Max Life Guaranteed Income Plan

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Max Life Guaranteed Income Plan is a traditional savings plan with monthly benefits post maturity. The plan aims to build a strong corpus and provide life insurance to meet every requirement of the policyholder

Max Life Guaranteed Income - Key Features

  • It is a non-participating plan with regular premium payment option
  • Guaranteed Income is paid for 10 years post maturity where the benefits paid in the last 5 years is double that of the benefits paid in the first 5 years
  • Terminal Benefit is also paid after the completion of the payout period

Max Life Guaranteed Income - Benefits

  • On death of the policyholder, Death Sum Assured is payable which is higher of 10 times the annual premium of 105% of all premiums paid or Guaranteed Maturity SA or Guaranteed Death SA
  • The nominee can avail the death benefit in monthly instalments for a period of 10 years
  • On Maturity, the payout period starts where the Guaranteed Income is paid monthly.
  • Terminal Benefit equal to 125% or 200% for 6 year and 12 year term respectively is paid after completion of the payout period
  • The policyholder or nominee can commute the monthly instalments and take them as lump sum where the sum of instalments will be discounted @ 5.7% p.a.
  • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.

Max Life Guaranteed Income - Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

25 years

60 years

Maturity Age (Last Birthday)

-

67 years

Policy Term (PT) in years

6 or 12

Premium Paying Term (PPT) in years

Equal to policy term

Premium Paying Frequency

Annual

Premium

6 year term – 75,000

12 year term – 20,000

No limit

Sum Assured

6 year term – 450,873

12 year term – 269,565

No limit

 

Details About Premium

Annual premium in Rupees

Age

35 years

Premium

100,000

Monthly benefits in first 5 years post maturity

10,496

Monthly benefits in last 5 years post maturity

20,991

Terminal Benefit

200,000

 

Max Life Guaranteed Income - Policy Details 

Grace Period: 30 days’ grace period is allowed for premium payment. If policyholder fails to make payment within the grace period, the policy lapses 

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 2 / 3 full years’ premiums have been paid. The Surrender Value will be higher of the Guaranteed Surrender Value or the Special Surrender Value. The GSV and the SSV will be calculated as a % of total Premiums paid 

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

Loan is not available under the plan 

Exclusions

In case of suicide committed within 12 months of policy inception or revival higher of  the premiums paid or the Surrender Value is refunded if the policy acquires a Surrender Value or total premiums paid is refunded where the policy has not acquired Surrender Value 

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person. 

Case Study:

Mr Bose is 47 years of age and works in private sector. He wants a guaranteed yearly income of about Rs. 50,000 soon after stopping to pay the Premiums and he also wishes to increase the income by approx by another Rs. 50,000. Consequently, he decided to purchase Max Life Guaranteed Income Plan for a term of 6 years, and the yearly premium was Rs. 1,00,000. He nominated his wife as the nominee of the policy he purchased. Now let us discuss two scenarios that might occur under this plan:

Case 1 (Survival Benefit): Mr Bose was quite regular when it came to paying all the Premiums of the Policy, and the best part is that he survived until the end of the Policy Term. So, in this scenario, he will get to receive the survival benefits.

Case 2 (Death Benefit): Another case is that Mr Bose passes away after paying Premiums for two times. In this scenario, his wife who happens to be his nominee will have the option to choose between two Death Benefit options offered by this policy. These options are as followed:

Option 1 – The first option for the nominee is that they get to choose Lump-sum Death Benefit. This option allows her to get a payment of Rs. 12,75,000/- which will be a one-time payment ( 12.75 times of one Yearly Premium).

Option 2 - Another option is that Mrs Gupta can opt for Income Death Benefit option. In this the monthly income computed as the Yearly Premium (165%/12) which can be paid for ten years.

Commutation Option

The policyholder can exercise the commutation option whenever he feels like during the Survival Benefit payout or the nominated person can do so when the Insured passes away so as to get the lump sum of the present value of the additional Survival and Death Benefit.

The Policy gets terminated after receiving the Commuted Value. You can derive the Commuted Value at a discounted rate of 5.7% every year that starts from the date of receiving the commutation request.  However, this discount rate is subjected to change depending on the approval of IRDA that changes returns in the investment. Annualised Premium does not include Rider Premium, extra Premium, and Service Tax or numerous other taxes, cesses or levies, present out there.

Death Benefit will be higher of:

 a) 10 times the Annualised Premium;

b) 105% of Total Premiums Paid;

 c) Guaranteed Maturity Sum Assured (GMSA)

d) Guaranteed Death Sum Assured (GDSA)

Point to be Noted: If the Life Insured passes away during the period of Payout, the nominee has the option to receive the Commuted Value or can go for Income Benefit and even for one – time Terminal Benefit for the same.

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