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.
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 |
1. Premium Benefits
2. Death Benefit Payout option
3. Sum Assured Options
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.
Riders are offered only on the payment of additional premium.
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.
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 |
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 -
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?
10. What documents are necessary to raise a death claim?
11. What is the procedure to file a claim?
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.
Last updated on 21-12-2020