Max Life Smart Term Plan
Max Life Insurance offers Max Life Smart Term Plan – a comprehensive protection solution that can be personalized for the policy-seeker and his/her loved ones at an affordable price. This is a non-linked non-participating individual pure risk premium life insurance plan. With this plan, the accelerated payout is available in case the life insured is diagnosed with any of the 40 specified critical illnesses by choosing “Accelerated Critical Illness Benefit” by paying an additional premium. This plan also offers 7 death benefit variants to choose from, and one has the option to choose from a range of premium payment terms – once, for a limited period or throughout the policy term. To know more about this policy, have a look at the following mentions.
Eligibility Criteria
| Age at entry | Minimum Age: 18 years Maximum Age: Regular Pay: 60 years Pay till 60 variants: 44 years | ||||||||||
| Maximum maturity age | Base Death Benefit: 85 years Accelerated Critical Illness (ACI) Benefit Option: 75 years Accident Cover Option: 85 years | ||||||||||
| Annual premium | 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. | ||||||||||
| Policy term | Base Death Benefit –10 years to 50 years Accelerated Critical Illness (ACI) Benefit Option Minimum: 10 Years Maximum: 50 Years Accident Cover option Minimum: 5 Years Maximum: 50 Years | ||||||||||
| Minimum sum assured | Base Death Benefit Non-Medical Sales: Rs. 10,00,000. Medical Sales: Rs. 25,00,000 for all death benefit variants other than the Reducing Cover death benefit variant. For Reducing Cover death benefit variant – Rs. 1,00,00,000 Accelerated Critical Illness (ACI) Benefit Option Minimum: Rs. 5,00,000 Accident Cover Option Minimum: Rs. 50,000 | ||||||||||
| Maximum sum assured | Base Death Benefit – No Limit Accelerated Critical Illness (ACI) Benefit Option
Accident Cover Option
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| Premium payment mode | Annual, Semi-Annual, quarterly & monthly
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What Are The Benefits And Features of The Max Life Smart Term Plan?
This plan has come up with a sack full of benefits and facilities. Some of the important mentions are as follows.
Life Cover:
The Lump sum Life cover amount chosen by the insured person at policy inception will be paid to the beneficiary immediately on death of the Life Insured. The Sum Assured under the option is the lump sum life cover amount chosen by the policyholder. In case an Accelerated Critical Illness (ACI) Benefit claim has been paid, the Life cover amount shall be reduced to the extent of the claim paid out on account of the ACI Benefit.
Income Protector:
A fixed level monthly income for a payout duration of 10 years, 15 years or 20 years as chosen by the insured at policy inception will be paid to the beneficiary post the date of death of the Life Insured. The monthly income will be payable each month on the anniversary date, starting from the next monthly anniversary post the date of death of the Life Insured. The monthly income can be chosen only in intervals of Rs. 5,000. In case the Accelerated Critical Illness (ACI) Benefit claim has been paid, the monthly incomes payable will be reduced proportionately to the extent of the reduction in the Sum Assured on account of the ACI Benefit claim paid out.
Increasing Cover:
Under this variant, the Sum Assured payable increases by 5% p.a. (simple interest) of the Lump sum Life cover amount. Immediately upon 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. The Sum Assured will increase only till the completion of the 21st policy year. 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 Life Stage Add-on benefit options are not available with this death benefit variant.
Accelerated Critical Illness (ACI):
This benefit is payable on diagnosis of any of the specified Critical Illnesses during the CI Benefit cover period, provided the policy is in-force and meets the terms and conditions. There are two options available under Accelerated Critical Illness (ACI) cover to choose from:
- Level ACI Benefit: The ACI Sum Assured is fixed and level throughout the ACI policy term. One can choose any ACI Sum Assured in intervals of Rs. 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 |
- Increasing ACI Benefit: The ACI Sum Assured will increase at a simple rate of 5% p.a. of ACI Sum Assured chosen at inception. One can choose any ACI Sum Assured in intervals of Rs. 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 | 25% of the base policy Sum Assured chosen at inception or Rs. 25 lakhs, whichever is lower |
Accident Cover Option:
If the Life Insured dies due to an accident, 100% of the Accident Cover Sum Assured will be payable as a lump sum, irrespective of the death benefit variant chosen by the insured, upon approval of a claim. This benefit will be payable in addition to the death benefit Sum Assured. The option can be added to the premium-paying policy at any time during the policy term. A pro-rata basis premium will be charged in case the benefit is added during the middle of the policy term and a full premium will be charged starting the next policy anniversary. This option is not available for Single Pay premium payment terms.
Life Stage Add-on Sum Assured Option:
One has the option to take an add-on ‘Life Stage Add-on Sum Assured’ in future basis ‘Life Stage’ events like marriage, childbirth, or house loan. This option has to be selected at the time of inception of the policy. The increase will only be applicable once you inform the company about the ‘Life Stage’ change (along with the requisite proofs). The Life Stage events covered, along with the applicable Life Stage Add on Sum Assured limits, are mentioned in the table below:
| Life stage events | Add-on sum assured permissible |
| Marriage (Once during the policy term. Not available if already married) | 50% of the death benefit Sum Assured chosen at inception not exceeding Rs. 50 lakhs |
| Child Birth (Twice during the policy term) | 50% of the death benefit Sum Assured chosen at inception on each instance, not exceeding Rs. 25 lakhs, for each childbirth. |
| House loan (Once during the policy term) | 50% of the death benefit Sum Assured chosen at inception not exceeding Rs. 50 lakhs |
Riders Available With Max Life Smart Term Plan
One can now make the term cover more comprehensive by adding the below-mentioned rider by paying a little extra premium amount:
Max Life Waiver of Premium Plus 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 selected. 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.
What is the Reduced Paid-up Policy under Max Life Smart Term Plan?
Reduced Paid Up value will be acquired by a policy only in the case of the Premium Back 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 respective death benefit variant will be reduced using the proportionate premiums method as mentioned below.
RPU Sum Assured = ((Total premiums paid for base policy) / (Total premiums payable under the base policy) x Sum Assured applicable before policy moved to RPU.
Maturity Benefit for an RPU Policy: Under the Premium Back variant, if the Life Insured survives throughout the policy term, 100% of the total premiums paid plus extra premiums, if any, under the base policy only (corresponding to base Sum Assured and Life Stage Add on Sum Assured) will be paid at end of the policy term. Please note that any additional premium charged for optional benefits (ACI Benefit and Accident cover option) or riders, will not be returned back at maturity under this variant.
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 Buy Max Life Smart Term Plan?
One can buy this plan offline. For that, one has to go to one of the official branches of the company. Their customer executives are knowledgeable and experienced enough to guide you through the buying process seamlessly, without any hassles. In that case, one has to carry certain documents, such as valid ID proof, address proof, bank details, and any other document as requested by the company.
What Are The General Exclusions of the Max Life Smart Term Plan?
There are certain exclusions for every policy for which it does not offer any benefits. Therefore, to avoid future complications and claim rejection, the general exclusions of the Max Life Smart Term Plan are as follows.
- Any claim raised within the waiting period will be rejected.
- If there is any breach of law or foul play, that will be permanently excluded from the policy.
- Anything that does not satisfy the terms and conditions of the policy, as well as the company, will also fall under the category of exclusions.
- If the Life Insured, whether sane or insane, dies by suicide within 12 months from the date of inception 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.
Illustration Of Max Life Smart Term Plan
To make it more understandable and easier, here is an example of how the Max Life Smart Term Plan works. Mr. Chatterjee, a 37-year-old businessman, bought this plan for himself. Let us find out how much benefit he will reap under this product for the given data.
| Data | Details |
| Age | 37 years |
| Cover till age | 65 years |
| Selected life cover | Rs. 50 lakhs + Market linked returns |
| Pay till maturity for | 28 years |
| Rider details | No |
| Maturity benefit (@8%) | Rs. 11.3 lakhs |
| Monthly premium | Rs. 2303 |
Frequently Asked Questions
The maximum increase in ACI Sum Assured allowed is:
- Rs. 50 lacs, or
- 50% of the base policy Sum Assured chosen at inception, or
- 200% of the ACI sum assured chosen at inception.
There is a Premium Back 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 Premium Back variant, if the Life Insured survives throughout the policy term, 100% of the Total Premiums Paid plus underwriting extra premiums, if any, under the base policy only will be paid at the end of the policy term and the policy will terminate. Any additional premium charged for optional benefits (ACI benefit and Accident cover option) or riders will not be returned back at maturity under this variant. This benefit is available with all Death Benefit variants and across all Premium Payment Terms and Policy Terms.
No maturity benefit is payable except in the case where the Premium Back 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 under the base policy only will be paid at end of the policy term and the policy will terminate.
The mentions are as follows:
- 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 term variants except the Pay till 60 variant. Where the corresponding rate is not available, the lowest available premium rate for males will be used.
- Non-smoker discount – Lower premium rates for non-smokers however, the Accident cover option and Accelerated CI benefit option premium rates do not vary by smoker status.
- Loyalty discount – A loyalty discount of 5% is available on first-year premium for existing customers of Max Life.
With this product, no policy loan is available.
There are 40 specified critical illnesses covered under this product.
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