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    Term Plan with Return of Premium

    Term insurance is a popular choice amongst insurance buyers. It is a simple plan that offers financial coverage for a certain period. Although a basic term insurance plan can be highly beneficial for most individuals, a term insurance with a return of premium plan can offer benefits beyond that. A term plan with a return of premium is quite similar to the usual term plan. However, the one feature that sets it apart from the regular term insurance plans is the survival benefit. Policyholders can avail survival benefits and get back the premiums (excluding GST) paid to the insurers. Some other add-on benefits associated with this plan include disability benefit, accidental death benefit, and protection against critical illness....Read More

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    Conditions for special exit value: options to receive all premiums paid back, at a specified point in the term of the policy(free of cost). Available when Return of Premium Variant is not chosen.

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    Rohit Ghosh

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    Rohit Ghosh has authored and reviewed several informative articles on Life and Term Insurance during his experience working with top Life Insurance brands. During his experience in the Life Insurance sector he has been responsible for formulation of several integrated marketing communication strategies. In his current role with Max Life Insurance he is responsible for website content and experience enhancement

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    Bhaskar Sinha

    Insurance Expert

    8+ years of experience in Life Insurance with expertise in Developing Life and Health Products, Digital Sales, Conducting effective trainings and Key Account Management.

    What is Term Plan with Return of Premium?

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    Essentially, a term plan with return of premium is similar to a standard term plan. It works as a life cover and provides a death benefit to the beneficiaries of the policy.

    The key element that sets it apart is the maturity benefit applicable on a term plan with return of premium.

    Policyholders can benefit from a term plan with return of premium by paying an additional premium.

    You can choose the required sum assured and policy period and pay the premiums, accordingly. When the policy matures, the insurance provider will return the premiums paid to the policyholder.

    Usually, there are two kinds of policy buyers:

    • One who is looking for medium of savings along with life coverage
    • One who is only in need of life cover to provide financial support to their family in their absence.

    Depending on your financial requirements, you can choose a suitable plan for your family.

    How Does Term Insurance with Return of Premium Work?

    It is in your best interest to map the objective of an investment carefully before buying a plan.

    Understanding how a term plan with return of premium works will give you a clearer vision for your financial plans.

    Let’s take the case of Mr. Patel, a 30-year-old man looking to secure coverage for himself. He is a healthy man, without any smoking habits or history of medical problems. He opts for a term plan with return of premium and selects a sum assured of Rs. 50 lakhs.

    The annual premium payable for his plan is Rs. 12,718 for a tenure of 40 years, i.e. till the maturity of the policy. If Mr. Patel passes away within the policy tenure, the person assigned as the nominee will receive the sum assured of Rs. 50 lakhs.

    But, if Mr. Patel survives the policy term, he will be eligible for a maturity benefit under the term plan with return of premium. He will receive Rs. 5,08,720 (12718 x 40) upon maturity of the policy.

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    Who Can Buy Term Insurance with Return of Premium (TROP)?

    When it comes to important financial commitments such as buying term insurance with return of premium (TROP) plan, each person may have different objectives. This is significantly dependent on a number of personal factors such as your age, income source, lifestyle habits and medical conditions. Analyzing your financial profile based on these key parameters can help you find the right policy.

    So, if you plan to purchase a term plan with return of premium, you have to examine the benefits offered against such factors.

    Largely, TROP can be a preferable choice for people who fall under the following categories:

    • Unmarried

      As an unmarried individual, you may have the financial responsibilities of your parents, especially if they are retired. If you have a term plan with return of premium, the maturity benefit ensures they receive a large sum of money either way.

      In the unfortunate case of your demise, their expenses will be taken care of with the death benefit. You will have the peace of mind that they will be financially independent even when you are not around. In the case of surviving the policy, you can have the satisfaction of receiving back the premiums paid throughout the TROP tenure.

    • Married with No Children

      If you are a married person, you may also want to consider a term plan with return of premium. In case your spouse is solely dependent on your income source, TROP may work for you. You can create a financial support system for them to secure their future against any eventualities. The maturity benefit offered at the end of the policy term will be a bonus.

    • Married with Children

      A parent has a broad set of financial responsibilities to undertake for the well-being of their children. Saving up for their marriage, higher education and other life goals is a crucial aspect of your investment plans. In case you are the only earning member of the family, your spouse’s and children’s well-being is also to be considered.

      It can be heavy on your pocket to manage the current expenses and put a large sum aside for the future. Therefore, the assurance of a maturity benefit with a term plan with return of premium can be helpful.

    Benefits of Term Plan with Return of Premium

    benefits-of-rop.jpg

    Let’s take a closer look at the benefits of a term plan with return of premium:

    ROP Benefit

    Many policy buyers are discouraged from buying a term plan because there is no maturity benefit. Introducing Max LifeSmart Secure Plus Plan ( A Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan| UIN104N118V05). a policy that offers option of a term plan with return of premium available as an alternative. The ROP (term insurance with return of premium benefit) allows policyholders to stay reassured.

    Death Benefit

    When a person buys a standard insurance plan or term plan with return of premium, the primary purpose is life cover. They wish to create a financial shield over their family against unpredictable circumstances.

    The death benefit offered with TROP helps the policyholder’s family to manage their expenses during a crisis.

    Tax Benefits

    Purchasing a term plan with return of premium means makes a person eligible for tax benefits. You can avail of the benefits as per the prevailing tax laws. Under Section 80C and 10 (10D), the premium paid towards the term plan and the benefit amount are tax-free.

    You can get a tax deduction of up to Rs. 1.5 lakhs on the premiums paid for a term plan with return of premium.

    Why Should You Choose A Term Plan with Return Of Premium Option?

    Given the increasing cost of living and responsibilities in life, each one of us is looking for ways to manage money efficiently. The financial instruments that offer an opportunity to build wealth and get life security can be an excellent choice to achieve that.

    Term plan with return of premium option also provides additional benefits such as waiver of premium, accidental death benefit, disability benefit, and protection against critical illnesses. Investing in TROP can bring a sense of overall protection for policyholders.

    A policy buyer may find it difficult to choose between the several insurance products available. Choosing on the basis of one deciding factor, whether it is cost or policy period may not be favourable. Hence, make sure to consider the comprehensive benefits of a term plan with return of premium to be satisfied with the investment.

    Term Plan with Return of Premium Features

    trop-features-sec-img.jpg

    1. Affordability


    Term plan with return of premium may be slightly more expensive than a regular term plan. However, the premiums paid for TROP are returned as maturity benefit and are exempted from taxation.

    2. Premium Payment Options


    As the policyholder, you can choose the suitable sum assured under term plan with return of premium. Furthermore, you can also select the best-suited premium payment option from among these:

    One-Time Payment

    The entire premium for TROP is payable as a lump sum amount in one go, instead of distributing it over extended duration.

    Regular Pay

    Under this premium payment option for TROP, you pay premiums at regular intervals throughout the policy tenure. You can choose to pay them on an annual, half-yearly, quarterly or monthly basis.

    Pay Till 60

    This option under term plan with return of premium allows you to pay off the premiums till the age of 60 years, while the plan extends till 85 years of age.

    Limited Pay

    You can pay the premiums for a fixed number of instalments under the limited pay option for TROP. Please read sales brochure before proceeding for purchase.

    3. Surrender Value

    After purchasing the term plan with return of premium, if you discontinue premium payments or surrender the plan, you will receive a surrender value. The surrender value of TROP is subject to the following conditions, depending on the premium payment option:

    • For TROP with Single Premium variant, the surrender value is applicable after payment of a single premium.
    • For TROP with Limited Pay variant and Regular Pay variant, it is applicable on payment of premiums for two full years.

    The surrender value is the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV)

    Why should you choose Max Life Term Plan?

    Solvency Ratio
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    (Source: Public Disclosure)Company of the year*^*

    99.34%*
    Claims paid

    Over 2 Lacs+ Users

    ₹1,174,515 Cr.
    Sum Assured

    In force (individual) (Source : Max Life Public disclosure, FY 21-22)

    Return of Premium Option with Limited Pay

    Single Pay

    You pay the entire premium amount payable as a lump sum in one go

    Regular Pay

    You pay the premium amount throughout the term plan tenure either annually, half-yearly, quarterly or monthly

    Pay Till 60

    You pay the premium till the age of 60 years while the plan coverage extends up to 85 years of age

    Limited Pay

    You pay the premium for a fixed number of instalments, i.e., 5 Pay, 10 Pay, 12 Pay or 15 Pay

    Term Insurance Plans

    Smart Secure Plus PlanTerm Plan With Return Of PremiumCritical IllnessSaral Jeevan Bima

    Key Takeaways

    • Overview
    • Nowadays, most people look for insurance plans that can provide a higher life cover at the lowest possible cost of the premium. Term plans fulfil this criterion. However, given the fact that there are no maturity benefits on the policy, many are discouraged from purchasing a term insurance plan.
    • This made life insurance companies introduce term insurance plans with return of premium (or ROP) additional benefits in them. In other words, a ROP (term insurance with return of premium optional benefit) is a variant of term insurance plans that provides both a death benefit (in case of an eventuality) and a maturity benefit by returning the premium invested
    • Tax Benefits
    • Term insurance plan with ROP offers tax benefits as per the prevailing tax laws. Thus, the premium paid towards the policy and the benefit amount drawn is tax-free under Section 80C and 10(10D) respectively of the Income Tax Act, 1961.
    • Therefore, you can avail a tax deduction up to Rs. 1.5 lakh on the premium invested in the term plan with return of premium. Overall, if you are conservative policyholder, you can use the premium paid towards the term plan to reduce your tax liability considerably.
    • Cost of Plan
    • Among all the available life insurance options, term insurance plans provide the higher life cover at the lowest possible cost of the premium. You pay a premium for an amount you choose as the Sum Assured. You can either pay the premium in one go (Single Pay), throughout the policy tenure (Regular Pay option) or for a fixed duration (Limited Pay option). The same premium payment options are available under the term plan with ROP feature as well. However, you may have to pay a slightly higher premium under term plan with ROP option than a normal term insurance plan.
    • Therefore, you can avail a tax deduction up to Rs. 1.5 lakh on the premium invested in the term plan with return of premium. Overall, if you are conservative policyholder, you can use the premium paid towards the term plan to reduce your tax liability considerably.
    • On the other hand, for the same person the term plan with ROP benefit for the same sum assured, policy term and premium payment term will cost Rs. 21,261 (excluding GST).
    • However, unlike a normal or basic term plan, the ROP variant of term insurance provides the entire premium paid by the policyholder at the time of maturity. Also, the premium paid towards the plan coverage is exempt from taxation under Section 80C under Income tax act of 1961.

    • ROP Benefit
    • The ROP variant of term insurance is available under Max Life Smart Secure Plus Plan (A Non-Linked Non Participating Individual Pure Risk Premium Life Insurance Plan (UIN - 104N118V02))

    • How can you get a term plan with return of premium option??
    • Finding the right term insurance plan with ROP benefit is an easy task if you keep the following factors in mind:
        1. The cover amount must be enough to help secure your family’s financial future in case something happens to yo
        1. The rate of premium should be affordable
        1. The insurer’s claim settlement ratio (CSR) must be high (Max Life Insurance has a claims settlement ratio of 99.35%^ (Source :^As per IRDAI Annual Report 2020-21^)
        1. Choose between the mode of premium payment as per your comfort (you can either go for a one-time payment or opt for annual, half-yearly, quarterly or monthly payments)
    • Buying term insurance with ROP benefit from Max Life insurance company is quick and hassle-free. You can opt for the term plan with ROP variant while purchasing the Term Plan. Here are a few hallmarks of our life insurance plans:
        1. Multiple channels for a seamless buying experience
        1. No bulky paperwork while buying or paying a premium for policies
        1. Dedicated claim settlement officer to make the claim process effortless
        1. Multiple premium payment channels, including net banking, digital wallet, credit cards, and debit cards
    • ROP with MWPA
    • According to the Section 6 of the Married Womens Property Act (or MWPA), 1874, if a married person purchases any insurance policy, on his own life and endorses it under MWPA (in favour of his spouse and children), no other person (insured’s parents, friends or relatives) will have any right to the insurance plan benefits.
    • The insured himself will also not have any claim to the survival benefits of the policy if he survives the plan term. Overall, if you choose to purchase a term plan with TROP benefit and endorse it under MWPA, making your wife or children the beneficiaries, you will entitle them to both the sum assured (in case of your death) and the survival benefits/refund of premiums (in case you survive the policy term).
    • ROP Option And Surrender Value

      When you purchase a term plan with return of premium option and decide to discontinue paying the premium under the plan or surrenders the policy, you will receive a Surrender Value of the policy.

      The surrender value of the TROP plan is subject to the below-mentioned criteria:

      a. Single Premium variant: After payment of single premium.

      b. Limited Pay variant and Regular Pay variant: On payment of two full years’ premium

      The surrender value is the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV). The Special Surrender Value is equal to the Guaranteed Surrender Value under this variant.

      Guaranteed Surrender Value is defined as:

      GSV factor x (Total premiums paid plus underwriting extra premiums, if any, for base policy)

      ‘Total premiums paid plus underwriting extra premiums, if any, for base policy’ refers to the total of all annualised premium paid plus underwriting extra premium, if any, under the policy including premiums for Life Stage Add on Sum Assured (if any).

      The GSV Factors are provided below:

      % of Total Annualised Premiums plus underwriting extra premiums, if any, paid

      Policy Year

      Single Pay variant

      Limited and Regular Pay variant

      1

      75%

      NIL

      2

      75%

      30%

      3

      75%

      35%

      4

      90%

      50%

      5

      90%

      52%

      6

      90%

      54%

      7

      90%

      56%

      8 +

      90%

      Graduating linearly from 56% to 90% during the last two policy years Minimum (56% + [(34% x (N-7)) /(Policy Term - 8)], 90%) N : Year of Surrender

      Applicable for all variants

      i. Surrender Benefit (or Early Exit Value) is only applicable for base death benefit cover and not on add-on options such as Accelerated Critical Illness Benefit option or Accident Cover option.

      ii. Surrender Benefit (or Early Exit Value) will be payable only after the policy has acquired a Surrender Value (or Early Exit Value)

    FAQs

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    Compared to traditional term insurance plans, a Term with Return of Premium option (or TROP) offers to pay back the total amount of annualised premium {Exclusive of taxes^}, upon maturity of the coverage period. This is the most obvious pro of the TROP feature. The fact that you get your money back if you survive the policy tenure makes the return of premium plans especially appealing to people who want insurance coverage but have a low-risk tolerance.

    Moreover, you can also avail of a host of other policy benefits such as protection against accidental death and dismemberment, critical illnesses, and tax benefits (both deductions and exemptions). Thus, the term plans with return of premium option are definitely worth their price.

    Pure term insurance plans provide significant financial support to your grieving family, should anything happen to you. But these plans do not offer any maturity benefits, i.e., if you were to outlive the term insurance coverage period, you do not receive anything on policy maturity.

    Term life insurance plans with Return of Premium (or TROP) pays back the total amount of annualised premium {Exclusive of taxes^} paid towards the policy as maturity benefit if you survive the policy tenure. At the same time, if anything were to happen to you, the return of premium plan provides the Sum Assured to your family.

    Generally, most of the Life insurance companies in India offer term insurance plans with return of premium benefits.

    While you may compare online which plan suits you the best. Some of the benefits of taking Term Insurance plans from Max Life are:

    1. Significant financial protection against life’s uncertainties
    2. Maturity benefits upon surviving the policy tenure
    3. Protection against critical illnesses, accidental death and dismemberment
    4. Multiple channels for a seamless buying experience
    5. No bulky paperwork while buying or paying premiums for policies online
    6. Dedicated claim settlement officer to make the claim process effortless
    7. Multiple premium payment channels, including net banking, digital wallet, credit cards, and debit cards

    • the coverage amount that you can opt for may vary depending upon several factors such as your age, annual income, coverage tenure, and premium payment term.

    Term insurance plans with return of premium option offers policy benefits if anything happens to you within the policy period as well as upon surviving the policy. The major benefits are

      1. In case of your unfortunate demise, your family would receive a significant financial assistance in the form of the death benefit from the Term insurance plans with Return of Premium Option.
      1. Upon surviving the policy term, you would receive the total amount of premiums back that was paid towards the term insurance plans with return of premium option. It does not include the premium paid for riders during the policy tenure.
      1. You can avail tax benefits4 for the premium paid under Section 80C of the Income Tax Act 1961
      1. The death benefit paid to nominee(s) is tax free and maturity benefit received under the Term insurance plans with return of premium option is tax-exempt under Section 10(10D) of the Income Tax Act 1961

    You can also enhance your financial protection by opting for Add-ons/Riders (upon payment of the additional premium) against accidental death, life-threatening ailments etc.

    Max Life Insurance offers the below term life insurance plan with return of premium option – Max Life Smart Secure Plus Plan (A Non-Linked Non Participating Individual Pure Risk Premium Life Insurance Plan UIN - 104N118V05)

    There is no catch as such with the Term insurance plans with return of premium option. On the contrary, the Term insurance plans with return of premium option offers financial assistance in case of your untimely demise within the policy tenure. Moreover, these plans also offer to pay back the 100% of the Total Premiums that you pay towards the plan in case you outlive the coverage term.

    ‘Total premiums paid plus underwriting extra premiums, if any, for base policy’ refers to the total of all annualised premium paid plus underwriting extra premium, if any, under the policy including premiums for Life Stage Add on Sum Assured (if any)

    Yes, you must purchase Term insurance plans with return of premium option if you require a significant amount of financial protection for your loved ones but have a low-risk tolerance when it comes to putting your money into term insurance. Unlike pure term insurance plans, Term insurance plans with return of premium option provides both death and maturity benefits, so that you and your loved ones can benefit from the plan.

    Yes, term insurance plans with return of premium benefit offer to pay back the total amount of annualised premiums paid {Exclusive of taxes^} once you outlive the coverage tenure. In other words, if nothing happens to you throughout the term insurance policy period, you will receive the entire amount (exclusive of taxes) that you have paid for the plan.

    Illustration – Suppose you bought a term insurance plan with a return of premium option for a Sum Assured of Rs 1 crore at a premium of Rs 25,000 per annum (Exclusive of GST)* with a policy term of 30 years. In the case of your demise within 30 years of buying the policy (i.e., the policy period), your family would receive the Sum Assured of Rs 1 crore.

    However, if you survive the policy term of 30 years; you will receive Rs. 750,000 (25000 x 30) {Exclusive of taxes^} as maturity benefit from the plan.

    Figures mention in the above illustration are assumed.

    Return of premium benefit offered under term insurance plans implies that the insurance company would pay back the total amount of annualised premiums {Exclusive of taxes^} once you survive the coverage tenure. In other words, if nothing happens to you throughout the policy period, you will receive the entire amount you have paid as premiums (exclusive of taxes and amount paid towards rider) in the form of maturity benefit.

    Suppose you purchased a term insurance plan with a return of premium option for a Sum Assured of Rs 1 crore and pay a premium of Rs 20,000 per annum (inclusive GST)* with a policy term of 30 years. In the case of your unfortunate demise within 30 years of buying the policy (i.e., the policy period), your family would receive the Sum Assured of Rs 1 crore.

    This Sum Assured which is paid to the family/nominee(s) in the event of death of the life insured is the death benefit under the return of premium term plan.

    Figures mention in the above illustration are assumed.

    Purchasing a Term insurance plans with return of premium option or TROP plan is a good deal, especially when you consider the amount of coverage the plan would provide to your family, should anything happen to you.

    In case of your untimely demise, the Term insurance plans with return of premium optionwill provide the financial protection to your loved ones, like any regular term plan. The insurance amount received as death benefit is tax-free.

    Not only that, in case you survive the policy tenure the total amount of premiums paid {Exclusive of taxes and exclusive of amount paid towards riders} ^ would be returned to you on Policy Maturity. This maturity amount is tax-exempt under Section 10(10D) of the Income Tax Act, 1961.

    Yes, policyholders can strengthen the coverage offered by TROP by adding riders of their choice. Different types of riders can be added depending on the personal requirements to get comprehensive coverage.

    Term plan with return of premium, like other insurance plans is a long-term protection tool. The entry age in general for this plan is 18 years.

    The premium rates may vary for a smoker and a non-smoker since the insurer is providing coverage for risk. A person with smoking habits comes under the high-risk category.

    It can be favourable to opt for a term plan with return of premium since it offers maturity benefit along with death benefit. Nevertheless, it is up to you to assess your financial requirements and purchase accordingly.

    The grace period in insurance is the period after the due date of premium payment when the policyholder can pay it without any penalties. Generally, the grace period for a term plan is 30 days, but it is 15 days if the premiums are being paid monthly.

    ARN NO: PCP/TROP/200223

    Sources:

    www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=89

    www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=55

    www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx

    www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=134

    www.incometaxindia.gov.in/Pages/tools/deduction-under-section-80c.aspx

    www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11865&Mode=0

    www.rbi.org.in/Scripts/FAQView.aspx?Id=79
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      • MAX INDIA
      • MAX SPECIALITY
      • MAX FINANCIAL SERVICES
      • ANTARA SENIOR LIVING

      BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS

      IRDAI clarifies to public that:
      • IRDAI is not involved in activities like selling insurance policies, announcing
      bonus or investment of premiums.

      • Public receiving such phone calls are requested to lodge a police complaint.

      IRDAI - Registration No. 104. ARN/Web/01/21042021 Category: Life. Validity: Valid.
      Corporate Identity Number (CIN):U74899PB2000PLC045626.
      Trade logo displayed belongs to Max Financial Services Ltd. and Axis Bank Ltd .respectively and with their consents, are used by Max Life Insurance Co. Ltd

      All Rights Reserved. An ISO 9001:2008 Certified Company.

      Max Life Insurance Company Limited is a Joint Venture between Max Financial Services Limited and Axis Bank Limited.

      Corporate Office :

       Max Life Insurance Co. Ltd. 11th Floor, DLF Square Building, Jacaranda Marg, DLF City Phase II, Gurugram (Haryana) - 122002.

      Operation Center :

       Max Life Insurance Co. Ltd, Plot No. 90-C UdyogVihar, Sector 18, Gurugram (Haryana) - 122015.

      Customer Helpline: 1860 120 5577 (9:00 A.M to 6:00 P.M Monday to Saturday) * Call charges apply.

      Online Helpline - 0124 648 8900 (09:00 AM to 09:00 PM Monday to Saturday).

      Fax Number:0124-4159397.

      Email ids: service.helpdesk@maxlifeinsurance.com

      Website: www.maxlifeinsurance.com

      Max Life Insurance is integrated with licensed NBFC FinVu(Cookiejar Technologies Pvt. Ltd. for sharing policy details with regulated Financial Information Users within the Account Aggregator ecosystem after obtaining the Policy holder's consent. Read more about Account Aggregator framework here.

      *Life insurance coverage is available in this product. For more details on risk factors, Terms and Conditions please read the prospectus carefully before concluding a sale. You may be entitled to certain applicable tax benefits on your premiums and policy benefits. Please note all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes in tax laws. Trade logo displayed belongs to Max Financial Services Ltd. and Axis Bank Ltd. respectively and with their consents, are used by Max Life Insurance Co.

      Insurance is the subject matter of solicitation. For more details on the risk factors, Terms and Conditions, please read the sales and rider prospectus carefully before concluding a sale. Tax benefits are eligible for tax exemption on fulfilling conditions mentioned under Section 10(10D) of income tax act 1961. Tax exemptions are as per our understanding of law and as per prevailing provisions of income tax at 1961 . Policy holders are advised to consult tax expert for better clarification /interpretation. Please note that all the tax benefits are subject to tax laws at the time of payment of premium or receipt of policy benefits by you. Tax benefits are subject to changes in tax laws. The monthly Income Benefit and Terminal Benefit may be taxable subject to extra premium being loaded at underwriting stage.

      Disclaimers for Market Linked Plans & Saving plans:

       

      THE UNIT LINKED INSURANCE PRODUCTS DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICYHOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF FIFTH YEAR.

      Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Max Life Insurance is only the name of the insurance company and Max Life Online Savings Plan (UIN: 104L098V05) is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects or returns.

      Max Life Online Savings Plan is a Unit Linked Non Participating Individual Life Insurance Plan (UIN104L098V05)

      *#Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your Insurer carrying on life insurance business. The assumed rates of return (4% p.a. and 8% p.a.) shown in the illustrative example are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your Policy depends on a number of factors including future investment performance. The guaranteed and non-guaranteed benefits are applicable only if all due premiums are paid.The Maturity Benefit shown in the illustrative example are inclusive/exclusive of taxes.

      ^*Disclaimer: Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy female of 18 years old paying Rs.3,60,000/- annually (exclusive of all applicable taxes)

       

      Privacy Policy

      ^^On completion of policy term

      The savings indicated is the maximum premium difference as compared with offline plan & depends on the variant purchased.

      ^*All claims that qualify for InstaClaim™ will be paid within 1 working day from date of submission of all mandatory documents else Max Life will pay interest at Bank Rate as on beginning of financial year in which claim has been received (4.65 % p.a. for FY’20) for every day of delay beyond one working day. Interest shall be at the bank rate that is prevalent at beginning of the financial year in which death claim has been received.

      Claims for policies completed 3 continuous years. All mandatory documents should be submitted before 3:00pm on a working day.Claim amount on all eligible policies4 is less than Rs. 1 Crore. Claim does not warrant any field verification.Mandatory Documents :> Original policy document > Original/attested copy of death certificate issued by local municipal authority > Death claim application form (Form A) > NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook along with nominees photo identity proof > Discharge/Death summary attested by hospital authorities or FIR & Post Mortem Report/viscera report (in case of accidental death)

      7CMO Asia BFSI Excellence Award 2019

       

      5Criteria applicable only for “Term plans” for Graduate, Indian resident with declared income >= 10 lacs with CIBIL score >= 650 (salaried) and >= 700 (self-employed) with no disclosed medical condition

      4InstaClaim TM is available for all versions of (UIN:104N118V05). Mandatory Documents : • Original policy document • Original/attested copy of death certificate issued by local municipal authority • Death claim application form (Form A) • NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook along with nominees photo identity proof • Discharge/Death summary attested by hospital authorities or FIR & Post Mortem Report/viscera report (in case of accidental death)

      ##

      Tax conditions :

      Save 46,800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime ~# Save 54,600 on taxes if the insurance premium amount is Rs.1.5 lakh per annum for life cover and 25,000 for critical illness cover and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime.

      3The discount is applicable if you are a salaried employee with a corporate. During policy issuance, Max Life may call for proof of employment if required. In case proposer when asked is not able to prove the employment part, discount offer will be discontinued and additional premium as applicable will have to be paid for processing of the case.

      CI Rider disclaimers:

      MAX LIFE CRITICAL ILLNESS AND DISABILITY RIDER (UIN- 104B033V01) available as a rider on payment of additional premium.

      >Extended cover of up to 85 years is available with gold and platinum variant only

      @ 64 critical illnesses covered in platinum and platinum plus variant on payment

      22 critical illnesses covered in gold and gold plus variant

      6 The life insurer is eligible for a discount on renewal premium under regular pay variant by accumulating Healthy Weeks as per terms and conditions of the rider

      *^Total premiums paid inclusive of any extra premium but exclusive of all applicable taxes, cesses or levies and modal extra. Return of premium option is available on payment of additional premium.

       ~ Conditions for premium break : Available at an additional premium for policies with policy term greater than 30 years and premium payment term greater than 21 years. Option to skip paying premium for 12 months. 2 premium breaks will be available during the premium payment term separated by an interval of at least 10 years

      ~1 Conditions for Special exit value:

      Option to receive all premiums paid back, at a specified point in the term of the policy (free of cost). Available when Return of Premium variant is not chosen. No additional premium to be paid.

      ~2 Voluntary Top-up Sum assured:

      Option to double your insurance cover, basis underwriting, at the time of your need by increasing your sum assured up to an additional 100% of base sum assured, chosen at inception

      ^^*^^Free look period conditions:

      The policyholder has a period of 30 days from the date of receipt of the policy document, to review the terms and conditions of the Policy, where if the policyholder disagrees to any of those terms or conditions, he / she has the option to return the Policy stating the reasons for his objections. The policyholder shall be entitled to a refund of the premiums paid, subject only to deduction of a proportionate risk premium for the period of cover and the expenses incurred by the company on medical examination of the lives insured and stamp duty charges.

      ^Individual Death Claims Paid Ratio as per IRDAI Annual Report FY 2021-2022

      8https://www.moneycontrol.com/news/business/economy/buy-term-insurance-now-as-rates-may-rise-from-april-1-4930921.html

      2Total premium will be charged at the time of the policy issuance (subject to underwriting’s decision).

      3The guaranteed benefits are available with selected life insurance plans & are applicable if all due premiums are paid

      4Tax benefits as per prevailing tax laws, subject to change

      Terms and conditions for availing 5% employee discount:

      <Due to system constraints, employee is requested to select 5 Lakh and above income which can be changed to actual amount on the information page.

      1 The 5% employee discount will be refunded to you once your policy is issued. Submit your documents for getting your policy issued and get 5% employee discount

      9

      The percentage savings is for a regular pay Max Life Smart Secure Plus Plan ( A Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan, UIN - 104N118V05)– Life Option for 1 cr life cover for a 35 year old, non-smoker male for a policy term of 40 years vs a 10 year policy term with the same details’

      ~*Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05)

      **Healthy non-smoking male, 24 years, 2 cr cover,25 years policy term,25 year premium payment term, exclusive pf GST for Max Life Smart Secure Plus Plan (UIN:104N118V05)

      ~~Healthy non-smoking male, 24 years, 1 cr cover,25 years policy term,25 year premium payment term, exclusive pf GST for Max Life Smart Secure Plus Plan (UIN:104N118V05)

      Max Life Smart Wealth Plan| A Non-Linked, Non-Participating, Individual Life Insurance Savings Plan| @Rs.9,68,800/- as lump sum at the end of 15 years, for 35 years old healthy male.

      ARN - ARN/Web/01/21042021

      Past performance of the investment funds do not indicate the future performance of the same. Investors in the Scheme are not being offered any guaranteed / assured returns.The premiums & funds are subject to certain charges related to the fund or to the premium paid.

      The premium shall be adjusted on the due date even if it has been received in advance.

      For Total Installment Premium -**Total Installment Premium is the Premium payable as per premium paying frequency chosen, it excludes GST and applicable taxes, cesses or levies, if any; and includes loadings for modal premiums, Underwriting Extra Premium and Rider Premiums if any.

      For Return of Premium -~The Return of Premium Option is available on payment of Additional Premium. Premium does not include amount paid for riders and is excluding taxes, cesses and levies. Upon Policyholder's selection of Return of Premium variant this product shall be a Non-Linked Non-Participating Individual Life Insurance Savings Plan.

      For Riders -#Applicable Rider available on the payment of Additional Premium is Max Life Critical Illness and Disability Rider | Non-Linked Non-Participating Individual Pure Risk Premium Health Insurance Rider |UIN: 104B033V01 . Critical Illness and Disability Rider variant opted is Platinum Plus which covers 64 critical Illnesses. The rider cover will only be paid in scenarios where customer is diagnosed with listed 64 critical illnesses or total and permanent disability. Rider will terminate after major critical illness claim is paid to the policyholder. In case customer requests for cancellation of rider only, the solution as a whole will be cancelled and not just the individual rider.

      For Additional Benefits -##On Payment of Additional Premium. The accident cover will only be paid in scenarios where death occurs due to accident.

      *~Disclaimer | Max Life Smart Secure Plus Plan. A non-linked non-participating individual pure risk premium life insurance plan |Benefit available with special exit value -Total premium paid inclusive of any extra premium but exclusive of all applicable taxes, cesses or levies & modal extra. The premium calculated as per Standard premium for 30 year old healthy male, non-smoker, 40 years policy term, 40 years premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan.

      6

      Applicable for Titanium variant of Max Life Smart Fixed-return Digital plan (Premium payment of 5 years and Policy term of 10 years) and a healthy male of 18 years paying Rs. 20,000/- per month (exclusive of all applicable taxes) with 7.50% return. Life Insurance is available with this product.

      ##

      Policy continuance benefit is not available with lifelong wealth variant. **The accrued income will be accumulated on an annual basis at the prevailing reverse repo rate (publish on RBI’s website).

      #

      With “Save the date”, you can choose to take your annual income to any special date in a year.

      ***Available with early wealth variant. Income benefit will be paid as per selected plan terms.

      ~

      Accidental death benefit is available in call variants except for Single premium variant. Life insurance coverage is available in this product.

      #~

      Term Insurance plan bought online directly from Max Life Insurance has no commissions involved.

      ~1

      Max Life Smart Secure Plus Plan, A non-linked non-participating Individual Pure Risk Premium Life Insurance Plan| Standard Premium for 30 year old healthy male, non-smoker, 40 years policy term, 40 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan| ~1 Conditions for special exit value: Option to receive all premiums paid back, at a specified point in the term of the policy (free of cost). Available when Return of premium variant is not chosen. No additional premium to be paid. Option to receive all premiums back (exclusive of GST). Flexibility of exiting the plan early. Special Exit Value cover applicable till age 68 & above (of your age). T&C Apply.

      6

      Applicable for Titanium variant of Max Life Smart Fixed-return Digital plan (Premium payment of 5 years and Policy term of 10 years) and a healthy male of 18 years paying Rs. 20,000/- per month (exclusive of all applicable taxes) with 7.50% return. Life Insurance is available with this product.

      **

      Max Life Critical illness and Disability (UIN- 104B033V01) available as a rider on payment of additional premium. 64 critical illnesses covered in platinum and platinum plus variant on payment.

      *

      Available on Payment of Additional Premium. The accident cover will only be paid in scenarios where death occurs due to accident.

      7

      Available with Max Life Smart Wealth Plan (UIN: 104N116V08)

      8

      Available with Max Life Smart Fixed-return Digital Plan (UIN:104N123V03). The guaranteed benefits are available with selected life insurance plans & are applicable if all due premiums are paid.

      **Disclaimer: Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05) with a life cover of Rs. 50 lakh.

      **Disclaimer: Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05) with a life cover of Rs. 75 lakh.

      **Disclaimer: Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05) with a life cover of Rs. 1.5 Cr.

      **Disclaimer: Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05) with a life cover of Rs. 2 Cr.

      **Disclaimer: Standard premium for 24-year old healthy male, non-smoker, 25 years policy term,25 year premium payment term (exclusive of GST) for Max Life Smart Secure Plus Plan (UIN:104N118V05) with a life cover of Rs. 5 Cr.

      **Our Life insurance policies cover COVID-19 life claims under life insurance claims, are subject to applicable terms and conditions of the policy contract and extant regulatory framework.