Minimum: 30 Years

Maximum: 85 Years

The restrictions on the minimum & maximum Entry Age should not be applicable for National Pension System (NPS) Subscribers & their family members where purchase is from NPS proceeds as per the existing PFRDA guidelines, subject to compliance with IRDAI norms.

Annuitant(s) below 30 years of age will only be accepted where the proceeds are from a contract issued or administered by the Company, where the compulsory purchase of an annuity is required.

Existing MLI Pension Plan holders or Pension Plan holders of any other Life Insurance companies will be 18 Years of age

For the nominees of existing Max Life Pension Plan holders will be 0 years (91 days) old.

There is no limit on the maximum entry age for Nominees(s) of insurer’s pension plans, under which annuitising is compulsory

The minimum entry age in the case of policies sourced under Qualifying Recognised Overseas Pension Scheme (QROPS) is 55 years, as per prevailing Her Majesty’s Revenue & Customs (HMRC) regulations.

In all the above instances for Joint life Annuities the age limits apply to both lives.

Here's the basic overview of how the plan works: -

· Under a Smart Guaranteed Pension Plan, you first need to choose the amount of the single premium payment to purchase the policy. This amount will be accepted only if it results in an annuity payout of at least Rs. 1,000 per month (or 12,000 per year).

· The regular annuity you receive will be based on the annuity rates at the time of the purchase of the policy. After the purchase, the annuity rates will remain fixed for the annuitant's lifetime.

· Then, you can choose from the two immediate annuity options, namely, Single Life and Joint Life. Both variants are available with or without the death benefit option. You can opt for either option as per your requirement.

· And lastly, you can choose to receive the annuity pay-out monthly, quarterly, half-yearly, or yearly.

Case Study: Joint Life Immediate Annuity for Life (With Death Benefit)

How does Max Life Smart Guaranteed Pension Plan work for Mr. Sharma?

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

He purchases Max Life Smart Guaranteed Pension Plan - Joint Life Immediate Annuity (with death benefit) with a Single Premium of Rs. 10,00,000 (exclusive of all applicable taxes, cesses, and levies imposed by the Government from time to time). The annuity mode chosen is annual. They name their two children as nominees with proportional ownership of 50% each.

Mr Sharma gets a guaranteed payout of Rs. 72,270 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 Rs. 72,270 throughout her lifetime, enabling her to be financially independent during her retirement. Upon her death, the entire Single Premium 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.

Minimum

   - The premium amount will be accepted until it results in an annuity payout of at least Rs. 1000 per month (Or Rs. 12,000 per year). 

Maximum:

As per Board Approved Underwriting policy

There will be no such limitations for the NPS subscribers.

The annuity payment modes can be monthly, quarterly, half-yearly, or yearly.

· Policy Term

For Single Life Annuity, the policy term is until the death of the annuitant.

For Joint Life Annuity, the policy term is until the death of the last survivor (annuitant).

· Premium Payment Term

The premium to be paid under the Smart Guaranteed Pension Plan is a single lump-sum premium.

· Additional Benefits

a. Top-Up Option

You can enhance your annuity payout with this potion. The minimum top-up should be Rs. 1,00,000, and you can make top-ups for the first 10 years of the policy.

b. Advance Annuity Option

This is a new feature offered by Max Life, where you can withdraw the annuity payout for the next 5 years as a lump sum. This benefit can only be availed on the death of 1^st annuitant under the Joint Life Annuity with death benefit option.

· Survival Benefit 

A fixed annuity amount is paid to the annuitant at the end of every chosen modal period. For Single Life and Joint Life Annuity, the annuity is paid as long as the annuitant is alive. 

· Death Benefit

The death benefit is paid to the nominee as a lump sum. It consists of 100% of the single premium and the top-ups if any. It can be availed only in the annuity variants with death benefits.

· Surrender of the policy

The policyholder can surrender the annuity plan after the completion of the free-look period. You can surrender only in the annuity variants with death benefits.

The Guaranteed Surrender Value is 50% of the single premium paid minus the annuities already paid during the policy year of surrender.

The Max Life Smart Guaranteed Pension Plan can be a safe investment if you feel your savings are not enough to spend your retired life comfortably. With this plan, you can secure your family's financial future while not giving up your living standards

The list of annuity payout modes available is as follows,

·         Annually

·          Semi-Annually

·         Quarterly

·          Monthly

Modal factors applicable for modes other than annual mode are mentioned below:

·         Monthly: 0.08

·         Quarterly: 0.24

·         Semi-Annually: 0.49