Investment Plans April 21, 2021

Max Life Forever Young Pension Plan is a unit-linked insurance plan that provides guaranteed benefits to safeguard you, your spouse and your other family members against financial risks. This pension plan helps you create savings for your retirement years while protecting you from the ups and downs of the equity market. You can also opt for an annuity benefit under Max Life Forever Young Pension Plan, so you can live your life on your terms with regular income. Key benefits of Max Life Forever Young Pension Plan are –

  1. Death Benefit
  2. Vesting Benefit
  3. Loyalty Benefit
  4. Investment Option
  5. Rider Coverage

Read this post further and know more about the features and benefits of Max Life Forever Young Pension Plan

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List of Max Life Forever Young Pension Plan Benefits

If you purchase this unit-linked pension plan from Max Life Insurance, you will be eligible for the following benefits –

Death Benefit

In case of your unfortunate demise, your nominee will receive a higher of –

  1. Fund Value
  2. 105% of the cumulative paid premiums including top-up premiums, if any (exclusive of rider charges, if opted)

The nominee can utilize the death benefit in any of the following ways –

  1. Use the entire death payout or a part of it for purchasing an Immediate or Deferred annuity plan from the insurance company
  2. Withdraw the entire death payout in a lump sum

Note – The nominee can purchase the annuity from any other insurer as well to the extent stipulated by the Insurance Regulatory and Development Authority of India (IRDAI). Currently, 50%, of the entire proceeds of the policy can be used to purchase the annuity from other insurers as per IRDAI guidelines. In case the death payout of the policy is not sufficient to purchase the minimum annuity, the proceeds of the policy will be paid in a lump sum.

Vesting Benefit

The vesting benefit that you will receive is based on the investment option chosen by you. For instance, if you opt for the Pension Maximiser Option, you will receive an amount higher of –

  1. Fund Value
  2. 101% of cumulative paid premiums including top-up premiums if any (excluding rider charges, if any)

Whereas if you opt for the Pension Preserver Option, you will receive an amount higher of –

  1. Fund Value
  2. 110% of cumulative paid premiums including top-up premiums if any (excluding rider charges, if any).

Following are the options available to you on the vesting date –

  1. Commute up to 60% of the fund value and utilize the balance amount to purchase – immediate or deferred annuity from Max Life or any other insurer
  2. Extend the accumulation/deferment period within the same policy with the same terms and conditions as the original policy. This option is available to you if your age is less than 60 years on the vesting date.
  3. Utilize the entire proceeds to purchase an immediate or deferred annuity from the insurance company or any other insurer.

Conditions applicable on the vesting benefit:  

  1. The guaranteed vesting benefit shall be payable only upon the maturity of the policy and not upon its surrender or termination before the vesting date whether the premium is paid or not.
  2. Guarantee charge shall continue to apply during the policy term and is also applicable on all top-ups
  3. Rider charge is excluded from the guaranteed vesting benefit. The vesting benefit is calculated as follows – Fund Value = (Accumulated Units) * (Prevailing NAV)
  4. Guaranteed Loyalty Additions

The insurance company will provide loyalty additions to you provided all due premiums have been paid in full. Under this, 0.50% of the Fund Value shall be added to the policy fund by the creation of additional units. This benefit shall be available at the end of every policy year starting from the end of the 10th policy year. From the 11th policy year, guaranteed loyalty additions increase by 0.02% (absolute) each year.

These Guaranteed Loyalty Additions are subject to the following terms and conditions:

  1. Guaranteed Loyalty Additions are payable to you only if the policy is in force and all due premiums are paid
  2. Guaranteed Loyalty Additions shall be payable in both Regular Pay and Single Pay variants
  3. If the policy lapses and later gets revived, the Guaranteed Loyalty Additions for previous years will be added based on the fund value prevailing on the revival date.

Fund Options Under Max Life Forever Young Pension Plan

You can choose any one of the below-mentioned funds –

  1. Pension Maximiser Fund – If you choose Pension Maximiser, 100% of your premiums including top-up premiums, if any, shall be invested in equity to achieve capital appreciation.
  2. Pension Preserver Fund – If you choose Pension Preserver, 100% of your premiums including top-up premiums shall be invested in fixed income instruments and thus provides a higher quantum of guarantee.

Note: You can only choose the fund option at inception and no alteration is allowed during the policy term.

Rider Option Under Max Life Forever Young Pension Plan

Max Life Partner Care Rider is the only available rider under Max Life Forever Young Pension Plan. The rider provides an optional cover to the insured, so in the unfortunate event of death, your nominee receives extra financial support besides the above-mentioned death benefit. You can opt for this rider if your age is between 21 and 55 years. Max Life Partner Care Rider expires once the life insured attains the age of 60 years. This rider is available to you if you have the regular pay variant of the Max Life Forever Young Pension Plan.

The insurer will charge the following rate for this rider cover, check out the table below to know the same:

Age (In Years)Rider Rate (In INR)
301.17
351.39
402.05
453.11

Note – The above-mentioned rider rate is per thousand Sum at Risk. The Sum At Risk for the rider is the sum of the remaining premiums payable under the policy till the time the life insured turns 60 years.

In case the premium is not paid by the expiry date of the grace period, the base cover and rider cover will stop and no further charges shall be levied by the company other than the Fund Management Charge, which is applicable on the Discontinuance Policy Fund.

Free Look Period

The insurer will inform you about the free look period via letter that you have a period of 15 days from the date of receipt of the policy document to review the terms and conditions of the policy. And if you disagree with any of the terms and conditions, you can return the policy to the insurer stating the reasons for your objection. When the insurer receives a cancellation request during the free look period, you shall be entitled to an amount equal to the non-allocated premium plus charges levied by cancellation of units plus fund value as on the date of cancellation. This refund shall be provided to you by the insurer after deductions of mortality and rider charges (including service tax) for the period on cover, medical examination expenses, if any, and stamp duty charges.

The free look period will be 30 days if the policy is purchased through a distance marketing channel. Distance Marketing includes solicitation and sale of insurance through the following –

  1. Voice mode – Telephone-calling
  2. Electronic mode – E-mail, Internet and Interactive Television (DTH)
  3. Physical mode – Direct postal mail, Newspaper and magazine inserts
  4. Solicitation – Policy purchase by other means of communication apart from the above, other than in person.

Note – If the Max Life Forever Young Pension Plan is purchased under  Qualifying Recognized Overseas Pension Scheme (QROPS), through the transfer of UK tax-relieved assets, the proceeds from cancellation during the free look period shall be transferred back to the fund house from where you can withdraw money. The insurer is entitled to repurchase the units at the price prevailing on the date of cancellation.

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