Purchasing life insurance shields your partner and kids from the crippling financial losses that might occur in the event of your death. In addition to helping with debt repayment, living expenses, and any final or medical costs, it offers financial security. Everyone purchases life insurance for different reasons, but the choice to purchase insurance is crucial since it’s all about giving yourself and your loved ones financial security. But you might be wondering- What is the best life insurance? Since the market is flooded with many options, choosing the right one is not a piece of cake.
Life Insurance Corporation and Max Life Insurance are two of the popular names in the segment, offering the best life insurance products. Though each of them has its own set of benefits and eligibility criteria, you should choose one that caters to your needs.
Know the Differences Between Life Insurance Corporation and Max Life Insurance
Here are the comprehensive differences between Life Insurance Corporation of India and Max Life Insurance.
|Parameters||Life Insurance Corporation||Max Life Insurance|
|Claim Settlement Ratio (Individual Death Claims) Life insurance)||The claim settlement ratio of Life Insurance Corporation is 96.02% (FY- 2021-22) (As per the IRDAI Report).||Talking about the competitor, Max Life Insurance also has an impressive claim settlement ratio of 96.71% (FY- 2021-22) (As per the IRDAI Report)|
|No. of Plans||There are 25+ plans under Life Insurance Corporation of India||There are 10+ plans under Max Life Insurance.|
|Tax Benefits||There are tax benefits under Life Insurance Corporation of India.||Max Life Insurance offers tax benefits to the policyholders.|
|Discounts||With Life Insurance Corporation, customers can get special discounts if they are non-smokers or women.||There is a 5% Discount on buying Max Life Insurance online.|
LIC offers the best assistance to its policyholders via two dedicated apps:
Here is the list of the tech-enabled assistance offered by Max Life Insurance.
|Claim Process||LIC offers a Smooth policy claim experience.||Their dedicated team of expert claim assessors ensure that the claims process is handled in an easy manner for the family of the life-insured|
Know more about Life Insurance Corporation of India?
Life insurance indeed functions as a financial contract that provides a death benefit to the beneficiaries of the policy upon the death of the insured individual. The policyholder pays regular premium payments to the insurance company in exchange for this coverage.
The death benefit, often paid as a lump sum, serves as a financial safety net for the policyholder’s dependents or beneficiaries. This amount can help replace lost income, cover outstanding debts, and meet other financial needs that may arise in the absence of the insured individual. The primary purpose of LIC’s policies is to provide financial protection and support to the policyholder’s dependents or beneficiaries in the event of their death.
Being a government-backed entity adds years of trust and credibility, making LIC a preferred choice for many individuals seeking life insurance. Whether individuals are looking for pure protection through life insurance or a combination of protection and savings through endowment plans, LIC offers diverse options.
What Are LIC’s Key Features and Benefits?
The features and benefits of Life Insurance Corporation of India are as follows:
- Financial Security for Dependents
Life insurance from LIC ensures financial security for the policyholder’s dependents in the event of their untimely death. The death benefit can help cover living expenses, education, and other financial needs.
- Savings and Investment
Some LIC plans, such as endowment and whole life insurance, provide a savings or investment component. A portion of the premium goes into a cash value or bonus, which can be accessed by the policyholder during the policy term or at maturity.
- Tax Benefits
Premiums paid towards Life Insurance Corporation policies are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the death benefit received by beneficiaries is usually tax-free.
- Riders and Add-ons
LIC offers riders or add-on benefits that policyholders can include for additional coverage. Common riders include accidental death benefit, critical illness rider, and disability rider.
- Maturity Benefits
LIC plans, be it a savings or endowment product, provide maturity benefits, offering a lump sum amount to the policyholder at the end of the policy term.
- High Claim Settlement Ratio
LIC is known for its high claim settlement ratio, indicating the percentage of claims settled by the company. The claim settlement ratio of LIC is 96.02% (FY- 2021-22) (As per the IRDAI Report), making it one of the most credible names in the industry.
- Government Ownership
LIC is a government-owned entity, providing policyholders with a sense of trust and security. Its ownership by the Government of India adds a layer of reliability, making it one of the most trusted insurers in the country.
What is Max Life Insurance?
Max Life Insurance is a leading life insurance company in India. It is a joint venture between Max Financial Services Ltd., a part of the Max Group, and Mitsui Sumitomo Insurance Company, a Japanese insurance company. Established in 2000, Max Life Insurance has gained prominence in the Indian insurance sector and offers a range of insurance products and services. Max Life Insurance provides financial protection and support to the policyholder’s dependents or beneficiaries in the event of their death.
Max Life Insurance provides a diverse range of life insurance products to cater to various financial needs and goals. This includes term insurance plans, savings plans, child plans, retirement plans, and more. Max Life is known for its customer-centric approach, focusing on providing personalized solutions and excellent customer service. The company emphasizes understanding the unique requirements of each policyholder.
What Features and Benefits Does Max Life Insurance Offer?
The following are the key features and benefits of Max Life Insurance.
- Financial Protection for Your Loved Ones
Max Life Insurance can provide a lump sum of money to your beneficiaries in the event of your death, which can help them cover living expenses, pay off debts, or continue their standard of living.
- Provides a Source of Income for Your Family
If you have dependents who rely on your income, Max Life Insurance can help ensure that they have a source of financial support even if you’re no longer around.
- A Lucrative Investment Tool
When you choose Max Life Insurance, you will have the option to choose from a range of life insurance policies, such as whole life insurance, that help you accumulate cash value over the policy term, which you can use as an investment tool for your future financial goals.
- Critical Illness Benefit
You can opt for a critical illness rider with Max Life Insurance, which offers protection against critical health ailments, such as cancer, kidney failures, and cardiovascular issues. This way, you or your family need not worry about the financial side of medical emergencies.
- Offers Tax Benefits
Death benefits under max Life Insurance are generally tax-free, and the premiums you pay for the policy may also be tax-deductible in some circumstances.
- Can Help Cover Debts and Loans
If you have outstanding debts or a loan, MAX Life Insurance can provide the funds to pay these off so that your loved ones are not left with these financial obligations.
- Fund a Child’s Education
Life insurance can be a useful tool for saving for a child’s education, as the death benefit can provide a source of funds for tuition and other expenses.
- Can Provide Peace of Mind
Knowing that you have Max life insurance in place can bring peace of mind, as you can be confident that your loved ones will be financially taken care of in the event of your death.
- Opportunities to Create Wealth
Choosing one of the Life insurance plans under Max Life Insurance like ULIP (Unit Linked Insurance Plan) gives you the benefit of life cover along with market-linked returns from your investment.
What Should You Choose: LIC or Max Life Insurance?
The choice between LIC (Life Insurance Corporation of India) Life Insurance and Max Life Insurance depends on various factors, including your financial goals, preferences, and specific insurance needs. Both companies have their strengths and considerations. If you prioritize government backing and a legacy brand, LIC might be a suitable choice. If you seek innovative products and a customer-centric approach, Max Life could be appealing.
Furthermore, if you are looking to consider life insurance with a government-owned entity, then Life Insurance Corporation is an ideal choice. On the other hand, Max Life Insurance is often recognized for its customer-centric approach and focus on providing personalized solutions. For a wide range of life insurance products with an impressive claim settlement ratio, then choosing Max Life Insurance will help you out!