• Term Life
  • Investment

Introduction Max life term Insurance

As a responsible member of the family, securing your family’s future is not just a necessity, but also an important duty. The precariousness of life that we face every day, makes an individual strive harder every day to safeguard his/her family from every problem in life, even if he/she isn’t around them.

Though Indians still have a long way to go, thanks to the growing awareness, people are understanding the benefits and significance of being insured. Also, as more and more companies are entering the insurance industries, Indian are split for choices. But when it comes to trusting a company with his family’s future, Max Life Insurance is a much-preferred name. One of India’s top-ranking non-bank promoted private life insurance company, it has an edge over its counterparts due to its customer-centric approach and the excellent investment expertise that it offers.

Max Life Premium Return Protection Plan

Though having a foolproof plan for the future is not really possible, but with Max Life Premium Return Protection Plan, one can be prepared for the challenges that come along. This plan by Max Life Insurance offers coverage and if the insured individual outlives the term of the policy, it also provides the return of total premiums paid. By paying premiums for a limited term of 11 years, the policyholder can enjoy lifelong advantages. The plan provides Guaranteed Return of Total Premium paid at the time of maturity. Max Life Premium Return Protection Plan gives its customers the flexibility to select the tenure of the protection period that can be 20/25/30 years.

The Death Benefit

In case the insured individual passes away during the policy tenure, the appointed nominee receives a pre-determined sum assured, which can be between INR 5 lakh to INR 1 crore. This amount is decided by the policyholder when he buys the policy. Once the death benefit has been paid, the policy ceases.

The death benefit under Max Life Premium Return Protection Plan is described as: Higher of:

  • 10 times of the Annualised Premium
  • 105% of the premiums that are paid till the death of the insured
  • GMSA-Guaranteed Maturity Sum Assured
  • GDSA-Guaranteed Death Sum Assured

Annual premium

Annual premium is defined as the amount that is payable when the premium payment mode is annual. This amount is exclusive of taxes, etc. if any.

Total Premium

Total premium is the amount that is a total of all the premiums that have been paid. This amount includes the extra premiums and also loaded for modal factors, however, any tax like the service tax or other taxes and additional charges are not included in the total premium.

Guaranteed Maturity Sum Assured (GMSA)

Guaranteed Maturity Sum Assured (GMSA) is Total Premium that is payable over the Premium Payment Tenure.

Guaranteed Death Sum Assured (GDSA)

Guaranteed Death Sum Assured (GDSA) is defined as 100% of the Sum Assured for all claims that are non-accidental in nature and 150% of the Sum Assured for all claims that are accidental.

The Maturity Benefit

The total premiums that were paid during the policy term will be returned to the policyholder if he outlives the policy. This benefit is also called the Survival Benefit. It should be kept in mind that the amount returned does not include the extra premiums or the taxes that have been paid.

Surrender Benefit

Once the policy achieves a surrender value, the policyholder has the option to surrender his Max Life Premium Return Protection Plan. A surrender value is acquired when the first three year’s complete premiums are paid. For instance, in the annual mode the policy can be surrendered after the payment of the third Annualised Payment, that is made in the 25th month. In the case of monthly mode, the policy can be surrendered after the payment of a total of 36 monthly payments that is after the 36th month. The surrender value is interpreted as the higher value of the Special Surrender Value or the Guaranteed Surrender Value.

Features of Max Life Premium Return Protection Plan

  • Special Rates for Women Applicants

    The rate of premium that is offered to women is less than the rates for men.

  • Flexibility in Payment of Premium

    The policyholder can select the mode of paying the premium on the basis of his own convenience. There are 4 modes-Monthly, Quarterly, Half-Yearly and Yearly.

  • Save on Taxes

    Premiums that are paid and the death and maturity benefit are exempted under Section 80C and Section 10 (10D) of the Income Tax Act respectively. However, tax benefits are subject to the prevalent tax laws while making the premium payment.

  • User-Friendly Application

    Applying for Max Life Premium Return Protection Plan is very convenient. This can be done online or by visiting the nearest branch office.

Benefits of Max Life Premium Return Protection Plan

  • Comprehensive Protection

    With the Max Life Premium Return Protection Plan, there is an inbuilt Accident Death Benefit under which, along with the basic sum assured, the nominee also receives 50% of this amount as the Accident Death Benefit.

  • Limited Premium Payment

    The policyholder is required to pay premiums for a term of 11 years only, with which he can avail the policy benefits for up to 30 years, or the policy term that he has chosen.

  • Guaranteed Premium Return

    In case the policyholder survives the term of the policy, when the policy ends he would receive 100% of the premium that he has paid in all. This amount will include the extra premiums also, but the taxes paid would not be included.

  • Long Term Protection

    The policyholder has the option to choose a policy term of 20 or 25 or even 30 years. This long term protection can be very satisfying for the breadwinner

Eligibility Criteria

Policy TermMinimum Entry Age Maximum Entry Age
20 years21 years55 years
25 years21 years50 years
30 years21 years45 years
Maximum Maturity Age75 years

Product details

Type of PlanNon-Participating Limited Pay Term Insurance Plan
Term of Policy20/25/30 years
Premium Paying TermThe premium is paid for 11 years.
Mode of Premium Payment
There are 4 modes of premium payment-Monthly, Quarterly, Bi-Annual and Annual.
The policyholder has the option to alter the mode of the premium payment, and it would be in effect only from the next policy anniversary. In such a case modal factors are applicable.
Mode
Modal Factors
Annual
1.00
Bi-Annual
0.52
Quarterly
0.265
Monthly
0.09
Minimum Sum AssuredINR 5 lakhs, However, this amount is subject to the minimum annual premium of INR 8,500.
Maximum Sum AssuredINR 1 crore, but the sum assured must be in the multiples of INR 50,000 only.

Riders offered under Max Life Premium Return Protection Plan

There are no Riders available with Max Life Premium Return Protection Plan. Nevertheless, the Accident Benefit Rider is inbuilt in the plan, under which if the insured individual dies in an accident within 180 days of the accident, then along with the basic sum assured, the nominee also receives 50% of this amount as the Accident Death Benefit.

Other Details of Max Life Premium Return Protection Plan

  • Policy Lapse

    If the due premium is not paid even in the grace period, the policy will lapse.

  • Loan Facility

    There is no provision to ask for a loan under the Max Life Premium Return Protection Plan.

  • Grace Period

    The Company gives a grace period of 15 days in case the premium paying mode is per month. In case of quarterly, semi-annual and annual mode, the grace period is of 30 days.

  • Free-Look Period

    A free-look period is allowed in this plan. If the policyholder is not fully satisfied with the existing terms and conditions of the policy, he can return the policy to the Company within 15 days of purchasing it. Once a request is made by the policyholder, the policy is called off, and the premium paid minus the expenses is returned to his bank account.

  • Revival Period

    In case the Max Life Premium Return Protection Plan gets lapsed due to non-payment of premiums, the policyholder can revive it within a time period of two years from the first unpaid premium date. But the revival has to be done before the maturity date. The revival of the policy, however, depends on whether the request is approved by the company or not. In case of a Reduced Paid-Up Mode, the policy can be revived by putting in a written request to the company. Once all the dues are paid, the policy may be revived.

  • Surrender Value

    If the policyholder wants to surrender the policy, he can do so, once all the conditions are fulfilled. For this, the insured individual should have paid premiums regularly for the first three years of policy term. After three years only the policy accumulates a surrender value.

  • Nomination

    Under the provisions of Section 39 of the Insurance Act 1938, Nomination is carried out, as amended from time to time.

  • Assignment

    Under the provisions of Section 38 of the Insurance Act 1938, Assignment is carried out, as amended from time to time.

  • Non-Forfeiture Option

    In case of non-payment of premiums after the policy has acquired a surrender value (a surrender value is acquired only after the first three years’ premiums are duly paid) the policy automatically becomes a Reduced Paid Up Policy. The benefits then received are as follows:

  • Reduced Paid Up, RPU Death Benefit

    The Reduced Paid Up Death Benefit will be calculated using this formula -

  • RPU Death Benefit = (Total Premiums that are Paid less any Extra Premium (if any) less Rider Premium payment (if any) / Total Premiums that is Payable less Extra Premium (if any) less Rider Premium (if any)) X the Death Benefit
  • Reduced Paid Up, RPU Maturity Benefit A total of the premiums that have been paid during the tenure of Max Life Premium Return Protection Plan is payable at the time of maturity.

The Documents required

To apply for Max Life Premium Return Protection Plan, the following documents are to be submitted:

  • Duly filled and signed Application Form
  • All KYC details
  • Aadhaar Card, Voter’s ID Card, PAN Card, Driver’s License
  • Policyholder’s Salary Statement
  • Copy of Return of IT that has been filed the previous/current year

Exclusions - Max Life Premium Return Protection Plan

If the insured individual, whether sane or insane, has committed suicide within a year of commencement of the policy, or within a year of revival of the policy, the policy would be aborted. Under such a situation the company will pay to the nominee:

  • An amount equal to the total of premiums paid, if there is no surrender value yet acquired
  • In case the policy has a surrender value, then Higher of Special Surrender Value or the total of the premiums that have been paid.

Review of Max Life Premium Return Protection Plan

Max Life Premium Return Protection Plan helps you ensure the future of your family. This plan not only provides a life cover, but also pays back all the premiums that you have paid over the years. As the policyholder, you enjoy a comprehensive and extensive coverage along with the benefit of returns at the time of maturity of the policy. This unique plan by Max Life Insurance has a fixed premium paying tenure of 11 years, but the policyholder stays covered for 20/25/30 years. If in case you pass away, the death benefit will save your family from being in a financial crunch. In your absence, the family will get major support from the death benefit that you have left for them. In case you outlive then policy, the Guaranteed Maturity Sum Assured is also a great benefit that you can draw from Max Life Premium Return Protection Plan.

FAQs on Max Life Premium Return Protection Term Plan

Why should I invest in Max Life Premium Return Protection Plan?

This plan by Max Life Insurance offers coverage and if the insured individual outlives the tenure of the policy, it also provides the return of premium payment. By paying premiums for a limited term of 11 years, the policyholder can enjoy lifelong advantages. There are also various advantages like Guaranteed Return of Total Premium which is paid at the time of maturity. You can also save on taxes by investing in this plan.

With the Max Life Premium Return Protection Plan how can I save on taxes?

Tax benefits are subject to the prevalent tax laws while making the premium payment. However, premiums that are paid and the death and maturity benefit are exempted under Section 80C and Section 10 (10D) respectively.

What are the modes of premium payment under Max Life Premium Return Protection Plan?

There are 4 modes of premium payment-Monthly, Quarterly, Bi-Annual and Annual. The policyholder has the option to alter the mode of the premium payment, and it would be in effect only from the next policy anniversary. In such a case, modal factors are applicable.

How much time does the Company take to settle a claim under Max Life Premium Return Protection Plan?

Generally, the policy of the company is to settle a valid claim within 30 days from the time all required documents are submitted. However, if there is extra verification required, the process can take upto 180 days

In the fifth year of my policy, I faced many financial difficulties and couldn’t pay my premiums. It has been 1 year since, can I still revive it?

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Will my wife, who is the nominee of my plan, have to pay any tax on the death benefit that she will receive at the end of the policy?

No, the death benefit that will be received by the nominee is tax-free under Section 10 (10D) of the Income Tax Act, 1961

What are the minimum and the maximum age limits to purchase this plan?

The minimum age for entering the policy is 21 years. The maximum age for 20 years policy term is 55 years 25 years policy term is 50 years 30 years policy term is 45 years

Will I have to pay any tax on the maturity benefit that I receive at the end of the policy?

No, the maturity benefit that will be received by you is tax-free under Section 10 (10D) of the Income Tax Act, 1961.

What will be the consequences of not paying the instalment for premiums?

When you buy an insurance policy, you must invest in it regularly and religiously. In case of non-payment of premiums after the policy has gathered a surrender value (a surrender value is acquired only after the first three years’ premiums are duly paid) the policy automatically becomes a Reduced Paid Up Policy. The benefits then received are as follows:

  • Reduced Paid Up, RPU Death Benefit

The RPU Death Benefit will be calculated using this formula RPU Death Benefit = (Total Premiums Paid less Extra Premium (if any) less Rider Premium (if any) / Total Premiums Payable less Extra Premium (if any) less Rider Premium (if any)) X Death Benefit

  • Reduced Paid Up, RPU Maturity Benefit

A total of the premiums that have been paid during the tenure of Max Life Premium Return Protection Plan is payable at the time of maturity. If the payment is stopped before surrender value is acquired, nothing will be payable to the insured at the time of policy maturity, or too the nominee at the time of death of the insured individual.