Max Life Group Credit Life Secure Plan is a non-linked single premium group term life insurance plan offered by Max Life Insurance. The plan is ideal for providing cover against loans in the event of death of a group member, during the term of the policy. In other words, the product ensures that if a borrower faces death, the outstanding loan amount is paid out by the insurer; hence benefiting the financial institution, the policyholder, and the dependents of the borrower. It should be noted that the policy only provides death cover, and no disability cover is offered. The plan also offers various death benefit options, such as Decreasing Cover Death Option, Level Cover Death Option, and Moratorium Option.
In order to be eligible to purchase the Max Life Group Credit Life Secure Plan, the customer has to satisfy certain criteria with respect to his/her age and the level of coverage required. The eligibility conditions under the plan are as follows:
|Type||Non-linked group term life insurance plan|
|Minimum Policy Term||1 year|
|Maximum Policy Term||70 years|
|Minimum size of the group (at the start)||50 members|
|Maximum size of the group||No Limit|
|Event covered||Natural and accidental death|
|Minimum Entry Age||15 years|
|Maximum Entry Age||69 years|
|Maximum Maturity Age||70 years|
The ages mentioned above are with respect to the last birthday of the life assured.
The plan can be availed only by a group of members who have a clear relationship with each other and the group policyholder. The policyholder should have the legal authority to purchase the policy on behalf of all the members. Groups that are formed only for taking the insurance coverage will not be eligible.
Sum Assured is the guaranteed amount of money that the life assured receives from the insurance policy. The sum assured for the Max Life Group Credit Life Secure Plan is as follows:
|Minimum sum assured||Rs.50,000 per member|
|Maximum sum assured||No limit, subject to satisfactory underwriting|
This amount is paid to the nominee/beneficiary at the death of the life assured.
The minimum and maximum premiums that are contributed towards the policy have no limits.
Max Life Group Credit Life Secure Plan has various death benefit options, as detailed below. The member is required to select the required option at the inception of the policy.
|Decreasing Cover Death Option||The outstanding sum assured schedule is set at the inception of the policy. The Decreasing Cover Death Option can also include cover during the moratorium period, in which case the monthly instalments towards the loan start after the moratorium period. The sum assured will be at a constant level till the end of this period, and thereafter, it reduces according to the schedule set at the beginning of the policy.|
|Level Cover Death Option||The benefit would be decided in a way that a minimum sum assured of Rs.50,000 would be provided to each member.|
|Moratorium Option||This option is available only with the Decreasing Cover Death Option. The moratorium period is chosen in multiples of 3 months. It should be noted that the minimum moratorium period is 3 months. The sum assured is a pre-defined amount of cover and this will remain constant throughout the moratorium period. Subsequent to this, the sum assured decreases during the remaining coverage period. The sum assured that is defined in the Certificate of Insurance is paid out, irrespective of the actual amount of outstanding loan.|
Max Life Group Credit Life Secure scheme does not offer any add-on plans.
Suicide Exclusion – In the event of death due to suicide within one year from the inception of the policy, irrespective of the mental condition of the member, the insurance coverage will come to an end. The death benefit payable will not be less than 80% of the premiums received by Max Life Insurance, in respect of the group member.
Max Life Group Credit Life Secure Plan has many other important features. Some of them are:
|Surrender Benefit||The Max Life Group Credit Life Secure Plan is a single premium term insurance scheme. If a member surrenders his/her policy due to any unforeseen circumstances, he/she will be paid a surrender value. The surrender value that is payable at any time during the policy term is calculated as follows: Surrender Value = 70% * Premiums paid * (Unexpired risk period in months / Total coverage period in months) * (Sum Assured at the time of surrender / Sum Assured at the start of the policy), where the Sum Assured at the time of surrender will be in accordance with a schedule mentioned in the certificate of insurance at the inception of the policy.|
|Free-look Period||If the member is not satisfied with the terms and conditions mentioned in the policy document, he/she can return the policy to the insurance company, stating relevant reasons. It should be returned within 15 days from the date of receipt. In case the policy was purchased through a distance marketing channel, the free-look period is 30 days. When the insurance company receives the returned policy, they will arrange for a refund of the paid premium.|
Premiums paid towards the Max Life Group Credit Life Secure Plan and the payouts availed are eligible for tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. However, these regulations are subject to change and you are advised to consult a tax advisor for updated tax guidelines.
Apart from the benefits listed above, the Max Life Group Credit Life Secure Plan has the following advantages:
|Online Payment Facility||Premiums towards the Max Life Group Credit Life Secure Plan can be paid online.|
|SMS Updates||The insurer sends SMS updates on policy-related information to customers who have enrolled for this facility.|
|Customer Care||Max Life Insurance has a dedicated customer service cell that provides assistance to customers on policy-related issues and queries. This facility is available round the clock for the benefit of the policyholders.|
|Download Premium Receipt Facility||Customers can download premium receipts from the insurer’s website after entering the policy number and a few other details. This download can be done without registering or logging in to the website.|
Buying Max Life Group Credit Life Secure Plan from Max Life Insurance can help lenders in protecting their finances from non-payment by a borrower, on account of his/her unprecedented demise. Max Life Insurance has a presence all around the country, with above 2,000 branches. They also utilise the latest technology for processing claims and provide a bouquet of benefits to customers in the form of regular policy updates, online payments, fund performance summary, etc.
What is the application procedure for this insurance policy?
A. An individual who is eligible to apply should submit the relevant documents to the insurance company as evidence of insurability. Medical examination will be performed on individuals whose total sum assured exceeds the non-medical limit.
When will the insurance be terminated?
A. The insurance of a member will automatically cease when:
Does the company provide a certificate of insurance to each member of the group?
A. Yes, Max Life Insurance issues an individual certificate of insurance to each member under the policy. If there is any discrepancy between this certificate and the terms and conditions in the policy, the policy terms will prevail.
Can this policy be assigned to another individual?
A. No, it is not possible to assign the Max Life Group Credit Life Secure policy to someone else.
What is the dispute redressal procedure under the policy?
A. All grievances or queries from customers will be addressed by the insurer’s helpdesk, or at the office mentioned below:
Max Life Insurance Company Limited
Plot 90A, Sector 18, Gurgaon, 122015,
Tel No: 0124-4219090
How do I pay the premium towards the policy?
A. Max Life Insurance enables customers to pay premiums through various modes, such as:
Through ECS on an annual, semi-annual, quarterly, or monthly basis.
Through drop boxes at several locations in the city.
Through IVR at the helpline number 1860 120 5577.
Through the website of the insurer.
At branch locations across the city.
What is distance marketing?
A. Distance marketing refers to the sale of insurance policies through channels that do not involve face-to-face interactions. The sale of policies through the internet and telephone are some examples of distance marketing.
For group policies, who will be the recipient of the claim benefit?
A. In the case of the Max Life Group Credit Life Secure Plan, which is a lender-borrower scheme, the outstanding loan amount will be paid in favour of the master policyholder and the balance claim amount will be paid in favour of the registered nominee.
When does the company decline claims?
A. Max Life Insurance declines claims when the member does not disclose any material information at the start of the policy, which would have impacted the issuance or revival of the policy. In addition, if he/she does not fulfill the terms and conditions in the contract, the claim will be declined.
What documents are required for requesting a surrender of policy?
A. The documents required for a surrender request are:
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