Max Life Smart Term Plan

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.

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. 

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

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

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.

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.

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.

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:

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.

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.

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.