Our Unit Linked Max Life Group Gratuity Plus Plan facilitates the employers to fund their gratuity liability in the most effective manner. This plan helps the employer in the following ways:
- The gratuity fund is built up systematically to meet the future gratuity payments
- The fund will earn returns as per the performance of the funds opted by the client. Better market performance will increase returns and reduce cost to the employer
- Assistance in the formalities required for the formation of the trust and approval of the fund
- Assistance in the administration of the scheme
- The plan allows employers to opt for life insurance cover together with the gratuity benefit payments.
- The initial and annual contributions will be invested in accordance with the terms of the Policy and will be made available to make benefit payments as requested by the Trustees*
*If at any point in time, the account value is not sufficient to pay the benefits, the Policyholder will pay the shortfall. Liability of Max Life Insurance will be limited to the account value
Policyholder may choose to invest in any one or more of the four funds: Conservative, Balance, Growth Fund or Group Gratuity Bond Fund in a given proportion chosen by them. At a later date, they may amend this proportion by giving a notice of at least 7 days to the Company.
The investment mix of these funds is as follows:
|Asset Type || Conservative Fund ULGF00317/04|
| Bond Fund ULGF00707/02/|
| Balanced Fund ULGF00217/|
| Growth Fund ULGF00117/04/|
|Low Risk||Low Risk||Medium Risk||High Risk|
|Govt. Securities||50 - 80||60 – 100||20 – 50||0 - 30|
|Corporate Bonds||0 - 50||20 – 40||0 - 30|
|Money Market |
|0 - 20||0 – 40||0 – 20||0 - 20|
|Equities||Nil||Nil||10 - 40||20 - 60|
Key Charges and Frequency of Charges
- Premium Allocation Charge- Premium Allocation Charges: 1.5% of Contribution Amount for fund size less than 1 Crore and NIL for fund sizes 1 Crore or more.
- Switching Fee- No fee for first six switches in a Policy year provided the switch amount is up to Rs 50 Lacs. Subsequent switches and switches of more than Rs 50 Lacs shall attract a fee of Rs 500 per switch. This fee may be increased after clearance from the IRDA but shall not exceed Rs 1000 per switch.
- Surrender/Termination Charge- If the fund is withdrawn before the completion of three years a surrender charge of 0.05% of the fund value subject to a maximum cap of Rs 500,000 will be applicable. No surrender charge is applicable after completion of 3 years.
- Policy Administration Charge- Nil
- Fund Management Charge– Fund Management Charge as % per annum of the Fund Value
This is a charge levied as a percentage of the value of assets and shall be appropriated by adjusting the net asset value. The rate of fund management charge applicable is given below:
|Name of the Fund||Conservative Fund||Bond Fund||Balanced Fund||Growth Fund|
|Fund Management Charge||0.75%||0.75%||0.85%||0.95%|
Company may increase the fund management charge from time to time after clearance from IRDA but shall never exceed 1.35% of the Fund Value per annum.
*Above charges subject to Service Tax & Education Cess as per applicable laws.