Max Life is among the foremost life insurance providers in India. The company is a joint venture between Max India and Mitsui Sumitomo Insurance of Japan. Max life has the fourth largest market share in the life insurance segment among all private vendors in India. It is also among the fastest growing life insurance provider in the country.
Max Life child care plans are highly sought after products. Child plans encompass a category of life insurance policies with features such as maturity and death benefits, premium waiver, flexible withdrawal etc. These plans are meant to provide financially secure future to a child, in case the parent (life insured) suffers fatality before the child can stand on his or her feet.
Types of Max Life Child Plans
Currently, Max Life is offering a dedicated and comprehensive child plan – Shiksha Plus Super Plan. This is a standard child plan from Max Life Insurance that provides timely or lump sum benefits to the beneficiary (child) in case of death of the insured (parent).
Max Life Shiksha Plus Super Plan
The Shiksha Plus Super Plan is available for Indian citizens between 21 and 50 years of age. The maximum age of the applicant at maturity should be below 65 years (regular pay) or 60 years (5 pay). The regular premium pay schemes are available in tenures between 15 to 25 years while the 5 pay premium scheme will be allowed for 10 years maturity policies.
The financial benefits of this plan include:
A lump sum amount will be paid out at the death of the policy-holder.
Family Income Benefit: This is provided in the case of death of the policyholder during the policy tenure. 10% of sum assured is paid out every year till the end of the policy term (subject to a minimum of 3 such payments and a maximum of 10 payments).
Funding of Premium: In case of policyholder's death during the policy term, the insurer will pay the remaining premium till the end of policy tenure, and the fund value will be given out at maturity. All benefits will still be paid out to the beneficiary as per policy documents.
Why choose Max Life Child Plan?
Complete life insurance coverage with features such as Funding of Future Premiums and Family Income Benefit.
Flexible premium payment and policy tenures.
5 different options for investing funds, with additional protection against market volatility.
Partial withdrawals allowed at no penalties subject to conditions.
Funds can be paid out in a lump sum or in equated instalments given out at important junctions of a child’s life such as college, marriage etc.
Tips and example
The best time to buy a child education plan from Max Life is as soon as your child is born. Buying early allows you to think far ahead against any eventualities that can hamper your child’s future. Also, you may have to pay lower premiums if buying early.
The plan also provides you with the option of investing in one of the 5 fund choices. You should choose the fund options carefully, as the ones which give the highest returns are usually categorized as risky propositions. Funds are a combination of debt and equity instruments. As such, funds with a higher ratio of equity investments can provide you with potentially high returns, though with a high-risk factor. Similarly, funds with a greater share of investments in government securities are relatively secure, but provide lower returns.
Suppose an applicant buys a policy at 35 years of age for his/her child of 1 year. He/she chooses a policy tenure of 20 years with Rs.50,000 as annualised premium. So, after paying the premium for 20 years, he stands to receive Rs.11,91,363 at 4% interest p.a. at policy maturity. Death benefits will be paid out to the nominee (child) if the insured does not survive through the policy tenure.
Finally, the Max Life Shiksha Plus Super Plan is a great option for a child plan. With a comprehensive list of benefits and features, as well as easy and hassle-free processing of applications, Max Life child plans, promise to secure the future of your child, with you or without you.
Other Max Life Insurance Plans
GST of 18% is applicable on life insurance effective from the 1st of July, 2017