Home >Money >Personal Finance >Max Life Insurance launches term plan with Special Exit Value option

NEW DELHI: Max Life Insurance Company has launched a comprehensive term life insurance plan that offers enhanced financial benefits, customised for new-age subscribers. It is an individual pure-risk premium life insurance plan that offers policyholders multiple new and enhanced benefits like the ‘Premium Break Option’, ‘Special Exit Value’, choice of claims payout for the nominee, among others.

Here, we take a closer look at what 'Premium Break’ and ‘Special Exit Value’ options entail.

Policy coverage details

The policy is available to 18 to 65 year olds. It offers coverage against diagnosis of terminal illness with accelerated pay-out from the base life cover of up to Rs1 crore. Other enhanced features include limited pay, accident death cover, an increase in policy term from 50 to 67 for buyers’ not opting return of premium, among others.

What is Special Exit Value?

The plan offers ‘Special Exit Value’ under which a policyholder may choose to exit at a specified point to receive all premiums paid for the base protection benefit.

This helps you receive total premiums paid towards the base death benefit, at a specified point in the term of the policy. This option is available when return of premium variant is not chosen. No additional premium is to be paid in this option.

Aalok Bhan, director & chief marketing officer, Max Life said, "The Special Exit Value in the Max Life Smart Secure Plus Plan (term insurance plan) offers policyholders the option to receive all premiums paid for the base policy at a specific time in the policy term, as per the eligibility and conditions. On the other hand, the Return of Premium option (available to choose at policy inception) allows the policyholder to get back 100% of the total premiums paid at the end of the policy term upon survival. Important to note is that the Special Exit Value benefit is only available with non-return of premium."

A Special Exit benefit, wherein the policyholder will be returned the total premiums paid plus underwriting extra premiums paid plus loadings for modal premiums, if the policyholder surrenders his/her policy during:

The attained age of 65 years or ‘x’ policy year (where x is defined as 25th policy year for policy term from 40 years to 44 years and 30th policy year for policy terms greater than 44 years), whichever is earlier.

The following conditions will be applicable for Special Exit Benefit

The policy has to be in-force at the time of availing this value.

This value will not be available with Return of Premium variant.

This value will not be available for policy terms less than 40 years.

This value will be applicable on the base cover premium only and not to additional optional benefits like Accident cover, Joint life cover and Voluntary Sum Assured Top-Up.

The policy will get terminated after availing this.

What is Premium Break?

You can opt to take a break from paying premium and still stay covered, twice during the premium payment term by choosing the ‘Premium Break’ option. This option helps you skip paying your premium for a year and in such a period, you will still be covered.

First break is available after completion of 10 policy years, provided the policy is in-force. The duration of one premium break will be 12 policy months. And, the second premium break can be exercised after a minimum gap of 10 years from the first premium break.

Besides, the nominee has also the choice of claims payout mode, at the claims stage among lump sum, monthly income, part lump sum, and part monthly income. Separately, upon selecting the ‘Return of Premium’ variant, the term insurance plan would allow the return of total premiums paid for the base benefit at the end of the policy term upon life insured surviving through the policy term.

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