Max Life Online Term Plan Plus
Max Life Online Term Plan Plus is another plan which is popular with customers. Being a term insurance plan, it offers large cover at low premiums. The plan is aggressively priced and offers 3 basic variants. Of course, you can add riders to make the term plan very comprehensive.
Key Features
The death benefit under Max Life Online Term Plan Plus is highest of:
10 times the annualised premium
105% of all the premiums paid as on date of death
Minimum guaranteed sum assured on maturity
Absolute amount assured to be paid on death
Under this Plan, the ‘Minimum guaranteed sum assured on maturity’ is zero. Further, absolute amount assured to be paid on death will depend on the Death Benefit option chosen by the Life Insured at inception of the policy.
Option 1) Sum Assured:100% of the policy Sum Assured as chosen at inception of the Policy, paid immediately on death of Life Insured.Effective Total Protection Value: 100% of Sum Assured
Option 2) Sum Assured plus Level Monthly Income:100% of the policy Sum Assured as chosen at inception of the Policy, paid immediately on death of Life Insured.Plus
0.4% of the policy Sum Assured per month, for 10 years
Effective Total Protection Value: 148% of Sum Assured
Option 3) Sum Assured plus Increasing Monthly Income:100% of the policy Sum Assured as chosen at inception of the Policy, paid immediately on death of Life Insured.
Plus
Increasing monthly income for 10 years wherein 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.
For e.g.: A policy with Sum Assured of Rs. 1,00,00,000 is sold on 10 January 2016 and the Life Insured dies on 25th June 2016. In this case, the first monthly income will be paid on 10th January 2017 (i.e. the first Policy Anniversary post the date of death of the Life Insured) and thereafter on 10th of each month, for a period of 10 years.
Effective Total Protection Value: 169.6% of Sum Assured
Following table illustrates the monthly income payable to the beneficiary:
| Time Period | Monthly Income payable on 10th of each month |
| 10 Jan 2017 till 10 Dec 2017 | Rs. 40,000 |
| 10 Jan 2018 till 10 Dec 2018 | Rs. 44,000 |
| 10 Jan 2019 till 10 Dec 2019 | Rs. 48,000 |
| 10 Jan 2020 till 10 Dec 2020 | Rs. 52,000 |
| 10 Jan 2021 till 10 Dec 2021 | Rs. 56,000 |
| 10 Jan 2022 till 10 Dec 2022 | Rs. 60,000 |
| 10 Jan 2023 till 10 Dec 2023 | Rs. 64,000 |
| 10 Jan 2024 till 10 Dec 2024 | Rs. 68,000 |
| 10 Jan 2025 till 10 Dec 2025 | Rs. 72,000 |
| 10 Jan 2026 till 10 Dec 2026 | Rs. 76,000 |
Notes: The monthly income will be payable each month on the anniversary date, starting from the first Policy Anniversary post the date of death of the Life Insured.
For e.g.: A policy is sold on 10 January 2016 and the Life Insured dies on 25th June 2016. In this case, the first monthly income will be paid on 10th January 2017 (i.e. Policy Anniversary following the date of death of the Life Insured) and thereafter on 10th of each month, for a period of 10 years.
Under ‘Option 2 – Sum Assured plus Level Monthly Income’ and ‘Option 3 - Sum Assured plus Increasing Monthly Income’ mentioned above, you have the option to commute the outstanding income payments at any point in time. You will have to submit a written request for the same to the Company. On receipt of such a request, the Company shall pay present value of all future monthly incomes discounted at the rate of 5.5% p.a. to you.
There is no maturity benefit or surrender benefit under the plan.
Premiums paid towards this plan up to Rs.1,50,000 will be entitled to benefits under Sec 80C of the Income Tax Act.
The proceeds on and after death of the policyholder to the nominee will be tax exempted under Sec 10(10D).
This rider provides additional cover by way of rider Sum Assured in case of Death or Dismemberment (impairments are listed under the Rider contract) due to accident. This rider needs to be added at the time of purchase of the base policy.
Get waiver of all future premiums under a policy and all other attaching riders on happening of earlier of either of the following events provided the base policy and attaching riders are in force:
Critical Illness; or
Dismemberment; or
Death (only when Life Insured and Policyholder are different individuals, rider benefit will be paid on death of the Policyholder)
Note:
1) Total rider premium cannot be more that 100% of the base plan’s premium (including extra premium, if any)
2) Under Comprehensive Accident Benefit Rider, the rider Sum Assured cannot exceed base plan’s Sum Assured.
Eligibility
| Minimum | Maximum | |
| Entry Age | 18 years | Regular Pay - 60 years Pay till 60 - 50 years |
| Maximum maturity Age | 85 years | |
| Annual Premium | Rs.2,200 | Rs. 2,18,44,600 |
| Sum Assured | 25 lacs | 100 crores |
| Policy Term | 10 | 50 |
| Premium Payment Term | Same as policy term | |
| Premium Modes | Yearly, Half-yearly, Quarterly and Monthly | |
So let us understand this plan better with the help of a few examples.
# 01 - Basic Life Cover
Suppose Sooraj Nath from Mumbai has taken this plan with Basic Life Cover. He does not consume any form of tobacco.
Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
His annual premium will be Rs. 9,204 which he has to pay for 35 years.
Benefits under this option are:
Lumpsum payment on Death - Sooraj’s nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.
# 02 - Basic Life Cover + Monthly Income
Suppose Sooraj Nath from Mumbai has taken this plan with Basic Life Cover + Monthly Income. He does not consume any form of tobacco.
Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
His annual premium will be Rs. 12,272 which he has to pay for 35 years.
Benefits under this option are:
Lumpsum payment on Death - His nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.
Monthly Income - His nominee will get Rs. 40,000 every month for the next 10 years.
# 03 - Basic Life Cover + Increasing Monthly Income
Suppose Sooraj Nath from Mumbai has taken this plan with Basic Life Cover + Increasing Monthly Income. He does not consume any form of tobacco.
Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
His annual premium will be Rs. 13,570 which he has to pay for 35 years.
Benefits under this option are:
Lumpsum payment on Death - His nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.
Monthly Income - His nominee will get the following monthly income for the next 10 years.
| Year 1 | Rs. 40,000 monthly |
| Year 2 | Rs. 44,000 monthly |
| Year 3 | Rs. 48,000 monthly |
| Year 4 | Rs. 52,000 monthly |
| Year 5 | Rs. 56,000 monthly |
| Year 6 | Rs. 60,000 monthly |
| Year 7 | Rs. 64,000 monthly |
| Year 8 | Rs. 68,000 monthly |
| Year 9 | Rs. 72,000 monthly |
| Year 10 | Rs. 76,000 monthly |
In case, the nominee wishes to get the future payments in lumpsum, that too can be done. The present value of all future payments discounted @ 5.25% will be paid out.
# 04 - Basic Life Cover with Pay till 60 option
Suppose Sooraj Nath from Mumbai has taken this plan with Basic Life Cover + Pay till 60 option. He does not consume any form of tobacco.
Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Premium Payment Term - 30 years
His annual premium will be Rs. 9,676 which he has to pay for 30 years. He does not need to pay premiums for the balance 5 years of his term. So no payment after retirement age.
Benefits under this option are:
Lumpsum payment on Death - Sooraj’s nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.
# 05 - Basic Life Cover with Option to increase cover at important milestones
Sooraj will have to select this option at the time of making the purchase. He will then have the option of increasing the cover in the event of any or all of the following:
Marriage (only once!) - can increase by 50% of Sum insured; Max 50 lakhs
Child Birth (twice only) - can increase by 50% of Sum insured; Max 25 lakhs for each child birth
Home loan (only once) - can increase by 50% of Sum insured; Max 50 lakhs
The following conditions will have to be met while availing this option:
Your base policy should be of 50 lakhs or more
You should have paid 3 years of premiums continuously
You have to avail this before you complete 45 years of age (last birthday)
Only 1 increase can be done in a year
You have to increase the cover each time by at least 25 lakhs
The overall increase is capped at 50 lakhs
No medical tests required when you do this increase
# 06 - Basic Life Cover with Accelerated Critical Illness Benefit
Suppose Sooraj Nath from Mumbai has taken this plan with Basic Life Cover + Accelerated Critical Illness Benefit. He does not consume any form of tobacco.
Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Critical Illness Cover - 10 lakhs (He can choose upto 50 lakhs of cover).
His annual premium will be Rs. 12,886 which he has to pay for 35 years.
Benefits under this option are:
Lumpsum payment on Death - Sooraj’s nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.
Accelerated Critical Illness Benefit - Sooraj will get a lumpsum payment of Rs. 10 lakhs in case he is diagnosed with any of the 40 critical illness listed below. The balance 90 lakhs cover will continue with a reduced premium value. Also note the following:
In case of angioplasty only 5 lakhs is payable
This benefit is applicable only till the age of 75 years
The benefit is applicable for a maximum of 40 years
There is a waiting period of 90 days for this benefit
Surrender Value
