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Max Life Immediate Annuity Plan
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This plan has been withdrawn by the insurance company and is no longer available for sale.
Max Life Immediate Annuity Plan
Max Life Immediate Annuity Plan is an Annuity Plan where the money needs to be paid in a lump sum and the annuity starts immediately. It is a Traditional Plan without Bonus facility.
What is Immediate Annuity – An Annuity is a product which provides regular payments and can be used as a Retirement Strategy. The person who purchases the annuity is called the annuitant.
In this plan, you need to pay a lump sum amount of money at the beginning of the plan called Purchase Price so that you receive annual payments in the form of Annuity for the rest of your life. Thus, in this plan, you would start to receive the payment immediately without having to wait. You can choose to receive the payments even after your death, for as long as your spouse is alive. The rate at which you would receive the Annuity depends on the type of the Annuity chosen.
Hence this plan is a good choice if you have not planned your retirement before but would like to avail pension now by paying a lump sum amount for lifelong security. Hence it is very suitable for people who have not bought a pension plan before and would like to buy one with retirement money.
How it works – In this plan, premium needs to be paid in a lump sum and annuity would start immediately. Annuity can be taken monthly or annually.
In this plan, Annuity would be paid at the prevailing annuity rate of the industry from the very next instalment. The amount of Money paid is used to Purchase Annuity is called the Purchase Price. Depending upon the age of the Annuitant, the Annuity Option Chosen and the frequency of payment chosen, the Annuity is paid as per prevailing rate approved by Insurance Regulatory & Development Authority (IRDA).
There are 3 Annuity Options to choose from:
Life Annuity- Annuity would be paid to the Annuitant as long as he is alive and nothing is payable after his death to the nominee as Death Benefit. This is the purest form of annuity which covers the risk of long life
Annuity Certain and then Life thereafter- There is a Minimum Guaranteed Period of 5/10/15 or 20 years for which Annuity would surely be paid and if the Annuitant is still alive, then the annuity payment continues for the rest of his life but nothing is payable after his death to the nominee as Death Benefit
Annuity for Life and then Return of Purchase Price- Annuity would be paid to the Annuitant as long as he is alive and after his death, the original Purchase price paid by the Annuitant is paid back to the nominee as Death Benefit and the policy terminates.
Annuity Option once chosen cannot be altered.
Key Features of Max Life Immediate Annuity Policy
This is an Immediate Annuity Plan where the money needs to be paid in a lump sum and the annuity starts immediately
Annuity can be taken monthly or annually
There are 3 Options for Annuity
Life Annuity
Annuity Certain and then Life thereafter
Life Annuity with Return of Purchase Price
COMPARE THIS PLAN WITH OTHER PENSION PLANS
Benefits you get from Max Life Immediate Annuity Plan
Death Benefit – In this plan, Death Benefit that is payable depends on the Annuity Option Chosen:
Life Annuity- There is no Death Benefit that is payable to the nominee after the death of the Annuitant
Annuity Certain and then Life thereafter- There is no Death Benefit that is payable to the nominee after the death of the Annuitant
Life Annuity with Return of Purchase Price- Under this option, the Original Purchase Price is paid to the nominee as Death Benefit after the death of the Annuitant
Maturity Benefit – There is no Maturity Benefit in this plan.
Eligibility conditions and other restrictions in Max Life Immediate Annuity Plan
Minimum
Maximum
Policy Term (in years)
Whole Life
Premium Payment Term (in years)
Single
Purchase Price (in Rs)
1 Lac
No Limit
Entry Age of Annuitant (in years)
30
70
Age at Maturity (in years)
-
Whole Life
Annuity Payout (in Rs)
10,00 per instalment
No Limit
Payment modes
Only Single
Sample illustration of the Annuity Payout of Max Life Immediate Annuity Plan
This is an Illustration of Healthy Male of Ages 50 and 60 years of age respectively opting to pay:
Purchase Price of Rs 10 Lacs for Life Annuity, Annuity Certain for 20 Years and Annuity with Return of Purchase Price (ROPP)
What happens if?
You stop paying the premium – Being a Single Premium Immediate Annuity Plan; there is no further requirement of premium once annuity has been purchased.
You want to surrender the policy – There are no Surrender Benefits in this plan.
You want a loan against your policy – There is no Loan facility in this plan.
