Life Insurance
Max Life
Founded in 2000, Max Life is a joint venture between Max Financial Services and Axis Bank. Belonging to Max Group, a well renowned conglomerate, Max Life today has become one of the top private life insurers offering a wide range of plans like term plans, savings plan, market-linked plans and many more.
| Annual Business | ₹9,296 cr. |
| Claims Settled | 99.50% (avg. of last 3 years) |
| Claims settled within 30 days | 96.81% |
Term Insurance offered by Max Life
Smart Secure Plus
This term plan comes with a whole host of benefits and provides multiple features to choose from so that you can select what best fits your changing lifestyle. A good thing about this plan is that it has in-built Terminal illness benefit
Some standout features of this plan:
- Voluntary top-up sum assured:
If you want to increase your cover at a later stage in policy term, you can do this up to a maximum of 100% of base cover by selecting this option right at the policy inception.
- Joint Life cover:
This option covers both you and your spouse. In case your spouse dies after your demise, a lump sum of 50 lakhs is paid to the nominee. However, if the spouse dies before your demise, a lump sum of 10 lakhs is paid to you and your base policy still remains active.
- Premium Break:
Paying premiums can become unaffordable if you run into some financial trouble. With this option you can choose not to pay the premium and your policy will still continue to be in force. You can avail this break twice during the policy term.
Riders you can select with this plan:
- Waiver of Premium Plus rider:
If you’re diagnosed with any of the listed 11 critical illnesses, or get disabled due to some injury or illness, all your future premiums will be waived off. Meaning you don’t have to pay the premiums but your policy will still be active.
- Critical Illness and Disability rider:
A lump sum amount is paid to you in case you get permanently disabled or diagnosed with any of the listed critical illnesses. The Gold variant covers 22 illnesses and Platinum variant covers 64 illnesses.
Smart Term Plan
From monthly income payout to increasing and reducing sum assured, Max Life Smart Term Plan provides seven variants to choose from making it one of the most comprehensive and suitable plans for every individual. It also offers a return of premium option.
Some standout features of this plan:
- Accelerated Critical Illness Benefit:
This plan comes with Accelerated Critical Illness Benefit where if you shell out a little extra money, you get a lump sum amount in case you’re diagnosed with any of the 40 listed critical illnesses. However, keep in mind this lump sum amount is part of your base cover itself. So your death cover gets reduced by the amount of Critical Illness benefit paid.
- Life Stage Benefit:
There’s also Life Stage Benefit wherein you have the option to increase your sum assured at major milestones in life like after getting married, having first child and having second child. The cover under this benefit increases by a maximum of 100% of the base cover.
Riders you can select with this policy:
- Waiver of Premium Plus rider:
If you’re diagnosed with any of the listed 11 critical illnesses, or get disabled due to some injury or illness, all your future premiums will be waived off. Meaning you don’t have to pay the premiums but your policy will still be active.
- Critical Illness and Disability rider:
A lump sum amount is paid to you in case you get permanently disabled or diagnosed with any of the listed critical illnesses. The Gold variant covers 22 illnesses and Platinum variant covers 64 illnesses.
Online Term Plan Plus
Online Term Plan Plus is a basic term insurance plan under Max Life’s stable but you can enhance it by opting riders.
Online Term Plan Plus offers 3 death benefit variants:
- Sum Assured:
Lump sum benefit is paid upon death of insured
- Sum Assured plus Level Monthly income:
Lump sum death benefit plus a monthly income equal to 0.4% of the sum assured is paid for 10 years.
- Sum Assured plus Increasing Monthly Income:
Lump sum death benefit plus a monthly income equal to 0.4% of the sum assured is paid for 10 years wherein every year the income amount increases by 10%.
Features of this policy:
- Accelerated Critical Illness Benefit:
This plan comes with Accelerated Critical Illness Benefit where if you shell out a little extra money, you get a lump sum amount in case you’re diagnosed with any of the 40 listed critical illnesses. However, keep in mind this lump sum amount is part of your base cover itself. So your cover gets reduced by the amount of Critical Illness benefit paid.
- Life Stage Benefit:
There’s also Life Stage Benefit wherein you have the option to increase your sum assured at major milestones in life like after getting married, having first child and having second child. The cover under this benefit increases by a maximum of 100% of the base cover.
Riders you can select with this policy:
- Comprehensive Accident Death Benefit:
This rider pays out a lump sum amount in case of death or dismemberment solely because of an accident.
- Waiver of Premium Plus rider:
If you’re diagnosed with any of the listed 11 critical illnesses, or get disabled due to some injury or illness, all your future premiums will be waived off. Meaning you don’t have to pay the premiums but your policy will still be active.
- Critical Illness and Disability rider:
A lump sum amount is paid to you in case you get permanently disabled or diagnosed with any of the listed critical illnesses. The Gold variant covers 22 illnesses and Platinum variant covers 64 illnesses.
Max Life Term Insurance plan details
| Plan Name | Entry Age | Sum Assured | Policy payment options |
|---|---|---|---|
Smart Secure Plus | Minimum Age: 18 years, | ₹20,00,000-unlimited | Annual, semi-annual, |
Smart Term Plan | Minimum: 18, | ₹10,00,000- unlimited | Annual, semi-annual, |
Online Term Plan Plus | Minimum Age: 18 years, | Minimum: | Annual, semi-annual, |
ULIP Plans
Unit Linked Insurance Plans or widely known as ULIPs are part insurance, part investment plans. So the premium that you pay, some of it is allocated towards providing a death cover and the rest is invested in equity and debt funds, whichever you choose. So if something were to happen to you, your family either gets death cover or the fund value, whichever is higher at that time.
Say you’re paying a premium of 1 lakh every year for 20 years and for a death cover of 10 lakhs. You die after 15 years and your family naturally gets 10 lakhs. However if at that time the value of your invested premiums is 13 lakhs, your family gets this 13 lakhs. But if the fund doesn’t earn good returns and values at 8 lacs, then you get the death cover. So 10 lacs, i.e., your death cover is the minimum payout. But if you survive after 20 years, then you get all those invested funds back, whatever the value is at that time. That’s your maturity payout.
But there are other things to look for as well. Firstly, there is a lock-in period of 5 years, meaning you won’t be able to get back your premiums before 5 years. It’s only after 5 years that you’re allowed to withdraw some funds and even that is partial withdrawal. You can never withdraw the entire amount. Also, there are different charges that are deducted from your premium every year like premium allocation charge, policy administration charge, fund management charge, etc. So the entire 1 lakh is never invested.
Make sure you read the policy document diligently. And remember ULIPs are largely dependent on how the market is performing, both stocks and bonds.
ULIP Plans offered by Max Life
| Plan Name | Entry Age | No. of Funds |
|---|---|---|
| Max Life Fast Track Super | Minimum: 91 days, Maximum: 5 Pay and Single Pay: 60 yrs, Regular pay: 50 yrs | Total: 6 Equity: 3 Debt: 3 |
| Max Life Flexi Wealth Plus | Minimum: Wealth variant: 91 days, Whole life variant: 18 years Maximum: Limited/Regular pay: (65-PPT)years, Single pay: cover multiple 1.25- 70 years cover multiple 10- 45 years | Total: 10 Equity: 6 Debt: 4 |
| Max Life Platinum Wealth Plan | Minimum: 91 days Maximum: Single Pay and Limited Pay: 60 years Regular Pay: 55 years | Total: 6 Equity: 5 Debt: 1 |