Max Life Saral Pension

Max Life Saral Pension

 

A hundred different thoughts go through your mind as you consider your future. However, for most people, retirement planning is not something they consider while they are young. It can be difficult to take a step back and think about your future in today's fast-paced world.

However, this is precisely why it is important to begin investing in a pension plan as early as possible in life. Its ability to establish a safety net for your later years is extremely valuable. With the increasing cost of living, it is more important than ever to find the right pension plan to meet your needs.

If you are looking for a smart plan that makes your pre and post retirement more comfortable and secure, Max Life Saral Pension may be it. Here’s everything you need to know about it to plan your future wisely:

What is Max life Saral Pension?

Max Life Saral Pension is a Non-linked, Non-participating Single Premium Individual Immediate Annuity plan (UIN: 104N119V01) that ensures a steady income stream after you retire. It comes with a guaranteed income* so that you can fulfil your needs pre and post-retirement.

Note: *Please see the annuity quote to know the annuity rate at the time of purchase for different ages and combinations

*A guaranteed income benefit is payable for the payout period as per the options selected, post completion of the policy term.

For most people, an ideal plan would be one that helps you take care of yourself and the financial obligations towards loved ones. If your spouse is dependent on you for their well-being, choosing Max Life Saral Pension can be a favourable decision as it offers single life and joint life annuity. This means that you can choose to receive life-long payments for your and your partner’s lifetime. 

 

More importantly, you can begin planning for your later years early in life with the Max Life Saral Pension. Anyone of age of 40-80 is eligible to purchase this plan. All you need to do is:

  • Decide on a purchase price that you want to pay to buy this policy.
  • The annuity amount you receive will be determined by the annuity rate in effect when the policy was purchased. These annuity rates are guaranteed for the life of the annuitant once acquired.
  • You can opt for any one of the two annuity options available under the policy. i.e. Single or Joint Life.
  • Choose one of the four annuity payment options: monthly, quarterly, half-yearly, or annual.

Benefits of Max life Saral Pension

Benefits of Max life Saral Pension

Everyone has their view of life after retirement, which typically involves relaxing and spending time with loved ones. After working hard for much of your life, it is well-deserved. Choosing Max Life Saral Pension can be a smart way to secure to your life post 40’s as it offers valuable benefits for post-retirement life as well.

Here are the benefits you will get when you purchase Max Life Saral Pension:

1. Death Benefit

A death benefit is payable with the Max Life Saral Pensionto the nominee of the policy holder. The entire death benefit will be paid in one lump sum to the nominee/legal heir, and the policy will be terminated.

Here is how it would work for the two annuity variants:

For Single Life Immediate Annuity: If you are the primary annuitant, then in the event of your demise, 100% of the purchase price will be returned.

For Joint Life Annuity: If the spouse, i.e., secondary annuitant, is surviving after your demise, the spouse continues to receive the same amount of annuity for life till his/her death. Subsequently, upon the spouse’s demise, 100% of the purchase price (single premium*) shall be payable to the nominee/legal heir. 

However, if the spouse passes away before the primary annuitant, then on death of the primary annuitant, 100% of the purchase price (single premium*) shall be payable to the nominee/ legal heir.

*“Single Premium” or “Purchase Price” is defined as the lump sum premium amount paid by the policyholder at the inception of the policy, excluding the taxes, if any.

2. Survival Benefit

As part of the survival benefit of the Max Life Saral Pension, the annuity amount is payable by the end of the modal period chosen by the policyholder.

Here is how it would work for the two annuity variants:

For Single Life Annuity: A fixed annuity amount is payable for your lifetime, which is guaranteed at the inception of the policy.

For Joint Life Annuity: A fixed annuity amount, payable for both the annuitant’s (last survivor) lifetime, is guaranteed at policy inception. With this option, the last survivor continues to receive the same amount of annuity for life till his/her death.

2. Survival Benefit

As part of the survival benefit of the Max Life Saral Pension, the annuity amount is payable by the end of the modal period chosen by the policyholder.

Here is how it would work for the two annuity variants:

For Single Life Annuity: A fixed annuity amount is payable for your lifetime, which is guaranteed at the inception of the policy.

For Joint Life Annuity: A fixed annuity amount, payable for both the annuitant’s (last survivor) lifetime, is guaranteed at policy inception. With this option, the last survivor continues to receive the same amount of annuity for life till his/her death. 

3. Tax Benefits 

With the Max Life Saral Pension, you may be eligible for tax benefits on the premiums and insurance benefits. Please keep in mind that all tax benefits are subject to the tax laws in effect at the time you pay your premium or receive your benefits.

Features of Max life Saral Pension

Let’s have a look at some practical features of the Max Life Saral Pension which can make your retirement planning more efficient:

Features of Max life Saral Pension

Let’s have a look at some practical features of the Max Life Saral Pensionwhich can make your retirement planning more efficient:

1. Annuity Options

As mentioned above, there are two variants of the annuity available with Max Life Saral Pension:

Single Life Immediate Annuity for Life: Under this variant, you will receive a guaranteed fixed income throughout your life as per the chosen payout mode. The annuity will be discontinued upon your demise, and 100% of the purchase price will be payable to the nominee of the policy.

Joint Life Immediate Annuity for Life: Under this variant, you are entitled to receive a fixed income guaranteed at the policy inception as long as at least one of the annuitants is alive. The annuity will be discontinued upon the death of the last survivor, and payment of death benefit and 100% of the purchase price shall be paid to the nominee of the policy

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1. Annuity Options

As mentioned above, there are two variants of the annuity available with Max Life Saral Pension:

Single Life Immediate Annuity for Life: Under this variant, you will receive a guaranteed fixed income throughout your life as per the chosen payout mode. The annuity will be discontinued upon your demise, and 100% of the purchase price will be payable to the nominee of the policy.

Joint Life Immediate Annuity for Life: Under this variant, you are entitled to receive a fixed income guaranteed at the policy inception as long as at least one of the annuitants is alive. The annuity will be discontinued upon the death of the last survivor, and payment of death benefit and 100% of the purchase price shall be paid to the nominee of the policy

2. Surrender Value

Max Life Saral Pension policy may be surrendered at any time after six months from the date of commencement if you, your spouse, or any of your children are diagnosed with any of the critical illnesses mentioned in the policy contract. On accepting the surrender, you will receive 95% of the purchase price as a lump sum payment. Once the surrender value is paid, the policy stands terminated.

3. Loan Facility

Once you cross 6 months of the policy period for Max Life Saral Pension, you are eligible to avail a loan anytime. If you have opted for the joint life option, you can avail the loan, and in the unfortunate event of your demise, your spouse can avail a loan from the policy. The interest on the loan will be deducted from the annuity payable under the policy.

4. Return of Premium on Death

With the Max Life Saral Pension, the single premium** of the policy is returned to the nominee or the legal heir upon the demise of the primary annuitant in case of single life and last survivor in case of joint life.

 **“Premium” here refers to “Purchase Price” or “Single Premium” which is defined as the lump sum premium amount paid by the policyholder at the inception of the policy excluding the taxes if any

5. Payout Methods

You can choose the payout mode for Max Life Saral Pension at the time of purchasing the policy. The payout options available are monthly, quarterly, half-yearly or annually.

For more details on features of Max Life policy, please refer to prospectus. 

Reasons to Invest in Max life Saral Pension

There is no such thing as an ideal time to start thinking about retirement. Your financial profile can change as you progress through life. However, it is advisable to start preparing for later retirement in your early years of life at early stage.

 

Here are some reasons why Max Life Saral Pension can be a favourable option for you:

Reasons to Invest in Max life Saral Pension

There is no such thing as an ideal time to start thinking about retirement. Your financial profile can change as you progress through life. However, it is advisable to start preparing for later retirement in your early years of life at early stage.

 

Here are some reasons why Max Life Saral Pension can be a favourable option for you:

 

 

Disclaimer: *Please see the annuity quote to know the annuity rate at the time of purchase for different ages and combinations

*A guaranteed income benefit is payable for the payout period as per the options selected, post completion of the policy term.

How Does Max life Saral Pension Work?

How Does Max life Saral Pension Work?

Let’s see how Max Life Saral Pension works for Mr. Ahuja, a 45-year-old businessman  whose income source has been affected due to Covid-19. He is looking for a guaranteed source of income to take care of his current fixed expenses as well as the expenses post-retirement.

He decides to purchase a joint life annuity of Rs. 25 lakhs on 1st June, 2021 for himself and his wife, 40 years old. If he selects the annual payment frequency for the annuity, he will be eligible to receive an annual income of Rs. 1,39,125 starting 1st June, 2022.

Premium Payment Options

Premium Payment Options

The premium payment option for Max Life Saral Pension is single pay. The amount of the premium paid as single pay is equal to the purchase price of the annuity. There is no maximum limit to the premium payment for this policy.

Frequently Asked Questions (FAQs)

Frequently Asked Questions (FAQs)

✅ What is the Free Look Period?

The policyholder will have the opportunity to cancel the policy under the ‘Free look’ option of 15 days (30 days in case of electronic policies and policies obtained through distance mode) from the policy inception date.

✅ What Is the Eligibility Criteria For This Plan?

Anyone over the age of 40 and under 80 can purchase Max Life Saral Pension.

✅ Can The Secondary Annuitant Take a Loan On the Policy?

Under the joint life annuity variant, the secondary annuitant can avail a loan on the policy in case of the primary annuitant’s demise.

✅ What Is the Annuity Rate For Such Policy?

These are the annuity rates for a male for a Single Premium of ₹10 lakh:

Age of the Annuitant(s)

Single Life Annuity

Joint Life Annuity

45

55,220

54,880

5o

55,220

54,960

55

55,350

55,090

60

55,490

55,240

65

55,630

55,410

 

# Please note that in the Joint Life Immediate Annuity, the annuity payouts are based on the assumption that the age of the secondary annuitant (female) is five years lower than the age of the primary annuitant (male)

✅ Is There A Maturity Benefit Available With This Policy?

No, there is no maturity benefit available with Max Life Saral Pension.

    ARN: 11052021/SPP-1