Term insurance allows you to protect your family financially in the event of your passing. One of the most significant categories of life insurance that a person should purchase nowadays is term insurance. Term insurance offers you numerous other advantages, such as tax advantages, in addition to protecting your family financially in the worst-case scenarios.
Let’s discuss two famous term plans, namely Max term plans and HDFC term plans in detail!
About Max Life Insurance Company
Max Life Insurance Company is a dedicated insurance solutions provider that offers a range of term insurance plans to its customers. If the policyholder passes away during the policy period, these plans provide cash assistance to the family. The monthly income for families, coverage for housewives, additional protection in case of accidents, etc. are some significant aspects of Max’s term plans. The term insurance plan from Max Life offers the family financial security so they can manage the financial consequences of losing a loved one. Additionally, it aids the family in repaying debts and loans like mortgages and auto loans.
Tax advantages are offered by Max term insurance on both the premium payments made and the total sum received as a death benefit payout. These plans, which operate as reputable term insurance providers, may enable the policyholder to obtain loans in their place.
About HDFC Life Insurance Company
HDFC Life Insurance Company Limited, one of the major insurance companies in India, is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.) and Standard Life Aberdeen. Comprehensive Term Insurance Plans with Substantial Life Coverage are Available from HDFC Life Insurance at Affordable Premiums. The cost-effective term plans allow for the addition of riders to expand the base coverage.
At the same time, HDFC Term insurance plans provide high coverage at cheaper costs, making high coverage affordable. A high level of coverage guarantees that the family will be well cared for without facing any financial difficulties in the event of the breadwinner’s absence. The majority of term insurance policies on the market offer different payment choices, including lump sum, annuity, or a mix of the two. It guarantees that the insured’s family receives a regular income without having to deal with a huge lump sum of money.
Max Life Term Insurance Plans
Listed below are the types of Max term insurance plans:
- Smart Secure Plus Plan
- Term Plan with Return of Premium
- Critical Illness
- Saral Jeevan Bima
HDFC Life Term Insurance Plans
Listed below are the HDFC Term insurance plans:
- HDFC Life Click 2 Protect Super
- HDFC Life Click 2 Protect Life
- HDFC Life Term with Return of Premium
- QuickProtect by HDFC Life
- HDFC Life Saral Jeevan Bima
- HDFC Life Smart Term Pro
- HDFC Life Smart Term Edge
Benefits of Max Life Term Insurance Policies
Listed below are the benefits of Max term insurance plans.
- Long-Term Coverage
To leave a legacy for your family at a cost you can manage, you can pick long-term max insurance coverage up until the age of 85 (subject to a maximum policy term of 50 years).
- Disability Benefits
Accidents can occur without warning and might result in either temporary or permanent impairment. If you pay an additional premium, disability benefits with a Max term insurance plan will give you financial support in the event of an unintentional disability.
- Options for Income in the Event of Unfortunate Events
To ensure that dependents’ daily living expenditures are covered, a Max term insurance policy can provide both a regular income stream and a lump sum payment.
- Defence from Liabilities
Dependents will be protected from your financial obligations, such as a loan and other debt, thanks to the sum assured supplied under a term plan. With the money from the insurance payouts, they may easily pay off the loan.
- Protection from Illnesses
Max term insurance plans also provide critical sickness benefits to enable you to receive quality care for serious illnesses without worrying about the expense. By choosing the Critical Illness Rider for the Max Life Smart Secure Plus Plan, you can receive coverage for more than 64 ailments.
Benefits of HDFC Life Term Insurance Policies
Here is the list of the benefits of HDFC term insurance plans.
- Large cover at a reasonable price
The term insurance plan from HDFC Life provides ample protection for a relatively low price. Term insurance policies are also the most cost-effective and provide coverage for a very long time.
- Keeping your dependents safe
Term insurance plans are primarily designed to safeguard the policyholder’s financial dependence in the event of death. The financial dependent can manage their living expenditures and pursue their financial and personal goals with the aid of a lump-sum death benefit.
- Additional riders
Term plans can add riders for an additional cost and tailor your plan to your specific insurance needs. These riders are beneficial and can strengthen the case for a term plan by providing greater protection.
- Pay-out options
You have the option with HDFC Life term plans to get the payout in smaller amounts more frequently rather than all at once. When the plan is first created, you have the opportunity to choose whether you want to receive your benefit as a lump sum or as a regular income to cover your immediate daily expenditures.
- Tax Benefits
Under sections 80C and 10 (10D) of the Income Tax Act of 1961, you may be eligible for a tax break on the premiums paid for term plans as well as on the payouts received from the plan. As a result, HDFC Life Term plans can assist you with tax savings.
Comparison Between HDFC vs. Max Term Plans
Here are some of the crucial parameters that set them apart from one another:
|Parameters||HDFC Term Plans||Max Term Plans|
|Claim Settlement Ratio||98.66% (FY 2021- 22)||99.34 (FY 2021-22)|
|Number of Branches||400+||269 (Source: As Reported to IRDAI, FY 22-23)|
|Premium Payment Term||Regular Pay, Single Pay, Limited Pay||Regular Pay, Single Pay, Limited Pay|
|Premium Payment Mode||Yearly/Half-yearly/ Quarterly/ Monthly||Yearly/Half-yearly/ Quarterly/ Monthly|
Which is Better: HDFC Term Plans Vs. Max Term Plans?
Max and HDFC term insurance policies are both necessary to protect our loved ones and to fully address all facets of life. Financial security is offered by life insurance against the possibility of passing away. It is often used to financially support a spouse and children after the primary salary earner dies.
Therefore, consider all the features, benefits, etc., before choosing the finest policies. Before choosing the appropriate insurance coverage, you must be aware of the variations among life insurance providers.