For many Indians, life insurance is still an idea that is not on people’s priority list. But, thanks to innovation in technology, people are becoming more and more aware and are realizing how prudent buying an insurance plan is. Also, the entry of numerous insurance companies into the insurance market has led to an increase in the awareness about the advantages of insurance.
For over a decade, Max Life Insurance has constantly endeavored to provide simple and easy-to-understand Insurance Plans to all its customers. Incorporated in 2000, the company is now one of the most significant names in the country’s insurance industry. A joint venture between Mitsui Sumitomo Insurance Co. Ltd and Max India Ltd., Max Life Insurance Company is currently India’s biggest insurance company in the private sector.
There is only one thing certain in life, and that is uncertainty. As the head of the family or as the breadwinner, it becomes imperative to ensure that your family is safe, not only in your presence, but also in your absence. If something happens to the breadwinner, the family should be financially independent to handle any eventualities and emergencies. An insurance policy lends financial support to your family in case of your untimely death.
Max Life Super Term Plan, is an insurance plan that promises to look after your family in case something happens to you. Not just that, this plan also works to fight inflation as it has a special feature of an increasing life cover. This pure protection plan offers the option to increase the sum assured by 5% every year, that too without increasing the premium amount, as long as the policy stays active.
Death Benefit
When an insured individual dies during the term of the insurance policy, a death benefit is received by the nominee. Under the Max Life Super Term Plan, the company pays Guaranteed Death Benefit, which is defined as the higher of:
- 10 times of the Annualised Premium
- 105% of the premiums that have been paid till the death of the individual
- Guaranteed Maturity Sum Assured
- Sum Assured that is effective on the policy anniversary
The Sum Assured Bands are as follows:
- Band 1 – INR 25 Lakhs to INR 49. Lakhs.
- Band 2 – INR 50 Lakhs to INR 99 Lakhs.
- Band 3 – INR 1 Crore to INR 4.99 Crore.
- Band 4 – INR 5 Crore and above.
At the time of inception, Max Life Super Term Plan gives two options:
Level Sum Assured
Here, the sum assured remains unchanged throughout the tenure of the policy.
Increasing Sum Assured
Here, on each policy anniversary, the sum assured increases at a simple rate of 5%.
Settlement Option
In case of death of the policyholder, the nominee has two options:
Option 1
The nominee can take the full death benefit as a lump sum amount.
Option 2
The nominee can take 50% of the Guaranteed Death Benefit as a lump sum amount and 0.42% of the Guaranteed Death Benefit as a monthly instalment for the next 10 years at an increasing rate of 8.5%.
However, at any point of time during the settlement period, the nominee can take the remaining payouts as a lumpsum. This amount will be discounted at the rate of 6.5% p.a.
Maturity Benefit
Max Life Super Term Plan is a pure term insurance plan, there is no maturity benefit. In simple words, if the policyholder survives the tenure of the policy, nothing shall be payable to him.
Reduced Insurance Cover
In case the policyholder has regularly paid the due premium instalments for the first 15 years, but not after that, then the Policy will not be cancelled but it will change into a Paid-Up policy. The nominee will then be eligible for a Reduced Insurance Cover. There is an option to revive the Reduced Insurance Cover within a period of 2 years.
