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:

  1. The plan offers a lot of flexibility as there are 7 death variants to choose from:
    1. Life Cover
    2. Income Protector 
    3. Income + Inflation Protector 
    4. Life Cover + Income
    5. Life Cover + Increasing Income
    6. Increasing Cover
    7. Reducing Cover
  2. You also have a lot of choices in paying your premium, you can pay on a monthly, quarterly, half-yearly and yearly basis
  3. You can get coverage up to 85 years of age
  4. In case you are diagnosed with any of the listed 40 critical diseases, you receive an Accelerated payout 
  5. With the Life Stage Event benefit, you can opt for additional protection. At important stages in life, you can enhance the coverage

Benefits under Max Life Smart Term Plan:

  1. Death Benefit:
    Death benefit is a pre-defined lump sum amount that is paid to the appointed nominee in case of death of the insured individual during the term of the policy. Under the Max Life Smart Term Plan, the company pays a Guaranteed Death Benefit, which is higher than 
    1. Single Pay – 1.25 times the Single Premium (extra premium if any)
    2. For Other variants – 10 times the Annualised Premium (extra premium if any)
    3. 105% of Total Premiums paid (extra premium if any)
    4. Guaranteed Sum Assured on Maturity which is 100% of the Total Premiums Paid (extra premium if any)
    5. Any absolute amount is assured to be paid on death.
  2. Accelerated Critical Illness Benefit:
    The ACI benefit is payable if the insured individual is diagnosed with any of the enlisted illnesses during the policy tenure.
  3. Accident Cover Options:
    In case of accidental death of the insured, 100% of Accident Cover Sum Assured will be paid to the nominee as a lump sum irrespective of the death benefit variant.
  4. Premium Back Variant:
    This option can be selected only at the time of policy purchase and not thereafter. Under this option, if the insured outlives the policy term, 100% of the Total Premiums Paid plus any extra premiums paid, are paid to him/her at the end of the policy term. This benefit can be opted for, with all 7 death benefits.
  5. Life Stage Add-On Sum Assured Option:
    Marriage, childbirth and house loan are ‘life stage events’ where the sum assured increases under this option. The add on sum assured can go up to 50% of the sum assured chosen at the time of policy purchase.
  6. Maturity Benefit:
    No maturity benefit is available under Max Life Smart Term Plan unless the Premium Back variant is selected.
  7. Surrender Benefit:
    A policy acquires Surrender Value when:
    1. Single Premium Option: All single premiums have been paid
    2. Regular Premium Option: No Surrender Value is applicable
    3. Limited Premium: 
      1. Less than 10 years PPT: Payment of 2 years premiums
      2. More than 10 years PPT: Payment of 3 years premiums

      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.

  8. Reduced Paid-Up:
    In case of premium discontinuance by the policyholder, a Reduced Paid-Up value will be acquired by the policy in the case of Premium Back variant and only when the policy has acquired a Surrender Value.
  9. 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.

  1. Life Cover:
    Raghav Nair is a 32-year-old financial analyst working in an MNC. He buys the Max Life Smart Term Plan Life Cover variant, with his 30-year-old wife, Sunita Nair as the nominee. The details of the policy are as follows:
    1. Sum Assured: INR 1 crore
    2. Term of the Policy: 40 years
    3. Payment term: 40 years
    4. Annual Premium: INR 10,500

      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.

  2. Income Protector:
    Sameer Patahnia is a 28-year-old bank manager. He buys the Max Life Smart Term Plan Life Cover variant. His 55-year-old mother, Kamla Pathania is the nominee. The details of the policy are as follows:
    1. Monthly Income: INR 1 lakh
    2. Payout Period: 10 years
    3. Term of the Policy: 40 years
    4. Payment term: 40 years
    5. Annual Premium: INR 15,874

      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.

  3. Income + Inflation Protector:
    37-year old Lakhsya Varma is a veterinary doctor. He buys the Max Life Smart Term Plan Income Protector variant. The details of the policy are as follows:
    1. Monthly Income: INR 1 lakh
    2. Yearly Increase: 10% of the month income-INR 10,000
    3. Payout Period: 10 years
    4. Term of the Policy: 40 years
    5. Payment term: 40 years
    6. Annual Premium: INR 28,301

      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.

  4. Life Cover + Income:
    Salim Khan is a 38-year-old software professional who has his own business. His wife Fiza Khan is the nominee for the policy. He buys the Max Life Smart Term Plan Income Protector variant. The policy details are as follows:
    1. Sum Assured: INR 1 crore
    2. Monthly Income: INR 40,000
    3. Payout Period for Income: 10 years
    4. Term of the Policy: 40 years
    5. Payment term: 40 years
    6. Annual Premium: INR 14,616

      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.

  5. Life Cover + Increasing Income:
    Sukhwinder Singh is a 40-year-old school teacher. He buys Max Life Smart Term Plan Life Cover + Increasing Income variant with his wife Gurpreet Kaur as the nominee. The details of the policy are as follows:
    1. Sum Assured: INR 1 crore
    2. Monthly Income: INR 40,000
    3. Yearly Increase: INR 4,000 (10% of the first month’s income)
    4. Payout Period for Income: 10 years
    5. Term of the Policy: 40 years
    6. Payment term: 40 years
    7. Annual Premium: INR 31,720

      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.

  6. Increasing Cover:
    Roshan Awasthi is a self-employed artist. He is 30 years old. His wife Jyoti is a homemaker. He buys the Max Life Smart Term Plan Increasing Cover variant. The details of the policy are as follows:
    1. Sum Assured: INR 1 crore
    2. Yearly Increase in Sum Assured till completion of 21st policy anniversary: INR 5 lakhs
    3. Term of the Policy: 40 years
    4. Payment term: 40 years
    5. Annual Premium: INR 17,000

      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.

  7. Reducing Cover:
    Alex Jones is an assistant movie director. He is 39 years old. His wife Victoria is a school teacher. Alex buys the Max Life Smart Term Plan Reducing Cover variant, with Victoria as the nominee. The details of the policy are as follows:
    1. Sum Assured: INR 10 crore
    2. Reduction in Sum Assured on completion of every 5 policy years: INR 50 lakhs
    3. Term of the Policy: 40 years
    4. Payment term: 40 years
    5. Annual Premium: INR 2,34,000

      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:

  1. Enhance your coverage:
    You have the option to add the Max Life Waiver of Premium Plus Rider to your basic plan. This rider offers a waiver of all future premiums under the policy in case of critical illness, dismemberment or death.
  2. Discounts:
    1. In case you choose a high sum assured, you will receive built-in discounts
    2. Female lives get a discount when they purchase this plan
    3. Non-smokers can also avail of discounts
    4. Existing customers of Max Life can enjoy a 5% loyalty discount

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-

  1. Duly Filled and Signed Application Form
  2. Identity proof (any one of the following)
    • Aadhaar Card, issued by UIDAI
    • Voter ID Card, issued by the Election Commission of India
    • PAN Card, issued by the Income Tax DepartmentIndian passport
    • Driving licenses in India issued by the respective state governments
    • Overseas Citizenship of India document
    • Ration card issued by the Government of India
    • Identity Certificate for non-citizens or stateless people
    • A Birth certificate issued by the Registry of Births and Deaths (RBD) or from a Municipality within the provisions of the RBD Act
  3. Current Address Proof
  4. Latest Passport Size Photographs (2-4)
  5. Proof of Income

Exclusions Under Max Life Smart Term Plan:

The following are the exclusions under the Max Life Smart Term Plan:

  1. If the insured dies by committing suicide within 12 months from the inception of the policy, the nominee gets refunded which is higher than-
    • Sum of total insurance paid
    • The extra premiums received till the date of death
    • Surrender value if any.
  2. Death caused due to participation in any adventurous sports and dangerous activities not covered under the plan.
  3. Death due to participation in Civil War, Rebellion is not covered.
  4. Death due to alcohol consumption is not covered.
  5. Death due to participation in illegal activities is not covered.

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-

  • Step 1
    Click on ‘Life’ from the menu and select Compare Term Insurance. Enter the applicant’s details such as gender, date of birth, whether the person chews tobacco or smokes, and his/her annual income.
  • Step 2
    Next, choose the Sum Assured Amount and enter the contact details. Click on Save Your Quote. A list of the most well-suited plans will appear on your screen.
  • Step 3
    Now, you can browse through the different plans, compare their features and the premium.
  • Step 4
    When you make up your mind, you can select the policy and click ‘Buy Now’. A few more questions will pop up, which you have to fill up and continue.
  • Step 5
    The proposal will be sent for User Approval once you verify the OTP. Then someone from the company will contact you.

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.


FAQ’s

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-

  • The company receives your written request to Revive the Policy
  • The company is provided with evidence of the insurability of Life Insured at Your own cost
  • On payment of all overdue Premiums (along with the applicable taxes, cesses and levies, if any)

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.


The loan facility is not available under Max Life Smart Term Plan.