Max Life Group Gratuity Premier Plan is a unit linked group insurance plan offered by Max Life Insurance. This plan is ideal for employers who have to pay gratuity to their employees on retirement, death and termination/resignation. It aids employers in funding their gratuity liability effectively. It helps them in building their gratuity fund in a systematic manner and in earning returns on the selected funds. It assists them in dealing with fund related formalities and with scheme administration. The plan provides fixed coverage of Rs.1,000 to each eligible member.
Max Life Group Gratuity Premier Plan can be availed only if the eligibility requirements are fulfilled. The eligibility criteria for this policy is mentioned below:
|Type||Unit linked group insurance plan|
|Policy Term||1 year renewable scheme|
|Group Type||Employer – Employee|
|Minimum size of the group (at the start)||10 members|
|Maximum size of the group||No Limit|
|Minimum Partition (at the start)||10 members|
|Minimum Age at Entry (age as on last birthday)||18 years|
|Maximum Age at Entry||74 years|
|Maximum Cover Ceasing Age (as on last birthday)||75 years|
Sum Assured is a guaranteed amount that people receive from the policy. Max Life Group Gratuity Premier Plan provides Rs.1,000 as fixed sum assured to each member.
Premium contribution for this policy can be paid in any frequency. The minimum and maximum initial contribution for this scheme is mentioned in the table below:
|Minimum Initial Contribution for all group members by the trustees||Rs.5 Lakhs.|
|Maximum Initial Contribution for all group members by the trustees||No Limit.|
*Premiums vary based on age, location, plan term and other factors.
Max Life Group Gratuity Premier Plan provides the following benefits:
|Death||It is paid in case of death of a member. The policy pays accrued gratuity that is based on the salary at the time of death, provided fund is available in the scheme. Apart from this, compulsory insurance cover of Rs.1,000 is paid.|
|Maturity||It is paid in case of maturity of a member. The policy pays accrued gratuity that is based on the salary at the time resignation or retirement, provided fund is available in the scheme.|
|Termination or Surrender of Scheme||On surrender or termination of scheme, Fund Value minus surrender charges will be given. Policy can be surrendered or terminated by providing a 3 month advance notice to Max Life Insurance. Surrender charge is applicable on termination of policy. As the contract is renewed every year, the insurer can choose to renew or decline it at the time of renewal. The surrender value of the policy = number of units x each unit price – surrender charge.|
Policyholders have the option to invest in the following funds:
|Fund Name||Objective||Government Securities||Corporate Bonds||Cash Instruments and Money Market||Equities|
|Growth Fund||Investments across equities, corporate bonds, government securities and money market instruments. Higher exposure in equities.||0% to 30%||0% to 30%||0% to 20%||20% to 60%|
|Balanced Fund||Investments are made in a way that ensures a mix of corporate bonds, government securities, equities and money market instruments.||20% to 50%||20% to 40%||0% to 20%||10% to 40%|
|Conservative Fund||Primarily invests in low risk assets such as corporate bonds and government securities.||50% to 80%||0% to 50%||0% to 20%||Nil|
|Bond Fund||Invests in corporate bonds and government securities and a proportion is invested in money market instruments.||60% to 100%||60% to 100%||0% to 40%||Nil|
Max Life Group Gratuity Premier Plan does not offer add-on plans.
Suicide Exclusion – If a member dies by suicide, then death benefit will be paid according to rules of the scheme. No suicide claims will be allowed.
Other Key Features – Freelook Period, Surrender Values, Grace Period etc.
Max Life Group Gratuity Premier Plan policy has many other important features. Some of them are:
|Minimum Guarantee Available||Max Life Insurance will give guaranteed loyalty additions. These additions will be added to the Unit Fund every month end by creating extra units. These loyalty additions are based on fund value (at the end of every month). The additional units would be allocated based on the amount policyholders have invested in the different funds.
|Switch||Policyholders are allowed to switch between funds by cancelled units in one fund and creating units in another. Minimum amount of switch – Rs.1 Lakhs unless all the units (100%) in a fund are switch to another. In a single day, the switched amount of funds cannot be more than Rs.5 crore or 25% of the funds in client account (whichever has the higher value).|
|Premium Redirection||Policyholders have the option to redirect their contribution between the funds at any point of time. They can do so by submitting a 7 day notice to Max Life Insurance. At the time of redirection, they have to inform the company about the amount of contribution that they wish to invest in each fund.|
|Nomination||Nomination is permitted.|
|Free Look Period||15 days|
Max Life Group Gratuity Premier Plan owners can enjoy the following tax benefits:
*Tax Benefits are dependent on the tax laws and may change at any time. It is advisable to consult someone who is an expert in tax matters.
Max Life Group Gratuity Premier Plan has many other benefits to offer other than the ones mentioned above. Some of these benefits are:
|Online Payment Facility||Max Life Group Gratuity Premier Plan owners can make their premium payments easily on the company website.|
|SMS Updates||Max Life Group Gratuity Premier Plan owners can choose to receive SMS updates about their policy from the company regularly.|
|Customer Care||This service is available through the company’s customer care department, which can be contacted via phone, email or SMS for any claims or policy related queries.|
|Download Premium Receipt Facility||Max Life Group Gratuity Premier Plan owners can download their premiums receipts online from the company website.|
Buying Max Life Group Gratuity Premier Plan from Max Life Insurance can help employers in funding their gratuity liability effectively. This employer-employee group plan is the most popular insurance product offered by the company. Max Life Insurance is present across India with over 2,000 branches. It employs latest technology to ensure faster claim processing and to provide various benefits and facilities such as online payments, regular updates, etc.
|Fund Management Charge (expressed a as percentage of Fund Value)|
|Charge||0.40% p.a.||0.45% p.a.||0.40% p.a.||0.50% p.a.|
A. No, the company does not charge any fee for premium allocation and policy administration.
A. There is no charge for Switching. Policyholders can make unlimited switches for free.
A. Mortality charge is recovered by deducting units every policy monthiversary from the unit account. It is deduct mortality charge for Rs.1,000 of the Sum Assured. Mortality charge is guaranteed for 1 year policy term.
A. No fee is charged for premium redirection.
A. Surrender charge is taken if funds are withdrawn before policy completes 3 years. It is 0.05% of Fund Value (Maximum – Rs.5 Lakhs). If funds are withdrawn after 3 years, then surrender charge is not imposed.
A. The price of a Unit is calculated using the following formula:
[Market value of investments held by segregated fund + Value of current assets – (Value of current liabilities and provisions, if there are any)] / Number of Units existing on Valuation Date (before creation/redemption of Units)
A. No, grace period is not available for gratuity contributions.
A. No, this policy does not provide loan.
A. No, this policy does not allow top-ups. It is allowed only if there is a deficit in gratuity funding liability.
A. To make a claim under this policy, the following has to be submitted: