Axis Max Life Smart Term with Additional Returns ULIP

What is Axis Max Life Smart Term with Additional Returns ULIP?

Axis Max Life Smart Term with Additional Returns ULIP (STAR ULIP) is a non-participating, Unit Linked Insurance Plan. The plan gives life cover for your family. It invests your premiums in funds that follow market trends. You bear the investment risk. There are two options-

• Life Secure: Pays a lump sum on death plus fund value.
• 3D Life Secure: Adds monthly income and covers future premiums.

Features of Axis Max Life STAR ULIP Plan

The key features offered by the Axis Max Life STAR plan are as follows: 

• Protection: The plan offers a lot of life insurance, and you may select between Life Secure and 3D Life Secure.
• Investments: You can choose from twenty-two funds based on how much risk you're willing to take and five different ways to invest.
• Flexibility: You can choose the policy term, premium payment term, and payment method, and you can swap funds as many times as you like for free.
• Withdrawals: After five years of having the policy, you can make partial withdrawals of at least ₹5,000.
• Boosters: The idea gives long-term investors a chance to get their money back, add to their loyalty, and grow their wealth.
• Riders: Adding critical illness and smart protect riders can make your coverage even better.

Eligibility Criteria for Axis Max Life STAR ULIP Plan

Benefits of Axis Max Life Smart Term with Additional Returns ULIP

This investment plan offers you the following benefits: 

• Death Benefit -
  • Life Secure Option: Under the Life Secure option, your family receives the highest value among the sum assured, the fund value, or 105% of the total premiums paid.
  • 3D Life Secure: The 3D Life Secure option gives your family more organized help. It pays a lump sum right away, gives you a fixed monthly income for 10 years, and pays the premiums for the investment to keep going.
• Maturity Benefit: At the end of the policy term, the plan pays the full fund value, calculated as the number of units multiplied by the prevailing NAV, along with applicable boosters.
• Return of Charges (RoC): The plan brings back allocation charges from policy years 10 to 13, restores administrative charges when the policy ends, and refunds mortality charges starting in year 16.
• Loyalty Additions: Loyalty additions are credited during the last five policy years and range from 1.5% to 11.3% of the sum assured, depending on policy duration.
• Wealth Booster: A wealth booster equal to 3% of the fund value is added every five years starting from policy year 20 under the Wealth strategy.
• Cover Continuance: If the value of the fund drops because of changes in the market, more units are added to make sure that life cover stays in place.
• Wealth Creation: Your money is put into market-linked funds, which can help you develop wealth over time.

Rider Benefits of Axis Max Life STAR ULIP Plan

To enhance protection, the following optional riders can be added at an extra cost:

• Critical Illness and Disability Secure Rider: If you are diagnosed with a specific critical illness or become totally and permanently disabled, this rider pays a lump payment. Under the 3D option, it also starts premium funding.
• Smart Ultra Protect Rider: This rider comes with options including terminal illness benefit, accidental death cover, accidental disability cover, and premium waiver under the payor benefit.

Portfolio Management Strategies

Axis Max Life With STAR ULIP, you may fully control your investments by choosing from 22 high-quality funds or 5 smart automatic methods.-

• Self-Managed Portfolio Plan: You are your own fund manager in this strategy. You can pick any combination of the 21 funds that are accessible and swap between them whenever you want, based on what the market is doing. It works well for people who keep a close eye on the markets.
• The Systematic Transfer Plan (STP): With the STP, you can safely invest a large sum of money. Your money first goes into a low-risk debt fund, and then every month or quarter it is moved to equities funds. This strategy works well because of rupee cost averaging.
• Life-Cycle Based Portfolio: This method for your portfolio automatically changes how much money you have in different funds dependent on your age. It keeps a high equity ratio for growth when you're young. It slowly changes to debt for preservation as you get closer to retirement.
• Trigger-Based Portfolio: This method uses triggers for profit and loss that have already been set. The system automatically shifts funds when you reach your limits, which helps you avoid making judgments based on how you feel.
• The Dynamic Fund Allocation (DFA) Strategy: Changes how much debt and equity you have based on the market's value (Nifty PE ratio). When markets are inexpensive, equity goes up. When they are overvalued, equity goes down.

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Policy Information for Axis Max Life Smart Term with Extra Returns ULIP Plan

• Top-ups: You can't pay more than your planned payments. This keeps the strategy basic and makes sure that development is predictable using things like Return of Charges.
• Loans: You can't take out policy loans. You can't borrow against the value of your fund or forfeit it. You can only get your money back by making partial withdrawals after five years or full surrenders after the lock-in period.
• Free Look Period: You have time to read the policy and cancel if you don't like it. For purchases made in person, it is 15 days from when you get it. For sales made over the phone or online, it lasts for 30 days.
• Grace Period: The policy stays in effect even if a premium is missed. Payments made every month get an extra 15 days. Payments made every year, every six months, or every three months get an extra 30 days.
• Rules for Surrender:
  • Years 1–5 (Lock-in): The value of the fund goes to a Discontinued Policy Fund, where it earns at least 4% interest. Payout doesn't happen until year 5.
  • After Year 5, you will get the higher of the guaranteed surrender value or the exceptional surrender value right away. This is the value of the investment minus any surrender charges and TDS that apply. After year 5, there are no discontinuation fees. The policy ends completely.
• Revival Option: Policies that have lapsed can be brought back to life within five years of the initial unpaid premium date. Revival brings back the old terms, with boosters added in a fair way. This keeps your investment on pace while giving you both security and flexibility.

How Does the Axis Max STAR ULIP Plan Work?

This is how the ULIP Plan works:

• Choose Your Plan: Choose the kind of policy (Life Secure or 3D Life Secure), the length of the policy, the amount of the premium, and the investment strategy or fund mix.
• Pay Premiums: Your premiums are collected, costs are taken out, and the rest is utilized to acquire units in the funds you choose.
• Funds Grow: Your assets grow every day based on how the market does. Returns depend on how well the fund does.
• Switch and Boosters: You can change funds at any moment without paying a fee. Boosters like Return of Charges and Loyalty Additions increase the value of your fund over time.
• Payouts for Benefits: Your nominee gets the death benefit when you die. When the fund matures, you get the full value.

Axis Max Life STAR Plan's Suicide Exclusion Criteria

If someone dies by suicide within 12 months of the policy start date or the most recent revival date, the nominee only gets the fund value. In these circumstances, no sum assured or further benefits are due. After 12 months, the policy pays out the full death benefit according to the plan chosen.