Max Life Insurance Term Plan Review

In this post, we are going to review the Max Life Insurance Term Plan as well as understand all the details with examples. I would always recommend you to take term insurance as it protects your family in case you die due to any reason. Term insurance is a type of life insurance where you can secure a huge amount with a small premium. If you are the sole bread earner of your family, then I would recommend that you take a sum assured of at least 15 to 20 times your annual income. For example, if your annual income is 5 lakhs, then definitely take a plan of 20 times i.e. 1 crore.

Also Read:- Max Life Insurance Policy Plans

Max Life Insurance Term Plan – Best Term Insurance Plan

The name of the policy is Max Life Smart Term Plan, this policy is also available online and it is one of the most popular policies if India is to be believed.

Death Benefit:- If the policyholder dies due for any reason, the nominee will get the sum assured amount. The minimum policy you can take is 25 lakhs and there is no maximum limit.

Minimum Entry Age:- Minimum age should be 18 years.

Maximum Entry Age:- The maximum entry age is 60 years.

Maturity Age / Policy Coverage Age:- You can take the policy for a maximum period of 85 years only.

Many Options in Max Life Insurance

• Single Pay – That is, you will pay a lump sum premium in one go and after that, you will never have to pay a premium.
• Regular Pay – That is, as long as your policy is covered, you will have to pay the premium regularly.
• Limited Pay – In which you can choose 5 pay, 10 pay, 12 pay or 15 pay. 5 pay means you can finish by paying a premium 5 times.
• Pay Till 60 – That is, whatever the coverage age of your policy, your maximum payment term will be up to 60 years. And after that, you will not have to pay any premium. But the thing to note is that if you choose Pay Till 60 option, then your age should be less than 45 years at the time of buying the minimum policy the first time.

Payment Mode

In Max Life Insurance, you have many options like annual, semi-annual, quarterly and then monthly payments. You can choose this according to you.

Also Read:- What is Life Insurance?

Death Benefit Variant

You can choose how your nominee will get paid after death. Total is 7 options here, let’s know it in detail.

1. Life Cover:- That means lump sum payment of sum assured amount will be available in one go.
2. Income Protector:- Here your nominee will get a monthly payment. And here you have the option to choose how long this monthly payment will be, for 10, 15 or 20 years.
3. Income + Inflation Protector:- Here your nominee will get a monthly payment but will increase by 10% every year. Here also you have the option to choose payouts up to 10, 15 or 20 years.
4. Life Cover + Income:- Here you will get a lump sum amount as well as a monthly payout for 10 years. And this monthly payout will be .4% of the sum assured.
5. Life Cover + Increasing Income:- Here you will get Sum Assured like Last Income along with Monthly Payout. But here the monthly payout will keep increasing by 10%.
6. Increasing Cover:- As time increases, inflation also increases. And if you think that you have taken the policy today, 20 years from today that amount will become very small, then you can choose the option. Here you will get your death benefit of 5% every year.
7. Reducing Cover:- This is the opposite of the earlier option. Here, as time progresses, the amount of Sum Assured keeps on increasing. will be less than 5% every 5 years. That is if you took a policy of 1 crore, then after 5 years, the sum assured will be only 95 lakhs.

Riders

Now let’s talk about some riders. So these are optional and you have to pay the premium separately for this.

• Accelerated Critical Illness Benefit:- If any of the 40 diseases given here are first time deducted then you will get its benefit. Diseases are included in this, cancer, first-time heart attack, failure of kidney, liver, etc. You have to choose the Sum Assured of this rider separately and the minimum amount is 5 lakhs, the maximum is 50% of the policy sum assured or 50 lakhs whichever is less. You will get this sum assured whenever you have a first-time critical illness deduct. Also, this amount will be deducted from the main policy you have and the rest of the policy will continue.

Example – If you have taken a policy of 1 crore and a critical illness benefit of 10 lakh and you get a first-time heart attack, then you will get a 10 lakh benefit immediately. And the remaining 90 lakh policy will continue again. And your premium will also come down on the surface itself. Because your policy amount is only 90 lakhs left.

• Accident Cover:- Here the additional sum assured you choose will go to you if your death is due to an accident.

• Waiver of Premium Plus Rider:- Here if you have any critical illness, loss of body part, loss of organ, etc., in this case, you will not have to pay any additional premium to continue the policy.

Premium Calculation

Whenever you take a policy, your premium depends on all the parameters mentioned so far. Like Sum Assured, Policy Duration, Age, Health Condition, How Many Riders You Have Taken, etc.

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