LIC Tech Term Plan Vs Max Life Term Plan Plus – Which is better?
Are you amongst the one who is the chief breadwinner of your family and has high concerns about them in your absence? Well! Term Insurance is the answer to your worries that provide high financial security to your family in your absence. However there are several term insurance plans in India. LIC Tech Term and Max Life Term Plan Plus are popular once. If you are thinking which one is good, you are at right place. Among the LIC Tech Term Plan and Max Life Term Plan Plus, which is better term insurance plan?
Also Read: Comparison of ICICI Pru Term Plan Vs HDFC Click 2 Protect Term Plan
What are term insurance plans?
Term insurance plan is a type of life insurance contract in which the insurer agrees to pay the nominee of insured a definite sum assured in case of the untimely death of the insured. Term plans offer an adequately large fund i.e. sum assured to the family at the time of death of the policyholder. It lends huge financial support to the family in crisis.
LIC Tech Term Plan – Key Features and benefits
Key features of the LIC Tech Term Plan:
The plan is available only through an online. There are no intermediaries involved.
It is a non-linked, non-participating, pure term insurance plan.
There are two death benefits available:
i) Level Sum Assured – the absolute sum assured to be paid on death to the nominee. It is an amount equal to the basic sum assured and shall remain the same throughout the policy term.
ii) Increased Sum Assured – The absolute sum assured that is to be paid on death remains equal to Basic Sum Assured for the first five years. Thereafter, it increases by 10% of Basic Sum Assured every year from the sixth policy year till the fifteenth year till it becomes twice the Basic Sum Assured. This increase will continue under an in-force policy till the end of the policy term or till the date of death or till the fifteenth policy year, whichever is earlier. From the sixteenth policy year and onwards, the Absolute sum assured to be paid on death remains constant i.e. twice the Basic Sum assured till then policy term ends.
On survival of the life assured, no amount shall be paid.
There are few riders available to make the policy more comprehensive:
i) Accident Benefit Rider – Under this rider, if the insured dies due to an accident, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the base plan. It can be opted for by paying an additional premium during the Premium Payment Term.
ii) Option to take death benefit in instalments – this is an option to receive the death benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lumpsum amount. This option can be exercised by life Assured during his/her lifetime, for the entire or part of the death benefit payable.
Regular premium, limited premium, or single premium payment option can be opted for.
A grace period of 30 days shall be allowed for payment of yearly or half-yearly premiums from the date of the first unpaid premium.
The minimum age of taking the policy is 18 years while the maximum age is 65 years.
The minimum sum assured is Rs. 50 Lakhs.
The policy term is 10 to 40 years.
Max Life Term Plan Plus – Key features and benefits
Max Life Term Plan Plus is an online term insurance plan and a great tool to protect your family financially in the event of the early death of the bread-earner or crucial member of the family. The key features of the plan are:
Max Life Term Plan Plus is a non-linked, non-participating, online term insurance plan.
The minimum age of entry is 18 years and the maximum age is 60 years (regular pay) with the cover extending till the age of 85 years.
The maximum maturity age is 75 years.
There is a choice of three death variants:
i) Lump sum – The nominee of the policy gets the entire Sum Assured in one shot.
ii) Lump sum with monthly income – The nominee will receive 100% of the Sum Assured amount along with a level monthly income which is equal to 0.4 % of the sum assured. The number of monthly incomes is limited to a total of 120 regular monthly income distributed evenly throughout the paying period.
iii) Increasing monthly income – The nominee will receive 100% of the Sum Assured and a monthly income. During the first year of the Payout period, the nominee will receive 0.4% of the Sum assured which will increase by 10% every year throughout the rest of the payout period.
You can make your term plan more comprehensive by choosing Critical Illness Benefit which provides coverage against 40 listed critical illnesses.
You can increase your insurance cover at important life stages like marriage or childbirth.
Max Life Waiver of Premium Plus Rider provides a waiver of all future premiums in case of critical illness or dismemberment of Death. This policy doesn’t possess the inbuilt Waiver of Future Premiums Options and so Rider benefit is to be taken as an additional benefit.
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LIC Tech Term Plan and Max Life Term Plan Plus – Which is better?
Conclusion: Term insurance plan is not an expense, but a safety net for your family that provides such safety that no other financial product can provide. All the companies adorn their term insurance plans with more riders and benefits to make them more customer-friendly. If we evaluate these two plans, we will find more comprehensiveness in the Max Life Term Plan Plus. It covers the insurer till the age of 85 which is quite good. There are three death variants too available in this plan. All these features are missing in the LIC Tech Term Plan. On the other side, the premiums are higher too. One should consider the features that are suitable to them and conclude on the term insurance plan.
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