Paisawiki is a Part of Logo

Max Life Term Insurance Plan

  • Choose From

    20+ Insurers

  • Plans Starting at

    ₹ 490/month*

  • Tax Benefit

    Upto Rs. 75000

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Please note that the quotes shown will be from our partners

Max Life Term Plan is a term insurance plan by Max Life Insurance that pays a death benefit to the nominee on the demise of the policyholder during the policy term. It aids long-term wealth creation coupled with protection and setting of life goals & milestones., which are essential components of any worthwhile financial planning. For enough emphasis on protection for the financial future of the family and loved ones, Term Insurance Plans are eminently suited to protect the financial future of a family after the demise of the bread-earner.

A range of Max Life Term Plans is much sought after products from Max Life Insurance, one of the major private players in the insurance sector in India.

Max Life Insurance’s bouquet of insurance plans covers Term, Savings, Investment, and Retirement plans to cater to the customers of different tastes and preferences. Amongst all of these, Max Term Plans attract ample attention with a range to choose from. The company not only creates solutions for its clientele but also assures empathy, transparency, and accountability towards them. They have achieved a claim settlement ratio of 98.74% in the FY 2018-19, which is an excellent lure for the company.

Features of Max Life Term Plan

Max Life Term Plan is an attractive financial planning tool for the protection of dependents. Every Max Term Life Insurance Policy provides with redeeming features for the benefit of the policyholder. Here are some of the most attractive features of a Max Term Plan:

There are certain basic and fundamental factors that must be considered while buying any Insurance policy scheme. Some of these factors that prove the vital necessity of buying a life insurance policy are mentioned below.

  • Long Policy Coverage

    One can stay protected for a maximum policy term of 50 years with maturity age extending up to 85 years

  • Low Age for Entry

    The entry age for purchasing a suitable Max Term Plan is 18 years

  • Regular Income Death Pay-out

    Max Term Plan is a new age product offering the flexibility of opting for regular monthly income to help the family in meeting routine expenses after the death of the bread earner

  • Survival Benefit

    The new age Max Term Policy has provision for a survival benefit where the premium paid is returned to the purchaser if he survives the policy tenure

  • Availability of Riders

    Max Term Plans offer the flexibility to add riders suiting the needs of the purchaser to enhance risk coverage for disability and 40 life-threatening critical illnesses. The riders are added against payment of additional premium

  • Tax Savings

    Premiums paid for Max Term Plans in a financial year enjoy exemptions under relevant sections of 80C, 80D  and 10(10D) of the IT Act, 1961, subject to  underlying conditions

Max Life Term Plan – List of Plans

Before listing out specific term insurance products adorning the Max Life Insurance bouquet, we need to understand the different types of Term Plans designed to meet the individual preferences of the customers. Five different types of Max Term Plans are available for sale. They are:

  • Basic Term Plan

    The plan is simple Term Plan which gives life cover and pays only lump-sum death benefit on the demise of the policyholder during the policy term

  • Monthly Income Term Plan

    In this plan, the payout is in the form of regular stable monthly income to the beneficiary in addition to a lump sum amount

  • Term Plan with Growing Monthly Income

    It is designed to counter inflationary effects by ensuring growing monthly income along with a lump sum payment to mitigate increasing household expenses

  • Term Plan with Return of Premium

    This is also referred to as TROP and is a new age feature in Term Plans. Unlike other usual term plans, TROP comes with a survival benefit where the paid premiums are returned to the policyholder on the survival of the policy term

  • Group Term Insurance Plans

    This plan is designed to provide a term plan to benefit  employees in a group where their families are financially protected

Accordingly, the various Max Term Plans offered by Max Life Insurance are:

Name of the Max Life Term Plan

Key Features

Max Life Online Term Plan Plus

·         Secure family’s financial future online

·         Death, disability and critical illness coverage

Max Life Smart Term Plan

·         Customizable plan

·         Cover for critical illness, disability, and death

·         Return of Premium feature available

Max Life Super Term Plan

·         Secures the Family Future financially

·         The incremental sum assured till term end

Max Life Premium Return Protection Plan

·         Usual life cover

·         Death and Survival Benefit

·         Long Terms of 20, 25 and 30 years

Max Life Online Term Plan Plus:

This is the only Max Term Plan that is up for online purchases. Apart from the life insurance protection in case of demise of the purchaser, it also  one of the most affordable term insurance plans offered by Max Life Insurance.

Some of the key highlights of Max Life Online Term Plan Plus are:

Key Features

Particulars

Death Benefit

3 options of death benefit available for choice

1.      Sum Assured

2.      Sum Assured Plus Level Monthly Income

3.      Sum Insured Plus Increasing Monthly Income

Flexible Payout Options

·         Lump-Sum

·         Regular Income with variants

Accelerated Critical Illness Benefit

Accelerated payout if diagnosed with a specified critical illness

Riders

Enhance cover with additional riders

·         Comprehensive Accident Benefit

·         Waiver of Premium Plus

Premium Payment Option

Pay till age 60 years to enjoy cover up to 85 years

Life Stage Benefit

Option to enhance cover at important life milestones on extra premium payment

Purchase Mode

Hassle-free online purchase facility available

Variants:

Basic Life Cover:

The host of benefits accrued by purchasing HDFC Term Plan are listed below. They’re only indicative and not exhaustive.

    • Lump-Sum Death Benefit
    • Life Stage Benefits like marriage and childbirth
    • 40 Critical Illness cover
    • Enjoy cover till 85 years by paying premium till age 60

 Basic Life Cover Plus Monthly Income:

      • Monthly Income for ten years in addition to the sum assured as payout on death of the insured

 Basic Life Cover Plus Increasing Monthly Income:

The host of benefits accrued by purchasing HDFC Term Plan are listed below. They’re only indicative and not exhaustive.

    • Monthly income increment of 10% every year for ten years to adjust inflation
    • Monthly income is paid in addition to sum assured

Eligibility:

Age parameters

Minimum Entry Age

18 years

Maximum Entry Age

60 years

Maximum Age coverage

85 years

Max Life Smart Term Plan

This is one of the most popular Term Plans in the bouquet of Max Life Insurance. It offers full customization with cover for death, disability and 40 critical illnesses along with the provision for the return of premium as survival benefit on maturity. It also provides lower premium rates to non-smokers.

Some of the key highlights of Max Life Smart Term Plan are:

Feature

Particulars

Death Benefit

7 variants to suit the preference of every individual

1.      Life Cover

2.      Income Protector

3.      Income Plus Inflation Protector

4.      Life Cover Plus Income

5.      Life Cover Plus Increasing Income

6.      Increasing Cover

7.      Reducing Cover

Term Coverage

Long term coverage for up to 85 years of age

Multiple Premium Payment Options

·         Single Pay

·         Regular Pay

·         Limited Pay

·         Pay till 60

Life Coverage

Assured life cover till 85 years of age

Loyalty Returns

5% loyalty discount to existing policyholders

TROP Facility

Return of premium available after surviving the policy tenure under the base policy

Life Stage Benefit

Option to increase cover later on major life milestones, like marriage and birth of children

Free Look Period

·         A free look period of 15 days available

Riders

Flexibility to add riders like Accidental Death

Eligibility: 

Age parameters

Minimum Entry Age

18 years

Maximum Entry Age

60 years

Maximum Age coverage

85 years

Premium Payment Options:

Payment Option

Payment tenure

Policy Term

Single Pay

Only once

10 to 50 years

Regular

10 to 50 years

10 to 50 years

Limited Pay – 5 Pay

Up to 5 Years

10 to 50 years

Limited Pay – 10 Pay

Up to 10 Years

15 to 50 years

Limited Pay – 12 Pay

Up to 12 Years

17 to 50 years

Limited Pay – 15 Pay

Up to 15 Years

20 to 50 years

Pay till 60

16 years

Maximum 50 years

Max Life Super Term Plan

This is a unique term plan where the sum assured is adjusted to absorb inflationary factors at a simple rate of 5% every year till the end of the policy tenure without any increase in the amount of premium payable.

Some of the key highlights of Max Life Super Term Plan are:

  • Payout Option: Option to receive the death benefit in a lump sum, monthly income or a combination of both
  • Policy Term: 10 years to 35 years

  • Increasing Life Cover: Insurance cover increases at a rate of 5% to counter inflation

Eligibility:

Age parameters

Minimum Entry Age

18 years

Maximum Entry Age

65 years

Maximum Age coverage

75 years

Addition of Riders:

  • Max Life Waiver of Premium: Future premium is waived in the event of critical illness, dismemberment or death of the purchaser
  • Max Life Accidental Death or Dismemberment: To enhance risk coverage in the event of accidental death or disability of the insurer

Max Life Premium Return Protection Plan:

Ideally, a term plan is a protection plan that pays a death benefit to the beneficiary on the demise of the life insured during the policy tenure. However, the Premium Return Protection plan returns the paid premium if the policyholder survives the policy term, which does not happen in case of a simple term plan. Thus, this plan provides survival benefits at maturity in addition to the death benefit.

Some of the key highlights of Max Life Premium Return Protection Plan are:

Feature

Particulars

Long Term Protection

Protection for 20, 25 and 30 years available

Premium Payment Options

Premium payment modes are flexible to individual needs

·         Monthly

·         Quarterly

·         Half-Yearly

·         Annual

Limited Premium Payment

If the premium is paid for a fixed period of 11 years, benefits for 30 years of policy term can be0 enjoyed

High Sum Insured Discount

In case of the sum insured of Rs 30 Lakh or more, a discount of Rs 130 will be awarded for per Lakh of sum assured

Eligibility:

Minimum Entry Age

Maximum Entry Age

Policy Term for Maximum Entry Age

21

50

25

45

30

55

20

The maximum maturity age under this term plan is 75 years. 

Summary of Max Term Plans: 

Name

Entry Age

Maturity Age

Policy Term

Max Life Online Term Plan Plus

18-60 years

85 years

10-50 years

Max Life Smart Term Plan

18-60 years

85 years

10-50 years

Max Life Super Term Plan

18-65 years

75 years

10-35 years

Max Life Premium Return Protection Plan

21-55

75 years

20, 25, 30 years

Max Life Term Plan – What is Not Covered:

Checking for the exclusions is as essential as going through the inclusions of a term plan to purchase the right policy. This can be achieved by going through the fine print of the policy document concerning critical illness rider, which has several exclusions. Some of the general exclusions of a Max Life term plan are:

  • Suicide: Suicide of the policyholder within 12 months of commencement of risk shall entail no payment of death benefit. However, the beneficiary receives the premium paid minus the surrender value, if any
  • Self Inflicted Harm: Any self-inflicted injury or under the influence of alcohol, drug abuse or intoxication is not admissible for any benefit

  • Specific Diseases: Some specific diseases like Sexually Transmitted Disease and AIDS are outside the purview of the benefit

  • Human and Acts of God: Human acts of war, whether nuclear or conventional, terrorism and natural calamities are not admissible for claim
  • Extreme Sports: Indulgence in extreme sports like Paragliding, bungee jumping, etc. to name a few are not eligible for death benefits
  • Unlawful Activity: If the policyholder gets injured or dies as a result of unlawful activity, he won’t be eligible for any claim 

Max Life Term Plan –Claim Process:

Max Life Insurance has a good track record of claim settlement ratio. It enjoyed a CSR of 98.74% in the last FY 2018-19. However, it is imperative for the nominees as well as the policyholder to be aware of the claim process for a seamless experience.

  • Claim intimation, registration and submission of requisite documents
  • Claim evaluation and assessment

  • Claim approval and settlement

Max Life has a network of 239 offices across the country for receipt of the claim. This apart, bank partners like Axis Bank and Yes Bank also accept claims on their behalf. The policyholders can find the contact details of the Max Life claims department in their policy document or on its official website.

Tax Benefits of Max Life Term Plan:

As per the Income Tax Act, 1961, there are several sections under which a policyholder enjoys exemptions for purchasing Term Insurance plans. All premiums paid in a financial year are exempted from tax for a maximum of Rs.1.5 Lakh under Section 80C. The premium for Critical Illness rider is exempted under the provisions of Section 80D. The death benefit paid to the beneficiary is exempted under Section 10(10D), subject to applicable conditions.

Max Life Term Plan – How to Buy:

Max Life Insurance offers Online Term Plan Plus for purchase online at its official website. Online purchase is beneficial because it allows to compare Term Plans and make the best choice at a discounted rate of premium.

The entire process of online purchase of Max Term Plan can be accomplished in a few steps listed below:

  • Estimation of Sum Assured

    It is crucial to estimate the ideal sum assured that would cover the family of the policyholder adequately so that their lifestyle is unaltered and life’s goals & major milestones, like education and children’s marriage, are achieved comfortably. As a thumb rule, the sum assured is generally reckoned as 15 to 20 times of the annual income after factoring in all the liabilities

  • Decide on the Term

    It is best to start early, which affords multiple advantages to the policyholder. Not only is the premium lower at a young age, but also the most extended policy terms are possible

  • Choose Appropriate Riders

    Selecting the right rider based on the profile of the policyholder helps to raise the sum assured and the benefits suitably, ultimately reflecting on the final payout

  • Payment of Premium

    Based on personal details of the policyholder such as the profession, income, education and nominee details, a premium quote is offered. Once the premium has been paid, the policy buying process can move forward

  • Completion of Proposal Form

    It is also essential to complete the proposal form by providing all the minute details covering the following

    Health History of both self and family
    Lifestyle habits
    Hobbies and pastimes

  • Medical Tests

    Wait for the completion of medical examination. This is important to ensure a seamless claim process as Term Plans operate on elements of mutual trust
    Max Term Plans can also be purchased offline at Banks or via brokers, agents, and intermediaries.

Max Term Plans - Required Documents:

The following documents may be required while buying a Max Term Plan or filing a claim with Max Life Insurance:

  • At the time of Purchase

      • Proposal Form
      • Valid KYC documents covering ID and address proof
      • Photograph
      • Income Proof of the policyholder
  • For Salaried People

      • Salary slips of the previous three months
      • Bank statement of the previous three months
      • Latest Form-16 for two years.
  • For Self Employed

      • ITR and computation of Income-tax for the latest two years.
      • P&L Account Statement and Balance Sheet for the last two years.
      • Form 16A for the latest two years.
      • Form 26AS for the latest two years.
  • At the time of Policy Claim

    Endowment Plan is an insurance plan option that offers savings with insurance coverage after a certain period. Some features of an endowment plan are as follows.

      • Claim Intimation Form
      • Original Policy document
      • Copy of Death Certificate from the appropriate authority
      • Death Claim Form
      • NEFT mandate and cancelled cheque leaf
      • ID proof of the beneficiary
      • Additional documents
      • Natural Death: Medical records and attending doctor’s statement
      • Accidental Death
      • Copy of FIR / Panchnama
      • Copy of Post Mortem Report
      • Copy of Charge Sheet

Max Life Term Plan – How to Renew:

Max Life term plan can be renewed by paying the premium for the chosen plan within the grace period. However, in case of default, all the benefits will cease immediately. A term policy can be revived within a maximum of 5 years from the due date of unpaid premium, subject to appropriate underwriting.

Max Life Term Plan - FAQ

Written By: Paisawiki - Updated: 06 July 2020
Disclaimer: Paisawiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 0 Reviews)