Axis Max Life Annuity Plan

What is an Axis Max Life Annuity Plan?

An Axis Max Life Annuity Plan is a retirement plan that turns your one-time investment into a steady income for life. Offered by Axis Bank and Max Life Insurance, it gives you fixed monthly or yearly payouts after retirement, helping you manage expenses and stay financially secure. These plans come with a 30-day Free Look Period, allowing you to review the terms and conditions and cancel the policy if unsatisfied.

Also, you get the option to choose how the income is paid: just to you (Single Life), to both you as well as your spouse (Joint Life), or with a money-back option (Return of Purchase Price). Payouts can be monthly, quarterly, half-yearly, or annually as preferred. 

In the annuity plans, some variants accept the National Pension System (NPS) proceeds and offer NPS-compatible payout options (e.g., "family income option"). This makes them a reliable option for retired individuals and working professionals searching for a stable income after retirement.

Types of Axis Max Life Annuity Plans

In collaboration with Max Life Insurance, Axis Bank offers annuity solutions leading to financial stability during retirement. Each Axis Max Life annuity plan is meticulously designed to suit deferred and immediate income needs. This implies that flexibility is conveyed regarding annuity options and payout modes. Let's get brief overviews of diverse types of annuities available currently through Axis Max Life Insurance:

• Axis Max Life Guaranteed Lifetime Income Plan: This non-participating, non-linked annuity plan provides immediate returns with a single premium. It is suitable for NPS subscribers or retirees and offers flexible payout options (monthly, quarterly, half-yearly, or yearly). The entry age is 40 to 80 years, with a minimum annuity of ₹1,000 per month. 
• Axis Max Life Smart Wealth Annuity Guaranteed Pension Plan (Swag Pension Plan): A non-linked, non-participating plan offering lifelong income with immediate and deferred annuity options. The entry age is 25 to 85 years, with a minimum premium of ₹1,000 per month. It includes joint-life coverage, return of premium options (25%, 50%, 100%), and flexible payout modes. 
• Axis Max Life Saral Pension Plan: This simple, non-participating, non-linked plan offers guaranteed income post-retirement through a single premium. The entry age is 40 to 80 years, with a minimum annuity of ₹1,000 per month. Payout options include monthly, quarterly, half-yearly, or yearly. Tax benefits are available under Section 80CCC of the Income Tax Act, and premiums paid may qualify for deductions as per prevailing tax laws. 

Axis Max Life Guaranteed Lifetime Income Plan

Axis Max Life Guaranteed Lifetime Income Plan is a non-participating, non-linked plan that involves a single premium and provides immediate annuity to the annuitants. Investors looking to have an assured lifelong income can opt for this plan. The surviving spouse can take a lump sum equivalent to the next 5 years of annuity payments. This option is available only under the Joint Life Immediate Annuity with Death Benefit variant. 

Note that the annuitants of NPS can opt for a default family income option, according to the Pension Fund Regulatory & Development Authority (PFRDA) guidelines. Let's go through the salient features of this guaranteed return insurance plan.

Key Features of Axis Max Life Guaranteed Lifetime Income Plan

Sample Illustration - Axis Max Life Guaranteed Lifetime Income Plan (Monthly Payout)

Based on the chosen annuity option and the purchase price, a 60-year-old annuitant can get the monthly payout outlined in the table below:

*Key Notes: Monthly payout starts one month post the issuance of the policy. The amount of annuity is fixed and is guaranteed for life. Upon the death of the annuitant, the return of the purchase price is paid. 

Axis Max Life Smart Wealth Annuity Guaranteed Pension Plan (Swag Pension Plan)

Axis Max Life Smart Wealth Annuity Guaranteed Pension Plan, also known as the Swag Pension Plan, offers a broad range of immediate and deferred annuity variants. Policyholders can personalise their retirement income according to their family needs and personal preferences. Based on the variant chosen, the eligibility involves an age range of 25 to 85. The plan complies with the Insurance Regulatory and Development Authority of India (IRDAI) and National Pension System (NPS) norms and supports a free-look period for policy review.

Key Features of Axis Max Life Smart Wealth Annuity Guaranteed Pension Plan (Swag Pension Plan)

Sample Illustration -Axis Max Life Smart Wealth Annuity Guaranteed Pension Plan (Swag Pension Plan)

Below is a sample illustration of the Axis Max Life Smart Wealth Annuity Guaranteed Pension Plan (Swag Pension Plan), showing key parameters based on a ₹1 crore single premium payment:

*Note: This is a sample scenario for illustration only. Actual annuity and benefits may vary based on age, option chosen, and prevailing rates.

Axis Max Life Saral Pension Plan

Axis Max Life Saral Pension Plan is an IRDAI-standardised immediate annuity plan that delivers a fixed income throughout life. With a single premium, regular payouts are provided (as per your opted payout frequency). Annuity payments are made at the end of each chosen payout period (monthly, quarterly, half-yearly, or yearly).

The plan offers two options: one provides lifelong income with no payout after death, while the other returns the purchase price to the nominee. When it comes to securing post-retirement income, this plan is a decent choice.

Key Features of Axis Max Life Saral Pension Plan

Sample Illustration - Axis Max Life Saral Pension Plan

Suppose an annuitant's age is 60 years and the purchase price of the plan is ₹10,00,000. Let's assume he chose the “Life Annuity with Return of Purchase Price” option supporting monthly payouts. In this case, he may get approximately. ₹4,400–₹4,500 per month (₹52,910 yearly) for ₹10 lakh single-life ROP option.

Note: The annuity amount is based on the annuity rate at the time of policy purchase. These rates are guaranteed for life and will not change.

Key Takeaways

The Axis Max Life annuity plan is a decent choice for retirement planning. Anyone close to their retirement phase who expects a fixed monthly income can opt for the Axis Max Life Guaranteed Lifetime Income Plan, which offers enhanced security through the return of purchase price option. If you want a government-approved pension solution, use the Saral Pension Plan. All these pension plans involve flexible payout modes, tax benefits under Sections 80CCC and 10(10A) and joint life options. The choice relies on your retirement goals, age, and income needs.