mx life saral jeevan bima

Max Life Saral Jeevan Bima (Standard Term Plan) Full Details

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Max Life Saral Jeevan Bima (Standard Term Plan)

Max Life Saral Jeevan Bima is a non-participating, non-linked individual pure risk coverage life insurance policy, which is specifically designed to provide comprehensive financial protection to the family in case of an eventuality.  The Saral Jeevan Bima plan offered by Max Life Insurance provides flexibility and ensures that the financial future of the family is secured. The insurance holder can customize the plan as per their convenience by choosing the desired coverage, premium paying tenure, and mode of payment.

 Such standard term plans are aimed to provide insurance coverage without any restrictions to provide education checks or income proofs. Should you opt for Max Life Insurance Saral Jeevan Bima? What are the hidden factors in this term insurance plan.

Why Term Insurance is Must Have?

With an increase in age, the responsibilities of an individual also increase, to ensure that your family is financially protected even in your absence it is a must to have a term insurance policy. A term plan ensures the right financial security in the family in times of contingencies. Moreover, the term plan also takes care of the future liabilities of the family and helps them to maintain a good lifestyle.

What is Max Life Saral Jeevan Bima Plan?

This is a top 10 term insurance plan product that is designed to provide risk coverage to the life insured. One can choose as low as Rs 5 Lakhs as insurance risk coverage. They need not worry about education checks or provide income proofs to take this term insurance plan. Max Life insurance has a 99.22% claim settlement ratio in the 2019-2020 financial year. Whether one likes it or not, claim settlement ratio  (CSR) is considered as one of the key factors while opting term insurance plan.

Key Features of Max Life Saral Jeevan Bima

  • This is a non-linked, non-participating individual pure risk life insurance plan. In simple terms, this is a plain term insurance plan.
  • One can choose a premium payment for 5 years to 40 year term and get adequate life coverage.
  • Term insurance plan coverage would be up to 70 years of age.
  • Minimum sum assured is Rs 5 Lakhs and maximum sum assured is Rs 25 Lakhs.
  • Age of entry is a minimum of 18 years and maximum age of entry is 65 years.
  • This plan is easy to understand. It provides just life risk coverage without any maturity benefit or survival benefits.
  • This plan covers all individuals without any restrictions. There are no restrictions on providing educational checks, occupation proofs, proof of living or gender.
  • There is the waiting period of 45 days in this policy.

Max Life Saral Jeevan Bima Eligibility Criteria

Here are the eligibility criteria of the policy. 

Eligibility Criteria Minimum Maximum
Entry Age18 years65 years
Policy Term 5 years40 years
Maturity Age70 years
Sum Assured Rs.5,00,000 (sum assured allowed only in multiple of Rs.50,000)Rs.25,00,000 (Subject to board approval underwriting policy)
Premium Payment Options Regular Pay Limited Pay- 5 years &10 years  Single Pay
Premium Paying FrequencyFor Regular & limited pay: Annual, half-yearly & monthly ( only under ECH/NACH) For Single Pay: Lumpsum

Benefits in Max Life Saral Jeevan Bima

In case of unfortunate death of the life insured, the nominee would get the death benefit.

In case the death happens within 45 days (waiting period) from the date of policy due to accident, sum assured would be paid to the nominee.

In case the death happens other than an accident, a death benefit equal to 100% of premiums paid would be paid to the nominee.

Sum assured for limited premium or regular premiums would be highest of

  • Sum assured on death
  • 10 Times of annualized premiums
  • 105% of all premiums paid
  • Absolute sum assured in the event of death

Sum assured payable for single premium would be highest of

  • 125% of premium paid
  • Absolute sum assured in the event of death

2) No proofs required

Life insurance companies generally ask living proof or educational checks. There are no proofs to be provided for this term insurance plan.

3) Tax benefits

One can get income tax benefits u/s 80c up to Rs 1.5 lakhs per financial year.

Benefits that are not available in Max Life Saral Jeevan Bima Plan

1) Maturity Benefit: Since this is a simple term insurance plan, there is no maturity benefit.

2) Survival benefit: Since this is a term insurance plan, there is no survival benefit.

3) Surrender benefit: There is no surrender benefit in this plan

4) Loans: No loan will be available under this policy.

When does policy termination happen in this term plan?

This policy would immediately and automatically terminated in case of the following:

1) The date on which death benefit becomes payable

2) In case of cancellation of the policy, the date on which refund, if applicable, is settled

3) The date of Maturity of the policy

4) On expiry of the revival period (of 5 years), if the policy has not been revived

5) On payment of free-look cancellation amount (during Free Look Cancellation Period of 15 days (30 days for distance mode)).

Negative Factors in this term insurance plan

1) This is a simple term insurance plan without any riders

2) If death happens within 45 days waiting period due to other than accident, the nominee would get only total premiums paid excluding any taxes paid earlier.

3) Term insurance coverage up to 70 years only. If an individual wants to cover beyond this age, they cannot.

Who should opt for Max Life Saral Jeevan Bima Plan?

Currently Max Life Online Term Insurance Plan Plus is already available under Max Life Insurance. However, this standard term plan is intended for specific individuals. Such plans would benefit the following:

1) This Saral Jeevan Bima Term plan is suitable for low income group who have not taken term insurance plan due to high premiums.

2) Suitable for those who could not take term plan till now due to various restrictions like requirement of income proof, educational checks etc.,

3) This would benefit beginners who want to take a term plans to start with a small sum assured and later want to consider the higher sum assured plans.

Exclusions

1: Suicide Exclusion:

Under Regular/Limited Pay: The policy will be nullified in case, the life assured commits suicide within 12 months from the date of commencement of risk, provided the policy is in force or within 12 months from the date of policy revival. No claim will be entertained by the insurer except 80% of the premium amount (excluding any extra amount if charged under the policy due to underwriting decisions, taxes, and rider premiums, if any) till the date of death or policy cancellation value as on date of death, whichever is higher is paid to the beneficiary of the policy, provided the policy is in force.

Note: This clause is not applicable in the case of a lapsed policy.

Under Single Premium Policy:

The policy will be nullified in case, the life assured commits suicide within 12 months from the date of commencement of risk, No claim will be entertained by the insurer except 90% of the single premium paid (excluding any extra amount if charged under the policy due to underwriting decisions, taxes, and rider premiums, if any) till the date of death or policy cancellation value as on date of death, whichever is higher is paid to the beneficiary of the policy, provided the policy is in force.

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