MAX Life Term Insurance With Return Of Premium Plan

What is the Plan all About?

In max life term insurance, the return of premium is a plan which is same as any other plan with a maturity or survival benefits at the end of the policy term. With the TROP plan, you can secure and safeguard your family financially and set them independent for future stability. In max life term insurance, the return of premium is beneficial to all the people who has opted the plan.

The one primary objective is to provide credit security to the family in case of an unfortunate demise in the house. Life insurance plans falls into two basic categories, first is to provide the growth of the money along with life cover and second is to only provide the financial protection to your family under a term insurance plan.

However, in such cases there will no return of investment, under term insurance plan the premiums are nominal only to fulfill the regular life needs by providing a significant amount of money to the nominee in an event of an unfortunate death.

Most of the term insurance companies do not give away the return of premium benefit also known as survival or maturity benefit to the insurers. This plan helps as a life cover for the family and you, if you survived the policy term.

What are the Key Features?

In max life term insurance with return of premium plan, it supplies the life cover for their buyers as maturity benefit.
The plan provides the flexibility to choose the policy term of 20 years to 30 years.
The premium payment term is 11 years.
An insurer has an option to change the premium paying mode at any time in the course of the policy term.
Lower premium rates on females' lives.
Discount on high sum assured.
Hassle-free with simple steps to buy.

What are the Plan Benefits?

Death Benefits

In return of premium plan, all the sum assured will be payable to the dependents/nominee, in case if the life insured dies, unfortunately. The amount will be equivalent to the death sum assured, which will be higher of 10 times of the annualized premium, 105% total premium paid till the date, guaranteed maturity benefit and guaranteed death benefits with sum assured.

Maturity Benefits

In such cases, if the insurer survived the policy term then he/she will get the survival benefits and the payout of the benefit will be equal to the guaranteed maturity sum assured. With the return of premium, an insurers' family would be getting life cover with the premium security for a lifetime.

Loan Benefit

No loan can be availed under this policy.

Revival Benefit

This policy can be revived within 2 years from the due date of the first unpaid premium. You have an option to revive the policy under reduced paid-up mode within 2 years from the due date of the first unpaid premium, subject to the receipt of the written request.

Surrender Value

Surrender value can be acquired under this plan, provided all due premiums have been paid in full for the first three policy years. The Surrender Value is the higher of Guaranteed Surrender Value or Special Surrender Value.

Who can Buy the Plan?

Factor	Minimum	Maximum
Age (as on last birthday)	21 Years	55 Years (for 20 Years’ Policy Term),50 Years (for 25 Years’ Policy Term),45 Years (for 30 Years’ Policy Term)
Age at Maturity	-	75 Years
Policy Tenure	20 / 25 Years	30 Years
Premium Paying Term	11 Years	-
Premium Paying Mode	Monthly, Quarterly, Semi-Annually & Annually	-
Premium Amount	8500 P.a (annual Mode) Modal Factors Applicable (for Non-Annual Modes)	Based On The Maximum Sum Assured Of Rs 1 Crore
Sum Assured	5 Lacs (SI Can Be Chosen In The Intervals Of 50,000)	1 Crore (subject To Underwriting)
Plan Type	Offline	-
Freelook Period	15 Days From The Receipt Of The Policy	-
Grace Period	30 Days (15 Days For Monthly Mode)	-

Is the Plan, eligible for Tax Benefit?

Max Life Premium Return Protection Plan is eligible for Tax benefits as stated:

Premiums paid towards this plan qualify for tax benefits under section 80C of the Income Tax Act, 1961.
Policy proceeds are entitled to tax benefits as per Section 10 (10D) of the Income Tax Act.

(Subject to the provisions stated therein.)

How the Plan Works?

Mr. Kumar is a healthy 30-year-old salaried, married professional and was recently blessed with a baby. He wants to ensure his family continues to maintain a similar lifestyle even if he is not around. He wants to purchase a term plan at an affordable cost and also wants the premiums paid to be refunded after the term of the policy.

Step 1: Mr. Kumar decided that he needs a life cover of Rs. 25 Lacs.

Step 2: Mr. Kumar reviews the three Policy Term options and decides that for his purpose, the 11 pay, 30 years Policy Term is the best option.

Step 3: The Annualised Premium for his policy at Sum Assured of Rs. 25 Lacs comes out to be Rs. 30,500