Max Life Smart Secure Plus Plan
Max Life Insurance offers Smart Secure Plus Plan, a comprehensive protection solution that can be personalized for the customer and his/her loved ones at an affordable price. It’s a non-linked non-participating individual pure risk premium life insurance plan that gives policyholders life security and the freedom to design the policy benefits according to their financial profile with death benefit variants and multiple pay-out options. To know more about this plan, have a look at the below mentions.
Minimum Age – 18 years
Regular Pay – 65 years
Pay till 60 – 44 years
|Maximum maturity age
Base Death Benefit: 85 years
Accelerated Critical Illness (ACI) Benefit: 75 years
Accident Cover: 85 years
Minimum – Subject to minimum Sum Assured and applicable premium rates.
Maximum – No Limit, subject to maximum Sum Assured limits determined in accordance with the Board approved underwriting policy of the Company.
|Minimum sum assured
Base Death Benefit:
For Secondary Life, in Joint Life: Rs. 10,00,000
Accelerated Critical Illness (ACI) Benefit Option – Rs. 5,00,000
Accident Cover Option – Rs. 50,000
|Maximum sum assured
Base Death Benefit
For Secondary Life, in Joint Life: Rs. 50,00,000
Accelerated Critical Illness (ACI) Benefit Option – 50% of Base Death Benefit Sum Assured chosen at inception capped at Rs. 50,00,000.
Accident Cover – Rs. 1,00,00,000.
|Premium payment mode
Annual, Semi–Annual, quarterly & monthly premium payment modes. The modal factors are as follows:
Key Features and Benefits of the Max Life Smart Secure Plus Plan
Every individual’s needs are different and with the plethora of features available under Max Life Smart Secure Plus Plan to choose from, one can make his/her own term plan from the following option:
On the death of the Life Insured anytime during the term of the policy, provided the policy is in force, the Company will pay the Guaranteed Death Benefit under the Plan. Guaranteed Death Benefit is defined as higher of:
- For Single Pay – 1.25 times the Single Premium plus underwriting extra premium if any;
For Other Premium Payment Term – 10 times the Annualised Premium plus underwriting extra premium, if any,
- 105% of Total Premiums paid ^ plus underwriting extra premium plus loadings for modal premiums as on the date of death
- Any absolute amount assured to be paid on death
Guaranteed Death Benefit will be paid to the beneficiary on the death of the Life Insured.
In case an Accelerated Critical Illness (ACI) and/or Terminal Illness (TI) Benefit claim has been paid, the Guaranteed Death Benefit amount shall be reduced to the extent of the claim paid out on account of ACI/TI Benefit. The sum Assured chosen at inception will remain level through the term of the policy.
Increasing Life Cover:
Guaranteed Death Benefit will be paid to the beneficiary on the death of the Life Insured
Under this cover, the Base Sum Assured chosen at inception increases by 5% p.a. (simple interest) on each policy anniversary, subject to a maximum of 200% of the Base Sum Assured chosen at inception.
The beneficiary at the claim stage can choose from the following payout options:
- Lumpsum that is 100% of the Guaranteed Death Benefit will be paid as Lumpsum.
- Monthly Income is the monthly payment for a fixed period of 10 years starting from the next monthly anniversary following the date of intimation of death. The monthly payment shall be determined on the basis of the prevailing RBI Bank Rate less 1% p.a. as on the date of intimation of death.
- Part Lumpsum and Part Monthly Income (at the then prevailing RBI Bank Rate less 1% p.a.) that is, the nominee can select the proportion of Guaranteed Death Benefit payable as Lumpsum and the remaining Guaranteed Death Benefit would be payable as Monthly Income. The proportion of Lumpsum and Monthly income amount can be chosen in multiple of 10%.
On diagnosis of Terminal Illness, 100% of the Guaranteed Death Benefit (subject to a maximum of INR 1 Cr) will be payable. Once a Terminal Illness claim is paid, the death benefit sum assured will be reduced by the terminal illness claim amount. The Terminal Illness Benefit is payable only once during the Policy Term and only one valid Terminal Illness Benefit claim will be admissible and payable under the Policy.
In this option, the Policyholder is allowed to take two annual breaks (holidays) from paying premiums with the Policy remains in force as per the terms and conditions. The first break is available after the completion of 10 policy years provided the policy is in force. The second premium break can be exercised after a minimum gap of 10 years from the first premium break.
Joint Life Option:
Under the Joint Life option, both the Primary Life and the Secondary Life are covered. This option needs to be chosen at the inception of the Policy. Under this benefit:
- If Secondary Life dies or is diagnosed with a terminal illness, whichever is earlier before the death/diagnosis of Terminal Illness of the Primary Life:
- A guaranteed death benefit of Rs. 10 lacs will be payable to the beneficiary
- Primary Life cover continues with a reduced premium (to the extent of the premium of the Secondary Life) and the original base sum assured.
- If Secondary Life dies or is diagnosed with a terminal illness, whichever is earlier after the death/diagnosis of Terminal Illness of Primary Life:
- The guaranteed death benefit of Rs. 50 lacs will be payable to your nominee.
- The option has an in-built waiver of a premium feature whereby premiums (inclusive of loading for modal premiums and taxes) for the Secondary Life sum assured will be waived off when the Primary Life dies or is diagnosed with a terminal illness, whichever is earlier.
Accelerated Critical Illness (ACI) Benefit:
Accelerated Critical Illness (ACI) benefit is payable on diagnosis of any of the specified Critical Illness during the CI Benefit cover period, provided the policy is in-force and meets the terms and conditions.
- ACI pays 100% of the ACI Sum Assured following a confirmed diagnosis of the Life Assured suffering from one of the insured Critical Illness conditions (except Angioplasty) as specified during the ACI benefit policy term.
- Following a confirmed diagnosis of Angioplasty, ACI benefit pays lower of Rs. 5,00,000 or ACI Sum Assured.
- The premium shall not reduce post payment of an angioplasty claim unless it terminates the ACI benefit
On death due to an accident, 100% of the Accident Cover Sum Assured will be payable as a lump sum irrespective of the claim payout option chosen by the nominee, upon approval of a claim. This benefit shall be payable in addition to the death benefit Sum Assured. Any increase in the Base Sum Assured due to any of the product features shall not affect the Accident Cover Sum Assured. Cover will be available till the base policy term.
Return of Premium Variant:
There is a Return of Premium variant available under this product which is available at policy inception and cannot be selected at a later stage during the policy term. Under the Return of Premium variant, if the Life Insured survives throughout the policy term, 100% of the Total Premiums Paid plus underwriting extra premiums plus loading for modal premiums, if any, under the base policy only will be paid at the end of the policy term and the policy will terminate.
Voluntary Sum Assured Top-up:
This option allows the policyholder to increase the sum assured at a later stage in the policy term. This option has to be selected at the time of inception of the policy. The increase will only be applicable after the first policy year.
Special Exit Value:
A Special Exit benefit, where the policyholder shall be returned the total premiums paid plus underwriting extra premiums paid plus loadings for modal premiums if any of the policyholders surrenders his/her policy during the attained age of 65 years (age last birthday) or ‘x’ policy year (where x is defined as 25th policy year for policy term from 40 years to 44 years and 30th policy year for policy terms greater than 44 years), whichever is earlier.
This plan offers some more advantages for the customers and those are:
- High Sum Assured discounts – There are discounts built into the plan if a higher Sum Assured is chosen.
- Lower premium rates for female lives – There will be a 3-year age setback over males’ rates for female lives for all premium payment terms except Pay till 60. Where the corresponding rate is not available, the lowest available premium rate for males will be used.
- Non-Smoker/Smoker – Lower premium rates for non-smokers however, the Accident cover and Accelerated CI benefit premium rates do not vary by smoker status.
- Restrictions on Travel/Occupations – There will be no restrictions on travel or future occupation
- Discounts – Multiple discounts are available:
- 5% discount (2% for Single Pay) for the entire premium payment term, for Max Group Employees, Agents of Max Life, and Employees of Corporate Agents of Max Life.
- First-year discount of 5% (2% for Single Pay) for sales through exclusive web link sent to employees of corporate by the company where there is no direct marketing cost incurred.
- First-year discount of 5% (2% for Single Pay) for existing customers.
What are the rider options available with Max Life Smart Secure Plus Plan?
One can now make this policy more comprehensive by adding the below-mentioned riders:
Max Life Waiver of Premium Plus Rider:
The rider can be attached any time during the premium paying term of the base plan, subject to the minimum applicable term of the rider. This rider provides a waiver of all future premiums under a policy and all other attaching riders on earlier happening of either of the following events provided the base policy and attaching riders are in force:
- Critical Illness; or
- Dismemberment; or
- Death (only when Life Insured and Policyholder are different individuals, rider benefit will be paid on the death of the Policyholder)
The waiver of premium will happen for the base benefit premium as well as for additional optional benefits applicable. If the policyholder is the same as the life insured and the policyholder suffers from any of the listed critical illnesses under ACI benefits as well as WOP+ benefits, then both ACI and WOP+ benefits will get triggered.
Max Life Critical Illness and Disability Rider:
This rider provides benefits upon diagnosis of any of the critical illnesses covered. The rider policy term and rider premium payment term would be equal to the corresponding outstanding base policy term and premium payment term. The rider premium cannot exceed 100% of the Annualised Premium plus underwriting extra premium plus loading for modal premiums, if any, in a policy. The rider sum assured shall not exceed the base sum assured chosen at the inception of the policy. The rider is not available under the Single Pay premium payment variant of the product.
What Is The Reduced Paid-up Policy of the Max Life Smart Secure Plus Plan?
Reduced Paid Up value will be acquired by a policy only in the case of the ROP variant and once the policy has acquired a Surrender value. Once the policy acquires a surrender value, by default, the policy will become Reduced Paid-Up (RPU) in case of non-payment of any further premium(s). On the policy becoming RPU, the Sum Assured applicable under the death benefit will be reduced using the proportionate premiums method as mentioned below.
RPU Sum Assured = ((Total Premiums Paid for the base policy) / (Total premiums payable under the base policy)) X Sum Assured applicable before policy moved to RPU.
RPU Sum Assured shall be payable on the death of the life insured for a reduced paid-up policy.
On diagnosis of Terminal Illness under a reduced paid-up policy, 100% of the RPU Sum Assured (subject to a maximum of INR Rs. 1 Crore) will be payable. Terminal Illness benefit will accelerate the death benefit that is once a Terminal Illness claim is paid, the RPU sum assured will be reduced by the terminal illness claim amount. RPU is not applicable under ACI benefit, accident cover & Secondary Life cover under joint life.
The Maturity Benefit and Surrender Benefit for a policy in RPU mode will be as follows:
- Maturity Benefit for an RPU Policy: Under the ROP variant, if the Life Insured survives throughout the policy term, 100% of the Total Premiums Paid plus underwriting extra premiums paid plus loading for modal premiums, if any, will be paid at the end of policy term under each of the base policy, Premium Break option and voluntary sum assured top-up option, if opted for.
- Surrender Value for an RPU Policy: The surrender value of an RPU policy will be the same as mentioned in the section above on ‘Surrender Benefit / Early Exit Value.
How To Revive Max Life Smart Secure Plus Plan?
In case of non-receipt of premiums before the policy has acquired surrender benefit / early exit value, the policy will lapse and no benefits shall be payable. 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, subject to the following conditions:
- Policyholder paying all overdue premiums, together with a late fee applicable on the date of revival and as determined by the Company from time to time depending upon the number of days between the date of lapse and the date of revival of the policy. The current late fee structure is mentioned below:
|Number of days between lapse and revival of policy
|RBI Bank Rate + 1% p.a compounded annually on due premiums
|RBI Bank Rate + 3% p.a compounded annually on due premiums
- The revival of the policy shall take effect only after the revival of the policy is approved by Max Life Insurance basis of the Board approved underwriting policy and communicated to the policyholder in writing. Once the policy has been revived, all benefits will get reinstated to original levels, which would have been the case had the policy remained premium paying all throughout.
If a lapsed policy is not revived within five years, the policy shall be terminated and no value is payable to the policyholder. Once the policy has acquired surrender value / early exit value, the policy shall not lapse and the following shall be applicable:
Under The Return of Premium Variant:
In case of premium discontinuance, the policy will become Reduced Paid-Up (RPU). An RPU policy can be revived within a revival period of five years from the due date of the first unpaid premium, subject to the conditions mentioned above for the revival of a lapsed policy. If an RPU policy is not revived within five years of becoming RPU, then the policy cannot be revived and will continue as RPU for the rest of its policy term.
Other Than ROP Variant:
In case of premium discontinuance, the policy can be revived within a revival period of five years from the due date of the first unpaid premium, subject to the conditions mentioned above for the revival of a lapsed policy.
If the policy is not revived within a revival period of five years from the due date of the first unpaid premium, an Early Exit Value shall be paid to the policyholder and the policy shall be terminated.
How Does Max Life Smart Secure Plus Plan Work?
To make it easier to understand, here is an example of how the Max Life Smart Secure Plus Plan works. Mr. Sharma, a 36-year-old businessman has purchased this plan. let us find out how much benefit he will reap under this plan for the given credentials.
|Investment amount (Excluding GST)
|You pay till 2028
|Rs. 6 lakhs
|Maturity value by 2033
|Rs. 10.16 lakhs
|Life cover till 2033
|Rs. 12.84 lakhs
|Tax savings on maturity
Exclusions of Max Life Smart Secure Plus Plan
To avoid future complications and claim denial, the exclusions of a policy should be kept in mind. Therefore, the general exclusions of the Max Life Smart Secure Plus Plan are:
- Anything that does not follow the terms and conditions of the company as well as the policy will permanently be excluded from the policy.
- If there is any breach of law or foul play, the company has the right to reject the claim.
- If the Life Insured, whether sane or insane, dies by suicide within 12 months from the Date of commencement of Risk of the policy (the effective date of risk commencement) or the date of revival of the policy, the policy shall terminate immediately. In such cases, the Company shall only refund Total Premiums Paid plus underwriting extra premium paid plus loading for modal premiums paid (but exclusive of taxes, cesses & levies as imposed by the Government from time to time) to the nominee.
What is the buying process for Max Life Smart Secure Plus Plan?
To buy the plan online seamlessly. One needs to follow the below steps thoroughly:
- Go to the official website of Max Life Insurance Company.
- Select the ‘Saving Plans’ tab that is available at the top of the homepage.
- Multiple plan names will appear.
- Select the Max Life Smart Secure Plus Plan. You will be directed to a new page.
- On the right side of that page, there will be the Buy Now option. Fill in the blanks with required details such as name, date of birth, gender, annual income, etc.
- After filling up with required credentials, click on the Buy Now option.
- Provide other necessary details as requested by the company.
- Check all the details and benefits carefully. If satisfied, pay the premium amount by choosing the most convenient method of payment available with the insurer.
- Once the policy is purchased, download the policy document for better convenience.
One can also buy this policy offline by visiting one of the official branches of the company. Their customer executives are knowledgeable and experienced enough to guide you through the process without any hassles. In of any trouble, policyholders can also reach out to the qualified experts at Probus Insurance.
Frequently Asked Questions
The absolute Amount Assured to be Paid on Death is the base sum assured in case of Life Cover and the increased sum assured at the time of death in case of Increasing Life Cover (in case of the Joint Life option, only the sum assured for Primary Life shall increase under Increasing Life Cover).
Under this cover, the Sum Assured will only increase until the 21st policy year is completed. The Sum Assured will not increase from the 22nd policy year onwards and will be the same as the Sum Assured effective as of the last policy anniversary. Accelerated Critical Illness benefit and Voluntary Sum Assured Top-up benefit option are not available with this death benefit cover.
Post a Terminal Illness claim, all premiums falling due from the date of diagnosis of terminal illness (for the base policy and options chosen, including Premium Break option, Joint Life option, and/or Voluntary Top-Up Sum Assured option) would be waived off and the policy shall continue till death of the life insured or the end of the policy term, whichever is earlier. Further, Accelerated Critical Illness benefits and Accident Cover shall terminate post-diagnosis of a terminal illness.
The criteria are:
- The option is available for policies with a policy term greater than 30 years and a premium payment term greater than 21 years.
- The option is available only under Regular Pay and Pay Till 60 PPT (PPT greater than 21 years).
- The premium payment term, policy term & premium payment mode under this option shall be the same as the base policy.
The ACI Sum Assured is fixed and level throughout the ACI policy term. You can choose any ACI Sum Assured in intervals of 5 lakhs subject to boundary conditions as mentioned below:
|Minimum ACI Sum Assured that can be chosen
|Maximum ACI Sum Assured that can be chosen
|Rs. 5 lakhs
|50% of the base policy Sum Assured chosen at inception or Rs. 50 lakhs, whichever is lower
No maturity benefit is payable except in the case where the Return of Premium variant is selected, in which case if the Life Insured survives throughout the policy term, 100% of the Total Premiums Paid plus underwriting extra premiums plus loading for modal premiums (if any) will be paid at the end of the policy term, and the policy will terminate.
A policy loan facility is not available under this product.
A grace period of thirty (30) days from the due date for payment of each premium will be allowed for all premium paying modes except for monthly mode, where a grace period of only fifteen (15) days will be allowed.
One may be entitled to certain applicable tax benefits on the premiums and Policy benefits. All the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by the insured. It is advisable to seek an independent tax consultation.