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

Benefits of Max Life Super Term Plan

• 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.
• 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.
• Fast Claim Settlement: The claim settlement ratio of Max life insurance is 98.74% which reflects the quick processing and effective customer service.
• 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.

1. 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.

2. 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.

3. 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.

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.

Max Life Super Term Plan Riders

Riders are offered only on the payment of additional premium.

• 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).
• 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):