Max Life Insurance Company is a private life insurer based in India. It is a joint venture between Max India and Mitsui Sumitomo Insurance Company. It is one of the fastest growing private insurers in India and boasts the fourth largest market share among private insurers. Max Life pension plans are meant to provide a secure future to seniors who have retired from professional capacities. These plans generally provide a fixed stream of income for the policy-holder on retirement from active duty.
Types of Max Life Pension Plans
Max life retirement plans are currently available under three types – Max Life Forever Young Pension Plan, Max Life Guaranteed Lifetime Income Plan, and Max Life Perfect Partner Super.
Max Life Forever Young Pension Plan
This plan provides two investment options – Pension Maximiser Fund and Pension Preserver Fund. In the former, a higher ratio of funds is invested in equity-based instruments (capital appreciation), as opposed to an emphasis on debt-based instruments in case of the latter (fixed income). Both the funds provide sufficient security against market downturns. The minimum entry age is 30 years and the maximum is 65 years. The minimum vesting age is 50 years (55 years for policies sourced under QROPS) and the maximum is 75 years.
Primary benefits of this plan include maturity and death benefits, apart from Guaranteed Loyalty Additions, a scheme under which 0.5% of the fund value is added each year after 10th policy year. 0.02% absolute fund appreciation is also provided from 11th year onwards.
This is a non-linked traditional annuity plan available in four variations – Single Life Annuity for Life (without death benefits), Single Life Annuity for Life with return of premium (ROP) payable on death, Joint Life Annuity for Life (without death benefits), and Joint Life Annuity for Life with ROP. The ROP plans pay the purchase amount (one-time lump sum payment) paid when buying the policy, excluding service taxes.
As the names suggest, the Single Life plans are meant for individual policy-takers while the Joint Life plans are meant for couples. Death benefits are only paid out in case of the ROP plans. Applicants within 50 to 80 years of age can apply for Max Life Guaranteed Income Plan.
This is a comprehensive life insurance and a retirement plan with death, maturity, and annuity benefits. With this plan, customers stand to receive lump sum maturity benefits as denoted in the policy document, as well as 7.5% of the sum assured every year from the age of 61 years up to 75 years. Apart from these, any nominee of the insured will receive the guaranteed death benefit plus terminal bonus and accrued interests.
The plan further provides terminal illness benefit, wherein if the insured suffers from a terminal illness with foreseen mortality of less than 6 months, then the insurer will provide a maximum of Rs.10 lakhs as lump sum to the insured. Also, any bonus or accrued interest can be used to offset future premium payment, increase the sum assured, or can be claimed in cash on a yearly basis. Minimum entry age is 91 days while maximum age varies between 45 years and 55 years according to chosen policy tenure.
Why Choose Max Life Retirement Plans?
Max Life pension plans are available in three types as discussed above. The policies come with further intrinsic options that give you more flexibility while choosing a product.
- Flexible tenure, premium, and choice of investment funds.
- Death and maturity benefits as per plan type.
- Lifetime annuity payments as per plan type.
- Branches located throughout the country.
- Easy and hassle-free processing of applications.
- Greater benefits than comparable products.
- More options to choose from.
Tips and example
The best way to approach a retirement plan is to map out your requirements beforehand, and then choose premiums or funds so as to meet that end. For instance, if you are more interested in a safe traditional annuity plan without additional benefits, then you could go for debt instruments based fund options that will provide you with fixed income once you retire. Suppose you have chosen Max Life Perfect Partner Plan. You buy the policy at 35 years of age, with a policy tenure of 20 years, and a premium of Rs.60,000 p.a. In this case, the guaranteed income becomes Rs.8, 81,704. So, when you turn 61, you will start receiving Rs.66,128 p.a. till you turn 75. You will stand to receive Rs8, 81,704 as and guaranteed maturity and Rs.15, 62,076 as maturity benefit at 4% interest p.a. Also, death benefits will be paid out, with the amount increasing as your age increases.
Max Life pension plans are among the most sought-after plans owing to their amazing features and a wide range of options. You can start building your retirement corpus today with a great plan from Max Life .
Other Max Life Insurance Plans
GST of 18% is applicable on life insurance effective from the 1st of July, 2017