Max Life Insurance — Plan, Compare Premiums, Features & Buy Policies: BimaKaro

9 min readMar 15, 2021

Bring home love, security and safety for you and your loved ones!

“You don’t buy life insurance because you are going to die, but because those you love are going to live!”

Love is a strong emotion that binds us to one another. We’d be ready to move mountains for them! However everything is not in our control. We’re bound by the uncertain laws of nature but that doesn’t mean we can’t flout a few rules and cheat those laws. I mean this is a law we’re all happy to break, right? We all wish we could live forever! Light humour aside, we love our family and we strive to do the best for their future.

Times are changing, yes Tik Tok has been banned on but let’s not dwell on such frivolities. There are far more serious concerns that we overlook in this age of distraction. We’re happy to spend thousands of rupees eating at a fancy restaurant but think a million times over getting the right life insurance for us and loved ones. Now why is that?

The world is going through large scale changes and no we’re not talking about the neighbour next door upgrading their home with the latest furniture from Ikea. The society, family, governments and the environment is rapidly evolving into a new uncertain form. We’re still hustling to get ourselves sorted. So why not give ourselves some leverage — build for retirement now and help achieve our long term goals.

Get that peace of mind when you’re sleeping.

Forget the shooting inflation rates, the haphazard of the stumbling economy and the uncertainty of the future. But how? Simple, take some time to read through this blog, understand what’s on the table and make the best decisions for you and your loved ones!

The recent pandemic has pushed the urgency even more. So why wait, get started now!

So what do we have? Max Life Insurance brings the Smart Term plan — Max Life Smart Term Plan. A customised plan that can solve all your needs.

Max Life Insurance Co. Ltd. (“Max Life”) is a joint venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max Financial Services Ltd. It is a part of the Max group, an Indian multi business corporation, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance group. The company is a subsidiary of the publicly listed Max Financial Services Limited and is the largest non-bank private-sector life insurer in India. Head quartered in Delhi.

Max life Insurance — Max Life Smart Term Plan, a Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan.

Eligibility of Max Life Smart Term Plan

Age of entry18–60 yearsMaximum age of maturity85 yearsPolicy Term

For Base Death Benefit & Accelerated Critical Illness Benefit Option: 10 to 50 years
Accident Cover Option: 5–50 years

Minimum Sum Assured10 lakhs

Let’s look at the key features of the Max Life Smart Term Plan:

Comfortable policy terms — Policy terms range from 10 years to 50 years. Minimum age at entry is 18 years and maximum age at entry is 60.
Long duration of coverage — You can opt for coverage of your policy term till the age of 85 years. You may opt to receive claims in multiple ways — a single lump sum pay out, lump sum pay outs over 5/10/15/20 years or as monthly increasing income pay outs.
Multiple methods of payment — You may opt for different systems of payment as per affordability i.e. single pay, payment for a limited period or payment regularly throughout the tenure of the policy. The premium payment mode can be changed anytime during the premium payment term.
Enhanced coverage: As the family grows, there is a shift in priorities, depending on the life stages and goals. You may opt to enhance your coverage on reaching a particular Life Stage milestone. However, this benefit can be opted for at the beginning of the policy only.
Loyalty and Health discount: If you are a non-smoker, there is a further benefit and you may get additional discount if you opt for this policy. There is also an additional Loyalty discount of 5 % for existing policyholders. This is possible if the policy is either paid up or in the premium paying stage.
High Sum Assured discounts: There are discounts built in the plan if higher Sum Assured is chosen.
Significant tax benefits — You may avail tax benefits under Section 80C, 80D and 10(10D) of income tax act 1961.
Free Look Period: You have a period of 15 days (30 days if the policy is purchased through online/distance marketing modes) from issue of the Policy Document to review the terms of the Policy and can opt to return the Policy stating the reasons for objection. Refund amount will be paid after deduction of proportionate risk premium for the period of cover and expenses incurred.
Grace Period: A grace period of thirty (30) days from the due date for payment of each premium is allowed for all premium paying modes except for monthly mode, where a grace period of only fifteen (15) days is allowed without late fee.
Revival of Policy: Once the policy has lapsed, it can only be revived within five years from the due date of first unpaid premium, subject to payment of all overdue premiums, along with late fee. However, In case of non-receipt of first two years’ premium, the policy will lapse and no benefits shall be payable.

Max Life Insurance’s max life smart term plan offers Various Death Benefit variants which have been built based on the key features mentioned as well as some unique features which make this plan the most beneficial for our family’s individual goals. These are encapsulated below.

Life Cover — Upon death of the insured, lump sum Life Cover amount opted for at the commencement of the policy will be paid immediately. However, in case Accelerated Critical Illness (ACI) Benefit has been claimed and paid, the Life Cover amount will be reduced accordingly.
Income Protector — Based upon the sum opted for, a fixed monthly income will be paid out for a duration of 10/15/20 years as chosen at the commencement of the policy. A monthly income promotes stability and prudence since in case one receives a lump sum there is always the temptation or tendency to overspend or invest in something totally unsuitable. Here too however the ACI benefit conditions apply.
Income and Inflation Protector — Keeping rising inflation in mind, increasing monthly income will be paid to nominee of Life Insured for 10/15//20 years as chosen. Every year the income will be increased by 10 % p.a. This acts as a stabilizing factor to overcome inflation. In this case too, the ACI benefit conditions will be applicable.
Life cover + Income — On death of the life insured, a Lump sum Life cover amount chosen by the Policyholder at policy inception will be paid to the beneficiary straightaway on death of the Life Insured and additionally, a monthly income of 0.4% of the Lump sum Life cover amount will be paid for 10 years. This monthly income will be payable each month on the death anniversary date of the Life Insured. ACI benefit conditions will be applicable in this case as well. However, the monthly income pay out amount shall not change.
Life cover + Increasing Income — On death of the life insured. Lump sum Life cover amount chosen by the Policyholder at policy inception will be paid to the beneficiary immediately on death of the Life Insured. Furthermore, increasing monthly income will be paid for 10 years, wherein the first year monthly income shall be equal to 0.4% of the Lump sum Life cover amount. The income will increase every year by 10% p.a. (simple interest) of monthly income payable in the first year. ACI benefit conditions will be applicable in this case as well. However, the monthly income amount shall not change.
Increasing cover — The Sum Assured payable increases by 5% p.a. (simple interest) of the Lump sum Life cover amount chosen at policy initiation annually. Upon death of the Life Insured, Sum Assured in effect as on the last policy anniversary will be paid to the nominee as a lump sum. The increase of the Sum Assured will be done only till completion of 21st policy year. To be specifically noted that Accelerated Critical Illness benefit and Life Stage Add on benefit options are not available with this death benefit variant.
Reducing cover — Under this variant, the Sum Assured payable decreases by 5% p.a. (simple interest) of the Lump sum Life cover amount chosen at inception, on completion of every 5th policy year. Please note that this variant is available only if Life cover amount chosen at inception is greater than or equal to 1 Crore. Also, the Maximum Accident Cover Sum Assured available under the variant is lower at 25% of Lifecover amount chosen at inception or 50 lacs. In this case as well, Accelerated Critical Illness benefit and Life Stage Add on benefit options are not available with this death benefit variant

Commutation options -The nominee can opt to convert the outstanding income payments into a single payment at any point in time. For this, the nominee will have to submit a written request to the Company. The Company shall pay present value of all future monthly incomes discounted at the rate of 4.5% p.a.

Accelerated Critical Illness (ACI) Benefit

Max Smart Term Plan has a feature called Accelerated Critical Illness (ACI) benefit. This benefit is payable on diagnosis of specified Critical Illness during the CI Benefit cover period. This benefit has 2 options i.e. (a) Level ACI Benefit: The ACI Sum Assured is fixed and level throughout the ACI policy term. & (b) Increasing ACI Benefit: The ACI Sum Assured will increase at a simple rate of 5% p.a. of ACI Sum Assured chosen at inception. The details of this Benefit are described in detail in the Brochure.

Why would I opt for Max life Smart Term Plan offered by Max Life Insurance?

There are a lot of unique features in this plan that give it an edge over the others in the market.

Firstly, the “Accelerated Critical Illness (ACI) Benefit” is something that sets it apart. How does it work? In case you are diagnosed with a severe health concern, this options means that you receive an immediate pay out in order to cover immediate medical expenses. This would of course, be subject to the payment of additional premium.

Secondly, you can opt to receive increased pay-outs annually which will act as an Inflation Protector. This option is potentially an advantageous benefit since inflation is on the rise and is at an all-time high currently.

Thirdly, it is one of the only Life Term Plans which provides a Premium Back i.e. maturity value. In case the Life Insured survive throughout the Policy term, as per this plan, he will be eligible to receive the entire number of Premiums paid after deduction of necessary taxes, cesses etc. This is positively a huge plus point for this Policy as this means that this is not a pure life insurance plan and if the insured survives beyond the policy term, Premiums paid can be recovered .

This plan is, additionally beneficial to non-smokers as they may get coverage at lower Rates. Loyalty discounts are an added attraction since this means existing customers get an added discount.

Last but not the least, this is not a Market linked plan. Therefore, the Stock Market volatility does not affect the plan in any way, negative or otherwise.

One drawback of this Plan is that when one opts for the ACI Benefit option and in case this option has been utilised and pay out received by the Insured, the Sum Assured payment is proportionately reduced at the time of claim.

Secondly, this is a non-participating Policy which means that there is no Bonus payable at the time of claim.

Conclusion

There is no waiting for the right time and place to get the insurance needed for you. The stars aren’t going to align for that to happen. So take destiny into your own hands and go for it!

Get started and check out features of Max Smart Term Plan offered by Max Life Insurance in detail at BimaKaro.in