Max Life Monthly Income Advantage Plan

Life is full of unexpected events and the best way to be prepared for it is by planning for your loved ones. As a regular income is an important need for everyone, we present to you the Max Life Monthly Income Advantage Plan. It is a comprehensive individual life insurance savings & protection plan that offers guaranteed monthly income for 10 years using which you can have the best of education for your child, get extra money to take care of yourself and your spouse, etc. This plan also provides lump-sum benefits, which comprise non-guaranteed bonuses at policy maturity, to meet the long term financial goals of the individual. Read this post and know the benefits of Max Life Monthly Income Advantage Plan, along with its terms and conditions.

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What are the Key Features of Max Life Monthly Income Advantage Plan

Max Life Monthly Income Advantage Plan offers you:

Guaranteed Monthly Income

You can get a guaranteed monthly income for 10 years after the completion of the Premium Payment Term. This helps you cater to the future needs with a sum of accrued compound reversionary bonuses plus a terminal bonus when the policy matures. Here, the monthly income payable is defined as one 1/12th of 10% of the sum assured, which is payable for 10 years at each monthly anniversary. All payout transactions would take effect on a date specific to the anniversary date of the policy. During the Survival benefit payout, the policy risk coverage will continue for 10 years.

The Guaranteed Sum Assured at policy maturity is 0 or NIL as the guaranteed benefit is payable in the form of guaranteed monthly income payouts post Premium Payment Term completion.

Lump-sum Maturity Benefits

A sum of accrued compound reversionary bonuses plus terminal bonus is payable on policy maturity to meet the long-term financial goals of the policyholder. Your policy Compound Reversionary Bonus is declared each year starting from the 2nd anniversary year of the policy. Whereas, the Terminal Bonus is an additional bonus that is payable only once. This will be applicable whichever comes earlier – policy Surrender or Maturity – if the policy is in force for at least 5 years. However, in the case of Policy Surrender, only the Surrender Value of Terminal Bonus is payable as per the company’s terms and conditions.

The following payouts will be given to the nominee on the death of the life insured if the policy has been in force:

Lump-sum Benefits

The higher among the following is payable by the insurer. Take a look at all.

1. 11X the Annualized Premium + Underwriting Extra Premium, (if any)
2. 105% of the total paid premiums + Underwriting Extra Premium + loadings for modal paid premiums till the date of death
3. Under Max Life Accidental Death & Dismemberment Rider (UIN – 104B027V03) a lump-sum benefit in the case of death or dismemberment caused due to accident is offered to the insured or nominee as per the case.

Guaranteed Sum Assured on Maturity

An absolute assured amount is payable on the death of the life insured. In this, the Annualized Premium is the amount payable during a Policy Year chosen by the Policyholder, excluding Underwriting Extra Premium, loading for modal premium, Rider Premiums plus applicable taxes, cesses or levies (if any).

And the Total Paid Premiums are the total of all Premiums received by the insurer, excluding Underwriting Extra Premium, loading for modal premiums, Rider Premiums plus the applicable taxes, cesses or levies (if any).

Your Underwriting Extra Premium is an additional amount charged by the insurer as per the Underwriting Policy, which is determined based on the disclosures made by the policyholder in the Proposal Form or any other information received by the insurer, including the medical examination or reports.

Risk Coverage

The Max Life Monthly Income Advantage Plan offers a lump sum benefit immediately on the death of the Life Insured and offers financial security to the insured’s family. This policy risk coverage is available throughout the Policy Term, which is Premium Payment Term + 10 years benefit payout period.

In case the premium is not paid before the due date, a Grace Period of 30 days from the due date of the first unpaid premium will be given to the insured. During this Grace Period, the risk cover will continue.

Also, under Max Life Term Plus Rider (UIN – 104B026V03), there will be additional risk coverage if the insured dies. Your policy risk coverage continues even during the Survival benefit payout period of 10 years.

Policy Continuance Benefits

All the premiums, if any, occur at the same time or following the death of the Life Insured, will get waived off by the company, which will provide Survival benefits and Maturity Benefits to the beneficiary as and when due. This will ensure that your child’s future or spouse’s retirement is taken care of in your absence.

Tax Benefits

Some tax benefits will apply to the Max Life Monthly Income Advantage Plan. And it will apply to your premiums payments under section 80C and section 10D(10D) of the Income Tax Act.

Deductions Under Section 80C

The tax benefit is available to Individual assesses and Hindu Undivided Family assesses as per the income tax laws.

1.  In the case of an individual assessee – Himself, herself, spouse, children of such individuals can claim this benefit
2. In the case of HUF assessee – Any member of HUF can claim the tax deduction

If the premium payment in a financial year exceeds 20% of the actual capital sum assured, the deduction will be allowed only for premiums upto 20% of the sum assured. For insurance policies issued on or after 1st April 2012, deductions are allowed only for the payable premium that does not exceed 10% of the actual capital sum assured and 15% of the actual capital sum assured (in the case of persons with severe disability or specific ailment). The tax benefits shall be reversed if the policy terminates or ceases to be in force within 2 years from the date of policy commencement. The maximum amount of deduction that an insured can claim under Sections 80C, 80CCC will be limited to INR 1,50,000.

Section 10D(10D) Exemptions

The sum received under this policy, including the allocated sum or bonus, is exempt from tax. However, this rule may not apply to the following amounts:

1. The sum received under Section 80DD(3)
2. A sum received under a Keyman Insurance policy
3. The sum received other than the death benefit

Eligibility for Max Life Monthly Income Advantage Plan

If you want to buy this policy, know first whether you are eligible for it, and the best way to find out this is by going through the following information:-

Entry Age (As on Last Birthday):- The minimum entry age for this policy is 18 years. Whereas the maximum entry age may vary as per the following variants.

Maximum Maturity Age (As on Last Birthday):- Your age during the policy maturity shouldn’t exceed as per the following details shown below:-

Policy Premium Payment Term:- The company offers you tenures of 8, 12, or 15 years to pay the policy premium amount. You can choose the premium payment term as per your financial goals. Look at the table below and find how it will affect your policy term.

Premium Payment Mode & Modal Factors:-  Max Life Monthly Income Advantage Plan offers annual, semi-annual, quarterly and monthly premium paying modes. The Premium Payment mode can be changed during the policy term if the policyholder wants. The modal factor that applies to your premium payment mode is as follows:

Annualized Policy Premium:- The minimum premium amount should be INR 25,000 per annum. And the maximum premium has no limits; it is decided by the insurer.

Max Life Monthly Income Advantage Plan Sum Assured:- The sum assured is dependent on your premium payment variant. Check out the table below to know the minimum sum assured.

No maximum limit is decided for this policy, it may be subject to the board-approved underwriting policy of the company.

Policy Premium Rate:- Premium rates and policy benefits are uni-sex and uni-smoker. So, this plan is offered to substandard lives also with extra mortality charges that are subject to board-approved underwriting policy of the company.

What Will Happen If You Surrender the Max Life Monthly Income Advantage Plan?

You can surrender this policy if it acquires a surrender value, which is the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).

Guaranteed Surrender Value (GSV):- When two full-year premium payment terms are completed, your policy gets a Guaranteed Surrender Value (GSV).

Guaranteed Surrender Value = Guaranteed Surrender Value of Base + Guaranteed Surrender Value of accrued Compound Reversionary Bonus (if any)

Guaranteed Surrender Value of base = Maximum of [{GSV Factor X (Total paid premiums + loadings for modal paid premiums for base policy) – Survival Benefit (if already paid)}, 0]

The GSV factor of the base policy is as follows:-

Special Surrender Value (SSV)

The Special Surrender Value will be paid to you is always higher than or equal to the Guaranteed Surrender Value.

SSV =  Reduced Paid Up (RPU) Sum Assured X ‘SSV Factor’

RPU Sum Assured = [{Total Paid Premiums for the base policy + loadings for modal premiums (if any)}/{Total Premiums payable plus loadings for modal premiums (if any)}] X Sum Assured Surrender Value of the Accrued Compound Reversionary Bonus (if any) + Surrender Value of Terminal Bonus (if any)

Note:- The SSV factor and Surrender Value factor for Reversionary Bonus and Terminal Bonus can be changed by the company before the approval of the authority. This policy cannot be surrendered after your death and shall continue till the end of the Policy Term. All the policy benefits are payable to the beneficiary as & when due.

What Happens When You Discontinue Paying the Premiums?

The following provisions will apply to the policy if you haven’t paid the policy premium post the completion of grace period:-

Before the Policy has Acquired Surrender Value:- Your policy will lapse effective from the due date of the first unpaid premium. The insurance cover will stop and no benefits will be payable. However, you can revive this policy within 5 years from the first due date of the unpaid premium.

After the Policy has Acquired Surrender Value:- Your policy will become a Reduced Paid-up (RPU) Policy effective from the due date of the first unpaid premium. And the following benefits will be reduced and calculated:-

1. RPU Sum Assured = [{Total Paid Premiums for the base policy + loadings for modal premiums (if any)}/{Total Premiums payable + loadings for modal premiums (if any)}] X Sum Assured.
2. RPU Death Benefit = [{Total Paid Premiums Paid + loadings for modal premiums (if any)}/{Total Premiums payable + loadings for modal premiums (if any)}] X Death Benefit.

The Death Benefit, Survival Benefit, Maturity Benefit and Surrender Benefit for a Policy in RPU mode is as follows:-

1. On death during the policy term in RPU status, the following benefits will be paid: RPU Death Benefit paid immediately on death + Outstanding Survival Benefit and Maturity Benefit payable as and when due.
2. The Survival Benefit for an RPU Policy is the monthly income payable, equaling 1/12th of 10% of the RPU Sum Assured.
3. Maturity Benefit for an RPU Policy where the Accrued Compound Reversionary Bonus (if any) will be payable on the date of maturity.
4. Surrender Value for an RPU Policy will be determined using the methodology and SSV scales as mentioned above.

What Will Happen When You Wish to Revive Max Life Monthly Income Advantage Plan?

If the policy lapses, it can be revived within 5 years starting from the due date of your first unpaid premium. This may be subject to the following conditions:

You have to pay all overdue premiums with interest and/or late payment fee, whichever is applicable as on the date of revival and determined by the company from time to time. The Life Insured should produce acceptable evidence of insurability at their own cost and the revival of the policy will take place only after the revival of the policy is approved by Max Life Insurance based on the Board approved underwriting policy and get communicated to the life insured in writing.

Once the policy is revived, all the accrued bonuses (if any) and benefits will be reinstated at their original levels in case you have paid premiums throughout.

If a lapsed policy is not revived within the revival period, it will terminate and no value will be payable to the life insured.

Revival of the Reduced Paid-up Policy 

An RPU Policy can be revived within 5 years from the due date of the first unpaid premium under the following conditions:-

You should pay all overdue premiums with interest and/or late payment fee, which is determined by the company from time to time. The Life Insured must produce acceptable evidence of insurability at their own cost. The revival of the Policy will take effect only after it is approved by Max Life Insurance based on the Board approved underwriting policy and communicated to the life insured in writing.

Once the policy is revived, all the accrued bonuses and benefits will be reinstated to their original levels if you have paid premiums throughout. If a policy under Reduced Paid-up Mode is not revived within the revival period, it will not terminate and continue to be under Reduced Paid-up Mode for the remaining term of the policy.

Termination of the Max Life Monthly Income Advantage Plan

Your policy will terminate upon the following events:-

1. The date on which the insurer receives a free look cancellation request
2. On the date of intimation of repudiation of the death claim by the insurer in accordance with the provisions of this policy
3. On the expiry of the Revival Period – if the policy lapsed and revived
4. If a policy under Reduced Paid-up Mode is not revived, it will not terminate and continue to be under Reduced Paid-up Mode for the remaining period
5. On the date of policy surrender
6. On the Maturity Date

Max Life Monthly Income Advantage Plan Terms & Conditions

Read the policy prospectus and the benefits illustration carefully to understand the plan details and how it will work. It will help you decide whether to purchase the policy or not. Check out the Max Life Monthly Income Advantage Plan terms and conditions now.

Free Look Period

You will have a period of 15 or 30 days (If you buy these policies from Distance Marketing) from the date of receipt of the policy document. This free look period is offered to you to review the terms and conditions of the policy. During this period, you can return the same if you disagree with any of those terms and conditions stating the reasons for your objection. Under this period, you are entitled to a refund of the paid premiums if you have exercised the policy return. The refund will be subject only to deduction of a proportionate risk premium for the period of cover and the expenses incurred by the company on medical examination of the Life Insured and stamp duty charges.

Grace Period

A grace period of 30 days from the first due date for premium payment will be allowed for all premium paying modes, except for monthly-mode, where the grace period is only 15 days. During the grace period, the company will accept the premium without any penalty interest. The insurance coverage will also continue during the grace period. If the Life Insured dies during the grace period, the company is entitled to deduct the unpaid premium from the payable benefits under this policy.

Exclusion

When a Life Insured, whether sane or insane, dies due to suicide within 12 months of the effective date of risk commencement or the date of policy revival, it will terminate immediately. In this case, the company shall pay either:

In case your policy has acquired a surrender value – The company will pay a higher of Surrender Value or total paid premiums + underwriting extra premiums paid + loadings for modal premiums paid, exclusive of any applicable taxes as imposed by the Government from the time to time.

In case your policy has not acquired a surrender value, the total paid premiums + underwriting extra premiums paid + loadings for modal premiums paid, but exclusive of any applicable taxes as imposed by the Government from time to time, are payable.

Section 45 

Under Section 45 of the insurance act, 1938, the following conditions will apply to your insurance plan:-

1. No policy of life insurance shall be called in question on any ground after the expiry of 3 years from the date of the policy (from the date of issuance of the policy, the date of commencement of risk, the date of revival of the policy, or the date of the rider to the policy) whichever is later.
2. A policy may be called in question at any time within 3 years from the date of issuance of the policy, the date of commencement of risk, the date of policy revival, the date of the rider to the policy, whichever is later, on the grounds of fraud, provided that the insurer communicates in writing to the insured or his/her legal representatives/nominees.

Explanation:-

Here, “fraud” means any of the following acts which are committed by the insured or by his agent, to deceive the insurer or to induce the insurer to issue a life insurance policy:

1. A fact that is not true and which the insured does not believe to be true
2. The active concealment of a fact by the insured knowing or believing the fact
3. Any other act fitted to deceive
4. Any such act or omission that is declared to be fraudulent by the law

Mere silence to the facts likely to affect the assessment of the risk by the insurer which is not fraud, unless the circumstances prove them. It is the duty of the insured or his agent, to keep this silence to speak, or unless his silence is, in itself, equivalent to speak.

Notwithstanding anything contained in this subsection, no insurer shall repudiate a life insurance policy on the grounds of fraud if the insured can prove that the misstatement of or suppression is true to the best of his/her knowledge and belief or that such misstatements of or suppression of a material fact are within the knowledge of the insurer; provided that in case of fraud, the onus of disproving lies upon the beneficiaries, in case the insured is not alive.

1. A person who solicits and negotiates an insurance contract will be deemed for the purpose of forming the policy contract, to be the agent of the insurer. A policy is called in question at any time within 3-years from the date of issuance of the policy, the date of commencement of risk, the date of policy revival, or the date of the rider to the policy, whichever is later. On the ground of any statement of or suppression of a fact material to the expectancy of the life of the insured if found incorrect in the proposal or other document based on which the policy is issued, revived, or rider issued; provided that the insurer should have communicated in writing to the insured or the legal representatives/nominees of the insured, on the grounds and material on which such decision policy repudiation of life insurance is based. In the case of repudiation of this policy on the ground of misstatement or suppression of a material fact, and not on the ground of fraud, the premiums collected on the policy till the date of repudiation will be paid to the insured or the legal representatives/nominees of the insured within 90 days from the date of such repudiation.
2. The misstatement of or suppression of fact is not considered material unless it has a direct bearing on the risk undertaken by the insurer. The onus is on the insurer to show that it was aware of the said fact that no life insurance policy would have been issued to the insured.  Nothing in this section prevents the insurer from calling for proof of age at any time if he/she is entitled to do so, and no policy is deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured is incorrect in the proposal form.

Prohibition of Rebates: The Section 41 of the Insurance Act, 1938, as amended from time to time, states that no person will allow or offer to allow, either directly or indirectly, to take or renew or continue the insurance in respect of any kind of risk relating to lives or property in India, any rebate of any whole or part of the payable commission or any rebate of the premium in the policy.

No person is allowed for taking out or renewing or continuing a policy accepts any rebate, except such rebates as may be allowed by the published prospectuses or tables of the insurer. If any person makes default in complying with the provisions of this section he/she will be liable for a penalty which may extend to ten lakh rupees.

Nomination

A nomination facility applies to your life insurance plan by provisions of Section 39 of the Insurance Act, 1938. These are the Rights and Responsibilities of a nominee in a life insurance plan.

1. In the case of death of the Life Insured during the policy term, the nominee will be entitled to receive the benefits which are secured under the policy.
2. While processing a claim for the death benefit or maturity benefit, the nominee will require to submit all necessary documents and give a valid discharge for the payment of benefits.

Assignment

An assignment will be applicable under Section 38 of the Insurance Act 1938 respectively.

Important Notes Max Life Monthly Income Advantage Plan

1. This policy prospectus does not purport to be a contract of the insurance and does not create any rights and/or obligations.
2. All the benefits mentioned in this page are payable subject to the terms and conditions of the Policy.
3. Underwriting Extra Premium is charged for substandard lives only
4. Benefits are available when all premiums are paid, as and when they are due
5. Life Insurance Policy is a subject matter of solicitation
6. Life Insurance Coverage is available in this Max Life Monthly Income Advantage Plan
7. All Policy benefits are subject to approval when the policy is in force
8. “We”, “Us”, “Our” or “the Company” is the Max Life Insurance Company Limited in the policy prospectus. Whereas “You” or “Your” means the Policyholder.
9. Policyholders and Life Insured cannot be different in this plan