For Whom Max Term Insurance is Suitable?
Max online term insurance can be purchased by anyone who is receiving salary or income and have dependents to care of. It is suitable for -
If you are single - If you invest in term insurance when you are single, then this becomes beneficial for parents who are utterly dependent on you at present moment or in future.
If you are married - When married your spouse may be financially dependent for expenses and this ensures spouse’s safety for future.
If you are married and have kids - When you are married and got future responsibilities of children like expenses of education and marriage, then it will safeguard them in your absence.
Max Life Term Plan Coverage Options
MaxLife Online Term Plan Plus has 3 variants or options mentioned below -
1. Basic Life Cover
Definition: Pays a lumpsum amount on the maturity or death to the beneficiaries.
Features:
- Give coverage to 40 illnesses and disabilities precarious to health through extra premium
- Benefit of upgrading the coverage amount for significant expenses like marriage or birth.
- Premium payment till the age of 60 years for the coverage taken up to 85 years (possible through extra premium).
- Sum insured is 25 lakhs to 100 crores
2. Basic Life Cover With Monthly Income
Definition: This plan will give you a definite amount of sum insured along with monthly income (0.4% of the sum insured for 10 years) to the family of the policyholder.
Features:
- 98.26% of claim settlement record and tax deductions
- Covers 40 critical illness (on extra premium payment) for which 50% of the sum insured is paid and rest is carried forward.
- Pay til 60 years if the term of coverage is up to 85 years.
- Sum insured is 25 lakhs to 100 crores.
3. Basic Life Cover With Rising Monthly Income
Definition: It gives the family of the insured unlimited benefits of full sum insured along with payment of monthly income for 10 years that keep rising by 10% per year as the cost of living escalates.
Features:
- Premium payment term is less than the term of the policy
- Coverage form critical illness, accidental death, disability and waiver of premium.
- Deposit premiums till you work (up to 60 years) and get coverage until 85 years. Also, save the total amount of premium.
- Sum insured is 25 lakhs to 100 crores.
FAQs
1. What are the advantages of buying Max Life term insurance online?
- By the plan by just sitting at home or in your comfort zone.
- Less time consuming and smooth processing with zero efforts.
- Compare premiums and coverage according to your needs.
2. How to select the best term insurance?
Consider the following points -
- Claim settlement ratio of the company
- Satisfaction rate of the current policyholders
- Check the number of benefits provided in the term plan
- Compare the premiums with respect to the sum insured and riders
- Flexibility under a plan
3. Is there any Maturity benefits under the policy?
No, there is no provision to receive maturity benefits at the end of the policy.
4. What is the benefit of selecting pay till 60 option?
e benefits are -
- Total payout premium would be less than the premium under the regular payment option.
- Get coverage till the age of 85 years while you pay till 60 years.
5. What is the eligibility criteria for selecting life stage benefit?
To avail this option -
- Sum insured must be more than or equal to Rs 50 lakhs.
- Age must be 45 years minimum.
- Three years must have passed from the date of issuance of the policy.
- Annual payment of premium for three continuous years from the date of inception.
- Sum insured can be increased within a time period of one year after the occurrence of the event.
6. What events are covered under Life stage benefit?
Events covered are -
- Marriage
- Childbirth
- Home loan
7. How much percentage of increase is given under life stage benefit?
| Types of life stage benefit |
% of increase in sum insured |
| Marriage (one time in the whole policy term) |
50% of sum insured (but less than Rs 50 lakhs) |
| Childbirth (up to 2 births only) |
50% of sum insured (but less than Rs 25 lakhs) |
| Home loan (one time in the whole policy term) |
50% of sum insured (but less than Rs 50 lakhs) |
8. What death benefits do we receive under Max online term plan plus?
The death benefit is different for various coverage given in the table
| Coverage options |
Total Death benefit |
| Basic life cover |
100% of sum insured |
| Basic life cover with monthly income |
148% of sum insured |
| Basic life cover with rising monthly income |
169.6% of sum insured |
9. How much do we get if we choose Basic Coverage with Increasing Income?
Let’s consider an example, Mr. Gupta purchased Max life online term plan plus on 20th January 2014 for Rs 1 crore by selecting basic coverage with increasing income. Mr. Gupta died on 25 July 2018 Monthly income would be 0.4% of the sum insured
The income payable after death will start from new year i.e. 20th January 2019 as shown in the table.
| Payment Period of Income |
Amount of income (10% of increase every year for continuous 10 years ) |
| 20 January 2019 to 20 December 2020 |
Rs 40,000 |
| 20 January 2020 to 20 December 2020 |
Rs 44,000 |
| 20 January 2021 to 20 December 2021 |
Rs 48,000 |
| 20 January 2022 to 20 December 2022 |
Rs 52,000 |
| 20 January 2023 to 20 December 2023 |
Rs 56,000 |
| 20 January 2024 to 20 December 2024 |
Rs 60,000 |
| 20 January 2025 to 20 December 2025 |
Rs 64,000 |
| 20 January 2026 to 20 December 2026 |
Rs 68,000 |
| 20 January 2027 to 20 December 2027 |
Rs 72,000 |
| 20 January 2028 to 20 December 2028 |
Rs 76,000 |
Note: 10% increase will be given on first-year income of Rs 40,000.
10. Do the premium amount increase with the increase in age?
No, there no clause in the policy that says premium rises with an increase in income. But if there are any fluctuations in the tax rate, the premium may change.
11. Is it good to buy term plan at an early age?
Buying term plan at an early age can give relaxation in payment of premium. If you buy a cover of Rs 50 lakh at age of 35, the premium would be Rs 1137 per month. While if you buy at 25 years for the same sum insured, the premium would be 514 per month. In both the case, the coverage is taken for 50 years. Premium at an early age is much less than premium at a higher age.
12. How much coverage amount should I buy?
The basic rule to follow is-
Sum insured= 10 x annual income + outstanding loan and liabilities
Most of the term insurance companies follow this trend. But Max life gives you sum insured option up to 22 times of annual income. The sum insured will depend upon your age and income.
13. What is the grace period if we fail to pay premium on the due date?
Under monthly payment of premium, a grace period of 15 days is allowed to the policyholder for payment.
Under the annual/quarterly/half yearly payment of premium, 30 days of grace period is given.
