Max Life Smart Term Plan

Smart Term Plan from 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. Additionally, Max Life Max Life Smart Term Plan offers:

• Get 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

Who Should You Buy Max Life Smart Term Plan?

Max Life 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.

If you are single – You have your parents who may depend on you for financial support, especially after their retirement. With term insurance; therefore, you can help take care of their lifestyle expenses and create an additional source of income for them in your absence

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

If you are married and have kids – Being a parent, you have the responsibility to take care of your kids’ education and marriage expenses. Also, you are responsible for your partner’s financial well-being. A term plan will help support your family in maintaining their current lifestyle, even in your absence.

What are the Unique Features of Max Life Smart Term Plan?

Max Life’s Smart Term Plan empowers you to secure your loved ones financially, against the possibility of your untimely demise. While most term plans do not offer any maturity benefits, Max Life Smart Term Plan offers to pay you back the entire premium amount received under the base plan*.

Even then, the cost of premium payable under Max Life Smart Term plans is relatively lower than other forms of life insurance. If you are still wondering, here is why Smart Term Plan is better for You:

• Seven different variants for the death benefit payout
• Single Pay, Regular Pay, Pay till 60 and Limited Pay options are available for premium payment
• Freelook period of 15 days
• Life cover assurance up to 85 years
• Built-in discounts available for higher Sum Assured
• 5% loyalty for the existing customers
• Female buyers will receive a 3-year age setback over the rates for male buyers (for example, a 28-year old female will receive the same rate of premium and policy benefits as a 25-year old male) This is applicable on all premium payment term variants except Pay till 60 variant
• Lower premium rates for non-smokers
• No restrictions on travel or future occupation

What Do You Get From 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.

Longer coverage duration

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

Immediate Financial Assistance on Diagnosis of Critical Illnesses (Accelerated Payouts)

The primary purpose of life insurance is to help you tackle emergencies. Ifit 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: 

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: 

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.

Choice of multiple Premium Payment Options

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: 

Life Stage Benefits

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: 

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

Comprehensive Death Benefit Variants

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: 

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:

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

What Add-ons Can I Avail with Max Life Smart Term Plan?

Max Life Smart Term Plan helps you enhance your policy cover upon meeting important milestones in life, such as being married or becoming a parent. With the Life Stage Benefit under the plan, you can easily beat inflation as your policy continues to protect you and your loved ones. 

At the same time, you can also make sure that you have comprehensive financial backup to tackle any emergency such as death, physical disability, and critical illness. This is possible through Max Life Waiver of Premium Plus Rider and Max Life Accident Cover options. 

To top it all, you have the option of the Premium Back variant, which enables you to pay back the entire amount of premium payments for base policy (exclusive of GST- mention the condition).

1. Max Life Waiver of Premium Plus Rider (UIN 104B029V02) Non-Linked Non-Participating

You may have heard about how you can risk forfeiting your life insurance policy by not paying the premiums on time. While you may not skip paying the premiums willingly, there are certain scenarios where you might be unable to continue with the payments. For example, you may experience a loss of income due to a: 

• Critical Illness; or
• Dismemberment; or
• Death

In any such scenario, the Waiver of Premium Plus rider will help ensure that the insurance plan continues to provide the intended protection. On the other hand, we will take care of all the future premium payments on your behalf.

2. Accident Cover Option

In India, accidents are quite common. You may have seen a few instances where people get seriously injured in an accident and eventually succumb to their injuries. In any such scenario, it is the family of the individual who suffers the most. Not only do they have to deal with the sudden loss of their loved one, but they also have no one to look up for emotional and financial support.

Therefore, you need to make sure that your loved ones remain protected from such an instance. While you have the insurance benefit to help them survive, you can also provide for an additional amount of money, over and above the term plan payout with the Accident Cover Option.

With this option ; hence, you can make sure that your family remains financially secure in the best way possible. Now, the Accident Cover Option is available for every death benefit variant chosen.

How do the death benefit variants work out for you?

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

Variant #1 – Life Cover

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: 

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

Variant #2 – Income Protector

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:

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.

(The figure would depict the premium payments made by Keshav along the (-xy) axis while his demise will be denoted by the (y) axis. The fixed monthly income of Rs. 1 lakh will be depicted along the (xy) axis.)

Variant #3 – Income + Inflation 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:

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.

Variant #4 – Life Cover + Income

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:

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.

Variant #5– Life Cover + Increasing Income

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:

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.

Variant #6 – Increasing Cover

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 21^st 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:

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.

Variant #7 – Reducing Cover

Under the variant, the Sum Assured decreases by 5% p.a. (simple interest) on completion of every 5^th 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:

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

After paying 27 premiums, Mr. Sharma passes away due to illness. After that, the Sum Assured effective in the 27^th 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. 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. 

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