“Financial Planning” is one of the most important aspects of planning for the future which is often ignored by individuals. Financial Planning not only helps one to manage savings efficiently but also allows the opportunity to bring financial stability for yourself and loved ones.The future can never be predicted; however one can always plan for the future.
Thus, a Term Plan becomes very important for every Individual. It offers financial security to the dependents in the unfortunate event of one’s death. Term Insurance is a pure insurance plan offered at very reasonable rates. The individual has the liberty to choose a plan based on his/her projected future financial requirements.
In this article, I will discuss the need for Term Insurance plan and explore the details about an online term plan by Max Life Insurance. The Max Life Online Term Plan is a product that I found in my search for the best term insurance plan.
Need for Term Insurance Plan
Economical: Term Insurance Plans is one of the most economical Insurance Plans available in the market. Since it is a pure Insurance Plan, it provides higher value coverage at very low premiums which enables most of the Individuals to go for high risk coverage.
Financial Security: Term Plans offers financial security to your loved ones incase of untimely demise of an individual. This ensures that one’s family does not have to make any compromises in life being financially equipped to sustain themselves and work their way to fulfill the unaccomplished dreams.
Mitigation of Risk: Term Insurance Plans mitigate the risk to the Insurance providers so that you and your dependents could lead a tension free life. The Term plan is a financial shield against any eventualities occurring in the future.
Tax Planning: Premium paid towards a Term Plan is available for Tax Benefits U/S 80C which helps you to reduce your tax burden and be insured at the same time. Even the Benefits are exempt from tax U/S 10 (10D).
Benefits and Features of Max Life Online Term Plan
Max Life Online Term Plan is a non-participating, non linked, Pure Term Insurance Plan which provides your loved ones with adequate cover so that they can fulfill the dreams you have for them even in your absence.
It is an affordable term plan which is available online and individuals may purchase the same without going through the procedural hassles faced while buying a plan offline.
Policy Terms and Tenure: Any Individual above the age of 18 years is eligible to avail the policy and maximum entry age is restricted to 60 years with maximum expiry age (policy coverage tenure) with respect to policy is fixed at 70 years.
Policy is available for terms between 10 to 35 years subject to the maximum expiry age. Premium is payable annually.
The minimum Policy coverage is of 25 lacs which can go upto maximum of 100 crores depending on the term and benefit cover opted by the respective individual.
It is Pure Insurance Plan which provides only Death Benefit and does not have any maturity benefit.
Competitive Premium Rates with Riders: It is one of the economical plans available in the market which offers customized benefits along with additional riders such as Accident Benefit and Waiver of Premium against payment of additional nominal premium making it a comprehensive insurance plan. Discount is also available on higher coverage value.
A Basic Life cover plan of 1 crore for a 30 year old non smoker Individual will come to Rs 7,400 per annum for tenure of 30 years (Subject to fulfillment of conditions specified under the plan)
Customized Benefit Payout Plans: Individuals are offered 3 benefit payout plans to choose from according to their preference. They can opt for following plans:
1.) Basic Life Cover: One time Lumpsum payout
2.) Life Cover with Monthly Income: Lumpsum payment along with monthly income (0.4% of the Sum Assured) for 10 years
3.) Life Cover Plus Increasing Monthly Income: Lumpsum payment with monthly income for 10 years (0.4% of the Sum Assured), where the monthly income increases at a simple rate 10% every year.
This provides flexibility to the buyers to choose the best plan for themselves based analyzing the potential future requirements.
The premium rates under plan 3 will be the highest, while plan 1 will attract lowest premium rates. However, if you compare the plans in terms of benefits then plan 3 provides better coverage.
Best Claim Settlement Ratio among Private Insurers: Max Life Insurance has one of the best claim settlement records among the private insurers which means it is very transparent and prompt when it comes to settling of claims. Thereby, making it one of the best term insurance plan in the market today. Thus, in my opinion it is one of the determining factor, one should consider while purchasing a Term Plan. Please check the claim settlement comparison shared below:
Future is uncertain as “we don’t know” what lies ahead nor do we have the abilities to know about any future happenings. Thus the only way to protect ourselves is by proper planning. Therefore, one should invest in a Term Plan at the earliest and safeguard the future of their dependents. Max Life Insurance has a 99.68% - 10-day claim settlement promise till FYTD Jun'16.
Note:One should consult his/her financial advisor and read the offer documents carefully deciding to buy any plan.