Case Study
Mr. Gupta aged 35 years purchased Max Life Online Savings Plan (Variant 1) with the details as below:
Premium Payment Term = 10 years; Policy Term = 20 years; Mode of Payment = Monthly
Annualised Premium = 50, 000; Fund chosen: Balanced Fund; Cover Multiple: 10 times of Annualised Premium

*Please note that the above assumed rates of return @ 4% and 8% p.a. respectively, for Balanced Fund, are only scenarios at these rates after recovering all applicable charges. These are not guaranteed and they are not the upper or lower limits of returns of the Funds selected in your policy, as the performance of the Funds is dependent on a number of factors including future investment performance. For more information, please request for your policy specific benefit illustration.
The charges specified below are guaranteed and shall not change during the policy lifetime.
1. Premium Allocation Charge
Nil
2. Policy Administration Charge (All Years)
Nil
3. Fund Management Charge
This is a charge levied as a percentage of the value of assets and shall be appropriated, usually daily, by adjusting the Net Asset Value of the Fund. The rate to be levied will be equal to the annual rate, as given below, divided by 365 and multiplied by the number of days that have elapsed since the previous unit valuation date. The charges specified below are guaranteed and shall not change during the policy lifetime. The annual rate of Fund Management Charge is as below.
Name of Fund
|
Charge (per annum) as % of Fund Value
|
High Growth Fund (SFIN: ULIF01311/02/08LIFEHIGHGR104)
|
1.25%
|
Diversified Equity Fund (SFIN: ULIF02201/01/20LIFEDIVEQF104)
|
1.25%
|
Growth Super Fund (SFIN: ULIF01108/02/07LIFEGRWSUP104)
|
1.25%
|
Growth Fund (SFIN: ULIF00125/06/04LIFEGROWTH104)
|
1.25%
|
Balanced Fund (SFIN: ULIF00225/06/04LIFEBALANC104)
|
1.10%
|
Dynamic Bond Fund (SFIN: ULIF02401/01/20LIFEDYNBOF104)
|
0.90%
|
Secure Fund (SFIN: ULIF00425/06/04LIFESECURE104)
|
0.90%
|
Money Market II Fund (SFIN: ULIF02301/01/20LIFEMONMK2104)
|
0.90%
|
Discontinuance Policy Fund
(SFIN: ULIF02021/06/13LIFEDISCON104)
-available only on surrender or discontinuance of policy in first five policy years
|
0.50%
|
4. Mortality Charge
The mortality charge will be levied on the basis of ‘Sum at Risk’ on every monthly anniversary by canceling units from the unit account starting from the date of commencement of policy. The mortality charge will be on an attained age basis over the duration of the contract.
Variant 1:
Max (Max (Sum Assured, 105% of all premiums paid) – Total Fund Value, 0)
Please note that in the above definition Sum Assured reduced by applicable partial withdrawals, if any, shall be considered.
The mortality charges are unisex and are guaranteed for the entire Policy Term.
During Settlement Peroiod:
Max (105% of total premiums paid – Total Fund Value, 0)
5. Surrender / Discontinuance Charge
This charge shall be levied on the Fund Value at the time of Discontinuance of Policy or effecting Complete Withdrawal (Surrender) whichever is earlier, as per the following table. This charge is expressed as the lower of (X% of Annualised Premium, X% of Fund Value, ‘Y’ fixed rupee amount) where X and Y vary according to the year of premium discontinuance/surrender.

No Surrender/Discontinuance charge shall be levied from 5th Policy Year onwards.
For example: If the Annual Premium is ₹40,000 and the Fund Value at the end of the first year is ₹ 42,000, then the Discontinuance Charge will be the lower of (20% of 40,000, 20% of 42,000, 3,000) which works out to be ₹ 3,000.
6. Switch Charge
All switches will be free of charge.
7. Premium Redirection Charge
There is no charge for premium redirection. A maximum of six premium redirections are allowed in any Policy year.
8. Partial Withdrawal
Partial withdrawals are free of any charge. A maximum of two partial withdrawals are allowed in any policy year.
9. Miscellaneous Charges
There are no miscellaneous charges.
However, please note:
All applicable taxes, cesses and levies as imposed by the Government from time to time will be levied on all charges as per the prevailing laws.
Any further taxes and cess shall be passed on to You.