amount will be paid to your family for a period of 10 years, 15 years or 20 years (as chosen by you at policy inception) will be paid to the beneficary post the death of life insured 

Income + Inflation Protector

In this variant, your family will receive an increasing monthly income

· The monthly income is in multiples of Rs. 5,000. 

· The income payout period can either be 10 years, 15 years or 20 years as chosen by you the  at policy inception and will be paid to the beinficary post the date of death of life insured

· Income will increase every year by 10% (simple interest) of the first monthly income payable

Life Cover + Income

Your family will receive a lump sum amount along with a fixed monthly income

· Your family will receive the lump sum payment immediately after your demise 

· The monthly income component will be equal to 0.4% of the Lump sum cover amount 

· The income will be payable for ten years

 

Life Cover + Increasing Income

In this variant, your family will receive a fixed lump sum benefit amount along with an increasing monthly income

· Your family will receive the lump sum payment immediately after your demise 

· The monthly income component will be equal to 0.4% of the Lump sum cover amount 

· The monthly income will increase every year by 10% (simple interest) of the first monthly income payable. 

· The income will be payable for ten years

Increasing Cover

You can increase the insurance benefit amount payable under the plan

· The insurance coverage amount under the term plan will increase by 5% annually (simple interest) 

· The increment will continue up to the 21st policy year 

· Your family will receive the insurance benefit as a lump sum payment

Please note: Accelerated critical illness benefit and life stage add on benefit options are not available with this death benefit variant

Reducing Cover

 In this variant, the benefit amount payable decreases

· The insurance death benefit payable decreases by 5% p.a. (simple interest)

· The decrease happens every 5th policy year

· Your family will receive the insurance benefit as a lump sum payment

· This variant is available if lump sum amount chosen at inception is greater than or equal to Rs. 1 Cr

·  Maximum accident cover sum assured available under the variant is lower of 25% of lump sum life cover amount chosen at inception or Rs. 50 Lacs

Please note: Accelerated Critical Illness and Life Stage add-on benefit options are not available with this death benefit variant.


The following table summarises the availability of the Accident Cover Option, Accelerated Critical Illness, life-stage add-on sum assured and premium back benefits for the different death variants:

Variant

ACI and Life-Stage add on sum assured Benefits

Accident Cover Option

Premium Back

Life Cover

Yes

Yes

Yes

Income Protector

Yes

Yes

Yes

Income + Inflation Protector

Yes

Yes

Yes

Life Cover + Income

Yes

Yes

Yes

Life Cover + Increasing Income

Yes

Yes

Yes

Increasing Cover

No

Yes

Yes

Reducing Cover

No

Yes

Yes

* Total premium paid inclusive of any underwriting extra premium but exclusive of all applicable taxes, cesses or levies and modal extra

How do the death benefit variants work out for you?

Let us understand the working of each death benefit variant in detail.

How do the death benefit variants work out for you?

Let us understand the working of each death benefit variant in detail.

Under this variant, your nominated family member (or nominee) will receive 100% of the insurance benefit (or Sum Assured) that you chose at the time of purchasing the policy.

The amount will be paid out as a lump sum, immediately after your demise.

Example– Anant is a 30-year old marketing analyst. He purchases the Max Life Smart Term Plan Life Cover Variant. The policy details are as follows: 

Death Benefit variant

Life Cover

Sum Assured

Rs. 1 crore

Policy Term

40 years

Premium Payment Term

40 years

Annualised Premium

(Exclusive of GST)

Rs.9,500

Thus, after paying 7 premiums, he passes away. Subsequently, his nominee receives a lump sum benefit of Rs. 1 crore and the policy terminates.

Smart Term Plan Infogrpahic Life Cover

In this variant, your nominee will receive a fixed level monthly income for up to 10 years, 15 years or 20 years (you will have to choose the payout period at the time of purchasing the policy) after your demise.

Example: Keshav is a 35-years old project manager. He purchases Max Life Smart Term Plan with Income Protector variant from Max Life. The policy details are below:

Death Benefit variant

Income Protector

Sum Assured

NA

Payout period was chosen

Ten years

Policy Term

40 years

Premium Payment Term

40 years

Annualised Premium

(Exclusive of GST)

Rs.13,685

After paying the premium for 5 years, he passes away. After his death, a monthly income of Rs. 1 lakh is paid out to his nominee for 120 months, starting from the next monthly policy anniversary.

Smart Term Plan Infogrpahic Income Protector

Under this variant, your nominee will receive an increasing amount of monthly income for up to ten years, 15 years or 20 years (you will have to choose the payout tenure at the time of purchasing the policy) as a death benefit.

Also, the monthly income component will increase every year by 10% (simple interest) of the first monthly income payable.

Example: Mr. Kapadia is a 40-year old accountant working with a textile firm. He buys Max Life Smart Term Plan Income +Inflation Protector variant. His policy details are as follows:

Death Benefit variant

Income + Inflation Protector

Monthly Income chosen

Rs. 1,00,000

Yearly Increase

Rs. 10,000

(10% of first-month income)

Payout period was chosen

10 years

Policy Term

40 years

Premium Payment Term

40 years

Annualised Premium

(Exclusive of GST)

Rs.24,282

Mr. Kapadia, unfortunately, passed away after paying ten premium payments. Post his demise, his nominee received a monthly income of Rs. 1 lakh, starting from the next monthly policy anniversary of Mr. Kapadia. After that, the monthly income increases by Rs. 10,000 every year and is paid out to his nominee for the payout period of 10 years.

Herein, your nominee will receive 100% of the Sum Assured as a lump sum, along with a fixed monthly income.

The monthly income component will be 0.4% of the Sum Assured and will be paid to your nominee for up to ten years after your demise.

Example: Sudesh is a 30-year old chef. He buys Max Life Smart Term Plan Life Cover + Income variant. The policy details are below:

Death Benefit variant

Life Cover + Income

Sum Assured chosen

Rs. 1 crore

Monthly Income payable

Rs. 40,000

Payout period was chosen

10 years

Policy Term

40 years

Premium Payment Term

40 years

Annualised Premium

(Exclusive of GST)

Rs.13,062

After paying premiums for ten years, Sudesh passes away. Post his demise; his nominee received a lump sum benefit of Rs. 1 crore. Moreover, the nominee also received a monthly income of Rs. 40,000 for the next 120 months.



As per guidelines of the variant, your nominee will receive 100% of the Sum Assured immediately after your demise.

Also, they will also receive an increasing monthly income, equal to 0.4% of Sum Assured that will increase every year by 10% p.a. (simple interest) of the first monthly income payable. Furthermore, the income payout would continue for the next ten years

Example: Sanchit is a 40-year businessman. He purchases Max Life Smart Term Plan Life Cover + Increasing Income variant. His policy details are as follows:

Death Benefit variant

Life Cover + Increasing Income

Sum Assured chosen

Rs. 1 crore

Monthly Income payable

Rs. 40,000

Yearly Increase

Rs. 4,000

(10% of first-month income)

Payout period was chosen

10 years

Policy Term

50 years

Premium Payment Term

50 years

Annualised Premium

(Exclusive of GST)

Rs.28,113

After paying four premiums, Sanchit passes away. His nominee will receive a lump sum payout of Rs. 1 crore. Along with it, the nominee will also receive a monthly income of Rs. Forty thousand for the first year, after which the income will increase by Rs. 4,000 every year and paid out to the nominee for the next 120 months.

Smart Term Plan Infogrpahic Life Cover plus Increasing Income

Under this variant, the Sum Assured under the base policy will increase by 5% p.a. (simple interest) on each policy anniversary for up to the 21st policy anniversary. In case of your demise within this period, your nominee will immediately receive the Sum Assured amount as a lump sum (which will be effective as on the last policy anniversary).

Example: Rajat is a 30-year old physician. He purchases the Max Life Smart Term Plan Increasing Cover Variant. The details of the policy purchased by him are as follows:

Death Benefit variant

Increasing Cover

Sum Assured chosen

Rs. 1 crore

Yearly Increase in Sum Assured till completion of the 21st policy anniversary

Rs. 5 lakhs

Policy Term

40 years

Premium Payment Term

40 years

Annualised Premium

(Exclusive of GST)

Rs.15,400

After paying a premium for 5 years, Rajat passes away due to illness. The Sum Assured effective as on the last policy anniversary will be Rs. 1.2 crores (as shown in below table) is paid out as lump sum to his nominee, after which the policy terminates.

Number of premiums paid

Sum Assured effective during the last policy year

Increase in Sum Assured

Effective Sum Assured

1

Rs. 1 crore

(base sum assured chosen by Rajat)

0

Rs. 1 crore

2

Rs. 1 crore

Rs. 5 lakhs

Rs. 1.05 crore

3

Rs. 1.05 crore

Rs. 5 lakhs

Rs. 1.1 crore

4

Rs. 1.1 crore

Rs. 5 lakhs

Rs. 1.15 crore

5

Rs. 1.15 crore

Rs. 5 lakhs

Rs. 1.2 crore

 

Smart Term Plan Infogrpahic Increasing Cover

Under the variant, the Sum Assured decreases by 5% p.a. (simple interest) on completion of every 5th policy year. In case of your demise within this period, your nominee will immediately receive the Sum Assured amount as a lump sum (which will be effective as on the last policy anniversary).

Example: Mr. Sharma is a 45-year old real estate developer. He buys Max Life Smart Term Plan Reducing Cover Variant. The policy details are as follows:

Death Benefit variant

Reducing Cover

Sum Assured

Rs. 10 crore

Reduction in Sum Assured on completion of every five policy years

Rs. 50 lakhs

Policy Term

40 years

Premium Payment Term

40 years

Annualised Premium

(Exclusive of GST)

Rs.204,000

The effective Sum Assured for a given policy year for Mr. Sharma is shown below:

Policy Year

Sum Assured effective during the last five policy years

Reduction in Sum Assured

Effective Sum Assured

1 to 5

Rs. 10 crore

(base sum assured chosen by Mr. Sharma)

0

INR 10 crore

6 to 10

Rs. 10 crore

Rs. 50 lakhs

Rs. 9.5 crore

11 to 15

Rs. 9.5 crore

Rs. 50 lakhs

Rs. 9 crore

16 to 20

Rs. 9 crore

Rs. 50 lakhs

Rs. 8.5 crore

21 to 25

Rs. 8.5 crore

Rs. 50 lakhs

Rs. 8 crore

26 to 30

Rs. 8 crore

Rs. 50 lakhs

Rs. 7.5 crore

31 to 35

Rs. 7.5 crore

Rs. 50 lakhs

Rs. 7 crore

36 to 40

Rs. 7 crore

Rs. 50 lakhs

Rs. 6.5 crore

After paying 27 premiums, Mr. Sharma passes away due to illness. After that, the Sum Assured effective in the 27th policy year, which comes out to Rs. 7.5 crores (as shown in the table above) is paid out as lump sum to his nominee.          

Notes:

  1. Kindly note that the above case studies are only examples and do not in any way create any rights and/or obligations.
  2. You may be entitled to certain applicable tax benefits on your premiums and policy benefits. Please note that all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. It is advisable to seek an independent tax consultation.
  3. Underwriting Extra Premium payable for substandard lives as per company’s Board approved underwriting policy.
  4. Premium shown in all of the above illustrations is exclusive of GST. 

Smart Term Plan Infogrpahic Reducing Cover

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ARN NO: PCP/STP3

** A 24 year old Healthy, non-smoking male can secure a cover of Rs. ₹ 1 crore for his dependents for next 25 years, @ ₹493 per month, exclusive of taxes

Term Insurance FAQs

Term Insurance FAQs

1. How do term insurance plans work?

Term Insurance Plans is the simplest Life Insurance product and a must have for everyone. This is a pure protection plan where payout is made only in case of death, there are no maturity benefits on survival. In case of death of life insured, the nominee receives the death benefit payout.

Term Plans offers 3 unique advantages –

  • High life insurance cover at affordable premiums – Term insurance plans are the cheapest, for instance, you can get a Rs. 1 Cr life insurance cover with Max Life's Online Term Plan Plus at just Rs. 563/month*
  • Tax Saving Benefit to the Policyholder – The premium paid is eligible for tax exemption under section 80C.
  • Life Insurance claims proceeds are tax free in hands of the nominee - Death benefits are tax free under section 10(10D) of Income Tax Act, 1961.

2. What is the right age to buy a term insurance plan?

A Term plan is a pure protection plan which helps replace the income earned by the breadwinner in case of his death. It is a fact that the younger you are, cheaper the premiums. For a Rs 1 Cr term insurance cover, the monthly premium will be ~Rs 600 for a 25 year, non smoker male  vs ~Rs 1,200 for the same person at age 35. Thus, it makes sense to buy this plan as early in life as possible.

If you are in your 30's or 40's, your liabilities and dependents would have increased (parents & children). You must buy a cover now to make sure all the financial needs are met, even when you are not around.

Even if you have crossed 50 and nearing retirement, you should invest in a term plan. In case of your demise, the pensions will stop and then your spouse and dependent children will be financially vulnerable.

Thus, if protecting your family’s financial future in your absence is your prime concern, you should buy a term plan immediately, regardless of your current age. 

3. How do I decide which plan variant is best suitable for me?

Max Life gives you the choice to customize the term plan to suit your needs and choose how the insurance cover amount is paid to the family in the event of your death: 

1. Basic Life Cover - Your family gets the money as a one-time lumpsum payout that can help cover immediate liabilities

2. Basic Life Cover + Monthly Income - In addition to the lump sum payout, your family will get a regular, tax-free monthly income for the next ten years. This plan helps the family manage day-to-day household expenses like school fees, groceries etc

3. Basic Life Cover + Increasing Monthly Income - In this option, the monthly income increases by 10% each year which will keep it 'inflation proof'.  

If you feel confident that your family is financially savvy and will be able to manage future cash flows, you can opt for basic life cover. Otherwise, it is recommended to go for the income option. If you take into account the 10 year income in addition to the life cover, the effective cost per lac of payout actually comes to be cheaper than the basic life cover

4. Are riders important? Which one should I opt for?

Riders are an afforable and effective option to improve the comprehensiveness of your cover. They can be purchased only at the time of buying the term policy. Therefore it is advisable to carefully choose the riders that meet your requirements. 

Max Life offers the following rider options you can choose : 

1. Critical illness benefit option - Upon diagnosis of any of the 40 specified critical illnesses, the benefit amount is paid as a one-time lump sum. Cost Rs 308 p.m.* for coverage of Rs 10 Lacs

2. Max Life Waiver of Premium Plus Rider (UIN:104B029V02) - All future premiums waived in case of critical illness/disability.  Cost Rs 23 p.m.*

3. Max Life Comprehensive Accident Benefit Rider (UIN -104B025V02) - Get additional protection for accident leading to dismemberment or death. Cost Rs 67 p.m.* for additional coverage of Rs 10 Lacs

* All premiums have been quoted for a healthy male, age 28 years, non-Smoker for a policy term of 30 years, premium payment term of 30 years and are exclusive of GST

5. Can I have two Term Plans?

Yes, you can have multiple term life insurance policies. You can take all policies from either one insurer or multiple insurers. With age, your income and liabilities increase, hence buying an extra term life cover to sustain this lifestyle makes sense.

The maximum coverage is calculated basis your income, age, assets and financial liabilities, regardless of whether you buy single or multiple policies.

While buying multiple policies, you keep in mind these 2 important points

  • Disclose all the existing policies that you currently own to the new insurer from whom you are buying the new policy. This will help them assess your eligibility.
  • Read the policy documents very carefully to understand all the features, inclusions and exclusions.

6. What is Term Insurance Plan?

A term insurance plan is the simplest forms of financial protection that can help your family meet its financial needs in your absence. Get a term insurance cover from Max Life Term plans.

7. How to buy Online Term Plan?

Yes, you can have multiple term life insurance policies. You can take all policies from either one insurer or multiple insurers. With age, your income and liabilities increase, hence buying an extra term life cover to sustain this lifestyle makes sense.

The maximum coverage is calculated basis your income, age, assets and financial liabilities, regardless of whether you buy single or multiple policies.

While buying multiple policies, you keep in mind these 2 important points

  • Disclose all the existing policies that you currently own to the new insurer from whom you are buying the new policy. This will help them assess your eligibility.
  • Read the policy documents very carefully to understand all the features, inclusions and exclusions.

8. Does term insurance cover health coverage?

It is important first to understand what the difference between Health insurance and Term Insurance is. Technically speaking, while Health Insurance covers the expenses incurred towards treatment, Term Insurance can help your family reduce their financial burden in case of your untimely demise, disease or disability.

While Online Term Plan Plus, a term insurance plan from Max Life doesn’t provide health coverage, however, the critical illness rider of the plan (an optional benefit available on payment of additional premium) provides a lumpsum amount to the family incase of diagnosis of any of the 40 critical illnesses covered. If you wish to avail insurance coverage against various ailments and related hospitalisation expenses, it is advisable to purchase either a health insurance plan or a critical insurance plan (to meet the costs related to the treatment of severe health conditions).

Here are some critical differences between the two insurance types:

 

Critical Illness Rider

Health Insurance

Reason to Buy

Provides a lump sum, following the diagnosis of a critical illness.

Provide either cashless treatment or reimbursement of hospital expenses.

What Do They Cover?

Common critical health conditions, as mentioned in the policy document.

Coversactual medical and surgical expenses incurred by the policyholder.

Who is it for?

Peopleat a higher risk of developing critical illness.

For everyone.

Insurance Term

Usually long-term,i.e.20 years or longer

Usually short-term and needs renewal after every 1 or 2 years

9. How Term Plan Gives Monthly Income?

Let’s first understand how the term plan works. In most term insurance plans, the nominee would receive a lump sum payout, incase of an unfortunate death of the policyholder. This is equal to the Sum Assured/insurance cover you would have opted while buying term insurance.To enhance this coverage and to provide for the family’s living expenses, Max Life Online Term Plan Plus  offers you an option to receive monthly payout. This payout helps family meet thier  expenses including the utility bills, groceries, school fees etc. This amount is paid out over a payout period of 10-15 years.

Advantages of Monthly Payouts

  • A regular source of income
  • Customised payouts
  • Keeps inflation in check

Things to Keep in Mind for Choosing A Monthly Payout Plan

Situations in which you may opt for a monthly payout option under Max Life Online Term Plan Plus include:

  • Investors who are risk-averse may find it hard to manage the large lump sum money. Therefore, it is useful that you opt for monthly payouts, so that your family receives secure, sustained income every month to meet their day-to-day needs.
  • Inflation is an important factor that can have a negative impact on your life cover benefit, especially when we talk about a time in distant Rising inflation may de-value the worth of your current cover amount. Therefore, having the option to receive increasing income every month option would help your loved ones manage your daily expenses, without much hassle.

11. Why best term plan for parents

As a parent, buying term insurance plans can help create a safety net for your family and help ensure that they have a financially secure future. The plan would also help them sustain the lifestyle that you’ve provided for them, even when you are no longer there.

You can select from the following payout options under the term plan:

  • Lump sum payout as life cover;
  • lump sum payout as life cover along with a fixed monthly income for a specific period;
  • Lump sum payout as life cover, along with an increasing monthly incomefor a specific period;

Choosing the Life Cover

You must opt for a life cover at least 10 to 15 times your annual income to meet both current and future liabilities and financial goals of your family. You need to assess your present liabilities and future goals, along with the rate of inflation while calculating your life cover.

Riders

Riders are optional insurance add-ons that you can purchase with your term insurance on payment of additional premium. The Accidental Death Cover rider offers you an additional cover, in case of death or disability because of an accident. The Waiver of Premium Rider offers to waive off the premium, in case you are rendered unable to continue working and earn, such as in case of disability or critical illness.

Policy Tenure

Ideally, you should purchasea policy for the maximum available tenure possible, preferably throughout your working life. Choosing a long-term tenure is useful if you are purchasing the policyas a means to square off a home loan or similar liability in your absence.

12. What payout options are available in this term plan

Online Term Plan Plus from Max Life Insurance offers three payout options for its three product variants during the payout period.

“Payout Period” is defined as a 10-year period, during which your nominee will receive monthly income on every monthiversary, starting from the Policy Anniversary, after the date of death of the Insured.

Option 1– Sum Assured

Under this option, Max Life shall pay 100percentof the amount agreed as the Sum Assured.

Option 2 – Sum Assured Plus Level Monthly Income

Under this option, your nominee will receive 100 percent of the Sum Assured amount, along with a level monthly income, equal to 0.4 percent of the Sum Assured. The number of monthly incomes is limited to a total of 120 regular monthly incomes, distributed throughout the Payout Period.

Option 3 – Sum Assured Plus Increasing Monthly Income

Your nominee would receive 100 percent of the Sum Assured amount and a monthly income throughout the Payout Period. The incomeshall be payable as follows:

Throughout the first year of the Payout Period, Max Life would pay a level monthly income of 0.4 percentof the Sum Assured. Thereafter, the monthly incomewould increase by 10percent each year for the rest of the payout period

Death Benefit payable under the Term Plan will be reduced to the extent of the amount already paid out under the Accelerated Critical Illness Benefit. The level monthly income under Option 2 or increasing monthly income under Option 3 would; however, remain unchanged.

What Our Clients Say

What Our Clients Say

Most Popular Articles !

Most Popular Articles !

Top term insurance myths - Know the truth !

Having a conversation about death is very uncomfortable and unthinkable, one of the main reasons why people procrastinate or avoid shopping for life insurance products. Other myths that people have due to low awareness of this category are - ‘Life insurance is not affordable’, ‘I am Single, I don’t need life insurance’, ‘It’s for older people’, ‘It’s only for earning members of the family’ and many more. This article tackles some of the most common but major misconceptions and myths about Life Insurance!

Is term insurance is an investment or an expense?

Term insurance plans are not an expense but a safety net that no other financial product can give and a wise financial decision. A term plan pays the promised money in case of the policyholder’s demise, any time during the entire policy term. This means that even if he dies after paying a single premium, the entire sum assured will be given to the nominee. Additionally, you can also save tax. This article helps you understand the benefits of a owing a term plan.

How to Evaluate a Term Insurance Quote

Term plans is the simplest form of protection plans which is easy to understand and is highly cost-effective. You start your purchase journey by calculating a premium quote. For the same person, you may get different quote amount from different companies. This is because there are many factors involved like change in base premiums, rider costs, tax component, lapse charges etc. This article helps you understand the factors so that you can make a smart buy.

Maximize Term Insurance Benefits with Riders

Riders are add-on benefits that are optional with a life insurance product. This helps you customize the plan basis your personal needs. Few critical and powerful riders that you must definitely consider during the purchase journey is Comprehensive Accident Benefit, Waiver of premium and Critical Illness. This article helps you understand the meaning and benefits of different types of riders so that you buy the best term insurance plan customizable for yourself.

Difference between Term Plan and Whole Life Plan

Term life insurance is the simplest form of life insurance, that offer a lump sum payment as Death Benefit and can be availed for a fixed term. Whole life insurance offers both, a death benefit as well as savings benefits. Both these plans have distinct features and benefits and one should choose the plan that best suits your requirements. This article helps you understand the proposition each plan offers and helps you take a right decision for yourself.

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