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:
The plan also enables customers to switch between variants, if desired. The Exide Life Wealth Maxima Plan offers tax benefits as applicable.
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:
|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|
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|
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.
|Top-up premium||Minimum - Rs.6,000 Maximum - Rs.7,80,000|
The Exide Life Wealth Maxima Plan offers works in the following manner:
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:
|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:
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.
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.
|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.
|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.
|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:
|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.
|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:
|Charges||The following charges are associated with the Exide Life Wealth Maxima Plan:
|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:
|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:
|Revival of policy||
For policies that were discontinued before the completion of the 5-year lock-in period:
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.
Buying a policy from Exide Life Insurance Company Limited has the following additional benefits:
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.