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Max Life

Group Gratuity Premier Plan

Group Gratuity Premier
A Unit Linked Group Insurance PlanUIN: 104L087V01

Max Life Group Gratuity Premier 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 you. Better fund 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
  • Fixed Cover of Rs. 1,000 per eligible member
Max Life Group Gratuity Premier
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    What this plan offers you

    Key Features:

    Plan Benefit:

    EventsHow and when Benefits are payableSize of such benefits / policy monies
    Death of MemberPayable on death provided the policy is in forceSubject to scheme rules, the benefit payable is accrued gratuity based on the salary at the time of death subject to availability of fund in the scheme plus an amount of Rs 1,000 from the compulsory insurance cover.
    Maturity of MemberOn retirement or resignation of a member from employmentSubject to scheme rules, Accrued Gratuity based on salary at retirement or resignation will be paid subject to availability of fund in the scheme.
    Surrender/Termination
    of scheme
    Policy can be surrendered / terminated at any time by giving a 3 month's notice.Fund value less applicable surrender charges.
    Loyalty AdditionsGuaranteed Loyalty addition is payable only in case policy is in force.
    Fund Size at the time of loyalty additionLoyalty Addition expressed as a percentage of Unit Fund ( Added at the end of every month)
    Less than Rs. 10 CroresNil
    Greater than or equal to Rs. 10 Crores0.0083% per month
    (0.1% per annum)

    The loyalty addition will be based on fund value (before the addition of loyalty addition) at the end of each month. The loyalty addition as expressed in the table above shall be added to the Unit Fund by creation of additional units. Guaranteed Loyalty addition is payable only in case policy is in force.
    The additional units shall be apportioned basis the proportion of investment into each fund chosen by the Policyholder.

    Key Charges:

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    Are You Eligible?

    • Minimum/Maximum Initial Contribution –Rs.500,000 / No Limit (as per actuarial valuation AS-15(R)
    • Sum Assured –Fixed life insurance cover of Rs.1,000 per member
    • Group Size –Minimum: 10 at time of taking of scheme ; Maximum: No limit
    • Policy Term -One Year Renewable Scheme
    • Minimum/Maximum Entry Ages (as at last birthday) – 18/74 Years
    • Maximum cover ceasing age (as at last birthday) – 75 Years
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    How this plan works?

    • The employer first creates a trust and appoints Trustees to administer the gratuity scheme. However, it may be noted that the trust may or may not be created by employer. Therefore under the Policy, either Trustees or the employer can be a Policyholder. The Policyholder pays an initial contribution & annual contribution to Max Life Insurance Company towards gratuity liability. Initial contribution is the contribution in respect of any past service gratuity liability of the employer. This contribution may be paid at the time of the policy issuance or at any time during the first five policy year in not more than five annual installments. Annual contribution is the contribution in respect of any gratuity liability accruing in respect of the service completed by the employees in the current policy year. These payments would normally be based on upon the actuarial advice to the Trustees by an Independent consulting actuary (who is not employed by Max Life).
    • The Policyholder can invest the contributions in the investment funds offered by Max Life Insurance. Currently Max Life Insurance offers 4(four) investment funds under this scheme viz. Conservative Fund, Balanced Fund, Growth Fund and Bond Fund. Max Life Insurance will open and manage a “Unit Account” for the Policyholder in which units are allocated following the receipt of contributions and cancelled for the purpose of paying gratuity benefit and charges.
    • A member on either leaving service due to retirement/ resignation or on death/disability during the service, or any other such event that may terminate the employment after five years, Max Life Insurance will pay the benefit by redeeming the units in the investment funds to pay the gratuity benefit. The condition of continuous service of five years is not necessary if the termination of employment is due to death or disablement. The contributions and benefits under the product will be applicable as per scheme rules. Please note that the maximum liability of company shall be limited to the unit account value of the policy.
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    Which funds you can invest in?

    A policyholder may choose to invest in any one or more of the four funds: Conservative, Balanced, Growth or Bond Fund in a given proportion chosen by them. At a later date, the policyholder can amend this proportion.

    The investment mix of these funds is as follows:

    Asset TypeConservative Fund (%)Bond Fund (%)Balanced Fund (%)Growth Fund
    Risk FactorsLow RiskLow RiskMedium RiskHigh Risk
    Government Securities50-8060-10020-500-30
    Corporate Bonds0-5020-400-30
    Money Market Instrument/Cash0-200-400-200-20
    EquitiesNilNil10-4020-60

    The Company may add, amend, alter, combine or close a fund or funds as per the File & Use procedure of the IRDAI. Policyholders will be informed at least 60 days before such action and policyholder will be allowed to transfer their fund to alternative funds free of any charge provided their request is received by the Company before the schedule date of such amendment, alteration or the closure. In case policyholder does not respond within the given time period of 60 days, the company shall transfer the existing funds to the "least risky" of the available funds. "Least risky" refers to the fund with the highest proportion of Government securities.

    The investment objective of these funds is as follows:

    Conservative Fund (SFIN: ULGF00317/04/06GRATCONSER104): The investment objective of the Conservative Fund is to invest mainly in low risk assets for e.g. Government Securities and Corporate Bonds. The fund will not invest in equities.

    Bond Fund (SFIN: ULGF00707/02/13GRATPLBOND104): The investment objective of the Bond Fund is to generate higher returns in fixed income space (no exposure in equities) by a dynamic mix of investments in Government Securities and Corporate Bonds with liquidity support from a proportion invested in money market instruments.  Risk-reward trade-off between government securities and corporate bonds shall be the guiding factor to decide on the mix of the two investment classes.

    Balanced Fund (SFIN: ULGF00217/04/06GRATBALANC104): The investment objective of the Balanced Fund is to have a mix of Government Securities, Corporate Bonds, Equities and Money Market instruments so that the risk-return profile of the fund is balanced.

    Growth Fund(SFIN:ULGF00117/04/06GRATGROWTH104): The investment objective of the Growth Fund is to have a mix of Government Securities, Corporate Bonds, Equities and Money Market instruments with relatively higher exposure in equities in the expectation of higher returns from this fund.

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    Disclaimer

    Max Life Insurance Co. Limited. is a joint venture between Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max Life Insurance Co. Ltd., 11th Floor, DLF Square Building, Jacaranda Marg, DLF City Phase II, Gurgaon (Haryana) – 122002. Extra Premium may be charged for substandard lives. Benefits are available provided all premiums are paid, as and when they are due. Service Tax, Education Cess and any other statutory levies would be levied as per applicable laws. Insurance is the subject matter of solicitation. Life Insurance Coverage is available in this Product. All Policy benefits are subject to policy being in force. For more details on risk factors, terms & conditions please read the sales brochure carefully before concluding the sale. Trade logos displayed above belong to Max Financial Services Ltd. and Mitsui Sumitomo Insurance Co. Ltd. respectively and are used by Max Life Insurance Co Ltd under a license.
    IRDAI - Registration No. 104.
    Max Life/WebInsert/Indigo/GGPP/March2016/182

    BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS
    IRDAI clarifies to public that

 

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3 reasons why you should buy this plan

  • Lower charges
  • Guaranteed Loyalty Addition
  • Flexibility to choose from 4 fund options

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