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Plan Benefits
Survival / Maturity Benefit
On completion of Policy Term/Premium Payment Term, you will get a Terminal Benefit and start getting guaranteed monthly income for 10 years
Survival Benefit = Income Benefit + Terminal Benefit
Income Benefit: Monthly income payable during the 10 year Payout Period post completion of the Policy Term. (please refer to the detailed product brochure for applicable Income Benefit)
Terminal Benefit: One time lump sum payout payable at the end of Payout Period
Policy Term | 6 years | 12 years |
Terminal Benefit | 125% of on Annualized Premium* | 200% of on Annualized Premium* |
You can avail Survival Benefit in lumpsum at the end of the Policy Term, before the commencement of the Payout Period. With this lumpsump payout option, you will get Guaranteed Sum Assured on Maturity** (GSAM) and the policy will terminate.
Even during the Payout Period, you will have an option to receive the present value of the outstanding Survival Benefit as lumpsum (Commutation Option).
*Annualized Premium is the amount of premium payable in the annual mode that excludes extra premium, rider premium, and all applicable taxes, cesses, and levies as imposed by the Government if any.
**Guaranteed Sum Assured on Maturity (GSAM) is defined as the present value of Survival Benefit at a discounted rate of 5.3% p.a. and is expressed in terms of annualized premium. GSAM is always higher than the sum total of annualized premiums payable over the policy term for all entry ages and is guaranteed.
Death Benefit
On death during the policy term, the nominee will receive a guaranteed lumpsum payout with an option to convert it into monthly income for 10 years.
On Death of the Life Insured during the Policy Term, lump sum Death Benefit equal to Guaranteed Sum Assured on Death (GSAD) will be payable to the nominee.
Policy Term | 6 years | 12 years |
Guaranteed Sum Assured on Death | 12.75 times of one Annualized Premium* | 18.50 times of one Annualized Premium* |
The nominee also has the option to convert this lumpsum into monthly payouts for a period of 10 years post the Date of Death. With this option, the nominee will receive a monthly income as follows:
Policy Term | 6 years | 12 years |
Monthly Income | (162% / 12) times one Annualized Premium* | (236% / 12) times one Annualized Premium* |
While receiving the Death Benefit in monthly installments, the beneficiary can also choose at a future date to commute all outstanding payouts and receive the present value of future outstanding payouts as a lumpsum as provided under the commutation option. The lumpsum payment on commutation will at least be equal to the Death Benefit less installments already paid to the beneficiary. The policy shall terminate on payment of the Commuted Value.
*Annualized Premium is the amount of premium payable in annual mode that excludes extra premium, rider premium, and all applicable taxes, cesses and levies as imposed by the Government if any.
**Death Benefit will be highest of the following values:
a) 10 times the Annualised Premium;
b) 105% of Total Premiums Paid;
c) Guaranteed Sum Assured on Maturity (GSAM) or
d) Guaranteed Sum Assured on Death (GSAD).
Commutation / Surrender Option
You can surrender your policy anytime after it has acquired a surrender value.
The policy acquires surrender value as shown below:
6/12 yearPolicy Term - After payment of 2 full years' premiums (13th month)
For more details on surrender values, please refer to the detailed prospectus.
At any point of time during the Payout Period or during the payout of Death Benefits, the Policyholder or Nominee has an option of Commutation that is to receive the present value of the future benefits. This option is available during the Survival or Death Benefit payout
Tax Benefits
You can get certain tax deductions on your premiums and on proceeds under the policy benefits.
Please note that all such tax deductions are subject to tax laws prevailing at the time of payment of premium or receipt of benefits.The Income Benefit; Terminal Benefit might not be tax-free in case premiums are loaded (extra Premium) at underwriting stage1.
How this plan works?
Case Study 1: 12 year Policy Term for Mr. Gupta’s child’s education
How does Max Life Guaranteed Income Plan work for Mr. Gupta?
Mr. Gupta is a 35 year old salaried employee. He is recently blessed with baby girl Pooja. He wishes to buy an insurance plan to support Pooja’s school and college education.
Mr. Gupta decides to buy Max Life Guaranteed Income Plan with a Policy Term of 12 years and Annualised Premium of Rs. 1,00,000. He also decides to have Mrs. Gupta as his nominee under the plan.
Following are the two illustrative scenarios under the plan:
Scenario 1: Mr. Gupta pays all due policy premiums and survives till end of the Policy Term. He will receive the following benefits:
Mr. Gupta’s Age (years) | Pooja’s Age (years) | Policy Year | Payout Year | Annualised Premium* Paid (Rs.) | Income Benefit (Rs.)** | Terminal Benefit (End of Payout Period) – One time Lumpsum (in Rs.) |
35 | 1 | 1,00,000 | ||||
36 | 1 | 2 | 1,00,000 | |||
37 | 2 | 3 | 1,00,000 | |||
38 | 3 | 4 | 1,00,000 | |||
39 | 4 | 5 | 1,00,000 | |||
40 | 5 | 6 | 1,00,000 | |||
41 | 6 | 7 | 1,00,000 | |||
42 | 7 | 8 | 1,00,000 | |||
43 | 8 | 9 | 1,00,000 | |||
44 | 9 | 10 | 1,00,000 | |||
45 | 10 | 11 | 1,00,000 | |||
46 | 11 | 12 | 1,00,000 | |||
47 | 12 | 1 | 1,31,370 per annum | |||
48 | 13 | 2 | 1,31,370 per annum | |||
49 | 14 | 3 | 1,31,370 per annum | |||
50 | 15 | 4 | 1,31,370 per annum | |||
51 | 16 | 5 | 1,31,370 per annum | |||
52 | 17 | 6 | 2,62,740 per annum | |||
53 | 18 | 7 | 2,62,740 per annum | |||
54 | 19 | 8 | 2,62,740 per annum | |||
55 | 20 | 9 | 2,62,740 per annum | |||
56 | 21 | 10 | 2,62,740 per annum | 2,00,000 |
* “Annualised Premium” means Premium amount payable during a Policy Year chosen by Policyholder, excluding Underwriting Extra Premium, Rider Premiums and applicable taxes, cesses or levies if any.
** The Income Benefit is payable monthly and is 1/12th of the Income Benefit mentioned in the table above and is expressed as a percentage of Annualised premium. The Income Benefit payable monthly in the last 5 years of the payout period is twice the Income Benefit payable monthly in the first 5 years of the payout period.
The guaranteed and non-guaranteed benefits are applicable only if due premiums are paid
The income received can be used by Mr. Gupta to ensure Pooja’s school education and also supplement her graduation expenses.
Scenario 2: Mr. Gupta dies after paying 2 Annualised Premiums. In this case, his nominee will get Rs. 18,50,000 as Death Benefit immediately upon approval of death claim.
However, Mrs. Gupta also has the option to avail the Death Benefit in monthly installments for a period of 10 years post the date of death. On exercising the option, the Death Benefit is payable as follows:
Mr. Gupta’s Age | Pooja’s Age | Policy Year | Benefit Payout Year | Annualised Premium* Paid (in Rs.) | Income Benefit payable for 10 years post date of death (in Rs.)** |
35 | 1 | 1,00,000 | |||
36 | 1 | 2 | 1,00,000 | ||
Mr. Gupta dies | 2 | 3 | 1 | 2,36,000 per annum | |
3 | 4 | 2 | 2,36,000 per annum | ||
4 | 5 | 3 | 2,36,000 per annum | ||
5 | 6 | 4 | 2,36,000 per annum | ||
6 | 7 | 5 | 2,36,000 per annum | ||
7 | 8 | 6 | 2,36,000 per annum | ||
8 | 9 | 7 | 2,36,000 per annum | ||
9 | 10 | 8 | 2,36,000 per annum | ||
10 | 11 | 9 | 2,36,000 per annum | ||
11 | 12 | 10 | 2,36,000 per annum |
*“Annualised Premium” means Premium amount payable during a Policy Year chosen by Policyholder, excluding Underwriting Extra Premium, Rider Premiums and applicable taxes, cesses or levies if any.
** The Income Benefit is payable monthly and is 1/12th of the Income Benefit mentioned in the table above
The guaranteed and non-guaranteed benefits are applicable only if due premiums are paid
Please Note: The risk cover in the policy shall be payable only during the policy term i.e. till the end of 12th policy year. In case of death during the Payout Period, we shall continue to pay the guaranteed monthly income and terminal benefit to the nominee as & when due and no death benefit shall be payable.
Case Study 2: 6 year Policy Term for Mr. Verma's retirement need
How does Max Life Guaranteed Income Plan work for Mr. Verma?
Mr. Verma is a 55 year old private sector employee who will retire at age 60. He has planned for his retirement but he wants a further guaranteed increase his retirement income.
Mr. Verma decides to buy Max Life Guaranteed Income Plan with a Policy Term of 6 years and Annualised Premium of Rs. 1,00,000. He also decides to make Mrs. Verma his nominee under the plan.
Following are the two illustrative scenarios under the plan:
Scenario 1: Mr. Verma pays all the due policy premiums and survives till end of the Policy Term. He will receive the following benefits:
Mr. Verma’s Age | Mrs. Verma’s Age | Policy Year | Payout Year | Annualised Premium* Paid (in Rs.) | Income Benefit (in Rs.)** | Terminal Benefit (End of the Payout Period) – One time Lumpsum (in Rs.) |
55 | 53 | 1 | 1,00,000 | |||
56 | 54 | 2 | 1,00,000 | |||
57 | 55 | 3 | 1,00,000 | |||
58 | 56 | 4 | 1,00,000 | |||
59 | 57 | 5 | 1,00,000 | |||
60 | 58 | 6 | 1,00,000 | |||
61 | 59 | 1 | 49,910 per annum | |||
62 | 60 | 2 | 49,910 per annum | |||
63 | 61 | 3 | 49,910 per annum | |||
64 | 62 | 4 | 49,910 per annum | |||
65 | 63 | 5 | 49,910 per annum | |||
66 | 64 | 6 | 99,820 per annum | |||
67 | 65 | 7 | 99,820 per annum | |||
68 | 66 | 8 | 99,820 per annum | |||
69 | 67 | 9 | 99,820 per annum | |||
70 | 68 | 10 | 99,820 per annum | 1,25,000 |
*“Annualised Premium” means Premium amount payable during a Policy Year chosen by Policyholder, excluding Underwriting Extra Premium, Rider Premiums and applicable taxes, cesses or levies if any.
**The Income Benefit is payable monthly and is 1/12th of the Income Benefit mentioned in the table above and is expressed as a percentage of Annualised premium. The Income Benefit payable monthly in the last 5 years of the payout period is twice the Income Benefit payable monthly in the first 5 years of the payout period.
The guaranteed and non-guaranteed benefits are applicable only if due premiums are paid
The income received can be used by Mr. Verma, to supplement income during his golden retirement years.
Scenario 2: Mr. Verma dies after paying 2 premiums. In this case his nominee (Mrs. Verma) will get Rs. 12,75,000 as Death Benefit immediately upon approval of death claim.
However, Mrs. Verma also has the option to avail the Death Benefit in monthly installments for a period of 10 years post the date of death. On exercising the option, the Death Benefit is payable as follows:
Mr. Verma’s Age | Mrs. Verma’s Age | Policy Year | Benefit Payout Year | Annualised Premium* Paid (in Rs.) | Income Benefit payable for 10 years post date of death (in Rs.)** |
55 | 53 | 1 | 1,00,000 | ||
56 | 54 | 2 | 1,00,000 | ||
Mr. Verma dies | 55 | 3 | 1 | 1,62,000 per annum | |
56 | 4 | 2 | 1,62,000 per annum | ||
57 | 5 | 3 | 1,62,000 per annum | ||
58 | 6 | 4 | 1,62,000 per annum | ||
59 | 5 | 1,62,000 per annum | |||
60 | 6 | 1,62,000 per annum | |||
61 | 7 | 1,62,000 per annum | |||
62 | 8 | 1,62,000 per annum | |||
63 | 9 | 1,62,000 per annum | |||
64 | 10 | 1,62,000 per annum |
*“Annualised Premium” means Premium amount payable during a Policy Year chosen by Policyholder, excluding Underwriting Extra Premium, Rider Premiums and applicable taxes, cesses or levies if any.
** The Income Benefit is payable monthly and is 1/12th of the Income Benefit mentioned in the table above
The guaranteed and non-guaranteed benefits are applicable only if due premiums are paid
Important Notes:
- Kindly note that the above case studies are only examples and do not in any way create any rights and/or obligations.
- At any point of time during the Payout Period or during the payout of Death Benefits, the Policyholder or Nominee has an option of Commutation that is to receive the present value of the future benefits. This option is available during the Survival or Death Benefit payout.
Few important terms and conditions (for other terms and conditions, please refer to the Policy Contract)
Check your eligibility
Premium Payment Term | 6 years or 12 years (same as the policy term) | |
Age at entry | 25-60 years | 25-55 years |
Maximum Maturity Age | 66 years | 67 years |
Premium Payment Options
Premium Payment Term | 6 years or 12 years (same as the policy term) | |
Premium Payment Modes | Annual Mode only | |
Policy Term | 6 years | 12 years |
Minimum Annualized Premium | Rs. 75,000 | Rs. 20,000 |
Maximum Annualized Premium | No limit, subject to underwriting | |
Downloads
| Downloads | Actions |
| Leaflet | |
| Prospectus | |
| Policy Contract | |
| Premium Rates Table |
