Max Life Super Term Plan

Life is unpredictable. Knowing the future is not in our hands, but planning for the future is. You need to plan for your family’s future beforehand to make them financially prepared to handle any eventualities.

Max Life Super Term Plan is one such unique plan which can take care of your family’s financial needs in case something were to happen to you. In addition to that, it also helps the family to cope up with rising inflation with its unique increasing life cover option. With this option, your life cover starts increasing by 5% every year at simple rate till the end of the policy term without any increase in the premium. This ensures that your family is able to meet ever-increasing expenses, even when you are not around.

Plan Benefit

Death Benefit

Payable at the time of death of the life insured, during the policy term (provided the policy is in force or the reduced insurance cover is active).

The guaranteed death benefit under this plan is defined as higher of:

  • 10 times the premium paid over an year, excluding all applicable taxes, cesses, and levies as imposed by the Government; it remains same irrespective of your premium payment mode
  • 105% of all Premiums paid as on the Date of Death,
  • Guaranteed Maturity Sum Assured payable on Maturity Date,
  • Sum Assured effective on the Policy Anniversary previous or coinciding with the Date of Death

Maturity Benefit:

No Maturity Benefit is payable under the plan

How this plan works

Scenario 1: Death benefit with Fixed Sum Assured Option

Let’s take an example of Mr. Sharma, 35 year old and healthy (non – smoker), who opts for Max Life Super Term Plan. He chooses to buy Level Sum Assured option with following plan details:

Policy Term: 30 years

Annual Premium: Rs.16,500

Sum Assured: Rs.1 crore

On sudden demise of Mr. Sharma during 10th policy year (i.e. post payment of 10 annual premiums), his wife (or the nominee) can opt to take up the death benefit in the following ways:

  • By choosing lumpsum payout option

His wife (or the nominee) can opt to take the entire proceeds of the Policy, i.e. Rs.1 crore as lumpsum amount immediately after Mr. Sharma’s death.

  • By choosing lumpsum with monthly income payout option

His wife (or the nominee) can opt to take half the amount as lumpsum immediately and the remaining 50% as monthly income (starting from next Policy Anniversary after the date of death) increasing at 8.50% p.a. (simple rate) every year starting from the policy anniversary following the date of death.

Scenario 2: Death benefit with Increasing Sum Assured Option

Let’s take an example of Mr. Verma, 40 year old, healthy (non – smoker), who wants to buy a plan which provides an increasing Life Cover to withstand inflation. He opts for Max Life Super Term Plan with Increasing Sum Assured option with the following plan details:

Policy Term: 30 years

Annual Premium: Rs.42,100

Sum Assured: Rs.1 crore which increases every year by Rs.5 Lakhs (5% of initial Sum Assured of Rs.1 Crore) till the end of Policy Term

On sudden demise of Mr. Malhotra during 21st policy year (i.e. post payment of 21 annual premiums), the sum assured has increased to Rs.2 Crores. His wife (or the nominee) can take up the death benefit in following ways:

  • By choosing lumpsum payout option

His wife (nominee) opts to take the entire proceeds of the Policy as lump sum amount. In the 21st policy year immediately after Mr. Verma’s death.

  • By choosing lumpsum with monthly income payout option

His wife (nominee), instead of taking the entire amount as Lump sum, opts to take 1 crore, i.e., half the amount as lump sum immediately after death and the remaining Rs.1 Crore as monthly income (starting from next Policy Anniversary) increasing at 8.50% p.a. (simple rate) every year starting from the policy anniversary following the date of death.

Scenario 3: Survival Benefit

In the fortunate cases when the policyholder survives till the end of the policy term, you (the policyholder) or the nominee don’t receive any sum as a part of this plan. This plan primarily aims to cover your family in the event of death.

Premium Payment Options

Premium Payment Term & Modes This is a Regular Premium paying plan. Premium Payment Term is same as Policy Term. This product allows Annual, Semi – Annual, Quarterly and Monthly Premium Payment Modes.
Policy Term Minimum Policy Term: 10 years

Maximum Policy Term: 35 years

(i.e. The policyholder will have the option to choose a term between 10 years to 35 years, with intervals of 1 year.)

Premium Minimum Premium – The Minimum Premium for the product is Rs.5,000 p.a. excluding Extra Premium, Modal Extra, all applicable taxes, cesses and levies as imposed by the Government as applicable from time to time.

Maximum Premium – No limit, subject to the limits determined in accordance with Board approved underwriting policy of the Company.

Sum Assured Minimum Sum Assured – 25 Lakhs subject to Minimum Premium limits

Maximum Sum Assured – No limit, subject to the limits determined in accordance with Board approved underwriting policy of the Company.

Please note that the Sum Assured will be available in multiples of Rs.1 Lakhs only

Premium Rates Premium Rates vary basis the following parameters:

a) Gender

The premium rates vary by gender of the Policyholder. The premium rates for females will be same as that of males (with a five year age offset). In case the corresponding rate is not available, the lowest available age premium rate for male life will be used.

b) Smokers / Non – Smokers

The premium rates vary by smoker status (viz. Non – Smoker and Smoker)

c) Sub – Standard Lives

This product will be offered to all lives. However, sub – standard lives shall be rated up in accordance with the Board approved underwriting policy of the Company.

d) Sum Assured Option Chosen

The premium rates will vary basis the Sum Assured option chosen by the Policyholder (Level Sum Assured or Increasing Sum Assured) at policy inception

Sample Premium Amount Examples of Annual Premium (in Rs.) for a Life Cover (Sum Assured) of Rs.50 Lakhs, 25 year term, healthy male. Please note the premium rates are exclusive of all applicable taxes, cesses, levies as imposed by the Government,loading for modal extra and loading for extra premium