Investment Plans 202 views March 8, 2021

Max Life Platinum Wealth Plan is a unit-linked life insurance plan that helps grow your money by investing across different financial instruments, besides offering your dependents a lump sum amount in case you die during the policy term. So, the premium you pay towards Max Life Platinum Wealth Plan secures the future of your loved ones in both your presence and absence. The plan comes with the following features –

  1. Life Insurance Coverage of 10X the Annualized Premium
  2. Flexible Premium Payment Term and Policy Term
  3. Wide Range of Funds & Strategies

Investment

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Start reading this post further to know more about the features and benefits of Max Life Platinum Wealth Plan.

Max Life Platinum Wealth Plan Life Cover

In case of your death, the Max Life Platinum Wealth Plan provides Death Benefit to your nominee. The Death Benefit is higher of the following:

For Single Pay:

  1. 1.25X the Single premium less the applicable partial withdrawals, if any
  2. 105% of cumulative premiums paid as on the date of death
  3. Total Fund Value as on the date of death

For Limited Pay or Regular Pay:

  1. 10X the annualized premium or 0.5X the product of policy term and annualized premium less the applicable partial withdrawals, if any
  2. 105% of cumulative premiums paid till the date of death
  3. Total Fund Value as on the date of death

Under Max Life Platinum Wealth Plan, the policyholder can be different from the life insured. The applicable partial withdrawals mentioned above refer to all the partial withdrawals that the insured has made 2 years before the date of death. However, on attaining the age of 60 years, all partial withdrawals which are made within two years before the age of 60  years shall be reduced from your sum assured to determine the actual sum payable on death.

Max Life Platinum Wealth Plan Policy Term & Premium Payment Term

You have the following Premium Payment Term and policy term options under Max Life Platinum Wealth Plan –

Policy Term (In Years)Premium Payment TermSum Assured (In INR)
10Single Pay - the premium will be paid only once in a lump sum1.25X the Annualized Premium
10-20Limited Pay - premiums can be paid yearly, half-yearly, quarterly or monthly for five years only, starting from the policy inception date.Higher of:-
10X the Annualized Premium

0.5X the Policy TermX the Annualized Premium
10-20Regular Pay - the premium payment term will be the same as your policy term, and you can pay premiums yearly, half-yearly, quarterly or monthly, whatever is suitable to you.Higher of:-
10X the Annualized Premium

0.5X the Policy TermX the Annualized Premium

The minimum premium amount is INR 2,00,000 for all premium payment variants. However, there’s no maximum limit to it under the Max Life Platinum Wealth Plan. The minimum sum assured under Single Pay is INR 2.5 Lakh, whereas for Limited Pay and Regular Pay minimum sum assured is INR 20 Lakh. Your maximum sum assured shall be subject to the board-approved underwriting.

Max Life Platinum Wealth Plan Options of Fund & Investment Strategies

The insured can choose to invest in the following 5 Funds available under Max Life Platinum Wealth Plan.

  1. Growth Super Fund – An equity-oriented fund with at least 70% of the fund corpus in equities and remaining in debt instruments such as government & corporate bonds and money-market papers.
  2. Growth Fund – Invests in various asset classes – Equities, Government Securities, Corporate Bonds and Money-market Instruments. Around 20-70% is invested in equities while the remaining fund corpus goes into debt instruments.
  3. Balanced Fund – Aims to generate balance returns through investing in debt instruments such as Government Securities, Corporate Bonds, Money Market Instruments, etc. It invests a minimum of 10-40% of the fund corpus in equities.
  4. Conservative Fund – It is primarily a debt fund that invests in Government Securities, Corporate Bonds, Money Market Instruments, etc. Around 15% of the fund corpus goes into equities.
  5. Secure Fund – This fund invests in debt instruments such as money-market securities as prescribed by the Insurance Regulatory Authority of India (IRDAI).
  6. Secure Plus Fund – The objective is to provide higher security of investment by investing in sovereign papers that carry an implicit guarantee for repayment of principal and interest from the Government of India. The fund invests primarily in debt instruments such as Government Securities, Corporate Bonds, Money Market Instruments, etc. issued primarily by the Government of India or the State Government, Corporate and banks. It also invests in money market instruments as prescribed by the IRDAI.

After choosing the fund, you may opt for either the Systematic Transfer Plan (STP) or Dynamic Fund Allocation strategy. You should know that Secure Plus Fund will be available to you under STP only.

Max Life Platinum Wealth Plan Maturity Benefit

On maturity, the life assured will receive an amount equal to the Policy Fund Value, where it is calculated as:

Fund Value = Summation of [Accumulated Units in Fund(s) X NAV of respective Fund(s) as on the date of Policy Maturity]

Note: If the policy maturity date is a non-working day for the company or markets, the Net Asset Value (NAV) of the next working day will apply to the policy fund value.

Other Benefits Under Max Life Platinum Wealth Plan

Besides the above-mentioned benefits, you should also get the following under Max Life Platinum Wealth Plan –

Guaranteed Loyalty Additions – You will  get an added percentage of Fund Value at the end of the policy year based on the premium amount as mentioned below:

  1. For Annualized Premium < INR 5 Lakh – 0.10% of the Fund Value be added to your Policy from the end of the 11th policy year. This loyalty addition shall be increasing by 0.05% every year thereafter
  2. For Annualized Premium >= INR 5 Lakh – 0.10% of the Fund Value be added to your Policy from the end of the 6th policy year. This loyalty addition shall increase by 0.05% every year thereafter

Note: These additional units shall be created in a different fund in proportion to the Fund Value as on the date guaranteed loyalty additions are due to be paid by the company. Your policy shall accrue guaranteed loyalty additions only if all due premiums have been paid in full.

Guaranteed Wealth Boosters – Apart from the Guaranteed Loyalty Additions, you will also get Guaranteed Wealth Boosters. This is an additional percentage of the Fund Value and gets added to the fund by the creation of additional units at the end of every 5 years starting from the 10th policy year. The guaranteed wealth booster shall be added to your plan as follows –

  1. For Annualized Premium < INR 5 Lakh – 2% of the Fund Value will be added to the policy fund units at the end of 10th, 15th and 20th Policy Year.
  2. For Annualized Premium >= INR 5 Lakh – 2.5% of the Fund Value will be added at the end of 10th, 15th and 20th policy year.

The additional units are created in different funds as in proportion to the Fund Value on the date guaranteed wealth boosters are due to be paid by the company. These guaranteed wealth boosters shall be available to you, provided all due premiums have been paid. In case of revival of policies, the guaranteed wealth boosters for previous years are added based on the Fund Value prevailing on the date of policy revival.

Max Life Platinum Wealth Plan Eligibility Criteria

To purchase Max Life Platinum Wealth Plan, you should meet the following

ParticularsDetails
Minimum Entry Age18 years
Maximum Entry Age55 years for Regular Pay
And
60 years for Limited Pay and Single Pay
Maximum Maturity Age70 years for Limited Pay and Single Pay
And
65 years for Regular Pay

Note: The age of the life assured is taken as on the date of the last birthday.

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