Max Life Guaranteed Income Plan

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How Does Plan Work

Mr. Gupta is a 45 year old private sector employee. He wants a guaranteed stream of income of Rs. 50,000 (approx) annually immediately after he stops paying Premiums and would want to further increase the income by another Rs. 50,000 (approx). Mr. Gupta decides to buy Max Life Guaranteed Income Plan with a Policy Term of 6 years and Annualised Premium of Rs. 1,00,000. He also decides to make Mrs. Gupta his nominee under the plan.Following are the two illustrative scenarios under the plan:
  • Scenario 1 (Survival Benefit): Mr. Gupta pays all the due Policy Premiums and survives till end of the Policy Term. In this case, he will receive the following benefits:

 
  • Scenario 2 (Death Benefit): Mr. Gupta dies after paying 2 Premiums. In this case his nominee (Mrs. Gupta) will have option to choose between two Death Benefit options available
    • Option 1 - Lump sum Death Benefit: In case Mrs. Gupta chooses lump sum Death Benefit, she will get a one time payment of Rs. 12,75,000/- (calculated as 12.75 times of one Annualised Premium)
    • Option 2 - Income Benefit: In case Mrs. Gupta chooses Income Death Benefit option, she will get the monthly income calculated as (165%/12) of one Annualised Premium payable for 10 years, as shown below:


Standard Male Life, Premium Payment Mode: Annual, Fund Chosen: Balanced Fund

Please note that the above assumed rates of return, 4% and 8% are only scenarios atthese rates after recovering all applicable charges. These are not guaranteed and they are not the upper or lower limits of returns of the Fund Optionselected in your policy, as the performance of the Funds is dependent on anumber of factors including future investment performance. Applicable ServiceTax, Cess, and any other taxes as imposed by the government from time to time will be deducted from the premium received


Key Features

  • Guaranteed Tax Free* Monthly Income - Get guaranteed tax free* monthly income for 10 years (Payout Period) along with one - time guaranteed tax free* Terminal Benefit at the end of the Payout Period
  • Guaranteed Income That Doubles After 5 Years - Guaranteed tax free* monthly income offered in first five years of the Payout Period is doubled in the remaining five years
  • Immediate Payout After Policy Term - Start enjoying monthly Income Benefit immediately after the Policy Term (starting next year after all Premiums have been paid)
  • Guaranteed Protection With Choice Of Payout Options On Death - The plan offers you life cover for the entire Policy Term by providing guaranteed Death Benefit. On death during the Policy Term, the nominee will have an option to select either a) Lump sum Death Benefit or b) Income for 10 years post death
  • Flexibility To Get Monthly Income As Lump Sum - The Plan offers you the Commutation Option wherein you can receive the present value of the Survival and Death Benefit respectively instead of the monthly payouts. This option can be availed anytime once the monthly incomes have been started
  • 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. The Income Benefit & Terminal Benefit might not be tax free in case Premiums are loaded (extra Premium) at underwriting stage.

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Key Benefits

Survival Benefit

Survival Benefit: Income Benefit + Terminal Benefit
Income Benefit: Monthly income payable during the 10 - year Payout Period post completion of the Policy Term (please refer to Income Benefit applicable for your age on page 5)
Terminal Benefit: One time lump sum payout payable at the end of Payout Period
For 6 years Policy Term - 125% of one Annualised Premium
For 12 years Policy Term - 200% of one Annualised Premium
The Policyholder also has the option to avail the Survival Benefit in lump sum at the end of the Policy Term, before the commencement of the Payout Period. On exercising this option, the GMSA is paid to the Policyholder. The Policy shall terminate on the payment of the GMSA

Death Benefit

On Death of the Life Insured during the Policy Term, lump sum Death Benefit equal to Guaranteed Death Sum Assured (GDSA) will be payable to nominee. GDSA is:
For 6 years Policy Term: 12.75 times of one Annualised Premium 
For 12 years Policy Term: 18.50 times of one Annualised Premium
While the Death Benefit is payable as a lump sum benefit to the nominee, the nominee also has the option to avail the Death Benefit in monthly installments for a period of 10 years post the Date of Death. On exercising the option, the Death Benefit paid as monthly income is as follows:
For 6 years Policy Term: (165%/ 12) times one Annualised Premium
For 12 years Policy Term: (240%/ 12) times one Annualised Premium
for a period of 10 years post death

Commutation Option

The Commutation Option can be exercised by the Policyholder anytime during the Survival Benefit payout OR by the nominee on Death of the Life Insured to receive the present value of the outstanding Survival and Death Benefit respectively, as lump sum. The Policy shall terminate on payment of Commuted Value. The Commuted Value is derived by using a discount rate of 5.7% per annum from the date of receipt of request of commutation and is paid out as a lump sum amount to Policyholder or nominee on exercising this option. The discount rate can be changed by the Company subject to IRDAI’s approval basis changing investment returns

Annualised Premium excludes extra Premium, Rider Premium and Service Tax or any other taxes, cesses or levies, if any.**Death Benefit will be higher of a) 10 times the Annualised Premium; b) 105% of Total Premiums Paid; c) Guaranteed Maturity Sum Assured (GMSA) or d) Guaranteed Death Sum Assured (GDSA).
Note: In case of Death of the Life Insured during the Payout period, the nominee will have the option to either continue receiving the Income Benefit and one – time Terminal Benefit or opt for the Commuted Value of the same.
 

Eligibility conditions and other restrictions

Entry ages For 6 years Policy Term – 25 years to 60 years
For 12 years Policy Term – 25 years to 55 years
Maximum maturity Age For 6 year Policy Term – 66 years 
For 12 year Policy Term – 67 years
Policy Term This product has two Policy Term options – 6 years & 12 years
Premium Payment Modes Annual
Guaranteed Maturity Sum Assured (GMSA) Guaranteed Maturity Sum Assured (GMSA) is defined as the present value of Survival Benefits calculated at a discount rate of 5.7% p.a. The GMSA is always higher than the sum of the total Annualised Premiums payable over the Policy Term for all entry ages and is guaranteed
Minimum / Maximum Annualised*** Premium Minimum Annualised*** Premium –6 year Policy Term – Rs. 75,000 per annum 12 year Policy Term – Rs. 20,000 per Anum
Maximum Annualised*** Premium - No limit, subject to underwriting
 

Additional Features and Benefits


Riders Available

Max Life Partner Care rider (UIN:104A023V01)Max Life Partner Care rider (UIN:104A023V01)
is available with this plan. Sum of all future premiums payable under the base policy or till Life Insured attains an age of 60 years (whichever is earlier), will be paid immediately on Life Insured’s death and the rider will terminate.
Please Note – The Rider is available for Limited Pay & Regular Pay variants and has to be attached at Policy inception only. Please refer the Rider Brochure for more details on the RiderFor further details please refer to the Max Life Partner Care Rider brochure, Rider Contract
 

What happens if


SURRENDER
  • This Policy shall acquire a Surrender Value provided all the due Premiums for the first 2 (Two) Policy Years (if the Policy Term under this Policy is 6 (Six) years) or for the first 3 (Three) Policy Years (if the Policy Term under this Policy is 12 (Twelve) years) have been received and accounted by Us.
  • You may request in writing to surrender this Policy only if this Policy has acquired the Surrender Value. On receipt of such request, We will terminate this Policy and the Surrender Value prevailing on the date of request for surrender of this Policy, shall become payable by Us to You.
  • Notwithstanding anything stated in this Policy, if all due Premiums for the first 3 (Three) Policy Years or for the first 2 (Two) Policy Years from the Date of Commencement, as mentioned in Section 1.1 of Part D, have not been received and accounted by Us, then, no Surrender Value shall accrue and hence no Surrender Value shall become payable to You by Us.
  • The Surrender Value payable will be subject to the condition that there are no statutory or other restrictions to the contrary. Upon surrender of this Policy, no further benefits under this Policy shall become payable and this Policy will terminate.
  • The Guaranteed Surrender Value will be determined in the Policy Year in which the surrender is effected, as a percentage of the total Annualised Premiums received by Us

LOANS
You are not entitled to any loan under this Policy

REVIVAL OF POLICY

A lapsed Policy can be revived at Our discretion, within the Revival Period:
  • on receipt of Your written request to revive this Policy by Us;
  • if Life Insured produces an evidence of insurability at Your own cost which is acceptable to Us; and
  • on payment of all overdue Premiums (along with the service tax or any other taxes, cesses or levies, if any) to Us with late fee and/ or interest at such a rate as may be determined by Us from time to time.
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