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  • Group Gratuity Premier Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    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.

    Eligibility -Who is the Max Life Group Gratuity Premier Plan for?

    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:

    (UIN:104L087V01)

    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 and Premium Range – What you get and what it costs?

    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.

    Plan coverage – What the Max Life Group Gratuity Premier Plan covers?

    Max Life Group Gratuity Premier Plan provides the following benefits:

    Event Benefit
    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

    Add-On Plans – Additional coverage under the Max Life Group Gratuity Premier Plan:

    Max Life Group Gratuity Premier Plan does not offer add-on plans.

    Exclusions - What the Max Life Group Gratuity Premier Plan doesn’t cover?

    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:

    Particulars Details
    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.
    Size of Fund at the time of addition Loyalty Addition (% of Unit Fund)
    Below Rs.10 Crores Nil
    Rs.10 Crores and above 0.0083% each month (0.1% p.a.)
    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

    Tax benefits – How you can save with the Max Life Group Gratuity Premier Plan?

    Max Life Group Gratuity Premier Plan owners can enjoy the following tax benefits:

    • They can claim the initial and annual contributions that they make via an approved Gratuity trust. They can claim it as business expenditure under section 36 (I) (v) of Income Tax Act.
    • Employees cannot claim tax benefits on the contribution made by their employer.
    • Death benefit is exempted under Section 10 (D) of Income Tax Act.
    • Income from investments is exempted under section 10(25) (iv) of Income Tax Act.
    • Gratuity benefit is exempted under Section 10 (10) (ii) of Income Tax Act.

    *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.

    Other benefits – How you can save with the Max Life Group Gratuity Premier Plan?

    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.

    Why you should buy the Max Life Group Gratuity Premier Plan from Max Life Insurance?

    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.

    Frequently Asked Questions (FAQs):

    1. What is the charge for Fund Management?

      Fund Management Charge (expressed a as percentage of Fund Value)
      Fund Type Conservative Balanced Bond Growth
      Charge 0.40% p.a. 0.45% p.a. 0.40% p.a. 0.50% p.a.
    2. Does the company charge any fee for premium allocation and policy administration?

      A. No, the company does not charge any fee for premium allocation and policy administration.

    3. What is the charge for Switching?

      A. There is no charge for Switching. Policyholders can make unlimited switches for free.

    4. What is mortality charge?

      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.

    5. What is premium redirection charge?

      A. No fee is charged for premium redirection.

    6. What is surrender charge?

      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.

    7. How is the price of a Unit calculated?

      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)

    8. Is grace period available for gratuity contributions?

      A. No, grace period is not available for gratuity contributions.

    9. Does this policy provide loan?

      A. No, this policy does not provide loan.

    10. Does this policy allow top-ups?

      A. No, this policy does not allow top-ups. It is allowed only if there is a deficit in gratuity funding liability.

    11. How to make a claim under this policy?

      A. To make a claim under this policy, the following has to be submitted:

      • Beneficiary’s statement in the form that has been prescribed by Max Life Insurance.
      • In case of death or disablement of a member, hospital treatment certificate and statement of the attending physician has to be submitted.
      • Leave records that is maintained by the employer.
      • Employer certificate for last drawn salary.
      • ID proof of the beneficiary or member with photographs and signatures.
      • Other documents requested by the company.