What is Max Life Term Plus Rider?

The Max Life Term Plus Rider is a non-linked rider that provides long-term protection for you and your dependents. It provides an additional benefit on the death of the policyholder. Riders are low-cost add-ons that enhance the benefits provided by a base insurance policy. They provide added benefits catered to special circumstances. 

To know more about the Max Life Term Plus Rider, read on. 

Key Features of Max Life Term Plus Rider

The list includes under this Max Life Term Insurance Plan features:

• Non-linked rider
• Minimum rider term - 5 years
• Maximum rider term - 35 years 
• Premium payment term equal to rider term
• Premium paying modes - Annual, semi-annual, quarterly and monthly
• Death benefit - Available 
• Maturity/survival benefit - Not available 
• Surrender benefit - Not available 
• Free look period - 15 days 
• Grace period - 30 days

Eligibility For Max Life Term Plus Rider

Take a look at the eligibility criteria and a few basic pointers pertinent to the Max Life Term Plus Rider.

Benefits of Max Life Term Plus Rider

The Max Life Term Plus Rider provides a Death Benefit on the death of the policyholder or life insured. On the death of the life Insured, provided the rider is in force, the rider sum assured is paid as a lump sum along with base policy death benefits. Guaranteed Death Benefit is defined as higher than ten times the annualized premium for the rider, 105% of all premiums paid for the rider as on the date of death, and rider sum assured. 

The Max Life Term Plus Rider can be added to your base insurance policy during its inception or at any time, provided that the rider term is at least 5 years. 

Other key benefits of Max Life Term Plus Rider are additional death benefits, easily available at an affordable cost, comprehensive protection, and additional rider sum assured to the nominee in the event of death.

How Does Max Life Term Plus Rider Work?

Let us suppose that Mr. A has a Max Life insurance policy with a premium payment term of 20 years. Mr. A is the Life Assured with his wife as his nominee. In order to gain additional protection, Mr. A purchases Max Life Term Plus Rider (Rs.10 Lakhs rider sum assured with 20 years rider premium payment term) at a nominal incremental price.

Now let us consider the following scenarios:

Scenario 1: Mr. A dies when the rider is in force

Rider Benefit: Rider sum assured of Rs. 10 lakhs is paid to the beneficiary immediately as soon as the claim is approved. The rider contract terminates.

Base Policy Death Benefit: Base policy death benefit is paid to the beneficiary immediately upon approval of the claim. The policy contract terminates.

Scenario 2: Mr. A dies when the rider is not in force and the base policy is in force

Rider Benefit: None 

Base Policy Death Benefit: Base policy death benefit is paid to the beneficiary immediately upon approval of the claim. Policy contract terminates.

Final Words

Max Life Term Plus Rider is one of the best ways you can secure added protection at a minimal cost and ensure that your loved one is financially secure when you are not around. So, if you want to protect your family’s future without bearing a financial burden at present, buy Max Life insurance Policy today!

Also read:

Why Should You Buy Life Insurance Riders?

10 Most Frequently Asked Question About Life Insurance Riders

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.