The features and benefits that accompany Max Life Insurance policies make them an essential component of robust financial planning. It goes without saying that financial planning is crucial to balance income and expenses and is immensely important for those who wish to start a family and those planning their retirement.
Investing in a Max Life insurance policy works in favor of an individual as it allows them to develop a financial discipline and helps them build a corpus at a steady rate.
The same also works out for those planning their retirement as the corpus built helps them lead a comfortable lifestyle post-retirement. However, the same is applicable if the insured survives the policy term. In case they don’t, the same goes to aid the insured’s dependents and help them get back on track gradually.
To understand how the same works out for a policyholder, take a look at the sections below.
Perks of Max Life Insurance Plans
These are the key benefits of investing in Max Life Insurance Policies:
Having the safety net of an insurance policy ensures that your family will not be coaxed to compromise or make sacrifices due to the fear of financial constraints, in case of an unforeseen situation. Such financial aid will also help pay off other financial obligations with much ease and without straining available funds.
Life insurance death benefits constitute the payment of a specified sum to the insured’s dependents in the event of his/her death. The death benefit allows the beneficiary to account for financial obligations and cater to responsibilities toward other family members without much difficulty.
This particular benefit kicks in once the insured survives the policy term. This aspect of a life insurance policy acts as a savings avenue and helps build a corpus over time. Typically, the benefit extends the policyholder with the entire amount of money they paid as premiums.
The availability of a riders option is a tempting feature of a life insurance policy. Typically, riders are add-ons to an existing policy that permits policyholders to customize their insurance plan as per their requirements.
Notably, Max Life insurance extends several lucrative riders like critical illness rides with their term insurance plan. This helps them avail of well-rounded protection.
Section 80C of the Income Tax Act, 1961 extends some tax benefits for life insurance. The provision entitles the policyholder to claim the premiums paid for the insurance coverage as a tax deduction, in turn, lowering their taxable income. Additionally, Section 10(10D) of ITA, states that any payments received from an insurance policy are tax-free. This tax-saving feature of life insurance makes it a valuable component of financial planning.
Scope of investment
Certain types of life insurance plans also allow the policyholder to avail of the benefits of both life cover and investment. For instance, Unit Linked Insurance Plans offer the best investment and insurance by using a part of the premium to invest in equities and the rest in life cover.
How to Plan Your Life with Max Life Insurance Policies?
Different policyholders have different financial needs and requirements, and they can cater to the same by developing a thorough investment approach and discipline. While one life insurance policy may not suit all of their needs, they have the options to avail of plans that can cater to their varying needs.
In other words, based on one’s life stage individuals may choose to benefit from different life insurance, ULIPS, and health insurance plans.
Take, for instance, Rakesh who is nearing his retirement and will have different financial objectives than Karan who became a part of the corporate race two years ago. Hence, Rakesh will need to look for a different insurance plan than Karan, and vice versa.
Given Rakesh’s age and weakened risk appetite, it would be better if he opted for an insurance plan that allows him to generate a steady flow of income along with heath-centric riders. On the other hand, Karan might be better suited to avail of insurance plans that expose his portfolio to market instruments that carry risk-reward components.
However, both individuals have the option to take advantage of riders to craft an insurance plan that suits their goals without the need to invest in any standalone insurance policy.
That said, they both should weigh their options carefully before selecting any policy or riders.
Things to Check While Buying Life Insurance
Here’s a list of things that one must check to ensure they pick a life insurance policy that matches their needs.
Intending policy buyers must assess the accompanying coverage of an insurance plan. The coverage amount is the most crucial aspect as the same will influence their financial plan and the future of their family. Before one deems a certain coverage adequate, it is recommended to factor in future expenses and other obligations carefully.
Premium Payment Options
A leading insurance company like Max Life extends several payment options to the policyholders choose from. This makes them streamline their payments as per convenience and personal objectives. Typically, insurance providers allow individuals to pay premium amounts on a monthly, quarterly, yearly, or half-yearly basis.
Individuals must select a policy term that matches their financial goals. Notably, the policy term tends to influence the insurance premium. Long-term policies attract lower premium rates whereas short-term plans accompany higher rates. So make sure to base your decision on your goal and payment capacity.
Claim Settlement Process
Note that different insurance companies follow different approaches when it comes to settling insurance claims. This is why you must find out about the process before purchasing a policy to save yourself from unwarranted surprises. While at it, check the claim settlement ratio. Typically a higher claim settlement ratio indicates the robust financial standing of the insurer and serves as an assurance that your potential claim will be settled without difficulty and that your investment in the same will be worthwhile.
That said, a Max Life Insurance can aid your financial planning in several ways. Make sure to check all the features and limitations before buying a policy to make the most of it.