Max Life Future Secure II Savings Plan

1. Premium paying modes - The premiums can be paid only in an annual mode
2. Premium paying method - Premiums for the policy can be paid through internet banking, ECS, cheques, demand drafts, credit cards and other applicable transaction medium
3. Basis - This is a participating endowment insurance, which means it allows the policyholder to garner benefits of investment through loyalty additions and bonuses offered through the plan, along with providing a
4. Policy validity - The policy is valid for the chosen policy term and is liable to lapse if premium payment is not done within the provided grace period and its benefits will cease
5. Free Look period - This policy offers a free look period of 15 days from the date of receipt of the policy documents during which the policyholder can review the terms and conditions of the policy.
6. Grace period - A 30 day grace period is offered in the Life Gain Premier Savings plan where the policyholder can make the premium payment within 30 days from the due date.

Benefits of Max Life Future Secure II Plan:

This traditional policy from Max Life is aimed at providing many benefits to the policyholder and his/her family and focuses on ensuring a healthy financial scenario on retirement or in the case of unfortunate demise. The following are a detailed list of the benefits offered under this policy -

1. Death benefit - The death benefit under this plan is payable on the death of the life insured, provided the policy is in force. The policy terminates with the death of the life insured and the death benefit is a total of the following (subject to a minimum of 105% of all the premiums paid as on the date of death) -
   1. Guaranteed Death Benefit (Guaranteed Maturity Sum chosen at the time of policy inception)
   2. Accrued Reversionary Bonuses (if any)
   3. Terminal Bonus (if any)
   4. Additional Benefit - If the death occurs due to accident, the nominees will receive an additional 50% of the Sum Assured
   5. In case the life insured and proposer are discrete individuals and the life insured is a minor, the policy will continue till the the end of the policy term with future premiums being waived off
2. Maturity benefit - The maturity benefit under this plan is payable on survival of the life insured on the date of maturity, provided the policy is in force and it will include Guaranteed Sum Assured, Accrued Reversionary Bonuses (if any) as well as Terminal Bonus (if any)
3. Surrender Benefit - The policy acquires a surrender value post full payment of premiums on three years of policy term. Provided the policy is in force, it can be surrendered to obtain a Guaranteed Surrender Value. The amount thus payable as surrender benefit is at the discretion of the bank
4. Loan Facility - Loans can be availed under this policy provided the policy has acquired a Special Surrender Value after payment of three years’ annual premiums in full and the loan is subject to a maximum of 80% of the Surrender Value. The applicable rate of interest on the loan will be 11% per annum
5. Bonuses - Being a participating endowment plan, this plan offers many bonuses and they are as follows -
   1. Reversionary Bonus - Announced every year from the second policy year onwards, if applicable, this will be a compound rate determined each year and applied as a percentage of the base Sum Assured
   2. Terminal Bonus - Will be payable, if applicable, on claims made post 120 months of the policy initiation. The terminal bonus is payable only once on the earlier event of maturity, surrender or death
6. Tax benefits - One might be eligible for availing tax benefits for premiums under Section 80C and for maturity/death benefits under Section 10(10D) as per the prevailing tax laws

Eligibility Criteria for Max Life Future Secure II:

Life insured and proposer can be different in this policy and while the life insured can be within the age group of 1 year to 55 years, the proposer needs to be within the age group of 18 years to 60 years. The maximum age at maturity of the policy will be 75 years.

How Max Life Future Secure II Works?

Mr. A is a 28 year old salaried professional and lives along with his wife Mrs. A, aged 26 years and they have a 2 year old daughter.

The scenarios for Mr. A could be as follows -

Scenario 1 - He opts for with a Guaranteed Maturity Sum Assured of Rs. 5,00,000 and a premium payment term of 12 years on the fixed policy term of 20 years. His premium contribution amounts to Rs. 50,000 annually (not inclusive of taxes and any other charges) ensuring a successful policy processing. With the above policy details, Mr. A becomes the proposer and his 2 year old daughter is the life insured.

In case of the eventuality that Mr. A passes away anytime during the payment term, the policy shall continue without requiring the payment of due premiums post his death. The plan for his daughter’s education comes to fruition. These amounts are indicative and do not include any taxes or charges.

Scenario 2 - Mr. A plans to have an easy retirement option and make his hobby of photography into a profession. He opts for Max Life Future Secure II with a Sum Assured of Rs. 3,00,000 and pays an annual premium of Rs. 25,404.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017