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Max Life Premium Return Protection Plan

Max Life Premium Return Protection Plan is a non-participating limited pay plan offered by Max Life Insurance. It is a single life premium return policy that provides comprehensive life coverage to the policyholders. The policy has an in-built accidental death benefit and it also offers maturity benefit and tax benefit to the customers.This policy allows customers to choose a policy term of 20, 25 or 30 years by paying premiums for only 11 years. Premium for annual payment mode starts from Rs.8,500* p.a.

*Premiums vary based on age, location, plan term and other factors.

Eligibility - Who is the Max Life Premium Return Protection Plan for?

Max Life Premium Return Protection Plan can be availed only by people who fulfil the eligibility requirements. The eligibility criteria for this policy is mentioned below:

Type Individual, non-participating limited pay plan
Minimum Age at Entry (age as on last birthday) 21 years
Maximum Age at Entry (age as on last birthday) 55 years, if the policy term is 20 years. 50 years, if the policy term is 25 years. 45 years, if the policy term is 30 years.
Maximum Age at Maturity (age as on last birthday) 75 years

Sum Assured and Premium Range – What you Get and What it Costs?

Sum Assured is the amount that you get from the policy. The Sum Assured for Max Life Premium Return Protection Plan can be chosen only in multiples of Rs.50,000. The minimum and maximum Sum Assured offered by the policy is:

Minimum Sum Assured Rs.5 Lakhs, provided the minimum Annual Premium is Rs.8,500.
Maximum Sum Assured Rs.1 Crore.

This >Max Life term plan also offers High Sum Assured Discounts. For Sum Assured worth Rs.30 Lakhs and above, the plan offers a discount of Rs.130 for every Lakh of Sum Assured.

Premium is the amount that you have to pay to receive benefits from the plan. The premium rates of Max Life Premium Return Protection Plan is not the same for everyone and differs depending on the gender and age of the Life Insured. The Plan offers low rates of premium for female lives. Max Life Premium Return Protection Plan offers 4 premium payment modes, which are as follows:

  • Annual.
  • Semi-Annual.
  • Quarterly.
  • Monthly.

Policyholders can choose to change their premium payment mode at any time, but the change will come into effect only from the next policy anniversary.

Minimum Premium Rs.8,500 p.a. for Annual Mode. The Modal Factors will be applied for non-annual payment modes.
Maximum Premium Rs.4,40,400 p.a. for annual payment mode, where policyholder is a 55 year old male who has a policy term of 20 years and his maximum Sum Assured is Rs.1 Crore. (The amount will increase for sub-standard lives and non-annual payment modes.)
Policy Term 20 years/ 25 years/ 30 years
Premium Payment Term 11 years

*Premiums vary based on age, location, plan term and other factors.

**Premium amount mentioned in the table above does not include extra premium, modal extra, tax, cess or levies.

Plan Coverage – What the Max Life Premium Return Protection Plan Covers?

Max Life Premium Return Protection Plan offers comprehensive protection to policyholders, which means their nominee will receive the Base Sum Assured from the company in case of death. The plan also has an in-built accidental death benefit, under which the nominee of a policyholder receives additional 50% of the Base Sum Assured apart from the Basic Sum Assured in case his/her death is caused due to an accident. Apart from this, the plan also offers maturity benefit, surrender benefit and Reduced Paid Up (RPU) benefit to all the policyholders.

Benefit Details
Death Benefit This benefit is paid if the Life Insured dies during the policy term. It is paid to the nominee of the Life Insured. Death Benefit is equal to Death Sum Assured, which is higher of the following:
  • 10 times of the Annualised Premium.
  • 105% of the total premiums that have been paid.
  • Guaranteed Death Sum Assured (GDSA).
  • Guaranteed Maturity Sum Assured (GMSA).
Maturity Benefit Guaranteed Maturity Sum Assured is paid on policy maturity date if the Life Insured survives till the date of maturity and if policyholder has paid all premiums by the due dates.
Surrender Benefit It is paid at the time of surrender of policy. The policy can be surrendered only after it gets a Surrender Value, which is gets immediately on payment of 1st three full year premiums. Surrender Value is the higher of the following:
  • Guaranteed Surrender Value.
  • Special Surrender Value.
Reduced Paid Up Benefit When the policy gets a Surrender Value, then by default it will become Reduced Paid Up if the policyholder fails to pay further premium. In this case, the policy will continue with the following reduced benefits:
  • Reduced Death Benefit – It is reduced in proportion to the total paid premiums in relation to the total premiums that is payable.
RDU = (Total Paid Premiums – Extra Premium (if any) – Rider Premium (if any)/ Total Payable Premiums – Extra Premium (if any) – Rider Premium (if any)) x Death Benefit
  • Reduced Maturity Benefit – Here, the total premiums that a policyholder paid during his/her policy term will be returned on the date of maturity.

Add-On Plans – Additional Coverage Under the Max Life Premium Return Protection Plan:

Max Life Premium Return Protection Plan does have any Add-on plans or additional coverage.

Exclusions - What the Max Life Premium Return Protection Plan Doesn’t Cover?

Suicide Exclusion – If the Life Insured commits suicide within 12 months from the start or revival date of the policy, then the policy will terminate immediately. In this case, the company will pay either the total paid premiums (if the policy has not got a surrender value) or Higher of total paid premium or Special Surrender Value (if the policy has got a surrender value).

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

Max Life Premium Return Protection Plan policy has many other important features. Some of them are:

Particulars Details
Grace Period 15 days for monthly payment mode. 30 days for all other payment modes. Grace Period will start from the due date of every premium payment.
Freelook Period 15 days, starting from the date of receipt of the policy document.
Nomination Policyholders are allowed to select a nominee.
Policy Revival Policy can be revived within 2 years, starting from due date of the 1st unpaid premium instalment and before the expiry of policy term.

Tax Benefits – How you can Save with the Max Life Premium Return Protection Plan?

Owners of Max Life Premium Return Protection Plan can enjoy tax benefits under the Income Tax Act of 1961 in the form of Deductions and Exemptions. Deductions can be claimed under Sections 80C, 80CCC, 80D and 80DD of the IT Act and Exemptions can be claimed under Section 10 (10D) of the IT Act.

  • Deductions under Section 80C or 80CCC – Individuals and Hindu Undivided Families can avail benefits under this Section. The maximum amount that can be claimed is Rs.1,50,000.

Section 80C or 80CCC says that:

  • If you pay 20% more premium than the actual capital Sum Assured in a year, then you can claim deductions only for premiums up to 20% of the sum assured.
  • If your policy was issued on or after 1st April, 2012, then you can claim deduction for only so much of the premiums payable as does not exceed 10% of the actual capital Sum Assured (15% if you have severe disability or specified ailment).

If your policy is terminated within 2 years from inception, then the benefits under this Section will be reversed.

  • Deductions under Section 80D – Individuals and Hindu Undivided Families can avail benefits under this Section. The eligible amount for deduction is a maximum of Rs.25,000 for an individual, his/her spouse and children. An additional deduction of up to Rs.25,000 is allowed for parents. If parents are senior citizens, then deduction of up to Rs.30,000 can be claimed. Assessees are allowed to pay a maximum of Rs.5,000 for preventive health check-ups within the prescribed overall limit.
  • Deductions under Section 80DD – Under this Section, every year policyholders can claim up to Rs.75,000 worth premiums that they pay for their disabled dependent. A high deduction of Rs.1,25,000 will be permitted in case the dependent suffers from severe disability.
  • Exemptions under Section 10 (10D) – The amount policyholders receive from a life insurance policy (includes bonus) is exempted from tax. This rule is not applicable on the following:
    • Sum received under Section 80DD (3).
    • Sum received under a Keyman Insurance Policy.
    • Sum received other than as death benefit from a policy that was issued on or after 1st April, 2003 and if the premium payable during the term is not more than 20% of the sum assured. If the policy was issued on or after 1st April, 2012, exemption will be available only if the premium payable does not exceed 10% of the actual capital sum assured.

*Tax Benefits are dependent on the tax laws and may change at any time. It is advisable to consult someone who is an expert in tax matters.

Other Benefits – How you can Save with the Max Life Premium Return Protection Plan?

Max Life Premium Return Protection Plan has many other benefits to offer other than the ones mentioned above. Some of these benefits are:

SMS Updates Policyholders can receive all the updates related to their policy via SMS. To activate the SMS Updates service, they have to simply SMS a message to the company.
Online Payment Facility Policyholders can easily make their premium payments online on the website of Max Life Insurance.
Download Premium Receipt Facility Policyholders have the option to download receipts of their premium from the website of Max Life Insurance.
Customer Care Max Life Insurance provides 24x7 customer care service. If people have any queries related to the policy or claims process, they can contact the customer service on the toll free number or via an email, SMS or letter.
Premium Calculator Before applying for Max Life Premium Return Protection Plan, applicants can use the premium calculator tool to calculate their premium. The tool is present on the website of Max Life Insurance.
Doorstep Expert Advice The company offers expert advice at doorstep. People have to simply contact the company. The company’s trained distributor will meet them and help them in understanding the policy.

Why you Should Buy the Premium Return Protection Plan from Max Life Insurance?

You should buy the Max Super Term Plan from Max Life Insurance because it offers comprehensive long-term protection and returns all the premiums that you have paid if you survive till the end of the term. It is also one of the most popular among the 15 life insurance products that Max Life Insurance offers. The company has over 2,000 branches across India and it has an excellent customer service team, which you can contact at any time from any part of the world. Another reason why you must choose this policy from Max Life Insurance is that the company makes use of the latest technology to fasten the claim settlement process and to offer benefits such as Electronic Insurance Account and online premium payment option.

FAQs about Max Life Premium Return Protection Plan:

  1. What does Annual Premium mean?

    A. Annual Premium is the amount of premium that is payable under the annual premium payment mode. It exclusive of extra premium, service tax and other cess, taxes or levies.

  2. What does Annualised Premium mean?

    A. Annualised Premium is the sum total of extra premium and Annual premium.

  3. What is Total Premium?

    A. Total Premium refers to all the premiums that is paid by the policyholder. It includes extra premium and loaded for modal factors, but it excludes service tax, other taxes, levies or cesses, if any.

  4. What is Guaranteed Maturity Sum Assured (GMSA)?

    A. Guaranteed Maturity Sum Assured (GMSA) is the total premium that is payable over the premium payment term.

  5. What is Guaranteed Death Sum Assured (GDSA)?

    A. Guaranteed Death Sum Assured (GMSA) is 100% of the Sum Assured in case of non-accidental claims and it is 150% of the Sum Assured in case of accidental claims.

  6. What does death by accident mean?

    A. Death by accident means an unforeseen, sudden, involuntary event that is caused by visible, violent and external means that is revealed by an autopsy report, provided such death was caused directly by such accident and is independent of any other mental or physical illness within 180 days of the accident date.

  7. What is Guaranteed Surrender Value?

    A. Guaranteed Surrender Value or GSV is a percentage of the total paid premiums.

  8. What is Special Surrender Value?

    A. Special Surrender Value is equal or greater than GSV and is determined from time to time by Max Life Insurance Company. SSV depends on the surrender year and is not dependent on the date when the premium was discontinued. It is a percentage of the total paid premiums. SSV is not guaranteed and may be revised.

  9. Does Max Life Premium Return Protection Plan provide loan facility?

    A. No, Max Life Premium Return Protection Plan does not provide loan facility.

  10. What are the Modal Factors for the different premium payment modes?

    A. The Modal Factors for the different premium payment modes are as follows:

    • For annual premium payment mode, the Modal factor is 1.000.
    • For semi-annual premium payment mode, the Modal factor is 0.52.
    • For quarterly premium payment mode, the Modal factor is 0.265.
    • For monthly premium payment mode, the Modal factor is 0.09.
  11. How to make a claim?

    A. To make a claim, people have to submit the following to Max Life Insurance:

    • Claimant’s statement in the form prescribed by the company. Policyholders can download the claim request documents from the website of the company.
    • Your original policy document.
    • Copy of F.I.R or policy complaint (to be submitted in case of death by accident).
    • Copy of certified post mortem report (to be submitted in case of death by accident).
    • Death certificate issued by the municipal or local authority.
    • Claimant’s and Nominee(s) Identity proof. It should have their photographs and signatures (to be submitted in case of death).
    • Any other documents requested by the company.