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Max Life Guaranteed Income Plan

Max Life Guaranteed Income Plan is a non-participating non-linked savings insurance plan offered by Max Life Insurance. It is a single life policy that guarantees 100% death and survival benefits. For 10 years after the policy term, the plan provides guaranteed income to the policyholders. Apart from this, it provides terminal benefit and tax benefits as well. Premium for 6 year policy term starts from Rs.75,000* p.a. and premium for 12 year policy term starts from Rs.20,000* p.a.

*Premiums vary based on age, location, plan term and other factors.

Eligibility - Who is the Max Life Guaranteed Income Plan for?

Max Life Guaranteed Income Plan can be availed only by people who fulfil the eligibility requirements. The eligibility criteria for this policy is mentioned below:

Type Individual, Non-participating non-linked savings insurance plan
Minimum Age at Entry (age as on last birthday) 25 years
Maximum Age at Entry for 6 year policy term (age as on last birthday) 60 years
Maximum Age at Entry for 12 year policy term (age as on last birthday) 55 years
Maximum Age at Maturity for 6 year policy term (age as on last birthday) 66 years.
Maximum Age at Maturity for 12 year policy term (age as on last birthday) 67 years.

Sum Assured and Premium Range – What you Get and What it Costs?

The Sum Assured for Max Life Guaranteed Income Plan is mentioned in the table below.

Minimum Guaranteed Maturity Sum Assured (Depends on the permitted minimum Annualised Premium and age of the Life Insured)
  • For 6 year policy term (age is 60 years on last birthday) – Rs.4,50,873
  • For 12 year policy term (age is 55 years on last birthday) – Rs.2,69,565
Maximum Guaranteed Maturity Sum Assured No Limit
Guaranteed Death Sum Assured
  • For 6 year policy term – 12.75 times of the Annualised Premium.
  • For 12 year policy term – 18.5 times of the Annualised Premium.

Premiums rates for this policy are uni-smoker and unisex. Max Life Guaranteed Income Plan has the following 2 options for policy term:

  • 6 years.
  • 12 years.

After policy term ends, Payout Period of 10 years will start. The policy provides regular premium payment option only. It has the following 2 options for premium payment term:

  • 6 years.
  • 12 years.

The premium payment term that policyholders select should be the same as policy term. Premium can be paid using annual payment mode only.

Minimum Annualised Premium
  • Rs.75,000 p.a. for 6 year policy term.
  • Rs.20,000 p.a. for 12 year policy term.
Maximum Annualised Premium No Limit

*Premiums vary based on age, location, plan term and other factors.

Plan Coverage – What the Max Life Guaranteed Income Plan Covers?

Max Life Guaranteed Income Plan provides the following benefits:

Benefit Details
Survival Benefit It is given if the policyholder has paid all premiums by the due date and the life insured is alive by the end of the policy term. Survival Benefit = Income Benefit + Terminal Benefit Income Benefit is paid during the Payout period after the policy term ends. This benefit is paid on a monthly basis and is a percentage of the Annualised Premium. Income Benefit that is paid per month during the last 5 years of the Payout period is 2 times the Income Benefit that is paid per month during the first 5 years of the Payout period. Terminal Benefit on the other hand is paid only once at the end of Payout period. It is equal to:
  • 200% of the Annualised Premium for 12 year policy term.
  • 125% of the Annualised Premium for 6 year policy term.
The policyholders can choose to take the survival benefit in one lump sum at the end of policy term (before Payout Period) instead of availing it as monthly payments. If they choose this option, the Guaranteed Maturity Sum Assured (GMSA) will be paid to them. In this case, the policy will terminate once the GMSA payment is made.
Death Benefit during policy term On death of the Life Insured during the policy term, the following is paid to the beneficiary as death benefit: The lump sum death benefit that is paid is equal to Death Sum Assured, which is higher of the following:
  • 105% of the Total Premiums paid.
  • 10 times of the Annualised Premium.
  • Guaranteed Death Sum Assured (GDSA).
  • GMSA.
Guaranteed Death Sum Assured is higher than GMSA, 105% of the Total Premiums Paid and 10x of the Annualised Premium. Thus, the lump sum Death Benefit for 6 year policy term is 12.75 times of the Annualised Premium and the lump sum Death Benefit for 12 year policy term is 18.5 times of the Annualised Premium. The beneficiary can choose to take the benefit in monthly instalments for 10 years after the date of demise instead of withdrawing it as a lump sum. If they select this option, then the Death Benefit will be paid in the following manner:
Death Benefit (percentage of Annualised Premium) Variant Period
165%/12 6 years policy term 10 years after date of demise.
240%/12 12 years policy term 10 years after date of demise.
The beneficiary on a future date can choose to commute all the pending payouts by using the commutation option. The payment on commutation will at least be equal to death benefit minus installments that have been paid already. After payment, the policy will terminate.
Death Benefit during Payout Period No risk cover is given by the policy during the Payout Period. If a Life Insured dies during the Payout Period, then his/her beneficiary will keep receiving the pending survival benefits. His/her beneficiary can choose to withdraw the amount using the commutation option as well. The payment on commutation will at least be equal to GMSA minus installments that have been paid already.
Commutation Option Here, policyholder (on survival during Payout Period) or beneficiary (in case Life Insured dies) has the option to get the present value of his/her pending death and survival benefit as one lump sum. When the company gets a request for this option, then it will stop all the future Survival or Death Benefit and will pay one lump sum amount to the policyholder or beneficiary. Once the payment is made, the policy will terminate. The commuted value will be derived via a discount rate of 5.7% p.a. from the date the company received the commutation request. The lump sum payment of Survival Benefit will be at least equal to GMSA minus survival income installments that has been paid to the beneficiary already. The lump sum payment of Death Benefit will be at least equal to Death Benefit minus installments that has been paid to the beneficiary already.
Surrender Benefit Only after the policy has acquired a surrender value, it can be surrendered. Policy takes surrender value in the following way:
  • After 2 full year premium payment for 6 year policy term.
  • After 3 full year premium payment for 12 year policy term.
Surrender Value is the higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV). SSV is not guaranteed. SSV and GSV are a percentage of the total Annualised premiums that have been paid by the policyholders. SSV is calculated by discounting survival monthly benefits at 5.7% p.a. Both SSV and GSV depend on the surrender year and not the date when the premium was discontinued.
Reduced Paid Up (RPU) Benefit If the policy has already acquired a surrender value, then it will not expire in case the premium has not been paid by the end of the grace period. It will become Reduced Paid-Up instead and will continue with the following reduced benefits:
  • RPU Death Benefit = (Total Annualised Premium Paid/ Total Annualised Premiums Payable) x Death Benefit.
  • RPU Survival Benefit = (Total Annualised Premiums Paid/ Total Annualised Premiums Payable) x Survival Benefit.
Terminal and Income Benefit will be pro-rated for RPU policy.

Add-On Plans – Additional Coverage Under the Max Life Guaranteed Income Plan:

Max Life Guaranteed Income Plan does not provide any additional coverage.

Exclusions - What the Max Life Guaranteed Income Plan Doesn’t Cover?

Suicide Exclusion – If the Life Insured kills himself/herself within 12 months from the revival date or start of Max Life Guaranteed Income Plan, then his/her policy will terminate and the company will pay the following:

  • If policy has not acquired surrender value, then total premiums paid (includes extra premium and excludes taxes and cesses).
  • If policy has acquired a surrender value, then higher of total premiums paid or SSV will be paid.

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

Max Life Guaranteed Income policy has many other important features. Some of them are:

Particulars Details
Grace Period 30 days
Freelook Period 15 days
Nomination Nomination is allowed.
Policy Revival Within a period of 2 years, starting from the 1st unpaid premium due date.

Tax Benefits – How you can Save With the Max Life Guaranteed Income Plan?

Max Life Guaranteed Income Plan owners can enjoy tax benefits under the Income Tax Act of 1961 in the form of Deductions and Exemptions. Deductions can be claimed under Sections 80C, 80CCC, 80D and 80DD of the IT Act and Exemptions can be claimed under Section 10 (10D) of the IT 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 Guaranteed Income Plan?

Max Life Guaranteed Income Plan has many other benefits to offer other than the ones mentioned above. Some of these benefits are:

SMS Updates If activated, the company will send regular updates about the policy via SMS to the policyholders.
Online Payment Facility The company allows policyholders to make payments online on its website.
Download Premium Receipt Facility By simply entering their policy number on the website of the company, policyholders can download their premium receipts.
Customer Care To get answers to any queries related to the policy or claims process, policyholders can contact the 24x7 customer care service of the company.
Benefit Calculator Benefit Calculator helps customers make an informed decision. This tool can be used to calculate the benefits that people will receive from the policy before even purchasing the policy.

Why you Should Buy the Max Life Guaranteed Income Plan from Max Life Insurance?

You should buy Max Life Guaranteed Income Plan from Max Life Insurance because it helps you fulfil all your dreams. The company is one of the leading insurance companies in India with over 2,000 branches spread across the country. It is popular for its customer-centric approach and quality of service. The company uses superior technology to speed up the claims process and to provide various solutions such as online premium payment facility, online premium receipts download facility, online calculators, etc.

Frequently Asked Questions (FAQs):

  1. Does the policy provide same benefits to males and females?

    A. Yes, the policy provides the same benefits to males and females.

  2. What is the Guaranteed Surrender Value Factor for this policy?

    A.

    Surrender Factors Guaranteed Surrender Value Factors (percentage of the Total Annualised Premiums)
    Surrender Year 6 year policy term 12 year policy term
    1 0% 0%
    2 30% 0%
    3 30% 30%
    4 50% 50%
    5 90% 50%
    6 90% 50%
    7 NA 50%
    8 NA 60%
    9 NA 70%
    10 NA 80%
    11 NA 90%
    12 NA 90%
  3. What is Annualised Premium?

    Annualised Premium is the premium amount that has to be paid in annual mode. It excludes rider premium, extra premium, taxes and cesses.

  4. Will extra premium be loaded for sub-standard lives?

    A. Yes, extra premium might be loaded for sub-standard lives. It depends on the Underwriting policy approved by the Board of Max Life Insurance.

  5. Are the benefits of this policy linked to Annualised Premium?

    A. Yes, the survival, death and surrender benefits of this policy are linked to Annualised Premium.

  6. Does this policy offer rider protection?

    A. No, this policy does not offer rider protection.

  7. Does Max Life Guaranteed Income Plan provide loan facility?

    A. No, Max Life Guaranteed Income Plan does not provide loan facility.

  8. Under what circumstances will the policy lapse?

    A. The policy will lapse if it has not got a surrender value and if the premium is not paid by the end of Grace Period.

  9. Is Assignment applicable for Max Life Guaranteed Income Plan?

    A. Assignment is applicable for Max Life Guaranteed Income Plan, but it has to follow the provisions mentioned under Section 38 of Insurance Act 1938.

  10. How to make a claim on Max Life Guaranteed Income Plan?

    A. To make a claim on Max Life Guaranteed Income Plan, policyholders must submit the following documents to Max Life Insurance:

    • Claimant’s statement in the form prescribed by the company.
    • Copy of post mortem report.
    • Your original policy document.
    • Copy of F.I.R or policy complaint.
    • Claimant’s and Nominee(s) Identity proof with signature and photos.
    • Death certificate issued by the municipal or local authority.
    • Any other documents requested by the company.
  11. How to get more details about Max Life Guaranteed Income Plan?

    A. To get more details about Max Life Guaranteed Income Plan, you should visit the company’s website. You can also contact the customer care team of the company for the required information.