Investment Plans 281 views December 3, 2020

With Max Life POS Guaranteed Benefit Plan, an insured can save and protect themselves as it provides guaranteed returns and Life Insurance coverage till the end of the Policy Term. For this Max Life insurance plan, you need to pay premiums for the first five years and can receive the guaranteed lump sum amount after 10 years.

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Key Features of Max Life POS Guaranteed Benefit Plan

Benefit on Maturity

The maturity benefit is payable to the life assured if the policy is not in Reduced Paid-Up mode. Your maturity benefit is equal to the Guaranteed Sum Assured at Maturity (GSAM). And after its payment, the policy will terminate, and no further benefits will be payable.

Benefit on Death

A death benefit is payable to the policyholder nominee if the Life Assured dies during the policy term, provided the policy is in force and not in reduced paid-up mode. And in this, a waiting period of 90 days will apply from the date of commencement of cover. Because if an insured person dies during the waiting period, no benefit is payable to the nominee except for the refund of 100% of the paid premium excluding GST and any other cess. You should know that if the insured dies due to an accident, no waiting period is applicable, and a full lump sum ‘Death Benefit’ is payable. The waiting period does not apply to policy revival.

Max Life POS Guaranteed Benefit Plan’s Death Benefit is the highest of the following:

  1. 10X the annualized premium + underwriting extra premiums (if any)
  2. 105% of Total Paid Premiums + underwriting extra premiums + modal premium loading
  3. Guaranteed Sum Assured at Maturity
  4. Any absolute amount assured to be paid on the death of the Life Assured

The policy will terminate once the death benefit is paid to the nominee.

Benefit on Surrender

You can surrender Max Life POS Guaranteed Benefit Plan anytime once it acquires a Guaranteed Surrender Value (GSV). Your policy surrender value is equal to the higher Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV),  where –

GSV = GSV factor x (Total Paid Premiums + Modal Premium Loading)

SSV = Reduced Paid-Up Guaranteed Sum Assured at Maturity x SSV factor

In the above formulae:

RPU Guaranteed Sum Assured at Maturity = (Total Paid Premiums + Modal Premium Loading) / (Total Payable Premiums + Modal Premium Loading) x Guaranteed Sum Assured at Maturity

Your policy will terminate once the surrender benefit is paid to the Life Assured.

Note – The company can change SSV factors upon the approval of the IRDAI

Reduced Paid-Up Max Life POS Guaranteed Benefit Plan

When your policy acquires a surrender value, in the case of due premium payment till the expiry of the grace period, the policy will not lapse but convert into a Reduced Paid-Up (RPU). And if it happens, the policy will continue with reduced benefits, which are as follows:-

  1. RPU Death Benefit = ((Total Paid Premiums + Modal Premium Loading) / (Total Payable Premiums + Modal Premium Loading)) * Death Benefit
  2. RPU Maturity Benefit = RPU Guaranteed Sum Assured as of the maturity date.
  3. RPU Surrender Value will remain the same

Free Look Period

Within 15 days of receipt of the Policy document, you can review the policy terms and conditions and return the same stating the reasons for disagreement. During this period, you are entitled to a refund of the paid premiums, subject to deduction of a proportionate risk premium, medical expenses incurred by the company, and stamp duty charges. The free look period can be for 30 days in case the policy is sourced through Distance Marketing mode such as:

  1. Telephone-calling;
  2. Short Messaging Service (SMS)
  3. E-mail
  4. Interactive television (DTH)
  5. Newspaper and magazine

Grace Period

Thirty days for annual payment mode and fifteen days for monthly payment mode is provided to Life Assured from the due date of each premium. In this period, you can pay your due premium without a late fee and the insurance coverage also continues during the grace period.

Suicide Exclusion

If the Life Assured dies by suicide within 12 months from the date of policy inception or revival, the company will pay the nominee either a Higher surrender value or total paid premiums including the underwriting extra premiums with modal premium loading (if any), provided the policy has acquired a surrender value. Otherwise, the total paid premiums including underwriting extra premiums with modal premium loading (if any), provided the policy has not acquired a surrender value.

Tax Benefits

The Life Assured can get tax benefits if he/she pays premiums. And these tax benefits are subject to change as per the prevailing income tax laws.

Important Notes:

  1. Coverage: All individuals irrespective of their gender or religion
  2. Entry Age: 18-50 years
  3. Maturity Age: 60 years
  4. Premium Payment Term: 5 years
  5. Policy Term: 10 years
  6. Premium Payment Mode: Annual and Monthly
  7. Minimum & Maximum Annualized Premium: INR 15,000-99,000
  8. Minimum & Maximum Guaranteed Sum Assured at Maturity: INR 98,309-7,61,714
  9. Loan: You can borrow a loan against Max Life POS Guaranteed Benefit Plan if it acquires a surrender value. The maximum loan limit is up to 80% of the surrender value.

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