Online life. Term Plan – Buy Online Term Plans Policy – Max Life Insurance

Benefits of Term Insurance Plan

The concept of insurance is based on community, and thus the term insurance plans too. Term insurance plans benefit not just the buyer and the families but the society at large: Buy life insurance.

a. Affordable premiums (Max Life Online Term Plan Plus offers 1 crore cover at just Rs. 563 per month*

(Standard Premium For 28-Year-Old Male, Non-Smoker, Base Plan Policy Term Of 30 Years, Premium Payment Term Of 30 Years)

c. Tax Savings under section 80C (As per existing tax laws)Max Life Online Term Plan Plus offers flexibility to choose the benefit amount that family receives – (3 options - lumpsum one time, lumpsum along with a monthly income or lumpsum with increasing monthly income)

d. Max Life Online Term Plan Plus offers flexibility to choose the duration of the cover (minimum 10 years to a maximum of 50 years)

The Family of person who is insured

a. A regular income to support basic essentials – food, rents, bills, EMI’s

b. Financial protection to the future of kids in the family by supporting the kid’s school fees or higher education goals c. Benefit amount received on death of person insured is exempt from tax under section 10(10D)^^ (as per existing tax laws)

a. Efficient protection of bereaved families

b. Freeing up individuals, businesses and governments from the financial burden of supporting the dependents of deceased

Steps to Buy Term Plan Online

Buying the term plan online is easy:

Step 1: Select your sum assured and term

The first step of buying the term cover online is to use the online term insurance calculator and estimate the premium for your desired sum assured and term of the plan.

Note: The ideal benefit amount for your term life insurance should be 10 to 15 times of your annual take home income.

Select the add on benefits to the base cover. The additional benefits enhance your financial support in case of unfortunate events like disability and diagnosis of life threatening illnesses and are optional benefits available on payment of additional premium.

You can add the following four riders to your online term insurance plan:

Once you are satisfied with the benefits and the premium amount you can complete personal information and pay the premium. You need to fill the following information and pay the premium:

You can pay the premium online using debit or credit card or netbanking and more

The proposal form is the detailed version of the application form for life insurance. It focuses on the information related to your life which can affect the claim in future. The important areas of a proposal form will include:

> History of Health issues (including that of the immediate family and parents) > Lifestyle habits such as drinking and smoking

Medical tests happen in selected cases basis individual life-risk. It is done after successful completion of the proposal form and submission of all necessary documents. You may be prompted about the medical test, if needed by the company

How to Choose the Best Suited Term Insurance Plan For You?

Selecting best term insurance plan is a simple five step process:

Step 1: Select Your Life Insurer (or the company from whom you wish to buy life insurance)

Check the Claims Paid Percentage

Claims paid percentage of an insurance company is the ultimate proof of the moment of truth faced by the person insured. It shows the number of claims settled by the insurer in given financial year divided by total outstanding claims at the beginning of that year and reported during the year. A good claims paid percentage, is a testament to insurance company’s commitment and efficiency in managing customer’s claims.

Insurance providers

Check Persistency Ratio

Persistency ratio indicates how satisfied current policyholders are. It is the number of customers who stay invested in their policy year after year. More satisfied policyholders will stay with the insurer for longer periods. A good persistency ratio indicates trust of customers on their insurance company and the product purchased. Max Life Insurance recorded a 13th month persistency of 81%.(As per Max Life Public Disclosures FY 17-18)

Step 2: Estimate the Sum Assured & duration of your plan

Sum assured, or the insurance cover amount, should be large enough to take care of both your family’s regular financial needs and major life goals for their entire life.

As a rule of thumb, you can opt for a sum assured anywhere between 10 to 15 times of your annual take home income.

It is advisable to take longest term possible. However, you must continue your cover for atleast your working years.

Once you have decided the life insurance company of your choice, it’s time to start looking for the plan benefits. Term insurance plan is a pure life insurance cover and the money is paid only on the death of person who is insured. To enhance your term insurance cover, you may add various additional benefits or riders that may come at an additional minimal cost. Such optional benefits/riders cover additional risk, are very cost effective and can be availed on payment of additional premium. The optional benefits you should add to your term life cover are:

> Accidental death and dismemberment(ADD) cover ((On payment of additional premium for rider) - ADD pays additional amount to the family in case of death due to an pays the selected sum assured in case of disabilities contracted from the accident.

> Premium waiver benefit (On payment of additional premium for rider) - In case of permanent disability, all future premiums for the term life cover are waived off, but the life cover continues.

> Critical illness (CI) benefit#(On payment of additional premium) - CI benefit offers financial support in case of diagnosis of a life-threatening illness or health condition. It can include up to 40 illnesses and conditions.

> Life Stage Benefit (On payment of additional premium) - This benefit helps you increase your life insurance cover on important milestones like marriage, birth of a child and on availing home loan

Use online term plan calculators provided by various life insurance companies to estimate the premium amount for your cover. Most of the added benefits cost extra. Overall, the following factors will affect your premiums:

> If you are a smoker premium can be slightly higher

> Tenure of the plan (longer tenure increases the premium)

> Tenure of premium payment (shorter tenure attracts higher premium)

> Sum assured under added benefits

> Mode of premium payment (there can be a discount on lumpsum premium payment)

If the plan is available online, you can proceed to buy the cover once you have selected your benefits and estimated the premium cost. You can complete the formalities online including submission of documents.

In case you have chosen to buy a plan, which is not available online, you can set an appointment for the advisor to visit you and complete the formalities.

Who Should Buy Term Insurance?

Anyone who is earning should buy a term insurance plan to support the family’s financial future.

If you are single – Your parents may be currently or in future be dependent on you. It is essential to secure their lifestyle during retirement

If you are married with no kids – Your spouse may be completely or partially be dependent on you financially. It is important to secure their lifestyle in your absence.

Why get life insurance policy

If you are married and have kids – Your kids’ education and marriage expenses are two important goals that you need to secure. Aside, you also need to maintain current lifestyle for your partner, even in your absence. From eligibility perspective a person aged 18 years can buy a term plan. Maximum entry age may vary from one insurer to the other. With Max Life the maximum age to buy the term plan is 60 years.

Basic Life Cover

Provide Financial security for your family with one-time lumpsum payout

Premium that you pay - 8968

Lumpsum one time payment that your family gets - Rs. 1 crore

Effective cost - Rs. 90 / lac of cover

Cover amount is optional.Above example is for representation purpose. Please get a personalised quote by clicking link below

Basic Life Cover + Monthly Income

Financial Security for your family with monthly income for 10 years in addition to lumpum

Premium that you pay - Rs. 11,918

Lumpsum Payout of Rs. 1 Cr + Monthly Income of Rs. 40,000 for 10 years

Effective Cost - Rs. 81/lac of cover

Cover amount is optional.Above example is for representation purpose. Please get a personalised quote by clicking link below

Basic Life Cover + Increasing Monthly Income

Enhance the financial security with increasing monthly income, in addition to lumpsum

Premium that you pay - 13,216

Lumpsum Payout of Rs. 1 cr + monthly income of Rs. 40,000 that increases by 10% every year

Effective Cost - Rs. 78/lac of cover

Cover amount is optional.Above example is for representation purpose. Please get a personalised quote by clicking link below

A Term plan is a pure protection plan which helps replace the income earned by the breadwinner in case of his death. It is a fact that the younger you are, cheaper the premiums. For a Rs 1 Cr term insurance cover, the monthly premium will be ~Rs 600 for a 25 year, non smoker male vs ~Rs 1,200 for the same person at age 35. Thus, it makes sense to buy this plan as early in life as possible.

If you are in your 30's or 40's, your liabilities and dependents would have increased (parents & children). You must buy a cover now to make sure all the financial needs are met, even when you are not around.

Even if you have crossed 50 and nearing retirement, you should invest in a term plan. In case of your demise, the pensions will stop and then your spouse and dependent children will be financially vulnerable.

Thus, if protecting your family’s financial future in your absence is your prime concern, you should buy a term plan immediately, regardless of your current age.

Max Life gives you the choice to customize the term plan to suit your needs and choose how the insurance cover amount is paid to the family in the event of your death:

1. Basic Life Cover - Your family gets the money as a one-time lumpsum payout that can help cover immediate liabilities

Temporary life insurance

2. Basic Life Cover + Monthly Income - In addition to the lump sum payout, your family will get a regular, tax-free monthly income for the next ten years. This plan helps the family manage day-to-day household expenses like school fees, groceries etc

3. Basic Life Cover + Increasing Monthly Income - In this option, the monthly income increases by 10% each year which will keep it 'inflation proof'.

If you feel confident that your family is financially savvy and will be able to manage future cash flows, you can opt for basic life cover. Otherwise, it is recommended to go for the income option. If you take into account the 10 year income in addition to the life cover, the effective cost per lac of payout actually comes to be cheaper than the basic life cover

Riders are an afforable and effective option to improve the comprehensiveness of your cover. They can be purchased only at the time of buying the term policy. Therefore it is advisable to carefully choose the riders that meet your requirements.

Max Life offers the following rider options you can choose:

1. Critical illness benefit option - Upon diagnosis of any of the 40 specified critical illnesses, the benefit amount is paid as a one-time lump sum. Cost Rs 308 p.m.* for coverage of Rs 10 Lacs

2. Max Life Waiver of Premium Plus Rider (UIN:104B029V02) - All future premiums waived in case of critical illness/disability. Cost Rs 23 p.m.*

3. Max Life Comprehensive Accident Benefit Rider (UIN -104B025V02) - Get additional protection for accident leading to dismemberment or death. Cost Rs 67 p.m.* for additional coverage of Rs 10 Lacs

Copyright @2016 Max Life insurance Co. Ltd. All Rights Reserved. An ISO 9001:2008 Certified Company.

Max Life Insurance Co. Ltd. is a Joint Venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Registered Office: 419, Bhai Mohan Singh Nagar, Railmajra, Tehsil Balachaur, District Nawanshahr, Punjab -144 533. Corporate Office: Max Life Insurance Co. Ltd., 3rd, 11th and 12th Floor, DLF Square Building, Jacaranda Marg, DLF City Phase II, Gurugram (Haryana) - 122002. Operation Center: Max Life Insurance Co. Ltd, Plot No. 90-A Udyog Vihar, Sector 18, Gurugram (Haryana) - 122015.

Helpline: 1860 120 5577 (9:00 A.M to 6:00 P.M Monday to Saturday) * Call charges apply. Online Term Plan Helpline: 1800 200 3383. Fax Number:0124-4159397.

Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Max Life Insurance is only the name of the insurance company and Online Savings Plan is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects or returns.

Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your Insurer carrying on life insurance business.

Assumed rates of return (4% and 8%) are not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including future investment performance.


Insurance is the subject matter of solicitation. For more details on the risk factors, Terms and Conditions, please read the sales and rider prospectus carefully before concluding a sale. Tax benefits are eligible for tax exemption on fulfilling conditions mentioned under Section 10(10D) of income tax act 1961. Tax exemptions are as per our understanding of law and as per prevailing provisions of income tax at 1961. Policy holders are advised to consult tax expert for better clarification /interpretation. Please note that all the tax benefits are subject to tax laws at the time of payment of premium or receipt of policy benefits by you. Tax benefits are subject to changes in tax laws. The monthly Income Benefit and Terminal Benefit may be taxable subject to extra premium being loaded at underwriting stage.


IRDAI clarifies to public that:

• IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums.

• Public receiving such phone calls are requested to lodge a police complaint.
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