Since Covid-19 hit, the need for term insurance has gone up and even now, it’s not showing signs of slowing down. It is no secret that Life is full of uncertainties. The financial security of your family may be impacted by a catastrophic illness or accident. Safeguarding your family’s financial future, however, is much simpler if you begin investing in term insurance. Though we might have understood the importance of term insurance, the question is still intact- What insurer to choose? Well, when it comes to choosing the right term insurance, LIC and Max Life term insurance are popular names on the market.
When comparing LIC (Life Insurance Corporation of India) Term Insurance with Max Term Insurance (offered by Max Life Insurance Company), it’s important to consider various factors to determine which policy suits your needs better.
Let’s dive into the differences between LIC term insurance and Max Life Term Insurance.
Comparison between LIC Term Insurance & Max Life Term Insurance
|Parameters||LIC Term Insurance||Max Life Term Insurance|
|Claim Settlement Ratio (Individual Death Claims) Life insurance)||The claim settlement ratio of LIC term insurance is 96.02% (As per IRDAI Report 21-22)||On the other hand, Max Life term insurance also has an impressive claim settlement ratio of 96.71% (As per IRDAI Report 21-22)|
|No. of Plans||There are 4 term insurance plans by LIC.||There are 10+ term insurance plans offered by Max Life Insurance.|
|Tax Benefit||Yes, LIC Term insurance offers incredible tax benefits.||With Max Life term insurance, policyholders can get tax savings of up to Rs. 46,800.|
|Covered Age||Term insurance plans by LIC can cover the individual for up to 80 years.||Max Life Term insurance, on the flip side, can cover individuals up to 85 Years of Age.|
|Disease Covered||There are no diseases covered under term insurance plans by LIC.||One of the term insurance plans by Max Life Insurance covers more than 64 diseases.|
LIC term insurance offers multiple riders;
Max Life term insurance offers a multitude of riders, which include:
|Discount||There are no discounts under the term insurance plans by LIC.||Max Life Term Insurance offers a 5% discount to customers who bought any of the plans offered.|
|Entry Age||The entry age to buy LIC term insurance is 18 Years.||The minimum age to avail of term insurance plans by Max Life Insurance is 18 years.|
|Coverage Amount||LIC term insurance offers a great coverage amount.||Max Life term insurance offers the maximum coverage amount of up to 2 crore.|
|Maximum Entry Age||The maximum age to enter LIC term insurance is 65 Years.||On the other hand, Max Life term insurance allows customers up to 60 Years to buy insurance.|
|Disability benefit||Yes, LIC term insurance covers disability.||On the flip side, Max Life term insurance covers disability.|
What is LIC Term insurance?
LIC term insurance protects your family from potential income loss in the event of the policyholder’s death. Even though these plans don’t offer any maturity, people still prefer them. Customers can purchase a large number of coverage levels at extremely low premiums with the term insurance plans by LIC. Policyholders can get maximum protection against income loss, disability, and death.
The insured person can choose from a variety of features with LIC Term Insurance, including nonsmoker premium rates, special premium rates for women, and more.
Key Features and Benefits of Term Insurance Plans Offered by LIC
Here is the list of the major features and benefits of LIC term insurance.
You can affordably insure your loved ones with LIC term insurance. You don’t need to worry about going over your current budget to purchase higher sum assured term insurance plans.
If you don’t smoke, for example, you may be able to receive a discount on LIC term insurance plans. This indicates that the LIC offers non-smokers exclusive savings. In addition, policyholders who are female are eligible for reduced premium rates.
Coverage for outstanding debts and loans is one of the main benefits of purchasing term insurance plans offered by LIC. It will compensate the policyholder in the event of their death within the policy’s term. Your loved ones won’t have to worry about any financial strain during those trying times.
Under the terms of the plan, the nominee receives a lump sum payment in the event that an accident results in guaranteed death. Term insurance plans by LIC include an accidental death benefit that can be obtained by adding an accidental death rider to the policy.
By adding riders to their base term plan, policyholders of LIC term insurance plans can benefit from increased coverage. If you want more protection, you might have to pay a higher premium.
High Claim Settlement Ratio:
The high claim settlement ratio of LIC term insurance plans is one of its key characteristics and advantages. With a claim settlement ratio of 96.02% (FY 2021-22) for LIC term insurance, the insurer clearly understands its clientele. Opting for an insurer with a high claim settlement ratio is highly recommended, as it indicates a low likelihood of difficulties pursuing your claims.
The premium paid for the LIC-provided term insurance plan is deductible from income under Section 80D of the Income Tax Act of 1961.
Understanding Max Life Term Insurance
Max Life Term insurance is a pure life insurance product that offers the policyholder financial security. The beneficiary receives a death benefit as specified by the selected term insurance plan in the event that the insured passes away within the policy period. If you are your family’s only provider, you can protect your loved ones from any financial hardship by learning about term insurance early in life and ensuring that your family has a worry-free financial future. With these term insurance plans offered by Max Life Insurance, you can easily obtain sizable insurance for a comparatively low premium.
What Distinguishing Features & Benefits Does Max Life Term Insurance Offer?
The following are the key features and benefits of choosing term insurance plans by Max Life Insurance Company.
To Secure Your Family’s Future:
As the breadwinner in your family, you bear the responsibility for your partner’s, parents’, and kids’ general welfare. To make sure that you fulfill your duties to your loved ones even after you pass away, purchasing Max Life term insurance will help you out.
To Protect Assets:
Loans may have helped you accumulate assets like a house, workplace, or automobiles. You can make sure that your loved ones won’t face financial hardships after you pass away by enlisting the help of a term insurance plan by Max Life Insurance.
Long Term Coverage:
At a cost you can afford, you can select long-term insurance coverage that will last until the age of 85 (with a 50-year maximum policy term). One of the many things you should consider when looking for the best term insurance plan for yourself is this long-term coverage benefit which is offered by Max Life term insurance.
Unexpected accidents can result in either temporary or permanent disability. Your term plan’s disability benefit will give you money if you become disabled unintentionally.
To Minimize Lifestyle Risks:
When a family’s primary provider passes away, it can completely upend their way of life and become challenging to make ends meet. Even a term insurance plan won’t be able to bring back a loved one, but it can ease the financial burden of losing the family’s primary provider. Choose the best term insurance by Max Life Insurance and protect your loved ones in case of your absence.
Multiple Premium Payment Options:
One advantage of term insurance plans by Max Life Insurance is that they allow you to select the duration of premium payments. Regular pay during the policy period or limited pay options in conjunction with your term plan are your options.
To Stay Prepared for Uncertainties:
Life’s uncertainties can have unexpected effects on us. Considering the current global coronavirus pandemic, this is easily understood. The greatest term insurance plan should give us the financial tools we need to overcome a variety of life’s inevitable challenges.
Protection from Illnesses:
Additionally, a number of term insurance plans provide benefits for critical illnesses, allowing you to receive quality care for potentially fatal illnesses without worrying about costs. By selecting the Critical Illness Rider option with the Max Life Smart Secure Plus Plan, you can receive critical illness coverage for over 64 diseases.
According to current tax laws, a term insurance plan by Max Life Insurance offers tax savings on the premium paid under section 80C on Income Tax of up to Rs. 1.5 lakh. Furthermore, a term plan’s lump sum payout is tax-exempted under Section 10(10D).
Who is the Winner: LIC Term Insurance or Max Life Term Insurance?
Determining whether LIC Term Insurance or Max Term Insurance is right for you depends on your specific needs, preferences, and financial situation. There is no one-size-fits-all answer, as what might be suitable for one person may not be the best choice for another. To make an informed decision, if you are looking for term insurance with a greater number of plans with extensive coverage of disease, then term insurance plans offered by Max Life Insurance are an ideal choice. On the other hand, if you want to consider better customer support, then LIC term insurance can help you out!