Max Life Forever Young Pension Plan

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How Does Plan Work

Mr. Sharma is a 40 year old employee with an MNC and wants to retire at the age of 60. As his employer does not provide for any fixed pension he wants to buy a pension solution which will secure his retirement needs as well as his wife’s even in case of his death. He chooses to invest Rs. 10,000 monthly for a period of 20 years to get regular income after his retirement. Fund Option chosen is Max Life Pension Preserver Fund. Let’s see how Max Life Forever Young Pension Plan works for him:

Scenario 1: Maturity Benefit - Individual chooses to invest in Max Life Forever Young Pension Plan and after 20 years chooses to invest entire corpus in Max Life Guaranteed Lifetime Income Plan with Joint Life with Return of Purchase Price option.Total amount invested in Max Life Forever Young Pension Plan - Rs. 10,000 x 12 x 20 = Rs. 24,00,000
Guaranteed Retirement Corpus from Max Life Forever Young Pension Plan - Rs. 26,40,000




Scenario 2: Death Benefit - Individual chooses to invest in Max Life Forever Young Pension Plan with Max Life Partner Care Rider and after 10 years his wife aged 50 chooses to invest the entire corpus in Max Life Guaranteed Lifetime Income Plan with Single Life with Return of Purchase Price optionConsidering that Mr. Sharma passes away at age 50, after paying premium for 10 years.An amount equal to sum of future premiums payable till age 60 will be paid by the Company upfront to the nominee ( Rs. 12 Lacs)Additionally the nominee will also receive an amount equal to higher of the Fund Value or 105% of cumulative premiums paidTotal amount invested in Max Life Forever Young Pension Plan - Rs. 10,000 x 12 x 10 = Rs. 12,00,000




Please note that above is only an example and does not create any rights and/or obligations. The assumed and non-guaranteed rates of return of 4% and 8% mentioned above relate to assumed investment returns at different rates and may vary depending upon the market conditions. The Fund Option assumed to be chosen in the above scenarios is Max Life Pension Preserver Fund (SFIN - ULIF01815/02/13PENSPRESER104). These are not guaranteed and they are not the upper or lower limits of what your policy might earn as the value of your policy is dependent on number of factors including the future investment performance. For more information, please request for your policy specific benefit illustration.


Key Features

  • Option to choose the vesting age as per your requirement
  • Guaranteed Loyalty Additions added to the fund, starting 11th year
  • Option to guarantee the retirement benefit for your spouse in the unfortunate event of your death, if you have opted for Max Life Partner Care Rider.

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Key Benefits

  • Maturity Benefit:Higher of the Fund Value or Guaranteed Maturity Benefit, where the Guaranteed Maturity Benefit is defined as follows:
    • In case you opt for the Pension Maximiser Option – 101% of total premiums paid (including Top-Up premium, if any), exclusive of rider charge, if any
    • In case you opt for the Pension Preserver Option – 110% of total premiums paid (including Top-Up premium, if any), exclusive of rider charge, if any
  • Death Benefit: Death during premium payment phase
    • Higher of 105% of all premiums paid or Fund Value
    • On choosing Max Life Partner Care Rider – All future premiums till the entire Policy Term subject to a maximum age of 60 years along with an amount equal to higher of 105% of all premiums paid or Fund Value will be paid by the Company to the nominee
  • Loyalty Benefit
    • Guaranteed Loyalty Additions at 0.50% of Fund Value added to the fund, from the end of 10th policy year
    • These additions increase by 0.02% (absolute) every year, from the end of 11th policy year
      Options Available on Death of Policyholder: The nominee shall have the option to utilize the Death Benefit in one or more of the following ways: 
      • Utilize the entire proceeds of the policy or part thereof for purchasing an Immediate Annuity at the then prevailing rate of the Company or
      • Withdraw the entire proceeds of the policy; or
      • Utilize the entire proceeds of the policy or part thereof for purchasing a Single Premium Pension Plan, which will enable the nominee to purchase an Immediate Annuity at a chosen date in the future
      Options Available on Vesting
      • Immediate annuity for the full amount
      • Withdraw (Commute) up to 1/3rd of the Fund Value and use the remaining amount to purchase an Immediate Annuity from Max Life Insurance
      • Extend the accumulation period for the same policy, provided you are less than 55 years of age, to potentially grow your corpus
      • Utilize the entire proceeds to purchase a Single Premium Pension Plan from Max Life Insurance
  • Tax Benefits- You may be entitled to certain tax benefits on your premiums and Policy benefits. Please note that all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. It is advisable to seek an independent tax consultation.


Eligibility conditions and other restrictions

Entry ages
(Age as on Last Birthday)
 
Minimum and Maximum Entry Age - 30-65 Years
Minimum and Maximum Vesting Age -50-75 Years
Premium Payment Modes Regular Pay : Annual, Semi-Annual, Quarterly, Monthly ; Single Pay
Minimum Premium Regular Pay : Rs. 25,000 p.a ; Single Pay : Rs. 1,00,000
Maximum Premium No limit, subject to underwriting
 


Investment Options Available

You have the option to choose from any one of the below mentioned investment options:
  • Pension Maximiser Option – In case you opt for the Pension Maximiser Option, 100% of your premiums (including Top-Up premiums, if any) shall be Invested in the Pension Maximiser Fund (SFIN: ULIF01715/02/13PENSMAXIMI104). The risk profile of the investment option is medium
  • Pension Preserver Option – In case you opt for the Pension Preserver Option, 100% of your premiums (including Top-Up premiums, if any) shall be invested in the Pension Preserver Fund (SFIN: ULIF01815/02/13PENSPRESER104). The risk profile of the investment option is low. Please note that you can choose the option only at inception and no change in the option is allowed during the Policy Term One time option given to customer (to be chosen at inception)


Rider

Max Life Partner Care Rider: (UIN: 104A023V01): The rider provides an additional benefit in the unfortunate event of death. The rider can be opted between age 21 and 55 years and expires once the Life Insured attains the age of 60 years. The rider can only be opted for with the regular pay variant of the planFor further details please refer to the Max Life Partner Care Rider brochure, Rider Contract


What happens if

SURRENDER

You may at any time Surrender this Policy by giving Us a written request. On receipt of such request, this Policy shall terminate. 

If the Surrender is effected within the Lock in Period
  • If this Policy is surrendered during the Lock in Period, then, upon Surrender of this Policy, We will credit the Fund Value to the Pension Discontinuance Policy Fund after deducting the applicable Surrender Charges.
  • On completion of the Lock in Period, the Surrender Value can, to be utilized by You by exercising one of the following options:
    • commute a lump sum amount, to the extent allowed under the prevailing laws, including the Income Tax Act and utilize the balance proceeds of the Surrender Value to purchase an immediate annuity plan from Us at Our prevailing annuity rates at that time; or
    • utilize the entire proceeds to purchase a single premium deferred pension accumulation plan from Us.
In case the Surrender is effected after the Lock in Period
  • If this Policy is surrendered after the completion of the Lock in Period, We will close the Unit Account and the Surrender Value can, to be utilized by You by exercising one of the following options:
    • commute a lump sum amount, to the extent allowed under the prevailing laws, including the Income Tax Act and utilize the balance proceeds of the Surrender Value to purchase an immediate annuity plan from Us, at Our prevailing annuity rates at that time; or
    • utilize the entire proceeds to purchase a single premium deferred pension accumulation plan from Us

LOANS

You are not entitled to any loan under this Policy

Discontinuane of Premium Payment:

Discontinuance of Premiums within the Lock in Period
  • During the Lock in Period, if We do not receive the due Regular Premium within the grace period from You, then, within 15 (Fifteen) days from the date of expiry of the grace period, We will serve You a written notice to exercise one of the below mentioned options within 30 (Thirty) days (“Notice Period”) from the date of receipt of such notice. During the Notice Period, You have an option to exercise either of the following:
    • revive this Policy within the Revival Period; or
    • completely withdraw from this Policy without any risk cover i.e. Surrender of this Policy.

Discontinuance of Premium After the Lock in Period
  • If We do not receive the due Regular Premium within the grace period from You, then, within 15 (Fifteen) days from the date of expiry of the grace period, We will serve You a written notice to exercise one of the below mentioned options and intimate Us in writing within 30 (Thirty) days from the date of receipt of such notice:
    • to revive this Policy before the expiry of the Revival Period as per Sections 14.1.6 and 14.1.7;
    • to completely withdraw from this Policy. If You choose this option, this Policy will be deemed to have been surrendered and the provisions of Section 13.2 shall apply.
    • to request for converting this Policy into a paid up policy. If you choose the paid up policy option, then, this Policy will continue without any further payment of Premiums till the end of the Policy Term and all applicable charges will continue to be levied by Us. A policy once converted to a paid up policy cannot subsequently be revived by You during the Policy Term .

REVIVAL OF POLICY

We will revive this Policy within the Revival Period only if You satisfy all the following conditions:
  • You give Us a written request to revive this Policy;
  • You produce the evidence of insurability at Your own cost which is acceptable to Us, which is in accordance with Our board approved underwriting policy; and
  • You pay Us all the overdue Regular Premiums.



 
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