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Benefits and Features of the Max Life Smart Wealth Advantage Guarantee (SWAG) Elite Plan

Learn Key Details of How the Max Life SWAG Elite Plan can help meet your savings and life cover needs.

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The uncertainty of the future is a problem that all of us have to grapple with. So, while we might not be able to always avoid an adverse outcome, we can definitely plan for it ahead of time. That’s when a savings plan with in-built whole life cover like the Max Life Smart Wealth Advantage Guarantee (SWAG) Elite Plan can come in handy.

The Max Life Smart Wealth Advantage Guarantee Elite Plan is a Non-Linked Non-Participating Individual Life Insurance Savings Plan (UIN: 104N138V01). This plan is a highly customisable solution that provides the dual benefit of guaranteed*# returns and life cover in a single package.  

Read on to know details of some key benefits and features of the Max Life Smart Wealth Advantage Guarantee Elite Plan.

4 Key Benefits of Max Life SWAG Elite Plan

Below-mentioned are the 4 prime benefits that the Max Life SWAG Elite Plan (non-linked, non-participating individual savings plan) has to offer to the probable policyholders:

1.       Guaranteed*# Returns on Survival

Survival benefit are applicable to policyholders, provided they survive till the end of the Survival Benefit Period. This means that if you have purchased the Max Life SWAG Elite Plan with a survival benefit period of 30 years, you are entitled to get the survival benefit at the end of this period. The calculation of survival benefits differs slightly depending on whether a policyholder has opted for the Wealth for Milestones or Long Term Income variant of the SWAG Elite plan. 

Below table illustrates the survival benefits that are available depending on which of the variants the policyholder has opted for:

Variant 1: Wealth for Milestones

 

Survival Benefit payable at the end of survival benefit period = Lump sum equal to Return of Premium (100% of total premiums paid) + Lump sum of Guaranteed*# Milestone Benefit + Lump sum Accrued Guaranteed*# Additions

Variant 2: Long Term Income

 

Survival Benefit = Income Benefit payable each year during the Income period + Loyalty Income Boosters payable each year during the Income period + Lump sum Return of Premium (100% of total premiums paid) payable at the end of survival benefit period

 

A few things to keep in mind here are:

  • Guaranteed*# Milestone Benefit and Guaranteed*# Additions are expressed as a % of total premiums paid. Both milestone and guaranteed*# additions vary on the basis of age, premium band and survival benefit period (SBP)/policy payment term (PPT) combination

  • Return of Premium (RoP) and Guaranteed*# Milestone Benefit fully accrue at policy inception. However, Guaranteed*# Additions will be split into 4 equal parts and each part will accrue at the start of the last 4 policy years of the survival benefit period, provided the policy is either premium paying or fully paid up.

  • Loyalty Income Booster equals 20% of Income Benefit Amount

  • Income Benefit accrues fully at policy inception

  • Annual Loyalty Income Booster accrues only at the start of each year, after the income deferment period ends and is payable annually during the income period

Note: Please refer to the Policy Prospectus for further details.

2.       Death Benefit

Death benefit is the amount that the nominee will receive on the death of the life insured, provided the plan is still in force. In the case of the Max Life SWAG Elite Plan, the pay-out of this death benefit differs slightly based on whether the policyholder has opted for Policy Continuance Benefit (PCB) at the time of purchasing the policy or not, as discussed below:

  • If PCB is opted and the life insured dies while the policy is in-force or fully paid, death benefit will be higher among:

a) Sum assured on death or

b) 105% of (Total premiums paid plus underwriting extra premiums plus loadings for modal premiums) as on the date of death of life insured

Additionally, any accrued survival benefit, if not already paid, shall be paid in addition to death benefit.

  • If PCB is NOT opted and the life insured dies during the policy term (or if the policy is fully paid-up), the death benefit shall be higher of:

o   Guaranteed*# Death Benefit, or

o   100% of Surrender Value as on the date of death.

If Policy Continuance Benefit is not opted, Guaranteed*# Death Benefit will be higher among:

a) Sum assured on death or

b) 105% of (Total premiums paid plus underwriting extra premiums plus loadings for modal premiums) as on the date of death of life insured

3.       Reduced Paid-Up Policy Benefits

Upon acquiring surrender value and if no additional premiums are paid, the policy automatically gets converted to Reduced Paid-Up or RPU policy. In such cases, the benefits will be calculated using a RPU factor. The RPU factor is defined as the ratio of the ‘total period for which premiums have already been paid’ to the ‘maximum period for which premiums were originally payable’.

In the case of RPU policy, the following types of survival and death benefits are available:

  • RPU policy death benefit will be higher among:

a) RPU sum assured on death = (RPU Factor * Sum assured on death, applicable before policy moved to RPU) or

b) 105% or total premiums paid i.e. Total Premiums Paid plus underwriting extra premiums plus loadings for modal premiums, as on the date of death of life insured or

c) 100% of Surrender Value on the date of death.

Additionally, any accrued survival benefits will also be paid, if not already paid.

  • RPU Return of Premium Benefit = RPU factor x Return of Premium benefit

  • RPU guaranteed*# milestone benefit = RPU factor x Guaranteed*# Milestone Benefit

  • RPU guaranteed*# addition benefit = RPU factor x 30% accrued GA benefit

  • RPU income benefit = RPU factor x income benefit

  • RPU loyalty income benefit = RPU factor x 30% accrued loyalty income benefit

  • Policy continuance benefit shall be available for RPU policy and in the case of death of life insured, the benefit will be payable as:

o   Higher among - RPU Sum Assured on Death or 105% of Total Premiums Paid plus underwriting extra premiums plus loadings for modal premiums, as on the date of death of life insured

o   Future survival benefit (as defined above for a policy in RPU mode).

Note: In the above cases, RPU factor may be defined as the ratio of the ‘total period for which premiums have already been paid’ to the ‘maximum period for which premiums were originally payable’.

4.       Surrender Benefit

Once the policy acquires its surrender value (after payment of 2 year’s full premiums) you can surrender your policy any time. The surrender benefit is acquired after the policyholder has paid the two year’s premium in full. Once the surrender benefit is taken by the policyholder, the policy terminates and no further benefits are payable.

In the case of Max Life SWAG Elite Plan, the surrender value is the higher amount among:

a) Guaranteed*# Surrender Value (GSV) or

b) Special Surrender Value (SSSV)

Additionally, on surrender, the policyholder would also receive any accrued survival benefit, if any such payments have not been made.

Features of Max Life SWAG Elite Plan

Apart from the key benefits detailed above, there are some features of the Max Life SWAG Elite Plan that prospective policyholders need to be aware of.

Max Life Smart Wealth Advantage Guarantee Elite Plan Features at a Glance

Guaranteed*# Returns with Whole Life Cover

Helps you achieve key life goals while ensuring future financial security of your loved ones  

Customisation Options

Enables choosing of premium payment term (PPT) and survival benefit options

Loan Against Policy

Avail a loan against your SWAG Elite policy to tide over financial emergencies

“Save the Date” Benefit

Allows you to choose a specific (special) date to receive your annual policy payout

Some Things to keep in mind about the SWAG Elite Plan include:

  • SWAG Elite offers guaranteed*# returns along with a whole life cover making it a good savings cum insurance option

  • The policyholder can avail either of the 2 variants of the SWAG Elite Plan. These are wealth for Milestone and Long Term Income

  • SWAG Elite allows policyholders to customise details based on premium payment options and survival benefit period options

  • Policyholders can also opt for optional riders and PCB (Policy Continuance Benefit) that can help maximise protection

  • In case of emergencies, the Max Life SWAG Elite Plan also provides the option of availing loan against the policy

  • Two options of ‘Save the Date’ and ‘Accrual of Survival Benefits’ for receiving pay outs

  • Save the Date option is available with Long Term Income Variant only where you can choose to take your annual income on any chosen date in a year

  • The accrual option allows you to keep the accrued survival benefits with the company if you do not want to take the pay-out at the specified time. In such cases, the pay-out frequency would automatically be changed to annual, irrespective of the payment frequency chosen earlier. However, upon cancellation of accrual, you may choose to avail your payments monthly or annually.

Frequently Asked Questions (FAQs)

Q. Do I get maturity benefit in Max Life SWAG Elite Plan? 

No. Max Life SWAG Elite Plan does not offer maturity benefit. It does offer death benefit, surrender benefit, survival benefit as well as reduced paid up benefits. 

Q. What is the revival period if my policy has lapsed? 

You can revive your Max Life SWAG Elite Plan within a period of 5 years from the date of first unpaid period if your policy has lapsed. 

Q. What will happen if I do not revive my lapsed policy? 

Your policy shall be terminated and no dues shall be payable to you if the lapsed policy is not revived within the stipulated revival period. 

Q. What are the variants of Max Life Smart Wealth Advantage Guarantee Elite Plan? 

Max Life SWAG Elite Plan comes with 2 variants of Wealth for Milestone and Long Term Income. 

Q. What is a Policy Continuance Benefit?  

Policy Continuance Benefit or PCB is an option while, if opted, shall make sure that your policy does not terminate at the event of your death and no premium payment is required as well. 

Q. What is the minimum entry age for purchasing Max Life SWAG Elite Plan? 

The life assured shall be minimum of 18 years of age (if PCB is opted) or 91 days (if PCB is not opted) for purchasing either of the variants of Max Life SWAG Elite Plan. 

Q. What is Save the Date feature in SWAG Elite?

The Save the date feature allows policyholders to select a specific date on which they will receive their annual income payout from the SWAG Elite plan. 

Disclaimer:

*#Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your Insurer carrying on life insurance business. The guaranteed and non-guaranteed benefits are applicable only if all due premiums are paid. 

ARN No : March24/Bg/06A