Guaranteed Lifetime Income Plan

As we near our retirement years, we hope that the mundane grind of life comes to a halt. However, the need for financial planning doesn’t escape us. Monthly bills and expenses continue. Buying an Annuity Plan, post retirement, can be a smart way to ensure that your regular income stream continues and helps you stay on top of your expenses.


Max Life Guaranteed Lifetime Income Plan is an annuity plan that allows you to convert your life-savings into a lifelong regular income source

 

3 reasons you should get this plan

  • Guaranteed income for your needs, as long as you live
  • In your absence, your partner can continue receiving the income under the joint life annuity
  • After the death of the annuitant(s), nominee will get the purchase price of the policy

What do I get with this plan?

What do I get with this plan?

Here’s all you need to know about this plan

Here’s all you need to know about this plan

Single Life Annuity for life (without any death benefit):

You will receive a fixed income, guaranteed at the policy inception, throughout your life.

Single Life Annuity for life with Return of Premium (ROP) payable on death:

You will receive a fixed income, guaranteed at the policy inception, throughout your life. On death, 100% of the purchase price (excluding all applicable taxes, cesses and levies as imposed by the Government) will be paid to your nominee.

Joint Life Annuity for life (without any death benefit):

You can extend the lifelong income benefit to your life partner (annuitant) with Joint Life Annuity for life. A fixed income, guaranteed at the policy inception, will be paid as long as at least one of the annuitants is alive. Payments will cease on the death of the last survivor (annuitant).

Joint Life Annuity for life with Return of Premium (ROP) payable on death of the last survivor:

A fixed amount, guaranteed at the policy inception, will be paid as long as at least one of the annuitants is alive. On the death of the last survivor, 100% of the purchase price (excluding all applicable taxes, cesses and levies as imposed by the Government) will be paid to your nominee.

Annuity Payout Modes: The payout shall happen at the end of the modal period and the following Modal Factors will be applicable:

Monthly: 0.08, 

Quarterly: 0.24 and 

Semi-Annually: 0.49.

This means, an annuity plan which provides a single annual payout of Rs. 1,00,000, will convert into 12 monthly payouts of Rs. 8,000 each (Rs. 1,00,000 x Monthly Modal Factor).

This plan does not offer Survival or Maturity Benefit. Than plan also has no Surrender Value and does not offer Loan Facility. However, on the death of annuitant(s), the nominee can receive 100% of the purchase price (excluding all applicable taxes, cesses and levies as imposed by the Government) in case of Single Life / Joint Life Annuity Plans with Return of Premium (ROP).

 

To get started with this immediate Annuity plan, you need to choose a one-time lumpsum amount (purchase price), select any of the four Annuity Options, and the Payout Mode (monthly, quarterly, half-yearly, yearly). Annuity payouts will start accordingly and their amount will be based on the Annuity Rate applicable.

Let’s look at how this plan works for Mr. Sharma:

Case Study 1 (Joint Life Annuity for Life (without any death benefit)

How does Max Life Guaranteed Lifetime Income Plan work for Mr. Kumar?

Mr. Kumar is a family man and he has just retired from service at the age of 60 years. He has a wife aged 58 years. His 2 daughters are married and are working. 

He purchases Max Life Guaranteed Lifetime Income Plan - Joint Life Annuity for Life (without any death benefit)with a purchase price of Rs. 10,00,000 (exclusive of all applicable taxes, cesses and levies as imposed by the Government from time to time). Mr. Kumar will receive an annual payout of ₹73100 throughout his life. 

In case of the unfortunate event of the death of Mr Kumar, the payout equal to ₹73100 will continue throughout the lifetime of Mrs Kumar, enabling her to be financially independent during her golden years. 

Case Study 2 (Joint Life Annuity for Life with the return of purchase price)

How does Max Life Guaranteed Lifetime Income Plan work for Mr Sharma?

Mr Sharma is a 65-year-old individual who has just retired from service. He lives with his wife Mrs Sharma aged 60 years and his two children. 

He purchases Max Life Guaranteed Lifetime Income Plan - Joint Life Annuity for Life with Return Of Purchase Price with a purchase price of Rs. 10,00,000 (exclusive of all applicable taxes, cesses and levies as imposed by the Government from time to time).  They name their two children as nominees with proportional ownership of 50% each.

Mr. Sharma gets a guaranteed payout of  ₹65960 every year. In case of the unfortunate event of the death of Mr. Sharma, Mrs. Sharma will continue to receive the guaranteed annual payout of  ₹65960 throughout her lifetime, enabling her to be financially independent during her golden years. Upon her death, the entire purchase price of Rs. 10,00,000 shall be paid to the nominees under the plan. In this case, the two children receive an amount equal to Rs. 5,00,000 each. 

Kindly note that the above case studies are only illustrations and do not in any way create any rights and/or obligations. The annuity rates shown in the case studies are only illustrative reference values and are as of April, 2019.

Entry Age*

Minimum: 50 years, (55 years for policies sourced under Qualifying Recognized Overseas Pension Scheme (QROPS), as per prevailing Her Majesty’s Revenue & Customs (HMRC) regulations)

Maximum: 80 years

*In case of purchase of annuity from Death / Surrender benefit proceeds of the pension accumulation plan of the Company, the minimum entry age can be less than 50 years and the minimum purchase price can be less than Rs. 1,00,000. However, the annuity option available will be Single Life Annuity For Life Option only.

Please note that annuity below age 50 will be offered only in case the annuity is purchased from the proceeds arising out of the Surrender Benefit, Death Benefit, or Maturity Benefit payable under the Company’s pension accumulation plan.

 

Minimum and Maximum premium (Purchase Price)

Minimum Purchase Price: Minimum Single Premium is subject to a Minimum Annuity payout being at least  Rs. 1,000 per month.

Maximum Purchase Price: No limit

Please note that annuity for a single premium of less than Rs. 1,00,000 will be offered only in case annuity is purchased from the proceeds arising out of the Surrender Benefit, Death Benefit, or Maturity Benefit payable under the company’s pension accumulation plan.

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Why Choose Max Life

Here are some of the numbers which speak about our accomplishments

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments
Claims Paid Percentage

98.26%

98.26%

Src: IRDAI Annual Report 2017-18

Max Life Presence

221 Offices*

221 Offices*

*As approved by IRDAI

Sum Assured

₹511,541 Cr.

₹511,541 Cr.

In force (individual) Src: Public Disclosure, FY 2017-18

Assets Under Management

₹52,237 Cr.

₹52,237 Cr.

Src: Public Disclosure, FY 2017-18

More reasons why our customers choose us
See what people have to say about our Super Term Plan
See what people have to say about our Super Term Plan

I invested in MaxLife Retirement Plan in 2013. So far I have been very satisfied with Max Life’s service response. I will recommend it to anyone who wants to retire comfortably.

 

Mr. Shukla, 60 years

Sagar

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