Compare Max Life Online Term Plan Plus

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Max Life Online Term Plan Plus

Max Life Online Term Plan Plus is an online term insurance plan which has three different benefit payout options. The policyholder can choose the death benefit as per his coverage requirements. The plan also allows different types of premium discounts which make it easy on your pockets too.

Key features of the plan

  • The plan has three death benefit options to choose from. The policyholder can choose to receive only the Sum Assured, the Sum Assured and monthly incomes or the Sum Assured and increasing monthly incomes.
  • There are two riders – Max Life Comprehensive Accident Benefit Rider and Max Life Waiver of Premium Plus Rider. These riders can be added for enhanced protection.
  • Premium rates vary for smokers and non-smokers and also for female lives. Moreover, the policyholder can get a premium discount for choosing a high level of Sum Assured.
  • The plan can be easily bought online.

How does the plan work?

Step 1 – the policyholder chooses the Sum Assured and the death benefit option. There are three types of options which can be chosen. These are:

  • Basic Life Cover – under this option, on death during the plan tenure, the Sum Assured is paid as the death benefit.
  • Life Cover + Monthly Income - under this option, on death during the plan tenure, 100% of the Sum Assured is paid in lump sum. Thereafter, 0.4% of the Sum Assured is paid every month for 120 months (10 years). Thus, under this benefit, the plan pays 148% of the Sum Assured.
  • Life Cover + Increasing Monthly Income – under this option, on death during the plan tenure, 100% of the Sum Assured is paid in lump sum. Thereafter, increasing monthly incomes are paid for the next 120 months. The first monthly instalment is 0.4% of the Sum Assured which then increases by 10% (simple rate of interest) every year. Thus, this variant pays a total of 169.6% of the Sum Assured.

Step 2 – the policyholder then chooses the plan tenure and the mode in which premiums would be payable (annually, half-yearly, quarterly or monthly).

Step 3 – riders can be added for a more comprehensive coverage.

Step 4- if the life insured dies during the plan term, the death benefit would be paid. This benefit would depend on the death benefit option chosen when buying the plan.

Step 5 – If the plan matures, no benefit is payable to the policyholder as this is a pure term plan.

Example

Raghav, a non-tobacco user male aged 45 years buys the plan for a Sum Assured of Rs.50 lakhs. He chooses the policy term of 30 years.

Option 1 – if he opts for the first option of Basic Life Cover the premium would be Rs.11, 400. If Raghav dies during the plan tenure Rs.50 lakhs would be paid as death benefit.

Option 2 – if he opts for life cover + monthly income benefit the premium would be Rs.15, 350. If Raghav dies during the plan tenure, Rs.50 lakhs would be paid immediately. Moreover, from the next year, Rs.20, 000 would be paid as monthly incomes for 10 years.

Option 3 – if the third option of Life Cover + increasing monthly income is chosen, the premium would be Rs.17, 000. If Raghav dies during the plan tenure, Rs.50 lakhs would be paid immediately. From the next year, Rs.20, 000 would be paid as monthly income. In the year after that, the monthly incomes would increase to Rs.22, 000 and so on.

Option 4 – if the plan matures and Raghav is alive, no benefit is payable.

Plan benefits

  • Death benefit – the death benefit is paid on death of the life insured during the plan tenure. The benefit paid would depend on the death benefit option which was chosen by the policyholder when buying the plan. The death benefit is defined as the highest of the following:
  • 10 times the annual premiums
  • 105% of the premiums paid till death
  • Benefit payable as per the death benefit option chosen by the policyholder
  • Maturity Benefit – there is no maturity benefit payable under the plan

Eligibility Criteria

  Minimum Maximum
Age at entry (in completed years) 18 years 60 years
Age at maturity (in completed years) NA 75 years
Term of the plan 10 years 40 years
Premium paying options Regular pay
Premium Paying term Equal to the plan tenure
Sum Assured Rs.25 lakhs Rs.100 crores

What is not covered by the plan?
If the life insured dies due to suicide within one year of plan commencement or revival, the premiums paid are refunded.
Premium Illustration
Below are the sample rates of premium (inclusive of taxes) payable by a male at different ages and for different death benefit options. The premiums also show the variation due to smoking habits. The Sum Assured is taken to be Rs.50 lakhs and the plan term is taken to be 30 years for the calculations.

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FAQs

  • Which riders are available with the plan?
  • Max Life Comprehensive Accident Benefit Rider and Max Life Waiver of Premium Plus Rider are available with the plan at an additional rate of premium.

  • How are premiums for female lives computed?
  • Female lives are rated down 5 years over male lives for calculation of premiums. For instance, the premium charged from a 35 year old female would be the same as charged from a 30 year male. Thus, female lives are charged a lower rate of premium.

  • What is the free-look period under the plan?
  • The plan allows a free-look period of 30 days from the date of issue of the plan. The policyholder can cancel the plan during the free-look period.

  • Can the monthly instalments be availed in lump sum?
  • Under the third option of increasing monthly options, the nominee can choose to avail the monthly incomes in lump sum. In that case, the present value of the instalments discounted at 5.5% p.a. would be paid in lump sum.

  • What is the minimum level of premium under the plan?
  • The minimum premium is Rs.2200 payable annually.

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