Term Insurance Cancellation: Max Life Policy Termination Guide

Max Life Insurance offers a free look period during which customers can cancel their policy without penalty. This period is 15 days from the date of receipt of the policy document for offline purchases and 30 days for online purchases. To cancel, customers need to submit a free-look cancellation request, either in person at a branch or online. Documents required include a photo ID and, in some cases, a cancelled cheque. It is important to note that once a life insurance policy is cancelled, the policyholder is no longer eligible for its benefits.

Cancelling within the free look period

To cancel within the free look period, you must submit a free look cancellation request within the specified time frame mentioned in your policy document. You can do this by visiting your nearest Max Life Insurance branch and submitting the following documents:

• An original valid photo ID document (Aadhaar, Passport, Voter ID, or Driving License)
• The policy document
• Premium receipt
• A cancelled cheque

If you are an NRI customer, a senior citizen (age 60 years and above), or there is no local Max Life Insurance branch available near you, you can log in to your Max Life account and submit your request for policy cancellation within the free-look period.

It is important to note that the free look period is a limited-time offer, and after it has passed, you will be subject to policy provisions, including surrender charges, if you wish to cancel your policy.

During the free look period, you can review your policy in detail, ask questions, and seek advice from your financial advisor or insurance agent to ensure it meets your specific needs. If you decide to cancel within this period, you will receive a full refund of your premium, although the method of refund may vary depending on the state in which the policy was written.

Cancelling after the free look period

If you want to cancel your Max Life Insurance policy after the free look period, you will need to submit a surrender request. This can be done online or in person at a branch. To submit the request, you will need to provide the following documents:

• A surrender form
• Original policy pack
• Copy of ID proof
• In the case of NEFT, a cancelled cheque with a pre-printed name/copy of a bank passbook with a banker's attestation/banker's attestation on account details in the surrender request

If you are an NRI customer, a senior citizen (age 60 years and above), or there is no local Max Life Insurance branch available in your city, you can log in to your Max Life account and submit your request for policy cancellation. Please note that requests submitted at the branch are processed faster.

When you surrender your policy, you will receive a surrender value that has been allocated towards earnings and savings. The surrender charge that is deducted from this amount varies from plan to plan. The amount allocated to earning and saving will be given to the policyholder in the event of mid-term surrender.

There are two types of surrender values:

• Guaranteed Surrender Value: The product of the total premiums paid and the surrender value factor (percentage of total premiums paid)
• Special Surrender Value: Depends on the total sum assured, total premiums paid, policy term, and applicable bonuses

If you cancel your plan after the free look period, the insurance company will charge you a pro-rata premium. This will be deducted from your refund.

It is important to carefully review your policy documents and consider your options before cancelling your life insurance policy. Once you give up your life insurance, you are no longer eligible for the policy's benefits.

Cancelling online vs. in-person

Max Life Insurance offers its customers the option to cancel their policies online or in person. While the online method may be more convenient for some, there are certain advantages to cancelling in person.

Cancelling Online

Cancelling your Max Life Insurance policy online can be done by submitting a request through your Max Life account. This option is available for NRI customers, senior citizens (age 60 years and above), or those who do not have a nearby Max Life Insurance branch. However, it is important to note that requests submitted at the branch are processed faster. When submitting an online request, you will need to provide certain documents, including your policy contract, premium receipt, and a cancelled cheque.

Cancelling In-Person

To cancel your Max Life Insurance policy in person, you will need to visit your nearest Max Life Insurance branch and submit a free-look cancellation request within the time period mentioned in your policy document. This period is typically 15 days from the date of receipt of the policy document for policies purchased through offline channels and 30 days for policies purchased online. When submitting the request in person, you will need to provide a valid photo ID document, such as an Aadhaar, passport, voter ID, or driving license.

Advantages of Cancelling In-Person

Cancelling your insurance policy in person allows you to receive faster processing of your request. Additionally, visiting a branch gives you the opportunity to speak directly with a representative, who can answer any questions or address any concerns you may have about the cancellation process. This can be especially helpful if you are unsure about the reasons for cancelling or have complex circumstances.

Factors to Consider

When deciding between cancelling online or in-person, it is important to consider the proximity of a Max Life Insurance branch to your location. If you do not have a branch nearby, cancelling online may be more convenient. Additionally, if you are an NRI customer or a senior citizen, online cancellation may be a more accessible option. However, if you prefer faster processing and the opportunity to speak with a representative, cancelling in-person may be the better choice. Ultimately, the decision between cancelling online or in-person depends on your individual circumstances and preferences.

Documents required for cancellation

To cancel your Max Life Insurance policy, you will need to submit a free-look cancellation request within the time period mentioned in your policy document. This is 15 days from the date of receipt of the policy document for offline purchases and 30 days for online purchases.

You can submit your request at your nearest Max Life Insurance branch. If you are an NRI customer, a senior citizen (60 years and above), or there is no branch located near you, you can submit your request online by logging into your Max Life account.

The following documents are required for cancellation:

• An original valid photo ID document (Aadhaar, Passport, Voter ID, or Driving License)
• Policy surrender form
• Original policy pack
• Self-attested copy of photo ID proof (for example, Aadhar card, PAN card, Election card, etc.)
• Cancelled cheque with a pre-printed name, copy of a bank passbook with a banker's attestation, or banker's attestation on account details in the surrender request (in case of NEFT)
• Latest contact details

Surrender value and types

Term insurance plans can be cancelled during the free-look period, which is the period given to a policyholder to assess and review the policy document. This is usually 15 days from the date of receipt of the policy document for policies purchased through offline channels, and 30 days for policies purchased online. If you wish to cancel your Max Life Insurance policy, you can do so by submitting a free-look cancellation request within this time frame.

Now, onto the surrender value and types.

Surrender value refers to the actual amount of money a policyholder will receive if they try to withdraw all of the policy's cash value. This may be less than the cash value if surrender fees are charged. Surrender value is also known as surrender cash value or annuity surrender value in the case of annuities.

There are two primary forms of life insurance: term life and permanent life. Term life insurance is typically less expensive but only lasts for a limited period, usually 10, 20, or 30 years. Term life insurance does not build cash value, and therefore there is no cash surrender value.

Permanent life insurance, on the other hand, builds cash value and is available in several forms, including whole life and universal life. Whole life insurance has a guaranteed premium and cash value, with the same premium paid each month and the cash value growing at a guaranteed rate. Universal life insurance is more flexible, allowing you to raise or lower your premium payments within a certain limit, but it does not provide the same guarantees as whole life insurance.

The cash surrender value of a whole life insurance policy is the guaranteed cash value shown on the policy, plus the value of any accumulated dividends. For universal life insurance, the cash surrender value is the current cash value of the policy less any surrender charges, and these charges typically disappear after 10 to 15 years.

In most cases, the policy's cash surrender value will be paid in a lump sum. However, depending on the policy, it may also be paid out in periodic payments over time. It is important to review the policy contract to understand the specific details of your plan.

Frequently asked questions