Max Life Online Term Plan Plus – Should you opt?
Life is full of uncertainties. Every individual works hard to provide financial security for his family. One of the best ways to secure your family is to consider a term insurance plan which comes with low premiums and high sum assured. While there are several term insurance plans in India, Max Life Online Term Plan Plus is gaining prominence with its features and low premium compared to its competitors. What are the features of Max Life Online Term Plan Plus? What are the various options available in this term plan? Should you opt for Max Life Online Term Plan Plus Insurance plan? This article provides Max Life Online Term Plan Plus Review.
What is Term Insurance Plan?
Term insurance plans are the simplest form of life insurance products that provide only a death benefit of the life insured. This is a pure protection plan where the payout is made only in case of death. There are no maturity benefits on survival. It enables you to secure your family financially in case of untimely death at a very low cost. Yes, the premiums are comparatively low in term plans than any other insurance plans.
About Max Life Insurance Company
Max Life Insurance Company is one of the fastest growing insurance companies in India with a market share of around 10% that offers a large range of insurance plans. It has come up with couple of term plans that provide a secure financial future for your loved ones against the perils of death, disease and disability.
Features of Max Life Online Term Plan Plus
Here are some of the key features of this insurance plan.
1) This term plan comes with 3 different options which consists of basic life cover, basic life cover with monthly income and basic life cover with increasing monthly income.
2) It gives comprehensive protection against death as well as dismemberment and critical illness of 40 diseases.
3) One can enhance his/her cover at important milestones of life by choosing Life Stage Event Benefit.
4) One has the options to pay the premium till the age of retirement, i.e. 60 and enjoy the benefits till coverage term.
5) An additional Max Life comprehensive Accident Benefit Rider can be added to make it more comprehensive. Under it, an additional sum assured is paid in case the insured dies in an accident.
6) It is an online term plan in which no intermediaries are involved. So, they are much cheaper than any other term plan.
7) Premium discounts are offered to individuals who follow a healthy lifestyle and to females too.
What is the plan eligibility?
1) Minimum age of entry is 18 years and the maximum age of entry is 60 years.
2) Maximum maturity age is 85 years.
3) Policy term is 10 to 50 years subject to maximum maturity age.
4) Minimum Sum assured is Rs 25 Lakhs and maximum sum assured is Rs 100 Crores.
What are the options / variants available in Max Life Online Term Plan Plus?
There are 3 options to choose from the following 3 death benefit options. One had to choose a suitable death benefit at the time policy inception only.
I) Basic Life Cover
1) In this, 100% of the sum assured is paid immediately on the death of the life insured.
Explained with an example: Mr. Ravi Teja has taken Basic Life Cover plan of Max Life Online term plan for Rs 1 Crore. Due to the unfortunate death of Mr. Ravi Teja, his family/nominee would get Rs 1 Crore as death benefit.
II) Basic Life Cover with Monthly Income
In addition to the 100% of the policy sum assured (paid immediately on the death of the insured), 0.4% of the policy sum assured per month for 10 years.
Explained with an example: Mr. Ravi Teja takes Basic Life Cover plan with Monthly Income of Max Life Online term plan for Rs 1 Crore. Due to the unfortunate death of Mr. Ravi Teja, his family/nominee would get Rs 1 Crore as death benefit. Additionally, his family would get 0.4% of Rs 1 Crore i.e. Rs 40,000 every month till next 10 years.
If you observe Max Life Insurance Term Plan with Monthly Income is good compared to basic life cover plan.
III) Basic Life Cover with increasing monthly income
Along with 100% of the sum assured which is paid immediately on the death of the life insured, one also gets an increasing monthly income for 10 years where in the first year, monthly income shall be 0.4% of the policy sum assured and shall increase every year by 10% p.a. (Simple interest) of the first year monthly income.
Explained with an example: Mr. Ravi Teja takes Basic Life Cover plan with Increased Monthly Income option of Max Life Online term plan for Rs 1 Crore. Due to the unfortunate death of Mr. Ravi Teja, his family/nominee would get Rs 1 Crore as death benefit. Additional his family would get 0.4% of Rs 1 Crore i.e. Rs 40,000 every month is paid for the next 10 years with increasing 10% every year.
If you review, Max Life Insurance Online Term Plan Life Cover + Monthly Income increasing is beneficial compared to other options.
What are the other benefits available in this plan?
Apart from the death benefit, here are the other benefits of this plan.
1) You can choose to pay your premiums only till your working years (age 60) till your retirement, while you will be covered till 85 years.
2) Accelerated Critical Illness Option where you can get a one-time lump sum payout upon diagnosis of any of the 40 specified critical illnesses. Up to 50% of total term plan cover or Rs. 50 lacs, whichever is lower, can be paid under the critical illness (CI) benefit and the balance life cover will be carried forward (with reduced future Premiums payable) and payable on death. This feature is available on payment of additional premium.
3) At the time of purchasing the policy, you can choose to opt for the benefit of increasing your life cover when you get married, have a child or take a home loan. This feature is available on payment of additional premium
4) Additional Rider benefits like Comprehensive Accident Benefit Rider and Waiver of Premium Plus Rider available in this option with additional premiums.
How does the Premium Chart look like for Rs 50 Lakh plan?
Below are the premiums for different ages for sum assured of Rs. 50 lakh (regular pay) for 30 year policy term.
You can check Max Life Online Term Plan Plus Premium Calculator here for calculating the premiums based on your requirement.
What are the various Critical Illness (CI) covered under this plan?
1) Cancer of Specified severity.
4) Open Heart replacement
6) Chronic lung diseases
7) Chronic liver diseases
8) Kidney failure and dialysis
9) Major organ transplant
10 Brain Surgery
Other CI details can be read in the prospectus link.
What are the exclusions in this plan?
The following are few exclusions of this plan. In fact, these exclusions are involved in all term plans.
1) Pre-existing diseases not covered up to 48 months.
2) Suicide – if the life insured (whether sane or insane) die by suicide within 12 months from the date of inception of the policy or the date of revival of policy, the policy shall terminate immediately and in such case, the company shall only refund total premiums paid.
3) Self-inflicted injury – If death is due to a self-inflicted injury or involvement in a life threatening hazardous sport without proper precaution, the claim is not admissible.
4) Sexually transmitted illness – if death is caused due to sexually transmitted illness like HIV, AIDS, etc., then the same are not covered.
5) Intoxication – if the policy holder dies due to consumption of alcohol or narcotic substances, the insurance company is not liable to pay the dependents.
What are the positive features in this Max Life Online Term Plan Plus?
Here are some of the positive features of this plan.
1) A good term insurance plan that comes with 3 unique variations. Individuals can take the variant suitable to them.
2) This plan comes with coverage of 40 Critical illnesses. Good in current lifestyle where there is uncertainty about the diseases.
3) This plan comes with a life stage event where one can increase the sum assured at various life stages like marriage, kids born etc.,
4) Like any other plan, the premium paid is eligible for tax exemption under section 80C.
5) The company rewards the people following healthy lifestyles by charging low premiums for non-smokers.
6) Company has claim settlement ratio of 98.26% (FY2017-18 disclosure document).
Also Read: Best Health Insurance Policies in India
What are the Negative features of this term plan?
Here are the limitation factors in this plan.
1) Pre-existing disease coverage after 48 months only.
2) There are no inbuilt riders. All the riders come with additional premiums.
3) Higher premiums for smokers.
Should you opt for Max Life Online Term Plan Plus?
This plan comes with 3 options along with additional riders and critical illness coverage. Its competitors like ICICI Life and HDFC Life also offering similar policies with similar limitation factors. Max Life insurance has a high claim settlement ratio too. We already indicated this as one of the best term insurance plan in India in 2018 in our earlier article. One can opt for such term insurance plans if this fits their requirement.
You can download Max Life Online Term Plan Plus Brochure PDF here.
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Max Life Online Term Plan Plus – Should you opt