Why Should You Choose MAX LIFE INSURANCE

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

Who Should Buy Max Life Term Plan with Return of Premium?

Term insurance with ROP feature (available on payment of additional premium) also offers benefits such as waiver of premium benefit, accidental death benefit, disability benefit, and protection against critical illnesses.

1
If you are single You have your parents who may depend on you for financial support, especially after their retirement. With a term plan with ROP benefit; therefore, you can help take care of their lifestyle expenses, while you get premium back on your term plan upon surviving the policy tenure.
2
If you are married with no kids Your spouse may have no one else to look up to for financial support, but you. Therefore, it becomes crucial that you create a financial backup plan to help secure their future in your absence. Even in case nothing happens to you, you will receive the premium back paid under the term plan with return of premium.
3
If you are married and have kids Being a parent, you have the responsibility to take care of your kids’ education and marriage expenses. You are also responsible for your spouse’s financial well-being. A term plan with return of premium optional benefit will help you support your family in maintaining their current lifestyle while offering you a maturity benefit on surviving the policy tenure.

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

All of us want to live a long and eventful life in the presence of our family and friends. To prolong our lifespan and live a healthy life, we make healthier lifestyle choices such as exercising daily and following a wholesome diet plan. We also invest in financial instruments that provide us both income security and wealth creation opportunities, so that we have enough money throughout our lifetime.

Thus, there is ample possibility that if we stay happy, positive, healthy, and away from stress, we can outlive our life insurance plan. So, term insurance with ROP optional benefit comes as an advantage, as it offers to return the premiums to you on your successful survival against the uncertainties of life.

Term insurance with ROP feature (available on payment of additional premium) also offers benefits such as waiver of premium benefit, accidental death benefit, disability benefit, and protection against critical illnesses.

At Max Life Insurance, we strongly believe in the idea that all our customers should stay happy and healthy and live longer. With our TROP variant of life insurance; therefore, we help ensure that you and your family have peace of mind and financial security in all walks of life. 

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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

What Is Term Plan With Return of Premium?

TROP refers to Term plan with Return of Premium option. This plan is same as any other standard term insurance plan with one difference of return of premiums option available i.e. survival benefit at the end of the policy term. The primary objective of any life insurance policy is to provide financial protection to your family in case of any unfortunate event in your life.

The primary objective of any life insurance policy is to provide financial protection to your family in case of any unfortunate event in your life. Life insurance plans usually fall into two categories:

1. First in which you can grow your money along with a life cover, and

2. Second, which is meant to provide only financial protection to your family called term insurance plans.

In the case of term insurance plans, there will not be any return on investment (ROI). However, the premiums are also nominal. Term insurance plans primarily to fulfil our life insurance needs only by providing a significant amount of money to the nominee in case of the insured’s unfortunate demise.

Most, term insurance plans do not offer any survival or maturity benefit for the policyholder. However, a term insurance plan with return of premium assures the return of the premiums paid for the life cover if you survive the policy term**.

For instance, Mr. Gupta 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* with a policy term of 30 years. In the case of his demise within 30 years of buying the policy (i.e., the policy period), his nominee would receive the Sum Assured of Rs 1 crore.

However, if Mr. Gupta survives the policy term of 30 years; he will receive Rs. 750,000 (25000 x 30) {Exclusive of taxes^}.

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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**

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.

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.

For instance, a healthy, 30-year old male can purchase a term insurance plan from Max Life for a Sum Assured of Rs 1 crore and a policy term of 40 years for approximately Rs. 13,688, payable annually for 30 years (Pay till 60).

On the other hand, buying a term plan with ROP benefit for the same Sum Assured and policy term may cost up to Rs. 11,600^^.

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.

The ROP variant of term insurance is available under Max Life Smart Term (Non-Linked Non Participating Life Insurance Plan (UIN - 104N113V01))

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

2. The rate of premium should be affordable

3. The insurer’s claim settlement ratio (CSR) must be high (Max Life Insurance has a claims settlement ratio of 98.74% (as per the IRDAI public disclosure FY’18-’19)

4. 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 Smart Term Plan. Here are a few hallmarks of our life insurance plans:

1. Multiple channels for a seamless buying experience

2. No bulky paperwork while buying or paying a premium for policies

3. Dedicated claim settlement officer to make the claim process effortless

4. Multiple premium payment channels, including net banking, digital wallet, credit cards, and debit cards

According to the Section 6 of the Married Women's 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).

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:

1. For Single Premium variant: After payment of single premium

2. For Limited Pay variant and Regular Pay variant: On payment of two full years’ premium, where the Premium Payment Term is less than 10 years

3. On payment of three full years’ premium, where the Premium Payment Term is 10 years or more

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

Here the Guaranteed Surrender Value is calculated by the following formula: 

GSV factor x (Total premiums paid for base policy including extra premium (if any) but excluding modal extra and any applicable taxes, cesses or levies)

‘Total premiums paid for base policy’ refers to the total annualized premium paid under the policy including premiums for Life Stage Add on Sum Assured (if any)

The GSV Factors are as follows:

Policy Year

% of Total Annualised Premiums Paid

Single Pay variant

Limited and Regular Pay variant

1

70%

NIL

2

70%

For Premium Payment Term less than 10 years: 30%

For Premium Payment Term of 10 years or more: NIL

3

70%

30%

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

1. 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.

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

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments
Claims Paid Percentage

98.74%

98.74%

(Source : Annual Results Release FY18-19)

Max Life Presence

239 Offices

239 Offices

(Source : Annual Results Release FY18-19)

Sum Assured

₹7,03,972 Cr.

₹7,03,972 Cr.

In force (individual) (Source : Public disclosure FY18-19)

Assets Under Management

₹62,798 Cr.

₹62,798 Cr.

(Source : Public disclosure FY18-19)

More reasons why our customers choose us

Let’s Connect

Let’s Connect

Online Plus Helpline
1800 200 3383
 (08:00 AM to 09:00 PM Monday to Saturday)

online@maxlifeinsurance.com
SMS 'LIFE' to 5616188

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Customer Service Helpline
1860 120 5577
(9:00 AM to 6:00 PM Monday to Saturday)
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Please write to us incase of any escalation/feedback/queries.

Write to us
NRI Helpdesk
0124 - 5098162; 0124 -  4905150
(9:00 AM to 6:00 PM Monday to Saturday)

nri.helpdesk@maxlifeinsurance.com