You have always aimed at providing the best financial support in fulfilling your children’s future goals and giving your family the best life possible. However, do you feel insecure about what will happen to them in your absence? Will they be able to maintain the same lifestyle they carry now and have the same financial support for their future?
Well, buying the right kind of insurance plan can surely put all your worries to sleep. Max Life Insurance introduces their Max Life Smart Term Plan- a comprehensive protection plan that can be personalised for you and your loved ones according to your financial requirements that too at an affordable price.
Plan Details of the Max Life Smart Term Plan:
The Max Life Smart Term Plan is a non-linked non-participating savings life insurance plan. It provides 7 death benefit variants at an affordable price, offers you premium paying options, and has an amazing Accelerated Critical Illness Benefit (ACI) if the insured person is diagnosed with any critical illness covered under the policy. The plan also provides a premium back variant, i.e, 100% of the premium will be paid back if the insured outlives the insurance term life. Max Life Term Plan has stage life benefits and tax benefits to help you in enjoying tax exemptions.
Key features of Max Life Smart Term Plan:
Here are the key benefits of Max Life Smart Term Plan:
Benefits under Max Life Smart Term Plan:
Keep in mind that Surrender Benefit is applicable only for base death benefit cover and not on add-on options. Apart from the Premium Back variant, if the policyholder stops paying the premium or surrenders the policy, an Early Exit Value would be applicable. In case all premiums have been during the Premium Payment Term a Surrender Value will be paid out.
Eligibility conditions & restrictions in Max Life Smart Term Plan
Let us take a look at the eligibility criteria:
Parameters |
Details |
Minimum Entry Age |
18 years |
Maximum Entry Age |
For Regular Pay: 60 years; For Pay Till 60 Variant: 44 years |
Maximum Maturity Age |
For Base Death Benefit: 85 years For Accelerated Critical Illness (ACI) Benefit: 75 years Accident Cover Options: 85 years |
Policy Term |
For Base Death Benefit and Accelerated Critical Illness (ACI) Benefit Option: 10 years to 50 years Accident Cover Option: Minimum Policy Term: 5 years Maximum Policy Term: 50 years |
Minimum Basic Sum Assured |
Non-Medical Sales: INR 10 Lakhs Medical Sales: INR 10 Lakhs (all plans except the Reducing Cover Death Benefit Variant, for which the minimum Sum Assured: INR 1 Crore) Accelerated Critical Illness Option: INR 5 Lakh Accident Cover Option: INR 50,000 |
Maximum Basic Sum Assured |
Base Death Benefit: No limit (Subject to Board Underwriting) |
Loan Facility |
Not available |
Sample illustration of premium amount & sum assured in Max Life Smart Term Plan
The Max Life Smart Term Plan comes with 7 death benefit options. How the variants can affect the premium and the sum assured, let us see with some examples.
In this variant, 100% of the Sum Assured chosen at the time of policy purchase will be paid to the beneficiary as a lump sum, on the death of the insured. Suppose Raghav dies due to a natural reason in the 7th year of the policy, Sunita will receive INR 1 crore as the death benefit. The policy will then come to an end.
Under this variant, a monthly income for a duration of 10 years, 15 years or 20 years as chosen by the insured at policy inception, which will be paid to the nominee after the death of the insured. Suppose, Sameer passes away after 8 years of policy purchase, his mother will receive an annual income of INR 1 lakh for 120 months starting from the next monthly policy anniversary post Sameer’s death.
This variant is quite similar to the Income Protector. Here, an increasing monthly income for a duration of 10 years, 15 years or 20 years as chosen by the insured at the time of policy inception will be paid to the nominee after the death of the insured. However, the monthly income increases every year by 10% per year of the first monthly income that is paid.
So, in case Lakshya passes away in the 4th year of the policy, his nominee will receive INR 1 lakh in the first year, which will increase every year by INR 10,000, starting from the next monthly policy anniversary after Lakshya’s death.
In this variant, 100% of the Sum Assured chosen by the insured individual is paid on the death of the life insured + a specified monthly income of 0.4% of the Sum Assured will be paid for the next 10 years on a monthly basis, post the death of the insured.
Suppose Salim passes away after paying 5 annual premiums, his nominee Fiza Khan will receive INR 1 crore as the death benefit. A monthly income of INR 40,000 will be paid out to her for the next 120 months.
In this variant, 100% of the Sum Assured chosen by the insured individual is paid on the death of the life insured + a specified monthly income of 0.4% of the Sum Assured will be paid for the next 10 years on a monthly basis, post the death of the insured. However, the monthly income increases every year by 10% per year of the first monthly income that is paid.
Suppose Sukhwinder passes away 2 years after the policy’s inception, his wife will receive INR 1 crore as the death benefit. For the next 120 months, she would receive a monthly income of INR 40,000 which increases by INR 4,000 per year.
In the Increasing Variant of the Smart Term plan, the Sum Assured increases by 5% per year on each policy anniversary till the 21st policy anniversary. Suppose Roshan dies in a car accident after paying 5 premiums. On Roshan’s death, the sum assured effective as on the last policy anniversary will be paid to his wife Jyoti. The amount would be INR 1.2 crores.
Under this death benefit variant, the Sum Assured decreases by 5% every year on completion of every 5th policy year. On the death of the insured individual, the sum assured effective as on the last policy anniversary is paid to the beneficiary as a lump sum.
If Alex passes away within the first 5 years of the policy, Victoria will receive INR 10 crores. However, after this the sum assured will keep decreasing every 5th year. So, if Alex passes away between the 6th to 10th policy year, Victoria will receive INR 9.5 crores. If Alex passes away between the 36th to 40th policy year, Victoria will receive INR 6.5 crores.
Additional riders, features & benefits of Max Life Smart Term Plan:
Let us take a look at the other features and benefits available with this plan:
Documents Required to Buy the Max Life Smart Term Plan:
While buying MaxLife Smart Term Plan, it is advised to keep the following documents ready-
Exclusions Under Max Life Smart Term Plan:
The following are the exclusions under the Max Life Smart Term Plan:
How To Buy Max Life Term Insurance From Turtlemint?
Purchasing insurance policies becomes quick and simple with Turtlemint. It not only assists you to choose the right plan but also provides support throughout the insurance journey. Follow the given steps to start your journey today-
Conclusion
When it comes to buying an insurance plan, Max Life Smart Term Insurance could be the ideal choice. The flexibility of the plan helps the policyholder in prioritizing his/her requirements that might differ from person to person. While you worry for your family’s security and future in your absence, this plan can give you a sense of security against any mishaps and save them from stepping into a financial mess. Max Life Smart Term Insurance is a comprehensive protection plan that allows you the freedom to choose the best for you and your loved ones.
If you stop paying Max Life Smart Term Plan’s premium, even after the Grace Period is over, it would count as discontinuation of the policy and you won’t be able to claim any tax benefit. However, if you discontinue the payment of premiums after the second year from the commencement of the policy, the tax will be non-deductible on the premium paid on the last year of your policy. The tax deducted on the premium paid in the previous year is taxable in the year when the policy terminates.
A lapsed policy can be revived with some late fees as long as the Revival Period is not crossed. Reviving a scheme is now much easier with Policy Revival Scheme. A Lapsed Policy or a Policy under Reduced Paid-Up Mode can be revived if-
Max Life Smart Term Plan comes with an option to surrender. Surrender Benefit is applicable only for base death benefit cover and not on add-on options. If you want to surrender, you will get the option where you can receive all your premiums paid back at a specified term of the policy. However, the policy acquires a Surrender Value when two years’ premiums have been paid in full for a PPT of fewer than 10 years. In case the PPT is more than 10 years, the premium of 3 years must be paid in full.