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Investment Plans 170 views December 29, 2020
Max Life Assured Wealth Plan is a non-linked non-participating individual life insurance plan from Max Life Insurance that helps you get a fully guaranteed lump sum at maturity. Besides, you have flexible premium payments and policy terms, systematic savings, and a lump sum payment upon the death of the life assured for complete financial security for your family in your absence. Read further to know how this Max Life Insurance product helps allay your future concerns.
Table of Contents
Max Life Assured Wealth Plan Benefits
Death Benefits
It is payable to the nominees upon the death of the life insured during the policy term, provided the policy is in force. Here, a lump sum death benefit is payable, which remains the highest of the following:
- 10X the sum of annualized premium and underwriting extra premiums, if any.
- 105% of the sum of total paid premiums, underwriting extra premiums and loadings for modal premiums, if any.
- Guaranteed Sum Assured at Maturity
- Or any absolute amount assured to be paid on death
Maturity Benefit
At maturity, this benefit will be payable to the life assured upon survival till the end of the policy term. Max Life Assured Wealth Plan Maturity Benefit is equal to Guaranteed Sum Assured at Maturity.
Surrender Benefit
You can surrender your policy once it acquires a Guaranteed Surrender Value (GSV). And the GSV is defined as follows: GSV factor x (Total Paid Premiums + Loading for Modal Premiums, if any). The GSV factors for the policy is as follows:
| Policy Year | GSV Factor |
|---|---|
| 1 | NIL |
| 2 | 30% |
| 3 | 35% |
| 4 | 50% |
| 5 | 52% |
| 6 | 54% |
| 7 | 56% |
| 8+ | Pass linearly from 56%-90% during the last two policy years as per the formula of: Minimum (56% + [(34% x (N-7)) /(Policy term - 8)], 90%), Where N : Year of surrender. |
Whereas, if a Special Surrender Value (SSV) is paid to you, the policy gets terminated immediately after the payment of surrender benefit.
Reduced Paid-Up Benefits
If Max Life Assured Wealth Plan has acquired a surrender value, it becomes Reduced Paid-Up (RPU), in case of non-payment before the expiry of the grace period. But the benefits will continue as mentioned below:-
RPU Guaranteed Sum Assured on Maturity = ((Total Paid Premiums + Loadings for Modal Paid Premiums if any/(Total Payable Premiums + Loadings for Modal Payable Premiums, if any) X Guaranteed Sum Assured on Maturity.
RPU Death Benefit = ((Total Paid Premiums + Loadings for Modal Paid Premiums if any/(Total Payable Premiums + Loadings for Modal Payable Premiums, if any) X Death Benefit
The death benefit and maturity benefit for an RPU Max Life Assured Wealth Plan will be on the date of death or the maturity date.
Tax Benefits
Your premium payments and maturity benefits from Max Life Assured Wealth Plan are admissible for tax benefits per the prevailing income tax law.
Additional Benefits of Max Life Assured Wealth Plan
You can enhance your life insurance policy by adding any of the following riders to your Max Life Assured Wealth Plan.
- Max Life Term Plus: An additional lump sum benefit in case of death of the life assured
- Max Life Accidental Death & Dismemberment: An extra protection cover for your family in case you meet with an accident and it causes dismemberment or death.
- Max Life Waiver of Premium Plus: Waiver of all future premiums is provided in case of critical illness diagnosis, dismemberment, or death (only if Life Insured and Policyholder are different individuals).
- Max Life COVID19: Financial protection from COVID 19, as a lump sum payout is available on COVID-19 diagnosis or death due to COVID.
- Max Life Critical Illness and Disability: A comprehensive insurance to cover a maximum of 64 critical illnesses along with total and permanent disability coverage.
Max Life Assured Wealth Plan Eligibility
You should check out the below criteria first before you go to buy Max Life Assured Wealth Plan.
- The Minimum entry age is 91 Days
- The maximum entry age is 60 years
- Premium Payment Term of 5, 8 and 10 years available
- Minimum Guaranteed Sum Assured at Maturity is INR 1,61,225
- Premium Payment Mode is annual or monthly
- Free Look Period is 15 days if sourced via non-distance marketing mode. Otherwise, it is 30 days if the policy is sourced through distance marketing modes.
- A grace period of 30 days from annual premium payment and 15 days if the premium payment mode is monthly.
- Suicide exclusion will apply if the life assured dies within 12 months from the date of policy commencement or revival. In this case, the nominee will get either policy surrender value or the sum of total paid premiums, whichever is higher.
The policy term for this Max Life Insurance policy will be as follows:
- 10, 15, 20 years for premium payment term 5 years
- 16 years for the premium payment term of 8 years
- & 15, 20 years if the premium payment term is of 10 years
Note: If the life assured is a minor at the time of policy purchase, there will be a proposer to propose the Max Life Assured Wealth Plan. And the proposer should be the rightful owner of the policy during the minority of the life assured. But the insurance shall continue on the life of the life assured once he/she attains majority. The proposer relationship to the Life Assured will be of either parent or legal guardian.