Updated on 27 Jan 2020.
You don’t know what is going to happen in the next moment. Life is so uncertain. It’s our responsibility to provide financial security to our family especially if you are the earning hand of your family.
One of the best ways to secure your family financially is by buying a Term Insurance.
Why I am stressing on term insurance?
A Term Insurance Plan is the most affordable life insurance plan as compared to other endowment or ULIP policies. Term Insurance has high claim value, hence, it provides sufficient financial cushion to your loved ones in your absence to fulfill their basic financial needs.
As a thumb rule – this amount should be 20 times your annual income or 15 times your annual expenses.
Let’s discuss the benefits of term insurance first of all.
5 Benefits of Best Term Insurance
#1. High Sum Assured for Low Premiums
Term life insurance plans have a high sum assured and lower premiums than other insurance plans. Term insurance is an inexpensive way to safeguard your family/dependents in case of death.
#2. Death Benefit
Nominee of term insurance will give full amount irrespective of the policy tenure. The assured amount would depend on the plan opted.
#3. Tax Benefits
You can claim tax exemptions on premiums paid under section 80C of the Income Tax Act. You can also claim exemptions under Section 10 (10D) for the benefits received through insurance policies.
#4. Survival Benefits
You don’t get any survival benefits in a regular term insurance plan. However, under the term plan with return of premium policy (TROP), the surviving policyholders will receive the premium amount paid during the policy term.
#5. Add-on Benefits
You can choose add-on features like accidental death, critical illness, total and permanent disability benefits along with term plan.
You can also read Best Term Insurance Plans in India.
Why you should prefer ONLINE plans
You can search, compare and buy a plan in just a few clicks sitting on your couch.
#2. Lesser Cost
Purchasing online eliminates the commission of agents in between, so you can get cheaper term policies.
#3. Safer and Faster Payments
Purchasing online is safe and you don’t get delays like processing of cheques.
#4. Easier Tracking for Renewals
The online policyholder tracks his plans online and he will also get timely reminders of premium dues.
#5. Lesser Chances of error
When you purchase online there are lesser chances of error because you fill the proposal form on your own.
How to Choose the Best Term Insurance Plan
Consider the following 5 conditions to find the best suitable plan for you.
- Age & Gender – Lower the age of the applicant, lower will be the premium. Insurance companies consider males riskier as compared to females. Hence offers a lower premium for females.
- Health Condition- Persons with sound health (also, no drinking or smoking habits) get better discounts or lower premiums.
- Add-on Riders – Picking up riders like accidental death benefit or critical illness results in an increase in the premium amount. Check if you already having similar riders in existing insurance plans.
- Sum Assured and Policy Term – A higher sum assured with a longer-term period will have a higher premium amount. You must be aware of how much money would be sufficient for your dependents’ financial security if you are no more.
- Payout Options – Payout options like flat monthly or increasing monthly or lumpsum payout make the difference in the premium amounts.
You may also read – Best health insurance in India
You can see the illustration below for easy understanding.
Why Max Life Online Term Plan
Max Life offers one of the best term life insurance plans. It has customized term plans for family-specific needs. You can also select from different payout options – lump sum or a mix of lump sum and monthly income. The other best part is the flexible policy terms from a minimum of 10 years to a maximum of 35 years.
3 Variants of the Max Life Online Term Plan are as below.
#1. Basic Life Cover Plan
Basic Life Cover Plan offers 100% of assured amount as a lump sum on the death of the insured. In case of disability or critical illness, all future premiums shall be waived but for that, you have to opt for an addon-rider.
For a policy cover amount of Rs.1 crore, for a non-smoker healthy male – aged 30-years with a policy term of 30 years – the premium would be Rs.7,500 annually.
#2. Life Cover Plus Monthly Income Plan
Unfortunately, if the applicant is no more, his family will receive 100% of the assured amount on death as well as a fixed monthly income for 10 years. In case of disability or critical illness, all future premiums shall be waived if you have to buy an addon-rider.
#3. Life Cover Plus Increasing Monthly Income
This plan is similar to the Life Cover Plus Monthly Income Plan but with a little variance of increasing monthly income.
In this plan, your family will receive 100% of the assured amount on death as well as a monthly sum for 10 years. Another benefit of this plan is – This monthly income will increase every year at an interest rate of 10%.
Comparison of Max Life Online Term Plans
|BASIC LIFE COVER||A fixed amount (sum assured) given to the family||• Lumpsum payment to your nomine
• Flexibilty to enhance insurance cover on important events like marriage, birth of a child
• Benefit payment for up to 40 life threatening illnesses & disabilities ( additional payment)
• Pay until the age of 60 years for coverage up till the age of 85 (on additional payment)
|BASIC LIFE COVER
|Pays a fixed amount (sum assured) to the family + a fixed sum on monthly basis||• 0.4% of the Sum Assured (S.A.) is paid each month for 10 years as fixed monthly income
• The monthly income benefit is additionally payable over the sum assured
|BASIC TERM LIFE COVER
INCREASING MONTHLY INCOME
|A fixed amount (sum assured) to the family + a fixed sum every month payable for 10 years that keeps increasing by 10% every year to compensate increase in living cost||• This plan pays 0.4% of S.A. each month in the first year as monthly income
• The monthly income increases each year by 10% for the rest of the payout period
• The monthly income benefit is additionally payable over the sum assured
Death Claims Paid Ratio – Max life has the best death claim payment ratio which is 95.26%. I recommend Max life term plans due to their highest claim payment ratio.
Max Term Life Insurance Policy Details
|Max. maturity age||85 years|
|Min. Sum Assured||Rs. 25 Lacs|
|Max. Sum Assured||No limit
Subject to underwriting
|Policy term||Min. 10 years
Max. 35 years
Can choose a term between
10 to 35 years, with an interval of 1 year
|Premium payment term||Regular at annual,
quarterly or monthly
Max Life Online Term Plan Riders
Max Life Online Term Plan offers two riders:
Comprehensive Accident Benefit Rider
In case the insured person meets with an accident that results in dismemberment (check the listed impairments) or death then the benefits under this rider are payable over and above the base plan benefits.
Waiver of Premium Plus Rider
With this rider, all the future payments of premium get waived in case of death, disease or dismemberment. The benefits under this rider will be payable over and above the base plan benefits.
Other important points
Revive the policy – You can revive a lapsed policy within 2 years from the due date of the first unpaid installment of the premium.
Surrender the policy – Policy does not offer any Surrender Value, so there is no amount payable to you upon surrender.
Loan against policy – Loan is not available.
I would highly recommend the primary earners of the family – in the age bracket of 28 to 40 years – to buy Max Life Insurance Online Term Plan. This plan offers good options at a very affordable premium amount.
Tell me your thoughts in the comments.
Remember: Do not hide any health-related issues from your insurer like being a smoker. The company can reject the claim if found any health issue later.absence.