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.
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:
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.
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.
|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.
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.
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.
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.
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.
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.
The minimum premium is Rs.2200 payable annually.