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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.
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.
One can stay protected for a maximum policy term of 50 years with maturity age extending up to 85 years
The entry age for purchasing a suitable Max Term Plan is 18 years
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
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
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
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
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:
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
In this plan, the payout is in the form of regular stable monthly income to the beneficiary in addition to a lump sum amount
It is designed to counter inflationary effects by ensuring growing monthly income along with a lump sum payment to mitigate increasing household expenses
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
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 | 1: Secure family’s financial future online 2: Death, disability and critical illness coverage |
| Max Life Smart Term Plan | 1: Cover for critical illness, disability, and death 2: Return of Premium feature available 3: Return of Premium feature available |
| Max Life Super Term Plan | 1: Secures the Family Future financially 2: The incremental sum assured till term end |
| Max Life Premium Return Protection Plan | 1: Usual life cover 2: Death and Survival Benefit 3: Long Terms of 20, 25 and 30 years |
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 | 1: Lump-Sum 2: Regular Income with variants |
| Accelerated Critical Illness Benefit | Accelerated payout if diagnosed with a specified critical illness |
| Riders | Enhance cover with additional riders 1:Comprehensive Accident Benefit 2: 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 |
Basic Life Cover:
The host of benefits accrued by purchasing HDFC Term Plan are listed below. They’re only indicative and not exhaustive.
Basic Life Cover Plus Monthly Income:
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.
| Age parameters | |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 60 years |
| Maximum Age coverage | 85 years |
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:
| Key Features | Particulars |
| Death Benefit | 7 variants to suit the preference of every individual 1: Life Cover 2: Life Cover Plus Income 3: Life Cover Plus Increasing Income 4: Increasing Cover 5: Reducing Cover 6: Income Protector 7: Income Plus Inflation Protector |
| Term Coverage | Long term coverage for up to 85 years of age |
| Multiple Premium Payment Options | 1: Single Pay 2: Regular Pay 3: Limited Pay 4: 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 |
| Age parameters | |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 60 years |
| Maximum Age coverage | 85 years |
| 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 | 10 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 |
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:
Policy Term: 10 years to 35 years
Increasing Life Cover: Insurance cover increases at a rate of 5% to counter inflation
| Age parameters | |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 60 years |
| Maximum Age coverage | 75 years |
Max Life Accidental Death or Dismemberment: To enhance risk coverage in the event of accidental death or disability of the insurer
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 1: Monthly 2: Quarterly 3: Half-Yearly 4: 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 |
Summary of Max Term Plans: The maximum maturity age under this term plan is 75 years.
| 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 |
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:
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
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 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.
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 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:
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
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
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
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
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
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.
The following documents may be required while buying a Max Term Plan or filing a claim with Max Life Insurance:
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.
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.
