Max Life Guaranteed Income Plan

What are the Key Features?

What are the Plan Benefits?

In the event of death of the life insured during the policy term, lump sum death benefit as Guaranteed Death Sum Assured (GDSA) is payable to the nominee.

• For 6 years Policy Term: GDSA is 12.75 times of one annualised premium
• For 12 years Policy Term: GDSA is 18.50 times of one annualised premium

Death Benefit is higher of

• 105% of Total Premiums Paid
• 10 times the Annualised Premium
• Guaranteed Maturity Sum Assured
• Guaranteed Death Sum Assured

Nominee also has an option to get the death benefit in monthly installments for a period of 10 years. Upon exercising this option, the death benefit is paid as:

• For 6 years Policy Term: (165%/ 12) times one annualised premium
• For 12 years Policy Term: (240%/ 12) times one annualised premium

Survival Benefit is equal to Income Benefit + Terminal Benefit

• Income Benefit: Monthly income is payable during the 10 year payout period after completion of the policy term. Income Benefit is payable depending on your age and chosen policy term.
• Terminal Benefit: One time lump sum amount is payable at the end of Income Benefit payout period.
• For 6 years Policy Term – Terminal benefit is 125% of one Annualised Premium
• For 12 years Policy Term - Terminal benefit is 200% of one Annualised Premium

The Policyholder can get the Survival Benefit as a lump sum at the end of the policy term, prior commencement of the monthly income payout. Upon exercising this option, the Guaranteed Maturity Sum Assured (GMSA) is paid to the policyholder. The Policy terminates on payment of the GMSA.

The Commutation Option can be opted 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 Commuted Value is calculated by using a discount rate of 5.7% per annum from the date of receipt of the request for opting commutation and it is paid as a lump sum amount to the policyholder or nominee. The discount rate can be revised by the Company after getting IRDAI’s approval on the basis of changing investment returns. The Policy terminates on payment of Commuted Value.

Note: In case of death of the life insured during the payout period, the nominee can exercise an option to either continue receiving the Income Benefit and one – time Terminal Benefit or opt for the Commuted Value of the same.

No loan can be availed under this policy.

A lapsed policy can be revived upon written request, produces evidence of insurability and on payment of all overdue premiums.

This policy acquires a surrender value, in case all due premiums are paid for the first 2 policy years (for 6 year policy term) and for the first 3 policy years (for 12 year policy term).

Who can Buy the Plan?

Factor	Minimum	Maximum
Age (as on last birthday)	25 Years	60 years (6 year policy term) 55 years (12 year policy term)
Age at Maturity	-	66 years (6 year policy term) 67 years (12 year policy term)
Policy Tenure	6 Years	12 Years
Premium Paying Term	Same as policy term Years	-
Premium Paying Mode	Annually	-
Annual Premium	Rs 75,000 (6 year policy term) Rs 20,000 (12 year policy term)	No Limit (subject to underwriting)
Payout Period	73rd month (6 year policy term) 145th month (12 year policy term)	192nd (6 year policy term) 264th month (12 year policy term)
Guaranteed Maturity Sum Assured	Sum of the total Annualised Premiums	Present value of Survival Benefits calculated at a discount rate of 5.7% p.a
Guaranteed Death Sum Assured	12.75 times of annualized premium (6 year policy term) 18.50 times of annualized premium (12 year policy term)	-
Freelook Period	15 days/ 30 days (for distance marketing channel) from the receipt of the policy	-
Grace Period	30 Days	-
Plan Type	Offline	-

Is any Rider Available with this Plan?

The following Rider is available under this plan on payment of an additional premium, as applicable.

Max Life Partner Care Rider which pays the sum of all future premiums payable under the base policy or till life insured attains 60 years age (whichever is earlier), immediately on the death of the life insured and after payment, the rider will terminate.

Is the Plan, eligible for Tax Benefit?

Premiums paid towards this policy, qualify for the tax benefits as per Section 80C and the death benefit qualify for tax benefits under section 10 (10D) of the Income Tax Act.

(Subject to the provisions stated therein.)

How the Plan Works?

Mr. Sharma is 45 years old and working in the private sector. He wants a guaranteed income of Rs 50,000 annually after completion of the premium paying term and want a further increase in income by Rs 50,000. Mr. Sharma decides to buy Max Life Guaranteed Income Plan with a 6 year policy term and annualized premium of Rs 1 Lac. He also makes his wife a nominee under the plan.

Scenario 1 (Survival Benefit): Mr. Sharma pays all the policy premiums and survives throughout the policy term, so he will receive the survival benefit as follows:

Instead of monthly income, he can also opt for lump sum amount at the end of the policy term, which will be GMSA.

Scenario 2 (Death Benefit): Mr. Sharma dies after paying 2 policy premiums. In this case, his nominee has an option to choose one of the two death benefit options.

Option 1- Lump Sum Death Benefit: Upon choosing lump sum death benefit option by the nominee, she will receive a one time payment of Rs 12.75 lacs (12.75 times of annualized premium)

Option 2- Income Benefit: Upon choosing Income benefit option by the nominee, she will receive the monthly income as (165%/12) of one annualized premium for 10 years, as described below.

Above illustration is for a Standard Male Life, Premium Payment Mode: Annual, Fund Chosen: Balanced Fund.

(Note: The assumed rates of return, 4% and 8% are only scenarios at these rates after recovering all applicable charges. These are not guaranteed and they are not the upper or lower limits of returns of the Fund Option selected in your policy, as the performance of the Funds is dependent on a number 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).