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Super Term Plan
  • Increasing Life Cover Every Year
  • Choose Policy Term 10 - 35 Years
  • Flixible to Choose Monthly Payout
  • Add-on Riders Benefits
  • Coverage at Affordable Price

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Max Life Super Term Plan

What makes Max Life Super Term plan different from other term plans? It is the benefit of increasing value of sum assured which keeps on growing for whole of the policy tenure. That’s why this plan is pronounced as Super term Plan that bestows super benefits of death, increasing sum Assured, tax, lower premiums etc.

Super Term Plan provides strong support when the inflation rate fluctuates in the market in order to cope up with the essential needs of the family.

Max Life launched Super Term Plan with a primary objective of “financial protection to family (also called beneficiaries) when any uncertain death occurs due to illness or accidents.'' Uncertain deaths not only causes damage to life but also makes the family of the expired person financially crippled. Let’s have a look at the benefits, terms and conditions of the plan.

Eligibility of Max Life Super Term Plan

Minimum Age of entry 18 years
Maximum Age of entry 65 years
Maximum age of maturity 75 years
Term of Policy 10 to 35 years
Sum Insured Amount 25 lakhs to unlimited as per underwriting process
Premium Payment Options Monthly/Quarterly/Half Yearly/Annually
Premium Payment Term Same as the tenure of the policy selected
Riders Accidental death and dismemberment cover, Critical illness, life stage benefit, Waiver on premium

Benefits of Max Life Super Term Plan

There are a total of nine plan options under HDFC Life Click 2 Protect 3D Plus-

  1. Death Benefit: At the time of death the family or beneficiaries of the insured will receive lumpsum or lumpsum plus rising monthly income of sum assured in combination with other rider benefits if taken.

  2. Tax Benefit: Tax benefits under section 80C and 10C(C) under Income Tax Act where the tax paid annually for the income will get lessened due to the premiums paid.

  3. Fast Claim Settlement: The claim settlement ratio of Max life insurance is 98.6% which reflects the quick processing and effective customer service.

  4. Increased Sum Assured with Inflation- A rise of 5% is provided every year on the basic sum insured under Increased Sum Assured option which will maximize the coverage on death. The motive behind this is to meet the rising level of inflation in the coming years with increased coverage amount.

Premium Benefits

  • Lower Premiums for Females-Max life term plan provide lower rates of premium to females to boost the concept of women empowerment.

  • Lesser Premiums on High Sum Assured - If a policyholder invest in a high sum assured, then the premiums are usually low.

    Likewise, if you select 1 crore of coverage under increasing sum assured the monthly payment for 35 years old men (smoker) would be Rs 433 (excluding riders and taxes amount) for 30 years of policy tenure. While under similar conditions if you choose Rs 50 lakhs as Sum Assured, the premium would be Rs 451 per month.

  • Young Age less Premium- It is always worthwhile to take term insurance at an early age because at that time you are more energetic about earning money and also it draws lesser premium rates during the whole tenure.

    For example- The basic premium under 75 lakhs of sum assured for a 30-year-old man (non-smoker) is Rs 131 per month for 30 years policy tenure under level sum assured options. Whereas for 39 years, it is Rs 238 per month with same conditions.

  • Reduced premiums for Non-Smoker- A healthy person always win in terms of everything, even when it is term insurance. A Non-Smoke is given preferences when premiums are decided at the time of purchase.

    To illustrate: Sum Insured is Rs 90 lakhs and policy tenure is 25 years chosen by a 35-year-old man (non-smoker). Premium is Rs 183 monthly while for a smoker it is Rs 262 monthly.

Death Benefit Payout option

  • Lumpsum- This payout option will ensure lumpsum payment of the sum insured to the legal heir or nominee following the demise of the policyholder.

  • Lumpsum Plus Increasing Monthly Income: In deathlike condition, the entire sum insured will get distributed into two equal payments where one payment will be in lumpsum while remaining is offered in monthly income. For example, if the total coverage is of 1 crore, then under this option the lumpsum would be 50 lakhs and the amount for income is 50 lakhs payable for 10 years raised every year by 8.5% without any underwriting process.

Sum Assured Options

  • Fixed/Level Sum Assured- The sum Assured opted at the purchase of the policy will remain intact during the term of the policy. On death circumstances, the whole sum Assured will be returned to the nominee either in lumpsum or lumpsum + Increasing Monthly Income

  • Increasing Sum Assured- In contrary to Fixed Sum Assured, the sum assured selected is bound to increase after the completion of one year of the policy at 5% of simple interest. The nominee will receive increased sum insured as death benefits. The depiction for increasing Sum Assured is given in the Table.

    Prashant (35 years) took a policy of Rs 2 crore for 25 years where he assigned the status of nominee to his wife. Prashant died after 5 years of policy purchase. The regular increase given is 10 lakhs (5% of Rs 2,00,00,000) every year.

    Year of the Policy Sum Assured
    1st year Rs 2,00,00,000
    2nd year Rs 2,10,00,000
    3rd year Rs 2,20,00,000
    4th year Rs 2,30,00,000
    5th year Rs 2,40,00,000

    The yearly premium paid is Rs 46,000(including tax but excluding riders). The total premium submitted for 5 years is 2,30,000.

    Conditions 1: Under lumpsum payout, the wife will get the coverage at one i.e. 2.4 crores after death.

    Conditions 2: Under lumpsum plus increasing payout, the wife will get half coverage i.e. Rs 1.2 crores in lumpsum and remaining is paid in income which gets incremented @ 8.5% p.a. for 10 years after death.

5. 3D Life Long Protection Option

Highlights-

  • It covers critical illness and accidental permanent disability benefits in which all the future premiums are reduced if any one of event happens.

  • Lumpsum payment is made under the circumstances of death/terminal illness.

6. Return of premium

Highlights-

  • Maturity benefits- all the premiums paid will be refunded if the policyholder sustains until the policy term period.

  • For Accidental Permanent Disability, all the premiums will be reduced for the future.

  • On the event of death/terminal illness, a lumpsum amount of sum insured is paid to the beneficiaries and the policy will cease to function.

Max Life Super Term Plan Riders

Riders are offered only on the payment of additional premium.

  1. Accidental Death and Dismemberment: It gives you coverage for the disability or death arrived due to accidents. The policyholder can select a sum assured from Rs 50,000 to Rs 1 crore at the time of buying the policy. The minimum premium payable under this riders is Rs 50 p.a.(excluding all the taxes and underwriting premium).
  2. Premium Waiver Benefit: The future premium will get waived off on the diagnosis of critical illness, dismemberment or uncertain death.

Exclusions

Suicides are not covered under the plan. In case any suicide happened the company shall return the total premiums (excluding premiums for rider) deposited before suicidal death.

Premium Illustration

Given below table is an illustration of the premium for different ages with or without smoking habits. The standard sum assured 1 crore taken 30 years. The riders added are Waiver of Premium and Accidental Death and Dismemberment (of Rs 10,00,000):

Age Level sum Assured Increasing Sum Assured
Non-Smoker Smoker Non-Smoker Smoker Policy Tenure
30 1089 1575 1809 2700 30 years
35 1485 2052 2565 3618 30 years
40 2322 3528 4113 6318 30 years
45 3366 5175 5868 9045 29 years

FAQs

1. What is the claim settlement ratio of Max Life Insurance?

The current ratio for settlement of claim as extracted from the annual records of the Max Life insurance is 98.26% as approved by IRDA.

2. Is there any maturity and survival benefit in the Super Term Plan?

Generally, term insurance does not carry survival as well as maturity benefits. If you are looking for these two benefits then you should go for Life Insurance policies.

3. What happens to my policy if I stop paying premiums?

The policy insurance cover will face reduction gradually if the premium is not submitted at all instead of termination.

Please Note: The reduction coverage is only applicable to the policies whose tenure is greater than 16 years or equivalent to it. To calculate the reduced insurance cover, the formula is- Reduced coverage = [{(year of policy when premium is discontinued- 1/ term of policy} - 0.25] x guaranteed death benefit

4. What happens, if I do not pay premiums after 10 years with 15 years of policy tenure?

The policy will be declared as lapsed due to non-payment of premiums after 10 years and no surrender benefit is rendered.

The surrender value (in reduced form) is only paid when the policy is of 16 years of tenure or more

5. How the guaranteed death benefit is calculated?

The guaranteed death benefit must be higher of -

  • 10 times of the annual premium paid for one year
  • 105% of gross premiums paid till the death of the policyholder.
  • Sum insured payable as guaranteed on the maturity of the policy
  • Sum Assured applicable on policy anniversary previous or harmonizing with the date of death

6. If I have purchased a policy of 1 crore (fixed sum assured) of 30 years and ended paying premium after 16 years of the policy, what would be my reduced insurance cover after maturity?

The reduced coverage would be as follows-

Reduced coverage = [{(Year of policy when premium is discontinued- 1/ Term of policy} - 0.25] x guaranteed death benefit

Year of policy when premium is discontinued= 16 years

Sum Assured= Rs 1,00,00,000

Term of policy = 30 years

RIC = [ { (17-1) / 30} - 0.25] X 1,00,00,000(guaranteed death benefit) = Rs 25,00,000

Rs 25 lakhs will be provided to nominee in case of death of the policyholder between 16 to 30 years of the policy term.

7. Does Max Life Super Term Plan contain loan facility?

The facility of loan is not available in this plan.

8. What is Annualised Premium?

In Super Term Plan, the definition of Annualised Premium is the total sum of Annual premium and extra premium paid for riders (if any). Annualized Premium is especially for the evaluation of guaranteed death benefit.

9. Under what circumstances policy is terminated?

  • If you cancel your policy within free look period of 15 days starting from the date of inception.
  • On the lumpsum payment of guaranteed death benefit or reduced insurance cover to the nominee
  • If the death benefit claim is denied by the company with regard to terms and conditions.
  • Expiry of Revival Period of the policy, when a lapsed policy is not revived by the policyholder.
  • Surrender date of the policy, if it is not under Reduced Paid-Up Mode.

10. What documents are necessary to raise a death claim?

  1. Statement of claimant in the given form.
  2. Original policy documents
  3. Photocopy of FIR/police reports. If death has happened due to accident.
  4. Certified post mortem report, in case of accidental death.
  5. Death certificate issued by municipal corporation of the city.
  6. ID proof of the claimant and the nominee having photograph and signatures.
  7. Additional supply of documents if demanded by the company for claim approval and settlement.

11. What is the procedure to file a claim?

  1. Accumulate the requisite documents and fill the claim request form.
  2. The company will examine the credibility of all the documents and then approve the request.
  3. The claim will be settled through electronic transfer of the claim amount.

12. How much time is taken by Max Life to pay the claims?

With correct submission of all the necessary proofs for claims, the company can take 30 days to settle the claim. In some cases, this time limit can go up to 180 days, if further verification is mandated by the company.

Max Life Term Plans

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