Max Life Saral Jeevan Bima (Standard Term Plan) – Should you Subscribe?
Max Life Saral Jeevan Bima (Standard Term Plan)
Max Life Insurance has launched Saral Jeevan Bima Plan, which is the standard term insurance plan. Earlier IRDA has issued guidelines to life insurance companies to come up with simple and standard term insurance plans. They need to tag “Saral Jeevan Bima to their policy name. Based on such guidelines, Max Life Insurance has launched Saral Jeevan Bima Plan. Such standard term plans are aimed to provide insurance coverage without any restrictions to provide education checks or income proofs. Should you opt for Max Life Insurance Saral Jeevan Bima? What are the hidden factors in this term insurance plan.
What is Max Life Saral Jeevan Bima Plan?
This is standard term insurance plan product which is designed to provide risk coverage to the life insured. One can choose as low as Rs 5 Lakhs as insurance risk coverage. They need not worry about education checks or provide income proofs to take this term insurance plan. Max Life insurance has 99.22% claim settlement ratio in 2019-2020 financial year. Whether one likes it or not, claim settlement ratio (CSR) is considered as one of key factor while opting term insurance plan.
Key Features of Max Life Saral Jeevan Bima
This is non-linked, non participating individual pure risk life insurance plan. In simple terms, this is a plain term insurance plan.
One can choose a premium payment for 5 years to 40 year term and get adequate life coverage.
Term insurance plan coverage would be up to 70 years of age.
Minimum sum assured is Rs 5 Lakhs and maximum sum assured is Rs 25 Lakhs.
Age of entry is a minimum of 18 years and maximum age of entry is 65 years.
This plan is easy to understand. It provides just life risk coverage without any maturity benefit or survival benefits.
This plan covers all individuals without any restrictions. There are no restrictions on providing educational checks, occupation proofs, proof of living or gender.
There is the waiting period of 45 days in this policy.
What are the premium payment options available?
Below are the options available.
Benefits in Max Life Saral Jeevan Bima
1) Death Benefit
In case of unfortunate death of the life insured, the nominee would get the death benefit.
In case the death happens within 45 days (waiting period) from the date of policy due to accident, sum assured would be paid to the nominee.
In case the death happens other than an accident, a death benefit equal to 100% of premiums paid would be paid to the nominee.
Sum assured for limited premium or regular premiums would be highest of
- Sum assured on death
- 10 Times of annualized premiums
- 105% of all premiums paid
- Absolute sum assured in the event of death
Sum assured payable for single premium would be highest of
- 125% of premium paid
- Absolute sum assured in the event of death
2) No proofs required
Life insurance companies generally ask living proof or educational checks. There are no proofs to be provided for this term insurance plan.
3) Tax benefits
One can get income tax benefits u/s 80c up to Rs 1.5 lakhs per financial year.
Benefits that are not available in Max Life Saral Jeevan Bima Plan
1) Maturity Benefit: Since this is a simple term insurance plan, there is no maturity benefit.
2) Survival benefit: Since this is a term insurance plan, there is no survival benefit.
3) Surrender benefit: There is no surrender benefit in this plan
4) Loans: No loan will be available under this policy.
When does policy termination happen in this term plan?
This policy would immediately and automatically terminated in case of the following:
1) The date on which death benefit becomes payable
2) In case of cancellation of the policy, the date on which refund, if applicable, is settled
3) The date of Maturity of the policy
4) On expiry of the revival period (of 5 years), if the policy has not been revived
5) On payment of free-look cancellation amount (during Free Look Cancellation Period of 15 days (30 days for distance mode)).
Sample Premiums in Max Life Saral Jeevan Bima Term Insurance Plan
Illustration of Max Life Saral Jeevan Bima Plan
Afzal, 25 year male, software engineer buys Max Life Saral Jeevan Bima with the following details.
In case of Mr. Afzal met with an accident during first 45 days from the date of taking the policy, his nominee will receive the full death benefit equal to Sum Assured
However, in case his death is due to any cause other than an accident during this waiting period, his beneficiary will only receive the Death Benefit is equal to 100% of Total Premiums Paid including underwriting extra premiums and loading for modal premiums (if any).
In case his death happens after 45 days either through accident or other than accident, nominee would get sum assured of Rs 25 Lakhs.
Negative Factors in this term insurance plan
1) This is a simple term insurance plan without any riders
2) If death happens within 45 days waiting period due to other than accident, the nominee would get only total premiums paid excluding any taxes paid earlier.
3) Term insurance coverage up to 70 years only. If an individual wants to cover beyond this age, they cannot.
Who should opt for Max Life Saral Jeevan Bima Plan?
Currently Max Life Online Term Insurance Plan Plus is already available under Max Life Insurance. However this standard term plan is intended for specific individuals. Such plans would benefit the following:
1) This Saral Jeevan Bima Term plan is suitable for low income group who have not taken term insurance plan due to high premiums.
2) Suitable for those who could not take term plan till now due to various restrictions like requirement of income proof, educational checks etc.,
3) This would benefit beginners who want to take term plan to start with a small sum assured and later want to consider the higher sum assured plans.
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