Max Life Insurance witnesses strong Compound Annual Growth Rate of 33% in Individual Sum Assured over five years

• Has recorded market share of ~16% in terms of individual sum assured in the private industry in FY21

Max Life Insurance Company Ltd. (“Max Life” / “Company”), has announced a strong compound annual growth rate (CAGR) of 33% in individual sum assured over the past five financial years. Sum assured or guaranteed death benefit is the guaranteed amount that the beneficiary of a life insurance policyholder will receive in case of their untimely demise and is an important parameter that reflects the human life value an individual attaches to his life.

As per Max Life’s recent ‘India Protection Quotient 3.0’ conducted in association with Kantar, 59% of term insurance owners in urban India felt that their term plan cover was insufficient to safeguard their family's future. Also, with a greater focus on financial protection in the backdrop of the pandemic, urban India’s term insurance buyers are increasingly searching for adequate sum assured to secure their financial goals.

In line with this insight, Max Life has been working towards helping customers understand the importance of buying the right protection and sum assured. These efforts have helped the Company witness robust growth in individual sum assured. During FY21, Max Life crossed an important milestone of securing two lakh crores in individual sum assured for the first time since its inception. The average sum assured of individual pure protection policies grew by 10% Year-on-Year to ~ INR 81 lakhs. In the fiscal, Max Life has also recorded a 13% year-on-year growth in average sum assured that stood at ~ INR 35 lakhs. This has allowed Max life to record a market share of ~16% in terms of individual sum assured among the top 10 private life insurers in FY21.

Commenting on this accomplishment, Mr. V Viswanand, Deputy Managing Director, Max Life said, “The ongoing pandemic has highlighted that the future belongs to those who plan and prepare well. Hence, it becomes necessary to understand the concept of sum assured to make a sound financial decision regarding your life insurance policy. Sum assured is the single most important parameter that can affect the accomplishment of the life goals of your loved ones in your absence. Here we have also observed that customer loyalty among those who understand and know their sum assured is significantly higher than those who do not recall.

With Max Life’s commitment towards delivering the right sum assured, the aim is to help customers understand and embrace the real value of their lives. Max Life’s constant improvement in sum assured metrics demonstrates its focus on enabling pertinent financial protection to the society, that helps navigate the challenges of the future.”

Today, we witness that most consumers look at the premium payable when purchasing a term insurance plan. However, this action often leads to the purchase of a lower sum assured that is inadequate to protect the family in the face of uncertainties. In this regard, Max Life has offered consumers visiting its website an easy-to-use ‘Real Value Tool’ that helps assess their financial value by answering six simple questions and arrive at the right amount of sum assured that is needed. In case the customer chooses an insufficient sum assured due to any reason, the Company then provides the option of increasing the same by topping up either with another life insurance policy or with specific riders that offer additional protection benefits.

Urban Chennai’s protection quotient increases by 7 points to

 Urban Chennai’s protection quotient increases by 7 points to 46 during Covid-19 pandemic, city ranks second highest across metros in term insurance awareness and ownership: reveals Max Life’s India Protection Quotient 3.0 Survey

Key Findings of the Survey Urban Chennai witnesses increase in life insurance awareness and ownership during pandemic Term insurance awareness and insurance second highest across metros Security levels relatively steady during Covid-19, city feels financially more insecure about sustaining family’s basic expenses, medical expenses Urban Chennai relatively less proactive about financial planning, overall health and fitness

Reinforcing its commitment towards ensuring greater financial protection for the country, Max Life Insurance Company Ltd. (“Max Life”/ “Company”) unveiled the findings of the third edition of its flagship survey ‘Max Life India Protection Quotient 3.0 (“IPQ 3.0”)’ in partnership with KANTAR. As per the survey, Chennai witnessed a positive movement of 7 points on the protection quotient scale from 39 (as per previous IPQ 2.0 survey) to 46 points (as per IPQ 3.0). However, it was found that in the backdrop of Covid-19, the city continues to feel financially insecure.

Conducted in the most uncertain and challenging times, Max Life IPQ 3.0 assesses the notable shifts in urban Chennai’s respondents’ attitudes from the beginning of the lockdown in March 2020, through the different phases of COVID-19, until announcement of viable COVID – 19 vaccines in December 2020. Around 4,357 respondents were surveyed via face-to-face interviews with adequate safety measures across 25 cities comprising of 6 metros, 9 Tier I and 10 Tier II cities, making this one of the most comprehensive financial studies carried out during COVID-19 situation.

The survey revealed that the degree to which urban Chennai is aware about life insurance products or the knowledge index moved up by 9 points to 66 as compared to the earlier 57 (per IPQ 2.0). Consequently, the city also registered a slight increase in life insurance ownership from the earlier 80% (during IPQ 2.0) to 82% now.

In the backdrop of Covid-19, urban Chennai was the only other metro city (along with Hyderabad) to register an increase in overall security levels, even if by only 1%. The city was also found to be relatively less anxious about financial commitments and was more prepared to sustain lifestyle and expenses with current earnings and provide for family’s financial needs in the absence of the breadwinner, in comparison to other metro cities.

Furthermore, the survey revealed that across metros, urban Chennai registered the second highest term insurance awareness and term ownership of 73% and 42%, respectively. 

V. Viswanand, Deputy Managing Director, Max Life said: “The latest findings of our marquee survey ‘India Protection Quotient 3.0’, present us with valuable insights on urban India including the city of Chennai, and how it navigated finances over the course of an unprecedented and truly challenging year. While the pandemic has resulted in some positive outcomes when it comes to health, proactive financial planning and preparing for the future, there is a long way to go. We’re certain the findings will be instrumental in enabling Chennai realize the importance of life insurance in safeguarding the future of loved ones amidst uncertain times and encourage them to embrace comprehensive financial protection in the post Covid-19 era.”

The following findings reveal insights that highlight urban Chennai’s shift across financial priorities and anxieties, compared from pre Covid-19 times:

• Urban Chennai’s security levels relatively steady during COVID-19 however city feels financially insecure about sustaining family’s basic expenses, medical expenses

In the backdrop of Covid-19, the degree to which Chennai feels financially secure and prepared remained steady. Amidst uncertain times, Chennai’s security levels even displayed marginal improvement from the earlier 51% (IPQ 2.0) to 52% now but remained lower in comparison to other metros such as Bengaluru (73%) and Hyderabad (80%).

The survey further revealed that amidst total or partial job losses, reduced income levels and escalated medical expenses only 44% Chennai respondents said they feel financially secure about fulfilling family’s basic needs whereas only another 44% felt secure about medical expenses. Only 54% felt financially secure with regards to their jobs/business.

• City’s anxiety levels stand at 62%; financial independence post retirement among topmost anxieties

On the back of health and financial challenges, the survey revealed that anxiety levels of urban Chennai stood at 62%, lesser in comparison to Bengaluru (64%) and Mumbai (64%). ‘Financial independence post retirement’ was the topmost anxiety for 72% in Chennai. ‘Financial security of family in the absence of breadwinner’, ‘inadequacy of funds in case of critical illness’ and ‘sustaining lifestyle and expenses with current earnings’ were the three other topmost anxieties.

• Urban Chennai relatively less proactive about financial planning, overall health and fitness

 

Despite an environment of increasing worries and reducing security, IPQ 3.0 revealed that Chennai remained relatively less proactive about financial planning, overall health and fitness. In the backdrop of Covid-19, only 62% Chennai respondents said that they’re proactive about financial planning – considerably lesser than 70% in Bengaluru and 77% in Delhi. Furthermore, only 64% said that they believe in saving more than spending.

 

Despite the pandemic having medical implications, city’s residents are not actively prioritizing health and fitness. Only 60% of Chennaites, as opposed to 80% Bangaloreans and 89% Mumbaikars, said that they actively look for products that will improve immunity whereas only 63% pay attention to health and fitness regime.

 

• City has the second highest term insurance awareness and ownership across metros

Among all metros, Chennai’s term insurance awareness and term ownership stood the second highest. Registering an uplift of 9% compared to IPQ 2.0, the city’s term awareness level of 73% increased significantly from the earlier 64%. The same was at par with term insurance level of Delhi, and higher in comparison to Kolkata (41%), Hyderabad (54%) and Bengaluru (64%).

On the other hand, the city’s term insurance ownership also remained the second highest across metros. It increased from the earlier 36% (as per IPQ 2.0) to 42%, second only to term ownership levels of Delhi at 44%. The same indicates that while urban Chennai is increasingly waking up to the challenges of pandemic and realizing need for greater financial protection, there is scope for great term insurance uptake.

Max Life Insurance launches ‘Max Life Saral Jeevan Bima’, a

 Max Life Insurance launches ‘Max Life Saral Jeevan Bima’, a standard term
insurance plan that offers customers simplified financial protection

Designed to provide protection to customers alongside easy-to-understand policy features

Max Life Insurance Company Ltd. (“Max Life/Company”), today announced the launch of ‘Max Life Saral Jeevan Bima’, a standard term life insurance plan, designed to provide financial protection to customers alongside simple, easy to understand policy features. The same is a non-linked, non-participating, individual pure-risk premium life insurance plan.

Available to customers in the age group of 18 to 65 years, Max Life’s Saral Jeevan Bima plan offers a minimum sum assured of 5 lakhs and maximum sum assured of up to 25 lakhs for a policy term ranging between 5 years and 40 years. ‘Max Life Saral Jeevan Bima’ further offers customers flexibility to choose between premium payment term options of regular pay, single pay and limited pay (with 5 and 10 year pay options); and multiple premium payment mode options i.e. annual, semi-annual or monthly payment.

The Max Life Saral Jeevan Bima comes with the Company’s steadfast commitment towards customers, with which it has achieved a Claims Paid Ratio of 99.22% during FY 2019-20. As a continued promise of trust, Max Life has paid off 15,342* claims received in FY 2019-20. This demonstrates the Company's commitment to being there at the ultimate moment of truth that defines a life insurer’s relationship with its customers.

According to the findings of Max Life’s recent survey ‘India Protection Quotient 3.0’ in association with KANTAR, it was revealed that 33% non-term plan owners across urban India were unaware of term plan availability and believed ‘high premiums have to be paid’ for it, which served as a barrier in their term plan purchase. The new ‘Max Life Saral Jeevan Bima’ will offer simplified financial protection to customers.

Commenting on the launch of the product, Prashant Tripathy, MD & CEO Max Life Insurance said, “In today’s day and age, where there are plenty of term insurance plans and policies to choose from, it is also important to provide a simple product that allows an average customer to make an informed choice. In line with the IRDAI’s Guidelines on Standard Individual Term Life Insurance Product; and as a commitment to increase the penetration of life insurance in the country, ‘Max Life Saral Jeevan Bima’ seeks to address key financial protection requirements of customers in a simple and standard manner. We hope that this standard product will help Indians, especially first-time buyers, to protect their loved ones by encouraging them to invest in a term insurance policy.”

 

 

*Basis IRDAI Annual Report 2019-20

Max Life Insurance Launches ‘Max Life Critical Illness and Disability Rider

 Max Life Insurance Launches ‘Max Life Critical Illness and Disability Rider’ for its customers; introduces wellness programme ‘Max Fit’ to encourage healthy living

 Max Fit is a unique wellness app available exclusively to customers of the new ‘Max Life Critical Illness & Disability Rider’

• ‘Max Life Critical Illness and Disability Rider’ offers customers protection from a wide range of illnesses and uncertainties
• New offering to promote healthy living amongst customers by rewarding them for staying fit and healthy

 Max Life Insurance Company Ltd. (“Max Life” / “Company”), today announced the launch of ‘Max Life Critical Illness and Disability Rider’ and with it, the launch of ‘Max Fit’, a comprehensive wellness programme. Max Fit is a wellness app designed to lead customers on a path of protection through holistic fitness and wellness. In line with the company’s brand philosophy of “#YouAreTheDifference”, the app promises to provide patrons with a unique and exciting opportunity to work towards a healthier lifestyle with the ultimate aim of helping them realize that their health is their biggest asset.

 Max Life’s newly launched ‘Max Life Critical Illness and Disability Rider’ provides comprehensive financial protection against a range of critical illnesses and disability. With many critical illnesses linked to lifestyle related habits, Max Life wants customers to stay fit, active and maximize their personal health and wellbeing. Together, ‘Max Fit’ program and ‘Max Life Critical Illness and Disability Rider’ – will address customers’ holistic health coverage needs to ensure they continue to ‘Be Fit, Be Protected, Be Happy’.

 Speaking on the launch of the offerings, Prashant Tripathy, Managing Director & CEO, Max Life said, “At Max Life, we believe in offering customers holistic financial protection. This includes an emphasis on encouraging them to take care of their health, as a healthy mind and body lead to stronger immunity and better quality of life. With the launch of Max Life Critical Illness and Disability Rider, we aim to offer customers protection from any untoward circumstances, while rewarding them for taking care of their personal wellbeing. The accompanying Max Fit marks a great milestone in our digitization journey to deliver superior customer experience. It’s a win-win situation for customers where they are protected from uncertainties and rewarded for playing an active role in staying committed to their overall health.” 

‘Max Life Critical Illness and Disability Rider’ offers customers protection from upto 64 critical illnesses, and has a cover under which one can protect themselves or their loved ones. It also comes with a flexible payment option wherein one can opt for limited pay or regular pay option as per the base plan. The rider can be attached to 11 of Max Life's existing products ranging from term plans and saving plans to monthly income plans, and more.

 Available exclusively with the rider, ‘Max Fit Program’ is a wellness app with features such as a wellness assessment score, medicine reminder, daily health tips, digitized access to all health reports and a wellness calculator for illnesses such as diabetes, heart diseases, stress, anxiety, etc. Recording a minimum of 50,000 steps on the app can accumulate one Healthy Week in a week*[1] and depending on the number of Healthy Weeks accumulated, the life insured is eligible for a discount (upto 10%) on rider premium at the time of renewal.

 Celebrated tennis player Mahesh Bhupathi whom Max Life has engaged to drive home the message of leading a healthy lifestyle, added, “Leading a fit and healthy lifestyle has moved from a style statement to an essential. It is the new normal. By catering to the health and wellness needs of an evolving customer base, Max Life is redefining the landscape of new age life insurance solutions. I’m happy to associate with the futuristic vision of the firm and look forward to our journey as we encourage Indians to adopt a physically sound approach to life.”

*Annexures – ‘Max Life Critical Illness and Disability Rider’

 The rider has 5 distinct variants to choose from– Gold, Gold Plus, Platinum, Platinum Plus and Total and Permanent Disability (TPD) variant – with each covering a suite of pre-listed critical illnesses (minimum 22 and maximum 64 critical illnesses covered). It also offers cover for as long as 67 years (up to age 85). The rider has flexible payment options and can be attached to 11 of Max Life's existing products*[2].

Events

	Minor CI	Major CI/TPD
Variant 1 & 3: Diagnosis of listed Critical Illness	Lower of 25% of Rider Sum Assured or Rs. 5 Lacs is payable on diagnosis of any of the covered minor CI conditions	100% of Rider SA minus minor CI claims paid, if any is payable on the diagnosis of any of the covered major CI conditions.
Variant 2 & 4: Diagnosis of listed Critical Illness or occurrence of TPD	Lower of 25% of Rider SA or Rs. 5 Lacs is payable on diagnosis of any of the covered minor CI conditions	100% of Rider SA minus minor CI claims paid, if any is payable on the diagnosis of any of the covered major CI conditions or occurrence of TPD, whichever is earlier
Variant 5: Occurrence of Total and Permanent Disability (TPD)	NA	Total and Permanent Disability, due to an accident or an illness, would be covered. The Rider SA is payable on a valid TPD claim during the Rider Coverage Term, subject to rider benefit being in-force.

Following benefit variants are available under the rider to choose from -

1. Gold variant: a suite of 22 critical illnesses is covered (one minor, 21 major)
2. Gold Plus Variant: In addition to a suite of 22 critical illnesses (one minor, 21 major), TPD is also covered
3. Platinum variant: a suite of 64 critical illness is covered (five minor, 59 major)
4. Platinum Plus variant: In addition to a suite of 64 critical illnesses (five minor, 59 major), TPD is also covered
5. Total and Permanent Disability (TPD) Variant: TPD shall mean the occurrence of any of the conditions as mentioned in the rider as a result of accidental bodily injury, sickness, or disease