Insurance Plans September 9, 2019

Max Life Premium Return Protection Plan

Max Life Premium Return Protection Plan in India 2019

Who doesn’t want to have a happy and a secure future? Our families tend to play a major role in that dream; their security, well-being, and future also become a part of that bigger picture. Though we try to plan out our future course of actions to the best of our abilities, life is still highly capable of surprising us over with its uncertainties. Therefore, accounting these uncertainties and setting up precautionary measures for personal and familial benefits is a good way to go about it. For instance, a great measure would be to avail a term insurance plan to ensure security in case of any circumstance.

One of the foremost term insurance plans is offered by Max Life Insurance Company Limited. Max Life Insurance Company ranks on the top and is highly preferred because of its excellent customer-oriented services. The policy offered is called the Max Life Premium Return Protection Plan. It is popular because it offers not just protective coverage, but also provides the benefit of the return of premium payment if the insurer outlives the specified time period.

Let us assess the various key features, benefits, eligibility, exclusion, and documents required by Max Life Premium Return Protection Policy.

Key Features of Max Life Premium Return Protection Policy

1)The premium payable for a policy term also known as PPT (Premium Payment Term) is of 11 years.

2)You can choose from the flexible policy term between 20years, 25 years, or 30 years, as per your requirement. 

3)Max Life Insurance Company offers various premium payment modes. One can pay Annually, Semi-annually, Quarterly, or Monthly.

4)For Non-Annual Modes certain modal factors would be applicable:

  4.1)0.52 for semi-annual payment, 

  4.2)0.265 for quarterly payment and 

  4.3)0.09 for the monthly payment

but this alteration in the mode of payment would be effective only the next policy anniversary. 

5)The maximum premium one can pay is based on the Maximum Sum Assured of INR 1 crore. The maximum sum assured can be gradually attained by an increase in multiples of INR 50,000. 

6)For minimum premium, a payment of INR 8,500 p.a. would applicable, but only for Annual Mode policies whereas for Non-Annual Modes above mentioned Modal Factors will be applicable. 

7)There are certain discounts offered high sum assured chosen. 

8)If the insurer outlives the matured policy plan, then the total premium paid will be entirely returned back except for the taxes, or extra premiums. 

Special mentions:

  1. If you weren’t already aware, investing in such insurance policies helps save on taxes! However, these benefits are provincial to the tax laws during the premium payment. Basically, the premiums that are paid, the death and maturity benefits are exempted under laws of Income Tax Act.
  2. Women applicants have a special advantage. They have lesser rates of the premium than that of their male counterparts.
  3. At par with the increasing digitization availing, this policy is extremely convenient as it can easily be done online if visiting the nearest branch isn’t as viable. 
  4. Flexibility with the Payment of Premium is hard not to include. 

Benefits of Max Life Premium Return Protection Policy in India

1)Death Benefits

In case of the unfortunate expiry of the insurer, his/her nominees or dependants would be provided with the death benefit. This benefit would be an amount equal to the Death Sum Assured, which is the higher of: 

  • 10 times the annualized premium.
  • 105% of the total premiums paid to date.
  • Guaranteed Maturity Sum Assured.
  • Guaranteed Death Sum Assured.

2)Maturity Benefits

The second benefit offered is for the insurer personally if he/she surpasses the maturity date of the plan. They would be paid with this benefit and it would be equal to Guaranteed Maturity Sum Assured. 

3)Accident Death Benefits

If the cause of death cause is unnatural, most accidents, there is an add-on 50% that is paid to the nominee along with the assured sum. 

4)Limited Premium Payment Term

As discussed before, the PPT (Premium Payment Term) is only 11 years, but the policy benefits last up to 30 years, depending on the policy the person chooses it could even vary higher. 

Exclusion to the Policy

Exclusion in here means the reason for abortion of the policy due to certain circumstances. 

  1. If the individual availing the insurance irrespective of being sane or insane has committed suicide in the year of commencement of this policy or its revival, it would be aborted.

Eligibility criteria for Max Life Premium Return Protection Policy

The eligibility criteria have a minimum entry age of 21 years for all policy terms whereas the maximum entry age differs based on different policy terms. The maximum maturity years are of 75 years. Down below is list to follow. 

Policy Term  Minimum Entry Age Maximum Entry Age 
20 years  21 years  55 years 
25 years  21 years  50 years 
30 years  21 years 45 years 
Maximum Maturity Years     75 Years 

Documents Required for Max Life Premium Return Protection Policy in India

The list of required Documents

  • Completely filled application form along with signature
  • All necessary details about the policyholder/insured
  • Identity proof: A copy of the Voter’s Identity card, Aadhaar Card, PAN card and the Driving License
  • Address proof: any utility bill of the last 3 months’ or the bank statement of the policyholder
  • Last 3 years’ Income Tax Return statement along with bank statement for salary details

Frequently Asked Questions About Max Life Premium Return Protection Plan

If are still doubtful about a policy term, here are a few frequently asked questions that could be of help.

  • How is investing in Max Life Return Protection Term Plan beneficial?

This policy offered by Max Life Insurance Company is beneficial because it provides remarkable coverage and guaranteed return in payment of the premium if the insurer outlives the policy term. Max Life Insurance Company offers many benefits with this plan, there convenient options to choose from for the payment modes. It saves on tax by investing in such a plan!

This is a win-win situation really, wherein a sense of security is ever present as well as a positioned safety net.

  • What is the ideal time the Company takes to settle a life insurance claim through this policy?

Max Life Health Insurance Company usually takes about thirty days to settle an authentic and valid claim under the Max Life Premium Return Protection Plan. But it could also go up to 180 days as there are requirements that have to be fulfilled, like all required documents have to be submitted, additional verifications for the same, etc.

  • Are there any consequences for irregular payment of installments on premiums?

Unfortunately, yes. Let us keep in mind that our premiums provide the company its end of the bargain and the benefits we get from them, in turn, provides us with ours. Hence, buying an insurance policy (Max Life Premium Return Protection Plan in this case) requires regular investments. These investments are nothing but the Premiums we pay. If this necessity is not met with religiously, the Surrender Value acquired will automatically become Reduced Paid up Policy. (Surrender Value accumulates only after the first three years of duly payments of premiums.)

  • What is a Reduced Paid up Policy?

It is a result of irregular premium payment occurrence. Through this, a calculation is done that depreciates the Surrender Value accordingly, based on which the amount paid either during Death Benefit or Maturity Benefit reduces. The calculations are as follows:-

  • Reduced Paid up Policy for Death Benefit:

The RPU Death Benefit will be calculated using this formula:-

RPU Death Benefit = (Total Premiums Paid – any Extra Premium paid – any Rider Premium paid  / Total Premiums that is still Payable – any Extra Premium payable – any Rider Premium payable) X the Death Benefit

  • Reduced Paid up Benefit Policy for 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 to the nominee at the time of death of the insured individual.

  • Does this policy offer any riders with it? 

Thankfully, yes! The Max Life Waiver of Premium Rider is on offer along with the policy. The Max Life Waiver of Premium Rider waives off all future due payments in the cases of dismemberment, death, or disease.

  • Is there a tax payment to be done once the Max Life Premium Protection Plan matures? 

No, you don’t have to! The Maturity Benefit that you receive is tax-free under Section 10 (10 D) of the Income Tax Act, 1961.

  • What do terms like Policy Lapse and Grace Period mean? 

Policy Lapse occurs when the due premium is not paid even after the grace period. This leads to the policy’s lapse, hence called the Policy Lapse. 

Grace Period is a time period provided by the company when you miss out on paying your due premium. Different Modes of payment have different Grace periods. Monthly mode of paying has a grace period of 15 days. In the case of Quarterly, Semi-Annually, and annually the grace period offered by the Company is of 30 days.

  • Based on the policy term chosen will the premium paying term change too?

No, the Premium Paying Term does not change. PPT remains at 11 years despite any policy term chosen by the insurer.