Max Life Smart Wealth Advantage Guarantee Plan

Life becomes better with certainty, especially when you are an individual who has numerous financial responsibilities on your shoulder. Whether providing for your children’s education or fulfilling your own ambitions, some sort of guarantee is much needed in life. Max Life offers you this guarantee and certainty in the form of guaranteed*# income. Our Max Life Smart Wealth Advantage Guarantee Plan (Non-Linked Non-Participating Individual Life Insurance Savings PlanUIN:104N124V02) is the one-stop solution if your goal is financial security with life cover. Max Life Smart Wealth Advantage Guarantee Plan offers guaranteed returns to meet your multiple financial goals – including wealth building and tax savings.

Let’s understand Max Life Smart Wealth Advantage Guarantee Plan in detail.

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What is Max Life Smart Wealth Advantage Guarantee Plan?

Max Life Smart Wealth Advantage Guarantee Plan is a comprehensive solution that offers you- wealth building and financial protection for your family. The highlight of the plan is the guaranteed returns that you can get on your savings and investment. In addition, the Max Life Smart Wealth Advantage Guarantee Plan offers a customized solution that exclusively meets your financial requirements.

Features of Smart Wealth Advantage Guarantee Plan

Max Life Smart Wealth Advantage Guarantee Plan offers you a package of features. Here are some of them:

1. Guaranteed Returns:

Not everything in life comes with certainty, however, your returns can. With Max Life Smart Wealth Advantage Guarantee Plan, you can lock-in your returns. This means you get guaranteed returns irrespective of how the market is performing. Guaranteed returns can help you relax, knowing you have earnings to fall back on to meet your future needs. These guaranteed returns can be your armour against any kind of financial uncertainty.

2. Comprehensive Financial Security for your Loved Ones:

What you leave behind for your family is as important as what you provide for them in your presence. Max Life Smart Wealth Advantage Guarantee Plan ensures that your family has a financial shield around them during your absence. The plan offers a life cover if the life insured dies untimely during the policy term (given the policy is in force). In addition, the plan comes with an in-built accidental death benefit that pays an additional amount( that equals 50% of the sum assured if the premium payment term is completed) if the insured dies due to an unfortunate accident.

3. Flexibility to Choose Mode of Payout: Accrual or Save the Date:

You are the policyholder; you take the call. With Max Life guaranteed returns product, you can choose between receiving the annual payout on a specified date of the year or accruing it to receive it on a later date with added interest.

Save the Date Feature: The income payout is usually paid out on the policy anniversary date under variants 2, 3, 4 and 5. However, the customer has the flexibility to receive it on any date as per their choice with this feature.

Accrual Method: You can choose to accrue your income and withdraw it later with added interest.

4. Flexibility to Choose Income Pay out Frequency Option:

Under some variants of the plans that offer the Income benefit, you have the option to choose the income payout frequency. You can choose to get the payout annually, semi-annually, quarterly and monthly. You also have the flexibility to change the income payout mode at any time during the policy term.
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5. Facility to Avail Loans:

Our wealth plan can come to your rescue if you find it hassling to avail loans from banks during emergencies. With Max Life Smart Wealth Advantage Guarantee Plan, you can avail loan against your policy to meet your urgent financial requirements.

6. Special Benefits and Discounts:

Apart from helping you reach your financial goals, we help you save more. For example, with the Max Life Wealth guarantee product, you get a series of special benefits and discounts. These discounts include existing customer discounts, staff discounts, transgender lives discounts, special rates for female lives, and special boosters upon choosing higher premiums or/and auto pay modes of premium payment.

Here's everything you need to know about the discounts:

Existing Customer Discount: A 2% discount will be applicable on first-year premium for the non-single premium payment term. For single pay variants, this discount is 0.5%.

Auto Debit Boosters: An amount equal to 1% of the premiums (including modal loadings) paid through auto debit mode will be added in the survival benefit.

Staff Discount: A 2% discount will be applicable on the first year premium for non-single pay variants.

Transgender Lives Discount: A 2% discount will be applied on the premium paid for non-single pay variants (For the first year). As for single pay variants, this discount is 0.5% of single premium.

Discounts for Women: To encourage women to buy Max Life Smart Wealth Advantage Guarantee Plan, separate rates are applicable for females.

7. Policy Continuous Benefit:

Max Life Smart Wealth Advantage Guarantee Plan comes with a Policy Continuance Benefit. The feature ensures that your survival and maturity benefits are payable as and when due without any need of premium payment.

8. Get Additional Riders and Tax Benefits:

You get the benefit of multiple riders with Max LifeAdvantage Guarantee Plan . Riders allow you to extend your range of benefits by paying a small premium. The riders available under this plan include Max lifeWaiver of Premium, Accidental Death and Dismemberment Rider, Critical Illness and Disability Rider, and Max Life Term Plus Rider.
In addition to getting these riders, you can get tax benefits under Section 80C of the Income Tax Act.

9. Flexibility to Choose a Settlement Option:

Max Life Smart Wealth Advantage Guarantee Plan allows you to break your maturity and death benefits and receive them in instalments.

i) Death Benefit as Settlement:
Two settlement options are available to receive the ‘Death Benefit’ as Settlement: a) Regular Monthly Income for 60 months: You shall get 1.88% of ‘Death Benefit’ as monthly income payable for 60 months.
b) Regular Annual Income for 5 years: You shall get 22.10% of ‘Death Benefit’ as annual income payable for 5 years.

ii) Maturity Benefit as Settlement
The subscriber can receive maturity benefit either as regular monthly income for 60 months or as regular annual income for 5 years.

Benefits Under Max Life Smart Wealth Advantage Guarantee Plan

Max Life Smart Wealth Advantage Guarantee Plan comes with survival, death, and maturity benefits. These benefits differ according to the different variants of the plan. Let’s look at them one by one.

Survival Benefit:

The customer is eligible to avail survival benefit if they survive the policy term. Survival benefit is payable in the form of Income Benefit, Loyalty Income Booster or/and Money Back Benefit, depending on your choice of variant. Here’s the variant-wise bifurcation of the survival benefit:

Variant 1 l Wealth for Milestones: Survival benefit is not applicable under this variant. Variant 2 l Regular Wealth: The survival benefit applicable under this variant includes both the income benefit and Loyalty Income Booster. The booster is equal to 10% of the Income Benefit. Variant 3 l The Long-Term Wealth: The survival benefit applicable under this variant includes both the income benefit and the Loyalty Income Boosters. The booster is equal to 20% of the Income Benefit. Variant 4 l Early Wealth Variant: Under this variant, only income benefit is applicable. Variant 5 l Lifelong Wealth Variant : This variant offers income benefits, Loyalty Income Boosters equal to 20% of the Income Benefit, and Money Back Benefit payable once the subscriber attains the age of 85. The Money Back Benefit equals 50% of the Sum Assured on Maturity (SAM).

Maturity Benefit:

Max Life Smart Wealth Advantage Guarantee Plan offers maturity benefit for Variant 1, Variant 3,4, and 5. Here’s a detailed bifurcation of the maturity benefits applicable under these Variants.

Variant 1 and Variant 4 (Wealth for Milestones and Early Wealth Plan) –

The maturity benefit under these variants include Sum Assured on Maturity and accrued guaranteed additions.

Variant 3 and Variant 5 (Long Term Wealth and Lifelong Wealth) –

Under these variants, maturity benefit would be equal to the Sum Assured on Maturity (SAM). This sum shall be equal to the total premiums payable.

Death Benefit:

As the plan comes with a life cover, a death benefit is offered under all the variants. It shall be payable when the life insured dies during the policy term. The death benefit varies depending on the Policy Continue Benefit (PCB).

If PCB Has not Been Opted:

The death benefit would be the sum assured on death and 125% of the Surrender Value, whichever is higher. This is applicable only when the customer has opted for a single-pay Premium Payment Term.
If the single pay premium payment term has not been opted, whichever is higher of the three will be payable: Sum Assured on Death, 105% of the (Total Premiums paid and underwriting extra premiums plus loading for modal premiums) and 125% of the surrender value should be payable.

If PCB is Opted:

With the different investment plans available today, you can avail of the flexibility of selecting the investment amount and its tenure based on your goals and timelines.

How Does Max Life Smart Wealth Advantage Guarantee Plan Work?

Max Life Smart Wealth Advantage Guarantee Plan offers you guaranteed returns to ensure that you and your family lead life with financial certainty. The plan requires the policyholder to pay a premium for a defined premium term, after which they get a lump-sum or income benefit, depending on the chosen variant. Max life’s product comes in multiple variants. These variants have their own benefits. Let’s look at these variants in detail.

  • Variant 1: Wealth for Milestones Variant

This variant of the plan gives you the flexibility of choosing between multiple premium payment windows. You can either pay a one-time or regular premium for 5, 6,8, 10, or 12 years. In addition, wealth for the Milestone variant offers a lump-sum benefit at maturity. The lump-sum benefit includes the sum assured at maturity and accrued guaranteed additions.

Let’s understand the variant in detail with the help of an illustration:

Mr. Verma, aged 35 years, pays a premium of Rs. 1,00,000 (via ECS mode of payment) in Max Life Smart Wealth Advantage Guarantee Plan on an annual mode. He opts for the Wealth for Milestones variant. Under this variant, he opts for an 8-year premium payment term & 16-year Policy Term. The total benefit payable at Maturity is Rs.(16,58,247) which is a sum of Sum Assured at Maturity= Rs.12,56,248 and Accured Guaranteed Additions = Rs. 4,01,999.

Under this variant of the plan, Mr. Verma. The total premiums paid by Mr. Verma would be INR 8,00,000.
The maturity benefit he would receive will be Rs. 16,58,247 at the end of 16 years. The Life Cover applicable for him at the inception of the policy would be Rs 11,00,000, and it may keep increasing further as per the applicable terms of his policy.

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  • Variant 2: Regular Wealth Variant

The regular wealth variant features a limited-pay premium payment option where you can pay a premium for 5,6,8,10, or 10 years as per your preference. Against which you get a regular income. Under this variant, you can also choose to defer your income period. The deferment period can range between 0 to 5 years. Therefore, the policy term for this variant would be the addition of the premium payment term + deferment period + income period.

Let’s understand the variant in detail with the help of an illustration:

Mr. Sharma, aged 36 years, pays a premium of Rs. 1,00,000 (via ECS mode of payment) in Max Life Smart Wealth Advantage Guarantee Plan on an annual mode. He opts for Regular Wealth variant. He chooses a 10 year Premium Payment Term, 2 year Deferment Period and a 5 year Income Term. He chooses annual income payout option.

Let’s see how the variant works for him: The total premium paid by Mr. Sharma is Rs. 10,00,000. He would receive a total income of Rs.16,67,425, Rs.3,33,485 every year.

The Life Cover applicable for him at the policy's inception is Rs, 11,00,000, which may increase further as per the policy terms.

  • Variant 3: Long-Term Wealth Variant

The long-term wealth variant of Max Life Smart Wealth Advantage Guarantee Plan pays back the total premium paid by you as a lump-sum on maturity. It is a limited pay variant where you can choose the premium payment term, income period, and deferment period of 0 to 5 years. The maturity benefit under this variant is the total premium paid by you.

Let’s understand how the variant works with the help of an illustration:

Mrs. Anjali Singh, aged 40 years, pays a premium of Rs. 1,00,000 (via Direct Debit mode of payment) in Max Life Smart Wealth Advantage Guarantee Plan on an annual mode. She opts for Long Term Wealth variant, 10-year Premium Payment Term, 2-year deferment period and 20-year income term. She chooses an annual income payout option. Let us see how this plan would work for her:

The total premiums paid by Mrs. Anjali Singh is Rs. 10,00,000. She receives a total income benefit of Rs. 23,14,800 (1,15,740 every year) and a maturity benefit (return of total premiums payable) of Rs. 10,00,000 at maturity.
The Life Cover applicable for her at the start of the policy is Rs. 11,00,000, which may increase further as per the policy term.

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  • Variant 4: Early Wealth Variant

This variant of Max Life Smart Wealth Advantage Guarantee Plan allows you to initiate income from the 1st year onwards once the premium payment term ends. You also can choose the premium payment term, income period, and policy term. You can choose a premium payment term of 10,12,15,20 years as per your financial goals. The policy term under this variant is the addition of premium payment term, income deferment period and income period. You also get a lump-sum benefit at maturity. This includes the sum assured on maturity and guaranteed additions accumulated.

Let’s understand how the variant works with the help of an illustration:

Mrs. Sarah, aged 35 years, pays a premium of Rs. 1,00,000 (via ECS mode of payment) in Max Life Smart Wealth Advantage Guarantee Plan on an annual mode. She opts for Early Wealth variant with a 10-year Premium Payment Term and 30-year Policy Term. She decides to take her income from 1st year and go for an annual payout. Let us see how this plan would work for her:

The total premiums paid by Mrs. Sarah is Rs. 10,00,000. She receives a total income benefit of Rs.6,00,000 (20,000 every year) and a maturity benefit of Rs. 24,03,667 at the end of 30th year.

The Life Cover applicable for her at the inception of the policy is Rs, 11,00,000 which may increase further as per policy terms.

  • Variant 5: Lifelong Wealth Variant

Like other variants, this variant of Max Life Smart Wealth Advantage Guarantee Plan gives you the option of choosing the premium payment term. The policy term of the period would be the gap between 100 and the entry age (the age at which you buy the policy). The income period of this variant begins 1 year after the premium payment term ends. This period lasts till the policyholder attains the age of 100. The guaranteed maturity benefit under this variant is divided into two phases, wherein 50% of the premium paid is payable once the insured reaches the age of 85. The remaining premium is payable at the end of the policy term as a maturity benefit. The death benefit is also applicable under this variant.

Let’s understand how the variant works with the help of an illustration:

Mr. Saxena, aged 50 years, pays a premium of Rs. 1,00,000 in Max Life Smart Wealth Advantage Guarantee Plan. He opts for the Lifelong Wealth variant with an 8-year Premium Payment Term. He chooses an annual income payout option. Let us see how this plan would work for him:

The total premiums paid by Mr. Saxena is Rs. 8,00,000. Further, he receives a total income benefit of Rs. 55,948 annually. In addition, upon death any time before attaining 100 years of age, he further gets a death benefit as applicable.
The Life Cover applicable for him at the inception of the policy is Rs, 11,00,000, which may increase further as per the terms of the policy.

Who Should Buy Max Life Smart Wealth Advantage Guarantee Plan?

Max Life Smart Wealth Advantage Guarantee Plan is designed to cater to every family’s needs. Hence, here’s what makes the variants ideal for a certain set of investors.

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Variant 1 (Wealth for Milestones variant):The Wealth for Milestones variant is ideal for those who prefer a lump-sum maturity amount to fulfill their short-term financial goals. The variant is also suitable for those who prefer to invest in guaranteed lump-sum instruments.

Variant 2 (Regular Wealth variant): The Regular Wealth variant is ideal for individuals who want a regular stream of secondary income for a designated period of time to fulfil multiple planned goals for their family and children.

Variant 3 (Long-term Wealth variant): The Long-term Wealth variant of the plan is ideal for who want a regular stream of long term secondary income to fulfil multiple planned goals for themselves and their family.

Variant 4 (Early Wealth Variant): The Early Wealth variant of the plan is ideal for investors who prefer to get their returns starting as early as year 1.

Variant 5 (Lifelong Wealth Variant): The Lifelong Wealth variant of our plan is ideal for individuals wanting an income stream for their post retirement years.

Premium Band Details

If you choose a higher premium band, you can get additional monetary benefits under all plan variants. The following are the premium bands available with this plan:

Annualised Premium Bands (in Rs.)

1. Less than 50,000

2. From 50,000 to less than 1,00,000

3. From 1,00,000 to less than 2,00,000

4. From 2,00,000 to less than 5,00,000

5. From 5,00,000 to less than 10,00,000

6. 10,00,000 and above

Eligibility Criteria of Max Life Smart Wealth Advantage Guarantee Plan

Before buying Max Life Smart Wealth Advantage Guarantee Plan, you must ensure that you meet the following eligibility criteria.

- Variant 1(Wealth for Milestones variant): An individual should meet the minimum age criteria to buy the Wealth for Milestones variant. The minimum entry age for this variant is 8 years if you have not opted for Policy Continuance Benefit (PCB). There’s no minimum age if PCB is opted. If the policy has been opted by minors, it shall vest in the life insured once they turn 18.

- Variant 2(Regular Wealth variant): The minimum age criteria to buy the Regular Wealth Variant is 91 days. The minimum entry age is 18 years if the PCB has not opted.

- Variant 3(Long-term Wealth variant): The minimum age criteria to buy the Long-Term Wealth Variant is 91 days. If the PCB has not been opted, the minimum entry age is 18 years.

- Variant 4(Early Wealth Variant): The minimum age criteria to buy the Early Wealth Variant is 91 days if you have opted for PCP with a premium payment term of 10, 12, and 20 years for a premium payment tenure of upto 15 years, the minimum entry age is 3 years. If the PCB has not been opted, the minimum entry age is 18 years.

- Variant 5(Lifelong Wealth Variant): The minimum age criteria to buy the Lifelong Wealth Variant is 91 days. If the PCB has not been opted, the minimum entry age is 18 years.

How to Buy Max Life Smart Wealth Advantage Guarantee Plan?

Here’s how you can buy Max Life Smart Wealth Advantage Guarantee Plan:

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  • Step One

    You can begin by selecting the variant of your choice.

  • Step Two

    Once the variant has been selected, you need to decide your premium amount. The Sum Assured on Maturity (SAM) and Sum Assured at Death will be calculated according to the chosen premium amount.

  • Step Three

    You would be required to select your policy and premium payment terms.

  • Step Four

    Decide whether you want to enhance your cover with Policy Continuance Benefit and additional riders.

  • Step Five

    If you have selected Variant 2, 3, 4 or 5, you need to choose the date you want to start your income period. This includes selecting your deferment years, choice of the redemption date, and frequency of payout.

  • Step Six

    Once you have customized your plan, it’s time to make the purchase.

What are the Rider Options Available with Max Life Smart Wealth Advantage Guarantee Plan?

By buying additional riders, you can extend your range of benefits. Here are the riders available with Max Life Smart Wealth Advantage Guarantee Plan:

Max Life Waiver of Premium Plus Rider(UIN: 104B029V04)

This ensures you do not have to pay future premiums if you are diagnosed with a critical illness, disability, or death. The benefit can be redeemed only if the life insured and policyholder are different individuals.

Max Life Accidental Death and Dismemberment Rider(UIN: 104B027V04)

This riderprovides additional benefits in case of death or dismemberment of the insured due to an accident.

Max Life Term Plus Rider(UIN: 104B026V03)

This rider provides additional lump-sum benefit if the life insured dies untimely.

Max Life Critical Illness and Disability Rider: (UIN: 104B033V01)

This rider offers an additional lump-sum benefit if the insured is diagnosed with a critical illness or total and permanent disability

Boundary Conditions for Policies Sold through POSP (Point of Sales Person)

Max Life Smart Wealth Advantage Guarantee Plan can be availed through POSP (Point of Sales Person). However, some policy terms vary for sales made through POS. Here are the terms:

  • Every variant except Variant 3 and 5 is available to be sold through POS. This is because the maximum policy term allowed under the POS variant is 20 years as per applicable regulations.
  • Riders cannot be purchased through POS.
  • A medical examination won’t be needed if the product is bought from POSP.
  • A waiting period of 90 days applies for the policies sold through POS Persons. If the customer dies during the waiting period, then no benefit is payable apart from refund of 100% of the premium paid since the date of commencement of policy. In case of death of Life Insured due to accident, the Waiting Period is not applicable, and Death Benefit shall be payable. The Waiting Period is not applicable in case of revival of the policy.
  • For policies sold through POS persons, the product shall comply with all the extant provisions applicable for POS products, as amended from time to time.

  • The maximum age at maturity for policies sold through POS is 65 years.
  • The maximum sum assured on death for policies sold through POS is INR 25 lakhs. However, if the policy is bought from Max life, the maximum sum assured on death would be higher.

Conclusion

Max Life Smart Wealth Advantage Guarantee Plan is a must-buy financial instrument if your goal is to attain financial certainty in life. This versatile and far-ranging investment plan offers the benefit of guaranteed returns, among others, to meet the growing financial demands of life.

Downloads

Max Life Smart Wealth Advantage Guarantee Plan

Variant 3 (Long-term Wealth variant)

Variant 4 (Early Wealth Variant)

Variant 5 (Lifelong Wealth Variant)

FAQs

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The “Save-the-Date” feature of Max Life plan gives you the flexibility to decide the date on which you want to receive the annual payout.

No, the premium payable under Max Life guaranteed wealth plan would be the same for smokers and non-smokers.

Yes, policyholders can avail numerous discounts and benefits under this plan. The available discounts and benefits include existing customer discount, auto debit booster benefit, staff discount, transgender lives discount and special discounts for women.
Under variant 1 and 4 (Wealth for Milestones and Early Wealth variant) of the plans, the maturity benefit would be the sum assured and guaranteed accrued additions. The guaranteed additions are equal to 8% of the sum assured.Under variants 3 and 5 (Long-term wealth and Life-long Wealth variant), the maturity benefit is the sum assured on maturity. This sum assured is the total premium the policyholder has paid to date. No maturity benefit is applicable under the plan’s Regular Wealth (Variant 2).

ARN: PCP/SWAG/151122

Sources:

www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=89

www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=55

www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx

www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=134

www.incometaxindia.gov.in/Pages/tools/deduction-under-section-80c.aspx

www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11865&Mode=0

www.rbi.org.in/Scripts/FAQView.aspx?Id=79
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