Max Life Saral Pension Plan

Max Life Saral Pension Plan is a non-participating, non-linked, single premium payment, individual immediate annuity plan that provides a guaranteed regular income as an annuity to the individual after retirement. The plan is specifically introduced to ensure financial security and independence to the individual after retirement.  In this plan, a specific amount as an annuity is paid to the annuitant at regular intervals. Let’s read further to know in detail about Max Life Saral Pension Plan.

Key Reasons Why You Should Buy Max Life Saral Pension Plan

Here are some of the key reasons why you should consider buying a Max Life Saral Pension plan.

  • To cater to the retirement needs of the individuals, the plan offers guaranteed income.
  • The plan offers the option to receive life-long income along with the choice of joint-life annuity or single life annuity.
  • The plan offers a return of premium as a death benefit to the nominee in case of demise of the annuitant in single life option and the lats survivor in joint-life option.
  • The life assured can choose from different annuity payment modes i.e. yearly, half-yearly, quarterly and monthly.
  • In case of diagnosis of critical illness, the plan offers the option to withdraw 95% of the purchase price (single Premium) as surrender benefits.

What is Max Life Saral Pension plan?

Max Life Saral Pension plan is a standard immediate annuity product, that ensures the financial security of the individual after retirement in form of guaranteed regular income. It is a non-participating, non-linked single premium payment policy that provides an immediate annuity to the individual after the lump-sum payment as a single premium. The Saral Pension Plan has been introduced by the Insurance Regulatory and Development Authority of India (IRDAI)  as a standard immediate annuity product, to make it easier for customers to make an informed choice. Moreover, as a standard product, the Max Life Saral Pension plan will strengthen the trust between the insurer and insured.

Eligibility Criteria of Max Life Saral Pension Plan

Let’s take a look at the eligibility criteria of the policy.

Eligibility Criteria

Minimum

Maximum

Entry Age

40 years

80 years

Annuity Amount

12,000 per annum

6,000 per half-yearly

3,000 per quarter

1,000 per month

 

No limit

Premium Amount

It is subject to a minimum annuity payout.

No maximum limit

Annuity Modes

Yearly, Half-yearly, Quarterly, Monthly

Annuity Options  

Single Life Immediate Annuity

Joint Life Immediate Annuity

Benefits of Max Life Saral Pension Plan

Let’s take a look at the benefits offered by Max Life Saral Pension Plan.

Death Benefit

A death benefit is payable to the beneficiary of the policy in case of demise of the life assured.

For Single Life Immediate Annuity Plan- In case of demise of the primary annuitant, 100% purchase price will be returned to the beneficiary of the policy.

For Joint Life Immediate Annuity Plan- In the joint-life option, in case of demise of the primary annuitant the secondary annuitant receives the same amount of annuity for life till his/her death. Subsequently, on the demise of the spouse, 100% of the purchase price is payable to the beneficiary of the policy or legal heir.

However, in case of the demise of the spouse before the primary annuitant then on the death of the primary annuitant, 100% of the purchase price will be payable to the beneficiary or legal heir of the policy.

The entire death benefit is paid to the nominee in lump-sum and once the benefit is paid the policy is terminated.

The ‘purchase price’ or ‘single premium’ is defined as the lump-sum premium amount paid by the policyholder at the policy inception, excluding the taxes, if any.

Survival Benefit

Max Life Sraal Pension plan offers survival benefit as annuity amount that is payable at the end of the modal period as chosen by the policyholder.

For Single Life Immediate Annuity Plan- A fixed amount is payable as an annuity for the lifetime, which is decided at the inception of the policy.

For Joint Life Immediate Annuity Plan- A fixed amount is payable as an annuity for both the annuitant for a lifetime. In this option, the last survivor continues to receive the same annuity amount till he/she survives.

Tax Benefit

The premium paid towards the policy is eligible for tax exemption as per the applicable tax law.

*“Tax benefit is subject to changes in tax laws

Features of Max Lifie Saral Pension plan

The following are some of the salient features of the Max Life Saral Pension Plan.

Annuity Options

As mentioned above there are two different annuity options offered by Max Life Saral Pension Plan.

Single Life Immediate Annuity Option- Under this option a guaranteed regular income is paid to the annuitant after retirement as per the chosen mode of payout. On the demise of the annuitant, the annuity discontinues and 100% of the purchase price is paid to the beneficiary of the policy.

Joint Life Immediate Annuity Option- Under this option a guaranteed fixed income is paid to either of the annuitant in regular intervals as long as atleast one of the annuitant is alive. On the demise of the last survivor, the annuity discontinues and 100% of the purchase price is paid to the beneficiary of the policy.

Surrender Value

An individual can surrender Max Life Saral Pension plan anytime after completion of 6 months from the date of commencement in case the annuitant, spouse or children is diagnosed with any critical illnesses as mentioned in the policy documents. On surrendering the policy, the policyholder will receive 95% of the purchase price as a lump-sum amount and the policy will be terminated.

Loan facility

After completion of the 6 months of the policy, the policyholder can avail of the loan facility offered by Max Life Saral Pension Plan. In the case of joint life immediate annuity option, the life assured can avail the loan and in case of demise of the life assured during the policy tenure, the spouse avail loan from the policy. The interest applicable to the loan amount is deducted from the payable annuity under the policy.

Payout Methods

Max Life Saral Pension plan offers different payout options to avail the annuity. The annuitant can choose to avail of annuity in monthly, quarterly, half-yearly and yearly mode.

How Does Max Life Saral Pension Works?

Let’s take an example to understand how does Max Life Saral Pension plan Works.

Case 1- 

If Mr Kuma a 40 years old purchase a Max Life Saral Pension Single Life Immediate Annuity Plan and pays a single premium of Rs 10 lakh, then after retirement he will receive an annual income of Rs 55,100. In case of his demise at the age of 85, 100% of the purchase price i.e. Rs 10 lakh will be paid to the nominee of the policy.

Case 2-

If Mr Kapoor and Mrs Kapoor buys Max Life Saral Pension Joint Life Immediate Annuity plan at the age of 40 years and pays a single premium of Rs 10 lakh, Mr & Mrs Kapoor will receive an annual income of Rs 54,880 after their retirement.

In case of the demise of Mr Kapoor at the age of 82, Mrs Kappor will continue to receive an annual income of Rs 54,880.  In case of the demise of  Mrs Kappor at the age of 85, the nominee will receive the death benefit of Rs 10 lakh as the return of premium.

FAQs

  • Q1. What is the eligibility criteria of the policy?

    Ans- Any individual abive the age of 40 years and under the age of 80 years can purchase the policy.

  • Q2. What is the free-look period?

    Ans- In case the policyholder is dissatisfied with the benefits of the policy then he/she can cancel the policy within 15 days from the date of policy initiation.

  • Q3. Can the second annuitant avail loan under the policy?

    Ans- Yes, under the joint-life immediate annuity option, the second annuitant can avail loan in case of demise of the primary annuitant.

  • Q4. What is theh annuity rates for Max Life Saral Pension Plan?

    Ans- these are the annuity rates of the policy for a single premium of Rs. 10 lakh for male buyers.

    Annuitant Age

    Single Life Annuity (per annum)

    Joint Life Annuity (per annum)

    45

    Rs. 55,220

    Rs.54,880

    50

    Rs.55,220

    Rs.54,960

    55

    Rs.55,350

    Rs.55,090

    60

    Rs.55, 490

    Rs. 55240

    65

    Rs.55, 630

    Rs.55, 410

    *Please note that in joint life annuity, the annuity payouts are made on assumption that the age of the secondary annuitant (female) is 5 years less than the age of the primary annuitant.

Written By: PolicyBazaar - Updated: 25 May 2021
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