Exide Life Wealth Maxima - an ULIP Plan

Exide Life Wealth Maxima Plan is a non-participating, unit linked insurance plan by Exide Life that offers the policyholder various investment strategies to maximise returns and also financial protection to the family in the event of a mishap. Additionally, the policy provides the customer options to upgrade the protection level when he/she reaches certain milestones in life.

There are three variants under the product, as described below:

• Maxima Invest - This variant is suitable for customers who intend to grow their money in the most efficient way.
• Maxima Child - This option is apt for customers who are looking for a good balance between protection and investment.
• Maxima Family - This option assists the policyholder in ensuring that his/her child’s dreams are fulfilled, irrespective of an unfortunate event.

The plan also enables customers to switch between variants, if desired. The Exide Life Wealth Maxima Plan offers tax benefits as applicable.

Eligibility - Who is the Exide Life Wealth Maxima Plan for?

A customer has to fulfill certain eligibility conditions set by the insurance company in order to be able to purchase the Exide Life Wealth Maxima Plan. These factors are as described in the table below:

Parameter	Eligibility
Minimum Entry Age	Maxima Invest - 0 years Maxima Child and Maxima Family - 18 years
Maximum Entry Age	Maxima Invest - 65 years Maxima Child - 50 years Maxima Family - 55 years
Maximum Maturity Age	Maxima Invest - 75 years Maxima Child - 65 years Maxima Family - 70 years
Policy Term	Choice of 10 years, or 15 to 20 years
Premium Payment Term (PPT)	Equal to policy term

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured:

The policy offers Maturity Benefit and Death Benefit at the occurrence of specific events. The Basic Sum Assured and Additional Sum Assured under the plan are as follows:

Basic Sum Assured	For age till 44 years : Annualised premium * 10 For age above 44 years : Annualised premium * (7 or 10) The policyholder with entry age of 45 years and above can choose the Basic Sum Assured as 7 or 10 times the annualised premium at the time of policy inception
Additional Sum Assured	When top-up premium payment is done at an age below 45 years : 1.25 times the top-up premium When top-up premium payment is done at an age of 45 years or above : 1.1 times the top-up premium

Premium:

The policyholder will have to make payments towards the policy at regular intervals. Premiums can be paid at annual, semi-annual, or monthly frequencies. When the monthly mode of premium payment is chosen, the policyholder will have to pay the premiums for 3 months in advance at the time of policy commencement.

Parameter	Annually	Semi-annually	Monthly
Minimum premium	Rs.36,000	Rs.24,000	Rs.4,000
Top-up premium	Minimum - Rs.6,000 Maximum - Rs.7,80,000

Plan Coverage - What the Exide Life Wealth Maxima Plan covers?

The Exide Life Wealth Maxima Plan offers works in the following manner:

• The customer chooses the product variant according to his/her insurance requirements.
• He/she then decides on the premium amount, mode of payment, and the policy term.
• The customer also selects the investment fund into which the paid premiums will be invested.
• The policyholder can optimise returns from the policy by fund redirection and switching.
• He/she can also add top-up premiums for surplus savings.
• Partial withdrawals can be done, if required.
• When the policy matures, the maturity amount will be paid out, based on the maturity option chosen.
• If the life assured dies during the policy term, life cover is paid to the nominee according to the product variant chosen.

The coverage under the Exide Life Wealth Maxima Plan is as follows:

Maturity Benefit

If the policy is in-force, the fund value as on the date of maturity will be paid out as the maturity benefit. The policyholder can avail the maturity benefit in two ways: Lump sum - The fund value is paid out as a lump sum amount on the maturity date. Settlement payout - The policyholder can take a part of the fund value as a lump sum amount and the remaining in equal installments on a monthly, quarterly, half-yearly, or annual basis, spread out over 5 years after the date of maturity.

Death Benefit

If the life assured faces death during the policy term, the nominee is paid a death benefit, based on the plan variant chosen at the time of policy inception: Maxima Invest - The death benefit is the highest among the following: Sum assured 105% of the paid premiums (including top-up premiums) Fund value Maxima Family - The death benefit is the fund value plus the highest among the following: Sum assured 105% of the paid premiums (including top-up premiums) Maxima Child - The death benefit is the highest among the following: Sum assured 105% of the paid premiums (including top-up premiums) In addition to the lump sum death benefit, the insurer will also pay all future outstanding premiums. The fund value is paid to the nominee at policy maturity. This ensures that the child receives money from the policy at regular intervals. It should be noted that the sum assured mentioned above is the aggregate of the Basic Sum Assured and the Additional Sum Assured.

Exclusions - What the Exide Life Wealth Maxima Plan doesn’t cover?

Suicide Exclusion - Irrespective of the sanity of the life assured, if he/she commits suicide within 1 year from the inception of the policy or within 1 year from the revival date, the policy will terminate immediately. Only the fund value (including the top-up fund value) will be payable in this situation.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

The key features of the Exide Life Wealth Maxima Plan are described below:

Option to switch between variants	The policyholder can choose to switch between variants, either at the time of marriage or when a child is added to the family. The policyholder can switch from Maxima Invest to Maxima Family only in the event of marriage. The customer can switch from any plan variant to Maxima Child variant only if the life assured has a minor child who will be the nominee under the policy. The policyholder can switch from Maxima Child to Maxima Family only at the death of the child nominee. In the event of death of the child nominee, if the policyholder does not wish to revert back to the Maxima Family variant, he/she can make his other minor child the nominee under the plan. It is not possible to shift from Maxima Family and Maxima Child plans to Maxima Invest plan. Variant switching is allowed only after the policy completes two years. There should also be a gap of 2 policy years between two switches. Variant switching is allowed only at policy anniversary, and twice during the entire policy life.
Non-negative claw-back additions	Non-negative claw-back additions may be added to the fund value, as applicable, after the first 5 policy years.
Loyalty Additions	The Exide Life Wealth Maxima Plan rewards the customer with extra returns as loyalty additions to the fund value. The policy allocates additional units at the end of every fifth policy year, starting from the end of the tenth policy year. Every such addition enhances the fund value by 2%. All policies with annualised premium of Rs.72,000 or above will receive loyalty additions. The additional units will be distributed into different funds.
Investment funds	There are 6 investment funds available under the plan that invests in a mix of equity and debt instruments. Exide Life Secure Fund - Low risk Exide Life Preserver Fund - Low risk Exide Life Growth Fund - Medium risk Exide Life Balanced Fund - Medium risk Exide Life Active Asset Allocation Fund - High risk Exide Life Prime Equity Fund - High risk
Automatic Asset Rebalancing Strategy	The investment objectives and risk appetite of customers may change over time. Thus, this feature reduces the equity proportion as the policy gets closer to maturity, ensuring that any downside in the equity market will have insignificant impact on the maturity amount. Effectively, this strategy rebalances the debt and equity ratio without the policyholder having to manually switch funds. This option can be selected at the inception of the policy or at any time during the tenure. The policyholder can also exit from this strategy at any time.
Systematic Transfer Plan	This facility safeguards the wealth of the customer against market volatilities. The annual premium and charges received are first allocated to the Exide Life Preserver Fund to purchase units. Immediately after this, and at every policy anniversary, the fund value at the start of each month will be switched to the Exide Life Prime Equity Fund automatically. The systematic transfer plan is applicable only to policies with annual premium payment mode, and is more appropriate for policyholders who wish to invest 100% in equities systematically. Under this plan, there will be no switch charges.
Choice of adding top-up coverage	The policyholder can invest extra money in the plan by paying top-up premiums. The minimum top-up premium amount is Rs.6,000. The maximum amount of top-up premiums is the sum of the regular premiums paid at top up, subject to a maximum amount of Rs.7.8 lakh. Every top-up premium has an additional sum assured that is equivalent to the following: 1.25 times the top-up premium when the customer’s age at the time of top-up is less than 45 years. 1.10 times the top-up premium when the customer’s age at the time of top-up is 45 years or more. Top-ups are not allowed during the last 5 policy years.
Partial Withdrawal	The Exide Life Wealth Maxima Plan enables customers to use their funds for any interim financial emergencies or goals. After the policy has completed 5 policy years, it is possible to withdraw partially from the fund an unlimited number of times. Partial withdrawals are allowed, subject to the following: Partial withdrawal benefit will be provided for a minimum amount of Rs.5000 and a maximum amount that is equivalent to 25% of the fund value. A policyholder can make partial withdrawals from top-up contributions only after the completion of 5 years from the remittance of the top-up amount. Partial withdrawal can be made only if the policy is in-force. Partial withdrawal is not allowed if the life assured is a minor. Partial withdrawals will not affect the sum assured under the plan.
Fund switching	Unlimited free switches between funds are allowed under the policy during the policy term.
Premium redirection	This facility enables the policyholder to allocate future premiums in a different ratio than the current composition of the fund. Premium redirection can be done free of any charges throughout the policy year.
Option to receive the settlement amount	The policy enables the policyholder to decide on how the maturity payout will be received. The policyholder can choose to receive a part of the payout as a lump sum amount and the remaining in the form of installments spread out over a period of 5 years (settlement period). The installments can be availed at monthly, quarterly, half-yearly, or yearly frequencies. In order to receive the settlement payout, the policyholder has to inform the insurer of the decision 6 months before the maturity of the policy. During the settlement period, the entire fund value may be taken as a lump sum amount. During the settlement period, the investment risks will be borne by the policyholder. If the life assured dies during the settlement period, the remaining fund value will be paid out as the death benefit. Partial withdrawals and switches cannot be done during this period. There will be no payment of loyalty additions during the settlement period. The settlement period cannot be extended beyond 5 years from the date of policy maturity.
Surrender of policy	If the policyholder requests for the policy to be surrendered, the risk cover under it will be terminated and the surrender benefits are payable. If the policy is being surrendered before the 5-year lock-in period, the following is applicable: The policy life cover ceases when it is surrendered. The fund value will be transferred to the Discontinued Fund. The Discontinued Fund will accrue a minimum guaranteed return, as per IRDAI guidelines. A Fund Management Charge of 0.50% per annum will also be deducted from the Discontinued Fund. The policyholder can revive the policy within the lock-in period. This should be done within 2 years from the discontinuance date. If the policy is not revived, the amount in the Discontinued Fund is paid to the policyholder at the end of the lock-in period or the 2-year period of revival, whichever comes later. If the life assured dies during the lock-in period, the amount in the Discontinued Fund is paid to the nominee. If the policy is surrendered after the 5-year lock-in period, it will be terminated immediately after the fund value is paid on the surrender date.
Charges	The following charges are associated with the Exide Life Wealth Maxima Plan: Premium Allocation Charges Policy Administration Charges Mortality Charge Fund Management Charge Policy Discontinuance Charge
Grace Period	If the policyholder does not pay due premiums within the premium payment due date, the insurer allows an extra time during which the premium can be paid. This interval is referred to as the grace period. The grace period for policies with yearly and half-yearly premium payment frequencies is 30 days. For policies with monthly premium payment frequency, the grace period is 15 days.
Free-look period	If the policyholder disagrees with any of the provisions in the policy documentation, he/she can return the same back to the insurer stating relevant reasons for the objection. The policy should be returned back within the free-look period of 15 days. The free-look period for policies that were bought through online sales, telephonic purchase, or any other distance marketing channel is 30 days. The insurer will then refund the paid premiums after the deduction of charges for stamp duty and medical examination.
Discontinuance of premiums	If the premiums due under the policy are not paid in full and on time, the insurer will send a notice to the policyholder. He/she will then have to exercise any one of the following options within 30 days: If the policy is surrendered/discontinued before the completion of 5 years: The policyholder can revive the policy within a period of 2 years by paying the unpaid premiums. In case the 2-year revival period is complete before the fifth policy year ends, and the policy has not been revived, the policyholder is paid the Discontinued Fund Value at the end of the fifth year. If the 2-year revival period is not complete before the fifth policy year ends, and the policy is not revived, then the policyholder can choose any one option from the following: Option 1 - Pay the outstanding premium within the notice period and continue on the plan. Option 2 - Stay invested in the Discontinued Fund and exercise the option to revive the policy by the end of the lock-in period and surrender at the end of the lock-in period. In case the policy is not revived within the lock-in period, the Discontinued Fund Value is paid out when the fifth policy year is completed. Option 3 - Stay invested in the Discontinued Fund and exercise the option to revive the policy by the end of the revival period and surrender at the end of the revival period. In case the policy is not revived within the revival period, the Discontinued Fund Value is paid out when the 2-year revival period is completed. If none of the above options are selected, and the policy is not revived before the completion of the 2-year revival period, the Discontinued Fund Value will be paid out after the completion of the revival period. The policyholder can completely withdraw from the policy without any risk cover. In such a situation, the following conditions are applicable: The fund value is transferred to the Discontinued Fund. The Discontinued Fund will accrue a minimum guaranteed return, as per IRDAI guidelines. A Fund Management Charge of 0.5% per annum will be reduced from the Discontinued Fund Value. The policyholder can choose to revive the policy within 2 years from discontinuance. If the policy is not revived, the amount in the Discontinued Fund is paid to the policyholder when the lock-in period or the revival period (whichever is later) ends. If the life assured dies during the lock-in period, the Discontinued Fund Value is paid to the nominee. If the policy is surrendered/discontinued after the completion of 5 years: The policyholder can revive the plan within 2 years. If this is not done, the policy will continue with the original charges, terms, and conditions if the following is met: Payment of the outstanding premiums before 2 years. In case the outstanding premiums are not paid within 2 years, the policyholder has the following options: Convert the policy to Paid-up status. The sum assured in this case will be reduced. Surrender the policy. The policy proceeds can be taken as per the surrender value payout regulations. Surrender the policy and take the policy benefits as per surrender value provisions. Convert the policy to Paid-up status and receive a reduced sum assured. If the policyholder does not exercise any of the above options within 30 days, then it is considered that the policy is surrendered.
Paid-up policy	If the policy is in Paid-up status, the death benefit will be the Reduced Paid-up Sum Assured. Reduced Paid-up Sum Assured = [(Basic Sum Assured) * (Total premiums paid) / (Total premiums payable)] + Additional Sum Assured from top-up premiums (if applicable) When a policy is in Paid-up status, the payouts are as follows: Death Benefit For Maxima Invest - Higher among the Reduced Paid-up Sum Assured and the fund value For Maxima Family - Reduced Paid-up Sum Assured plus the fund value For Maxima Child - Higher among the Reduced Paid-up Sum Assured and the fund value The death benefit cannot be lower than 105% of the total paid premiums. Maturity Benefit - This is the fund value as on the date of policy maturity.
Revival of policy	For policies that were discontinued before the completion of the 5-year lock-in period: The policyholder can revive the policy within 2 years from the discontinuance date. The revival should not be after the expiry of the lock-in period or the end of the revival period, whichever comes later. For policies that were discontinued after the completion of the 5-year lock-in period: The policyholder can revive the policy within 2 years from the discontinuance date.

 

Tax Benefits – How you can save with the Exide Life Wealth Maxima Plan?

• Premiums paid towards the Exide Life Wealth Maxima Plan are eligible for tax benefits under Section 80C of the Income Tax Act.
• The maturity payout from the policy is eligible for tax benefits under Section 10(10D) of the Income Tax Act.

Tax rules are subject to change from time to time. So, you should consult a tax advisor to understand the latest tax rules, before investing in the plan.

Other Benefits – How you can save with the Exide Life Wealth Maxima Plan?

Buying a policy from Exide Life Insurance Company Limited has the following additional benefits:

• Customers can easily check their policy status online through ‘My Life’ account at the insurer’s website. The ‘My Life’ account also enables policyholders to do the following:
  • Make online premium payments
  • View the value of the plan
  • Switch funds
  • Revive the policy
  • Update contact details
  • Make enquiries through the E-box facility
  • Take print-outs of the fund statements, portfolio statements, and tax certificates.
• It is also possible to contact the insurer through email or by calling the customer care number, 1800 419 8228.
• Customers can register to the SMS alert facility offered by the insurance company to receive timely updates from the insurer.
• Customers can make premium payments through Net Banking, e-Wallets, debit cards, or credit cards. It is also possible to pay premiums by visiting the insurer’s branch office. Alternatively, customers can make payments at Axis Bank branches or South Indian Bank branches.
• The insurance company has a dedicated grievance redressal cell to acknowledge complaints or grievances raised by customers.
• The Exide Life Insurance website offers its customers online calculators that enable them to identify the amount of life cover they require and the corresponding premiums.

Why you should buy the Exide Life Wealth Maxima Plan from Exide Life Insurance?

Exide Life Insurance Company Limited is a leading life insurance provider, offering a bouquet of insurance solutions to customers across 200 cities in India. The company has a customer base that amounts to more than 15 lakh within the country.

The company offers an extensive range of insurance plans to cater to the needs of customers in the fields of savings and investment, pension and retirement, and pure protection. Exide Life Insurance has been conferred with various awards and recognitions for its social media and marketing initiatives, brand image, and customer loyalty. The company has also seen a positive growth trend, observing a growth of 27% in the financial year 2016-17.