Max Life Smart Term Plan

Let us understand the working of Max Life Smart Term Plan better with the help of an example:

Mr. Mohit, a software engineer, buys Max Life Smart Term Plan

Variant 1 - Life cover: 100% of the Sum Assured chosen at policy inception will be paid to the beneficiary as a lump sum, immediately on the death of the Life Insured.

After 5 years, he passes away. A lump sum benefit of ₹1 crore is paid to his nominee and the policy terminates.

Variant 2 - Income Protector: A fixed level monthly income for payout duration of 10 years, 15 years, or 20 years as chosen by the insured at policy inception will be paid to the nominee post the date of death of the Life Insured.

After 8 years, Mr. Mohit passes away. A monthly income of ₹1 lakh is paid out to his nominee every month for 120 months starting from the next monthly policy anniversary post Mr. Mohit’s death.

Variant 3 - Income + Inflation Protector: An increasing monthly income for payout duration of 10 years, 15 years, or 20 years as chosen by the insured at policy inception will be paid to the nominee post the date of death of the Life Insured.

After 6 years, he passes away. A monthly income of ₹1 lakh which increases every year by ₹10,000 is paid to his nominee for 120 months as chosen by Mr. Mohit at inception. The monthly income starts from the next monthly policy anniversary post his death.

Variant 4 - Life Cover + Income: 100% of the Sum Assured chosen by the insured is payable immediately on the death of the life insured + a fixed monthly income of 0.4% of the Sum Assured will be paid for the next 10 years every month post-death of the life insured.

After 5 years, he passes away. A lump sum benefit of ₹1 crore is paid out to Mr. Mohit’s nominee immediately on death. Also, a monthly income of ₹40,000 is paid out to his nominee for the next 120 months.

Variant 5 - Life Cover + Increasing Income: 100% of the Sum Assured chosen by the insured is payable immediately on the death of the life insured + a monthly income of 0.4% of Sum Assured which increases every year by 10% p.a. will be paid for next 10 years every month post-death of the life insured.

After 7 years, Mr. Mohit passes away. A lump sum benefit of ₹1 crore is paid to his nominee immediately on death. Also, a monthly income of ₹40,000 which increases by ₹4,000 every year is paid to his nominee for the next 120 months.

Variant 6 - Increasing Cover: The Sum Assured increases by 5% p.a. on each policy anniversary till the completion of the 21st policy anniversary. Immediately on the death of the Life Insured, Sum Assured effective as on the last policy anniversary will be paid to the beneficiary as a lump sum.

After 5 years, Mr. Mohit passes away due to illness. The Sum Assured effective on the last policy anniversary which is ₹1.2 crores as shown in the table below is paid out as a lump sum to his nominee and the policy terminates.

Variant 7 - Reducing Cover: The Sum Assured decreases by 5% p.a. on completion of every 5th policy year. Immediately on the death of the Life Insured, Sum Assured effective as on the last policy anniversary will be paid to the beneficiary as a lump sum.

After 27 years, he passes away. Hence, the Sum Assured effective in the 27th policy year which is ₹7.5 crores as shown in the table below is paid as a lump sum to his nominee and the policy terminates.