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Term Insurance 9230 views September 20, 2019
The sum assured amount that you determine while buying a term insurance plan may not be enough to secure the future of your loved ones. Moreover, your nominee(s) may not be financially literate to make optimum use of the assured death benefits received in a lump sum. Also, while the lump sum death payouts may be used by the nominee(s) to pay off lingering loans, it is important they have something in hand to meet their monthly operational expenses.
This is where customers may consider Max Life Insurance Company’s Online Term Plan Plus as it ensures an increasing monthly income in addition to the basic life cover.
Table of Contents
Unlike most other life insurance companies in India that limit their responsibilities towards their customers by disbursing the amount of sum assured to their nominees, Max Life Insurance Company promises an increasing monthly income amount to beat the inflation rate. Customers must choose an adequate sum assured amount to take care of life’s different milestones like children’s education, marriage, home loans, and car loans. However, day-to-day expenses cannot be ignored, thus explaining the company’s offer to avail a monthly income to the dependents so that the quality of their lifestyle is not hampered.
Buying Term Insurance Online from Max Life Insurance comes with its own set of benefits. These include:-
Limited Pay Option
Many policyholders might find it difficult to continue paying premiums throughout the entire policy period. This explains why this plan allows its customers to pay premiums while they are working, i.e., till the retirement age. Also called the “Pay Till 60” benefit, it covers customers till they reach 85 years despite having paid premiums for limited periods.
Greater Death Benefits
Death benefits in addition to monthly income are promised under this plan. As opposed to equaling death benefits to the predetermined amount of sum assured, the death benefits under Max Life Online Term Plan Plus is the higher of:-
The customers may choose from any of the following death payout options:-
|S.No.||Death Benefit Options||Details Of Death Benefits||Effective Total Protection Value|
|1.||Death benefits available in lump sum||100 percent of the Sum Assured paid to the nominee on the death of the policyholder.||The total amount of sum assured|
|2.||Lump sum death benefits plus level monthly income||100 percent of the Sum Assured paid to the nominee on the death of the policyholder|
0.4 percent of the policy sum assured every month for 10 years
|148 percent of the sum assured|
|3.||Lump sum plus increasing monthly income||100 percent of the policy Sum Assured paid to the nominee on the death of the policyholder|
Increasing monthly income for 10 years. In this, the income disbursed each month during the first year is equal to 0.4 percent of the policy sum assured. This amount shall increase each year by 10 percent Simple Interest of the first year’s monthly income.
|169.6 percent of the sum assured|
However, if the insurance company has paid a percentage of the sum assured on the diagnosis of the policyholder with some critical disorders, the sum assured shall be reduced to the extent of the amount disbursed on account of the Accelerated Critical Illness Benefit.
Accelerated Critical Illness Cover
This option mandates the insurance company to pay in a lump sum on being diagnosed with any of the chronic disorders listed among 40 critical disorders under this plan. The policyholder may avail up to 50 percent of the sum assured in the term insurance plan as critical illness benefit while the remaining amount of life cover will be handed over after the death of the insured (in lieu of reduced premium rates).
Dual tax benefits are available under Sections 80C and 10(10D) of the Income Tax Act 1961 on premium charges and death benefits, respectively.
Option To Enhance Sum Assured Later
Important milestones, such as marriage, childbirth or adoption, buying a house or car, involve greater expenses. Policyholders need to exercise this option at the time of policy inception. The increase in the sum assured will take place once the policyholder intimates the insurer about the life stage change.
|S.No.||Life Stage Events||Increase In Sum Assured Applicable|
|1.||Marriage (This is limited to one instance of marriage during the policyholder’s lifetime)||50 percent of the Sum Assured not more than Rs. 50 lakhs|
|2.||Childbirth (This is limited to the birth of two children only)||50 percent of the Sum Assured not more than Rs 25 lakhs for each child|
|3.||House Loan limited to buying only one house during the policyholder’s lifetime||50 percent of the Sum Assured not more than Rs. 50 lakhs|
Many policyholders realize the need to augment the effect of their term insurance plan and, hence, opt for additional rider options for increased benefits. These riders include:-
Max Life Comprehensive Accident Benefit Rider (CAB)
Grievous accidents may result in amputation of limbs or sudden death.
In the event of death due to an accident, the rider sum assured will be handed over to the nominee provided that the claim is approved by the insurance company. However, this is subject to the condition that the policyholder dies within 180 days of the accident.
In the event of dismemberment due to the accident, the rider benefit as per the policy rider contract is handed over to the nominee of the policyholder. This is, however, subject to the condition that the policyholder has become totally impaired within 180 days of meeting with the accident.
The following kinds of impairments due to injury are included in the rider cover:-
Max Life Waiver of Premium Plus Rider (WOP)
Payment of premiums on the diagnosis of critical illness or dismemberment can be difficult. Paying for this rider means that the insurance company waives off the premium paying liability in case the policyholder suffers from dismemberment or critical illness. The basic term insurance policy is terminated and the policyholder can get all the benefits of the base policy.
As per the recent 2018-19 financial results, the claim settlement ratio (CSR) of Max Life Insurance Company is 98.74 percent. Such a high CSR value highlights the company’s intent to pay off the life insurance claims, if and when raised. Moreover, the effectiveness of the company’s customer care service coupled with its technology-driven website ensures that the interested customers are at ease while choosing or buying any term insurance plan sold by this company.
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