Max Life Term Plan

Max Life Insurance Company Limited is formed as a joint venture between Max India Limited, a leading multi-business corporate and Mitsui Sumitomo Insurance Company Limited which is member of MS & AD Insurance Group, a leader in the general insurance sector across the world. The rich experience of both the companies has made Max Life one of the leaders in the Indian Insurance Industry. As in the year 2013 – 14, Max Life Insurance Company Limited has been ranked among the top 4 life insurers in India with a market share of 10.30%. The company is counted amongst the fastest growing life insurance businesses with the Gross Written Premium of Rs.7279 crores and declaring a shareholder’s profit of Rs.436 crores post taxation.

What are Term Insurance Plans?

All of us need a lump sum corpus to provide for the family if we face an untimely death. Term insurance plans become relevant in these situations where income protection is the need of the individual. Term plans promise to pay the nominee a fixed benefit as chosen at inception if the policyholder pre-deceases the policy term. The premium for the plan is kept low because of the provision of only death benefit.

Max Life Term Plans

The company has diverse types of term plans in its kitty and every Max Life term plan promises the customer attractive benefits at competitive rates. A detailed discussion of the available Max Life term plans is done below:

Max Life Online Term Plan Basic Life Cover

As the name suggests, this online Max Life term plan offered by the company has the following aspects:

• This Max Life term plan can be purchased online
• Under this Max Life term plan, in case of death during the chosen tenure, the death benefit is paid which is equal to the Sum Assured
• An additional Max Life Comprehensive Accident Benefit Rider can be added to make this Max Life term plan even more comprehensive. Under the Rider, an additional Sum Assured is paid in case the insured dies in an accident.
• Discounts are allowed under this Max Life term plan for choosing higher Sum Assured ranges
• Premium discounts are given for non-smokers and female lives under the Max Life term plan

Eligibility Details

Max Life Online Term Plan Life Cover + Monthly Income

This plan is an online Max Life term plan promising regular monthly incomes post death. The Max Life term plan’s features are:

• It is an online Max Life term plan which can be bought online lowering the premium and avoiding the hassles of unnecessary paperwork
• Under this Max Life term plan, in case of death of the life insured, Sum Assured is immediately paid to the nominee. Thereafter, a benefit of 0.4% of Sum Assured is paid to the nominee every month following the month of death of the insured. Thus the total Sum Assured paid to the nominee including the monthly payouts is 148% of the original Sum Assured chosen at the inception of the Max Life term plan.
• An additional Max Life Comprehensive Accident Benefit Rider can be added to make this Max Life term plan more comprehensive. Under the Rider, an additional Sum Assured is paid in case the insured dies in an accident.
• Discounts are allowed under this Max Life term plan for choosing higher Sum Assured ranges
• Premium discounts are given for non-smokers and female lives under the Max Life term plan

Eligibility Details

Max Life Online Term Plan Life Cover + Increasing Monthly Income

An online Max Life term plan promising regular monthly incomes post the death of the insured. The features of this Max Life term plan are as follows:

• It is an online Max Life term plan which can be bought online lowering the premium and avoiding the hassles of unnecessary paperwork
• Under this Max Life term plan, in case of death of the life insured during the term of the plan, the Sum Assured is immediately paid to the nominee. Thereafter, a benefit of 0.4% of the Sum Assured is paid to the nominee every month following the month of death of the insured. This benefit increases every year at a simple rate of 10% on the first monthly benefit, i.e. the increment is offered on the 0.4% of the Sum Assured which is paid in the first month. Thus the total Sum Assured paid to the nominee including the monthly payouts is 169.60% of the original Sum Assured chosen at the inception of the Max Life term plan.
• An additional Max Life Comprehensive Accident Benefit Rider can be added to make this Max Life term plan more comprehensive. Under the Rider, an additional Sum Assured is paid in case the insured dies in an accident.
• Discounts are allowed under this Max Life term plan for choosing higher Sum Assured ranges and for people with healthy lifestyles

Eligibility Details

Max Life Super Term Plan

This is a Max Life term plan with an increasing Sum Assured feature and a dual death benefit option. The features of this Max Life term plan are as follows:

• The Sum Assured under the Max Life term plan increases every year at a simple rate of 5% till the end of the plan tenure
• In case of death of the life insured during the course of this Max Life term plan, the nominee has two options of availing the death benefit. For the first option, 100% of the chosen Sum Assured is paid to the nominee immediately post the death of the life insured. For the second option, 50% of the Sum Assured is paid immediately in lump sum to the nominee. The rest 50% is paid as regular income for the next 10 years. This income will also increase at a simple rate of 8.5% per annum.
• Max Life Waiver of Premium Plus Rider is available under this Max Life term plan which can be attached with the base plan to ensure a more comprehensive coverage. Under the rider, future premiums are waived off in case of death, disability or critical illness if it happens within the duration of the Max Life term plan.

Eligibility Details

Max Life Premium Return Protection Plan

This is a Max Life term plan which promises the return of premium if the plan matures. The features of the Max Life term plan are as follows:

• In case of death of the life insured during the term of this Max Life term plan, the Sum Assured chosen at the inception of the Max Life term plan is paid to the nominee
• The Max Life term plan has an inbuilt Accidental Death Benefit Rider which states that if the insured dies due to accident during the term of this Max Life term plan, an additional death benefit will be paid to the nominee. The additional benefit will be 50% of the chosen Sum Assured under the Max Life term plan. Thus, on accidental death, the nominee will receive 150% of the Sum Assured under the Max Life term plan.
• Under this Max Life term plan, the term of premium payment is limited to 11 years while a longer tenure of coverage can be chosen by the policyholder
• In case the insured survives till the maturity of the Max Life term plan, he or she will get 100% of the total premiums paid under the Max Life term plan
• Max Life Waiver of Premium Plus Rider is available under this Max Life term plan which can be attached with the base plan to ensure a more comprehensive coverage. Under the rider, future premiums are waived off in case of death, disability or critical illness if it happens within the duration of the Max Life term plan.
• Under the Max Life term plan, discount is allowed in premium for choosing high Sum Assured levels of Rs.30 lakhs and above

Eligibility Details

Applying For A Term Insurance Plan From The Company:

Online

The company offers the last Max Life term plan called e-Term Plan which is available online only. The customer only needs to log into the company’s website, choose the required Max Life term plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online for the Max Life term plan through credit card, debit card or net banking facilities and the policy will be issued.

Intermediaries

Max Life term plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

How Much Term Life Insurance Coverage Do You Need?

Life insurance needs differ from person to person and so it won't be possible to make a generalised assumption about the amount of term insurance an individual needs. However if you are wondering as to exactly how much term coverage you would need, there are a few simple ways in analysing this.

How to Calculate the Amount of Term Life Insurance Coverage I Need?

To do this, you have to keep a few things in mind. They are:

1. How many people are dependent on you?
2. What is the other source of income, if any, of your family?
3. For how long will this source be available to the family?
4. How much money to you owe to lenders?
5. What are the future financial goals for your children?

Once you know this, you will know exactly how much money your family will need if you were to die suddenly. Let us understand this with an example.

Sachin has a wife and twin girls, aged 10. His wife is working as well, but she plans to work for another 5 years only. Sachin has a car loan and needs to pay EMIs every month for another 15 years. He plans to send one of his daughters to Milan to study fashion the other one to Singapore for her MBA. He calculates that the combined cost of their education would be about Rs.30 lakhs. So he buys a term plan for Rs. 60 lakhs, which would be enough to pay for his kids’ education, run the household and pay off the loan. So he buys a term plan for that amount.

How to Calculate the Term for Which the Plan Needs to be Bought?

Apart from the amount, it is also important to understand that a term plan is purchased for a particular term and should not go on forever! In Sachin’s case, he bought the term plan for 20 years as he calculated that 20 years was enough time for his daughters to get financially independent and support themselves and their mother. By then, the loans would also be paid off. So like Sachin, keep the financial goals in mind and buy coverage for as long as you need, not more not less.

Should I Consult My Agent About the Amount of Term Coverage Needed?

If you cannot calculate how much term life insurance coverage you need on your own, it is always a good idea to consult your insurance agent or your financial advisor. However, when consulting your agent, make sure you understand your needs and do not allow the agent to convince you to buy more insurance than you need.

Reasons to Opt for an Online Term Insurance Plan

A term plan is created in such a way that it helps protect one’s family, financially, when one is no longer around to personally take care of them. It pays one’s loved ones, adequate money as per the sum assured amount of the term plan, to take care of the basic financial needs of the family. A term plan prevents the immediate family from facing a full blown financial crisis right after the loss of a loved one.

With the wide spread use of the internet, term plans are also being offered online. It is quite easy to buy a plan online. All one has to do is go to the insurance company’s website, choose the online term plan, generate a quote as per one’s unique set of particulars and pay for the plan to close the purchase process. Buying a Max Life term plan is very simple and can be undertaken from the comfort of one’s home or office.

Some of the important reasons why one should opt for online medium of purchase are as follows:

Low Cost/Inexpensive

Studies have shown that life insurance plans purchased online are up to 50% cheaper than their offline counterparts. This is because one is purchasing from the life insurance company directly. There are no intermediaries involved and channel sales costs are not passed down to the customer. The cost of overheads is also eliminated. Therefore just like shopping for one’s favourite mobile phone, one can buy a term insurance plan online.

Smooth Process

The online method of buying an insurance policy is much more efficient and smooth as compared to the traditional offline way. There is no need to take print-outs, fill lengthy physical forms, and make photocopies to buy a life insurance policy over the internet. The online user interface is intuitive and the online form easy to fill. In fact, the process of filling personal information is quick and such that incorrect entries are automatically highlighted. Mandatory details left blank are also highlighted and one is prompted to fill those before proceeding forward.

Convenient

Convenience is the hallmark of the online medium of purchase. One does not have to stand in a long queue in a crowded branch office of the insurance company. The purchase can be made sitting in the comfort of home or office. One can transact anytime of the day, any day of the week from any location. The purchase can be made from any internet-enabled device – mobile phone, personal computer, laptop, even a television with a keyboard / remote with computer keys. The process of online purchase is a breeze unlike the traditional offline way.

Easy Comparison

Online mode of purchase also facilitates quick comparison of life insurance plans. One can effortlessly browse insurance products and easily compare their features on different parameters – benefits, premium options, eligibility criteria, exclusions, riders, discounts etc. Comparison helps in better decision making and in getting the best deal.

Greater Transparency

Insurance companies provide complete details of every insurance product on their website. Prospective customers can browse through the finer details of any plan they are interested in. All information pertaining to a plan including its policy brochure is available on the website of the insurance company. This would include the key offerings, benefits, extent of cover, eligibility criteria, benefit illustration, application procedure, claim filing process, FAQ section and more. Online mode of purchase facilitates in greater transparency, helping one choose the most appropriate term plan as per individual requirements.

Superior Customer Support

The online mode offers superior means to assist a customer. Besides being fast and efficient, websites usually have a knowledgebase of articles as well as an FAQ section that answer common queries in detail, thereby assisting in choosing the best life insurance plan. Dedicated customer support teams are always available to assist with doubts and queries – by online chat or through VoIP phone. Offline method of purchase does not offer the same level of support that the online mode offers.

Max Life Term Plan - FAQ

1. How to pay a premium? What are the modes of payment available?

The Max Life Insurance company Ltd. offers 6 modes of premium payment for Max Life term plans, namely:

• Cash Payment at the Branch
• Online Payment
• ECS
• NEFT/RTGS
• IVR
• Credit Card Instructions
• Direct Debit
• EBPP
• Payment at Axis Bank Branch
• Payment at Axis Bank ATM
• Your Bank Branch
• Sky Pack Drop Boxes

For the online payment mode, the policyholder can pay via;

• Credit Card
• Debit Card
• Net Banking

2. How can I check policy status for Max Life term plan?

Registered users can check the policy status of their Max Life term plan online. Login with your username and password on the LOGIN tab give on the company’s home page.

3. What is the policy renewal process for Max Life term plan?

For policy renewal of Max Life term plans online, follow these 3 easy steps:

Step 1: Enter your Client ID and Date of Birth to login into e-portal

Step 2: Enter the policy details of your Max Life term plan and select the payment method (Debit/Credit Card or Net Banking)

Step 3: Save/print premium deposit receipt on successful payment intimation

Alternatively, you can pay via cash/cheque at any of the nearest branch.

4. What is the company’s process to settle claim for Max Life term plan?

For claim settlement, the nominee can visit the nearest branch with all the Max Life term plan policy documents and the relevant claims form. The claims are settled within 10 working days from collection of all necessary documents for claim settlement.

5. What is the policy cancellation process for Max Life term plan?

For cancellation, you need to visit the nearest branch in person with all Max Life term plan policy documents and surrender form. Upon successful proceedings, the refund will be directly paid in your bank account.