Investment Plans 127 views June 26, 2021

Max Life Shiksha Plus Super Plan

If you are planning for your child’s education, Max Life Shiksha Plus Super Plan could help you generate the corpus required to achieve the same. This plan ensures protection to your family along with coverage for your child’s education. Even in your absence, your family will continue getting policy benefits. When you choose this plan, you enjoy the flexibility to invest in equity markets with multiple fund options. 

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Before understanding this plan further, let’s check out its key features mentioned below.

  1. Comprehensive protection for your child’s future
  2. Family income benefit 
  3. Funding of future premiums in case of policyholder’s death
  4. Flexible policy and premium payment term options
  5. The choice to invest in 6 funds according to your convenience
  6. Multiple investment strategies – Systematic Transfer Plan and Dynamic Fund Allocation
  7. Guaranteed loyalty additions from the end of the 11th policy year
  8. Tax benefits on the premium paid under Income Tax Act, 1961
  9. Additional benefits through riders
  10. A 15 or 30-day free look period

On this page, we will talk about these features of the Max Life Shiksha Plus Super Plan extensively so that you can make a better decision regarding your child’s future. Let’s start!

Features and Benefits of Max Life Shiksha Plus Super Plan in Detail

Max Life Shiksha Plus Super Plan is a unit-linked non-participating individual life insurance plan that helps individuals meet higher education costs and other future expenses of their children. Here, you can go through its features and benefits mentioned in detail. Please check!

Flexible Investment Strategy

Shiksha Plus Super Plan offers you the option to choose the investment funds and strategy (Systematic Transfer Plan and Dynamic Fund Allocation) according to your convenience. The investment fund options are as follows.

  1. High Growth Fund
  2. Growth Super Fund
  3. Growth Fund
  4. Balanced Fund
  5. Conservative Fund
  6. Secure Fund

What is the Policy and Premium Payment Term?

Under the Max Life Shiksha Plus Super Plan, you can choose from two premium payment term options – 5 Pay and Regular Pay for which the policy term will be 10 and 15 to 25 years, respectively. For the regular pay variant, the policy term will be equal to the premium payment term.

What is the Minimum Sum Assured?

The minimum sum assured amount depends on the premium payment term. For the 5 Pay variant, it stands at INR 50,000 while for Regular Pay Variant, it will be INR 2,50,000 (Annually) and INR 4,80,000 (Non-annually). However, there is no maximum limit on the sum assured. 

Death Benefit

If a policyholder dies during the policy period, the nominee will receive a death benefit payout. Under the Max Life Shiksha Plus Super Plan, death benefits will include the following three components. 

Lump Sum Payment on Death

The nominee will receive the highest of the following amounts in case of the policyholder’s death.

  1. Sum Assured
  2. 105% of all premiums paid
  3. 0.5 x Policy Term x Annualised Premium

Family Income Benefit (FIB)

Max Life Shiksha Plus Super Plan also gives family income benefit under which an amount equal to 10% of the sum assured will be paid on each policy anniversary or the death of the life insured. This amount will be given until the end of the policy term but not exceeding ten such installments.

Note: Irrespective of the balance policy term leftover, a minimum of three installments (equal to 10% of the sum assured) will be paid in all situations of death of the life insured during the policy term. In case a policyholder dies with less than three policy years left, any excess installments will be paid by Max Life on the maturity date of the plan.

Funding of Premium

With this benefit component, if a policyholder dies during the policy term, Max Life will pay all the future premiums under the policy and the nominee will receive the fund value of maturity. Also, the policy will continue even after the death of the life insured until the end of the policy term. The nominee or beneficiary will get the benefits under the policy.

Guaranteed Loyalty Additions

Starting from the 11th policy year, 0.20% of the overall fund value will be accumulated to the fund with the creation of additional units at the end of every policy year. The guaranteed additions will increase by 0.02% each year thereafter. Do remember that the loyalty additions facility will be available only in case of a regular pay variant. 

Maturity Benefits

If you survive until the end of the policy term, the policy will give maturity benefits. This amount will be equal to your fund value (as on the date of maturity) if you have not exercised the settlement option. The fund value will be as follows.

Fund Value = Sum of [Accumulated Unit in Fund x NAV of respective fund as on the maturity date]

Additional Benefits Through Riders

You can also apply for Max Life COVID19 One Year Term Plus Rider to ensure financial protection from the COVID-19 treatment. With this rider, you will get a lump sum payout on diagnosis of COVID(20% of the sum assured) or death after diagnosis (100% of the sum assured). 

What is the Minimum Annualized Premium?

To know about the minimum annualized premium for Max Life Shiksha Plus Super Plan, please check the below table.

Premium Payment TermMinimum Annualized Premium (In INR)
5 Pay50,000
Regular PayAnnual Mode - 25,000

Non Annual Mode - 48,000

Note: You can also choose from multiple premium payment modes – Annual, semi-annual, quarterly and monthly – according to your convenience. 

Max Life Shiksha Plus Super Plan Eligibility Criteria

Do check the important conditions related to the Max Life Shiksha Plus Super Plan mentioned below.

  1. The entry age ranges from 21 to 50 years for a policyholder. Also, he or she should have a child aged between 0 and 18 years.
  2. The maximum maturity age stands at 60 and 65 years for 5 pay and regular pay variants, respectively.

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