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Max Life Smart Term Plan

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Max Life Smart Term Plan Summary

Max Life Smart Term Plan
A non-linked, non-participating, individual pure risk premium life insurance plan which is highly popular with customers. Being a term insurance plan, it offers large cover at lower premiums.
 
Plan Name Smart Term Plan
Product Type Term Life Insurance
UIN 104N113V04

Key features of Max Life Smart Term Plan

Key features of Max Life Smart Term Plan
Every individual’s needs are different and with the plethora of features available under Max Life Smart Term Plan to choose from, policyholders can make their own term plan:
  • Comprehensive death benefit variants: This plan helps policyholders customize the protection required at affordable prices by offering 7 death benefit variants to choose from at the time of purchase.
Sr. no Death Benefit Variant
1 Life Cover
2 Income Protector
3 Income + Inflation Protector
4 Life Cover + Income
5 Life Cover + Increasing Income
6 Increasing Cover
7 Reducing Cover
  • Option to pay your premiums as per your budget: Choose from a range of premium payment terms – Once, for a limited period, or throughout the policy term. Moreover, you have the option to pay premiums in yearly, half-yearly, quarterly, or monthly mode.
  • Longer coverage duration: Choose your own desired policy term with coverage available up to age 85 years
  • Accelerated Critical Illness Benefit: Accelerated payout is offered in case life insured is diagnosed with any of the 40 specified critical illnesses by paying an additional premium - an increasing cover option also available which ensures your risk cover stays relevant to your age.
  • Additional Protection with Additional Liabilities: Enhance your cover at important milestones of your life by choosing Life Stage Event Benefit by paying an additional premium.
  • Riders & Accidental cover: Get comprehensive protection against Death, Disability & Critical Illness by adding Max Life Waiver of Premium Plus Rider & against accidental death by adding Max Life Accident Cover option by paying an additional premium.
  • Premium Back option: Get all your money back with this option by paying an additional premium.

COMPARE THIS PLAN WITH OTHER TERM PLANS
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    Eligibility Criteria for buying Max Life Smart Term Plan

      Minimum Maximum
    Sum assured Non-medical - ₹ 10 lakhs
    Medical - ₹ 25 lakhs (except reducing cover variant)
    Reducing Cover death benefit variant - ₹ 1 crore
    No limit, subjected to the underwriting policies of Max Life
    Age at entry 18 years Regular pay - 60 years
    Pay till 60 variant - 44 years
    Maturity age - Base Death Benefit: 85 years
    Accelerated Critical Illness (ACI) Benefit Option: 75 years
    Accident Cover Option: 85 years
    Premium Payment Term
    • Single Pay variant
    • Regular Pay variant (Policy Term is equal to Premium Payment Term)
    • Limited pay variant (5 Pay / 10 Pay / 12 Pay / 15 Pay)
    • Pay till 60 variant
    Premium Payment Modes Annual, Semi-Annually, quarterly & monthly

    Let us understand the above-mentioned premium payment terms and policy term combinations better with the help of this table:
     
    Premium Payment Term Variant Available Base Policy Terms Available ACI Option Policy Terms Available Accident Cover Policy Terms
    Single Pay 10 Years to 50 Years NA NA
    Regular Pay 10 Years to 50 Years 10 Years to 50 Years 5 Years to 50 Years
    5 Pay 10 Years to 50 Years NA 5 Years
    10 Pay 15 Years to 50 Years 10 Years 5 Years to 10 Years
    12 Pay 17 Years to 50 Years 10 Years to 12 Years 5 Years to 12 Years
    15 Pay 20 Years to 50 Years 10 Years to 15 Years 5 Years to 15 Years
    Pay Till 60 Policy term should be greater than premium payment term (Maximum of 50 years) 10 Years to (60 minus Entry Age) 5 Years to (60 minus Entry Age)


    How does Max Life Smart Term Plan work?

    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.
     
    Sum Assured ₹1 crore
    Age 30 years
    Policy Term 40 years
    Premium Payment Term 40 years
    Annual Premium (Exclusive of GST) ₹10,500

    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.
     
    Monthly Income chosen ₹1 lakh
    Age 35 years
    Pay-out period chosen 10 years
    Policy Term 40 years
    Premium Payment Term 40 years
    Annual Premium (Exclusive of GST) ₹15,874

    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.
     
    Monthly Income chosen ₹1 lakh
    Age 40 years
    Yearly Increase 10% p.a.
    Pay-out period chosen 10 years
    Policy Term 40 years
    Premium Payment Term 40 years
    Annual Premium (Exclusive of GST) ₹28,301

    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.
     
    Sum Assured ₹1 crore
    Age 30 years
    Monthly Income payable ₹40,000
    Pay-out period for income 10 years
    Policy Term 40 years
    Premium Payment Term 40 years
    Annual Premium (Exclusive of GST) ₹14,616

    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.
     
    Sum Assured ₹1 crore
    Age 40 years
    Monthly Income payable ₹40,000
    Yearly Increase 10%
    Pay-out period for income 10 years
    Policy Term 40 years
    Premium Payment Term 40 years
    Annual Premium (Exclusive of GST) ₹31,720

    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.
     
    Sum Assured ₹1 crore
    Age 30 years
    Yearly Increase in Sum Assured ₹5 lakhs
    Policy Term 40 years
    Premium Payment Term 40 years
    Annual Premium (Exclusive of GST) ₹17,000

    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.
     
    Policy Year Increase in Sum Assured Effective Sum Assured
    1 0 ₹1 crore
    2 ₹5 lakhs ₹1.05 crore
    3 ₹5 lakhs ₹1.1 crore
    4 ₹5 lakhs ₹1.15 crore
    5 ₹5 lakhs ₹1.2 crore

    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.
     
    Sum Assured ₹10 crore
    Age 45 years
    Annual reduction in Sum Assured ₹50 lakhs
    Policy Term 40 years
    Premium Payment Term 40 years
    Annual Premium (Exclusive of GST) ₹2,34,000

    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.
     
    Policy Year Decrease in Sum Assured Effective Sum Assured
    1 to 5 0 ₹10 crore
    6 to 10 ₹50 lakhs ₹50 lakhs
    11 to 15 ₹50 lakhs ₹9 crore
    16 to 20 ₹50 lakhs ₹8.5 crore
    21 to 25 ₹50 lakhs ₹8 crore
    26 to 30 ₹50 lakhs ₹7.5 crore
    31 to 35 ₹50 lakhs ₹7 crore
    36 to 40 ₹50 lakhs ₹6.5 crore
     
    You can get Best online Term plan on MyInsuranceClub

    Tax Rebates in Max Life Smart Term Plan

    • Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act.
    • Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act  
    • Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act

    Exclusions in Max Life Smart Term Plan

    If the Life Insured dies by suicide within 12 months from the date of inception of the policy or the date of revival of the policy, the policy shall terminate immediately. In such cases, the Company shall only refund Total Premiums Paid + underwriting charges + loading for modal premiums (if any) to the nominee.

    FAQs on Max Life Smart Term Plan

    1. What is Free-look Period?
    If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned. To know more about the Free-Look Period, click here.

    2. What is Grace Period?
    In the case of Yearly, Half-yearly, and Quarterly premium payment modes you have a grace period of 30 days from the premium due date. In the case of monthly premium payment mode, the grace period is 15 days.

    3. What is the Revival Period?
    Once the policy has lapsed, it can only be revived within a revival period of five years from the due date of the first unpaid premium or the end of the Policy Term whichever is earlier.

    4. Are any Riders available?  
    You have the choice of taking the following rider by paying an extra premium amount:     
    • Max Life Waiver of Premium Plus Rider (UIN 104B029V03)
    If you have any queries, our IRDA-trained advisor at MyInsuranceClub can help you get them solved. You can get various Term Life insurance comparisons on MyInsuranceClub.
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