Capital Guarantee Solution

Capital Guarantee Solution

 

Investing your money can be tricky. With the array of options available today, you may find yourself struggling to identify the perfect investment opportunity that can take care of your wealth-creation and life security needs, without putting your funds at risk.

Capital guaranteed investments are financial tools that specifically address this need by combining the benefits of ULIPs with guaranteed income plansmarket linked returns along with capital guarantee – providing the best of both worlds to policy buyers. It can be an excellent option for individuals seeking safe investment opportunities. 

What is Capital Guarantee?

Capital guaranteed investments are specifically designed financial products that combine the features of a Unit Linked Investment Plans (ULIPs) and guaranteed return of two or more products plansof a market-linked policy along with capital guarantee . Max Life Insurance has introduced the capital guarantee solution insurance policy to serve as a life insurance plan solution and to help you earn reap market-linked returns through the Max Life Online Saving Plan. Along with this, it also and  provides the assurance of guaranteed returns with the Max Life Smart Wealth Plan Lump sum. Along with this , life insurance cover.

Under the capital guaranteed investments, the capital is entirely secure throughout the policy period, promising 100% capital returns to the investor and they alsoeven benefit from the market's upside linked return through money invested in different equity funds of their choice which could be debt, equity, balance or a combination.

Before we understand more about how capital guarantee solutioninsurance works, it is crucial to know more about the components that make up this solutione policy – Max Life Online Savings Plan & Max Life Smart Wealth Plan. Let’s take a look at how these plans work:

Max Life Online Savings Plan?

Max Life Online Savings Plan is a Unit Linked Insurance Plan (ULIP), which means that it combines the benefits of investment and life  insurance under a single plan. This plan provides you with the opportunity to build wealth while also providing financial protection for your life. You invest your money in financial instruments through ULIPs (equity, debt, balanced or a combination of both). The performance of the funds you choose determines your investment returns.

Max Life Smart Wealth Plan?

The Max Life Smart Wealth Plan is a life insurance savings plan which provides guaranteed returns to policyholders. The guaranteed#* benefits allow you to reach your savings goals without enduring market-linked risks. Along with this, it also provides comprehensive death benefit in the unfortunate case of the insured person’s demise.

What is Capital Guarantee?


Capital guaranteed investments are specifically designed financial products that combine the features of a Unit Linked Investment Plans (ULIPs) and guaranteed return of two or more products plansof a market-linked policy along with capital guarantee . Max Life Insurance has introduced the capital guarantee solution insurance policy to serve as a life insurance plan solution and to help you earn reap market-linked returns through the Max Life Online Saving Plan. Along with this, it also and  provides the assurance of guaranteed returns with the Max Life Smart Wealth Plan Lump sum. Along with this , life insurance cover.

Under the capital guaranteed investments, the capital is entirely secure throughout the policy period, promising 100% capital returns to the investor and they alsoeven benefit from the market's upside linked return through money invested in different equity funds of their choice which could be debt, equity, balance or a combination.

Before we understand more about how capital guarantee solutioninsurance works, it is crucial to know more about the components that make up this solutione policy – Max Life Online Savings Plan & Max Life Smart Wealth Plan. Let’s take a look at how these plans work:

Max Life Online Savings Plan?

Max Life Online Savings Plan is a Unit Linked Insurance Plan (ULIP), which means that it combines the benefits of investment and life  insurance under a single plan. This plan provides you with the opportunity to build wealth while also providing financial protection for your life. You invest your money in financial instruments through ULIPs (equity, debt, balanced or a combination of both). The performance of the funds you choose determines your investment returns.

Max Life Smart Wealth Plan?

The Max Life Smart Wealth Plan is a life insurance savings plan which provides guaranteed returns to policyholders. The guaranteed#* benefits allow you to reach your savings goals without enduring market-linked risks. Along with this, it also provides comprehensive death benefit in the unfortunate case of the insured person’s demise.

How Do Capital Guaranteed Investments Work?

Capital guarantee investment funds are becoming more popular because of their risk-free nature and earning potential.dditional advantages However, as an investor, you would want to know what happens to your hard-earned income when you invest it in a policy. Hence, let’s understand how capital guarantee investments insurance works in detail by considering the case of Mr. Mehra.

Mr. Mehra is 35, working as a government servant. He wishes to save for his retirement by finding the right investment vehicle. As a salaried man, he is worried about investing in market-linked products because of the volatile nature of returns..

He decides to play it safe by investing his money in a Capital Guarantee Solution. He makes a monthly investment of Rs. 10,000 for the next 10 years (premium payment term) and stays invested till he is 55.

Capital guarantee investmentfunds are becoming more popular because of their risk-free nature and earning potential.dditional advantages However, as an investor, you would want to know what happens to your hard-earned income when you invest it in a policy. Hence, let’s understand how capital guarantee investmentsinsurance works in detail by considering the case of Mr. Mehra. 

Mr. Mehra is 35, working as a government servant. He wishes to save for his retirement by finding the right investment vehicle. As a salaried man, he is worried about investing in market-linked products because of the volatile nature of returns..

He decides to play it safe by investing his money in a Capital Guarantee Solution. He makes a monthly investment of Rs. 10,000 for the next 10 years (premium payment term) and stays invested till he is 55.

Let’s take a look at both components of a Capital Guarantee Solutioncapital investment guarantee policy  – ULIP & Saving plan to understand how it works in both aspects for Mr. Mehra:

Let’s take a look at both components of a Capital Guarantee Solution capital investment guarantee policy  – ULIP & Saving plan to understand how it works in both aspects for Mr. Mehra:

Capital Guarantee

Since he invests Rs. 10,000 each month for the first 10 years of the capital guaranteed solution scheme, he will receive 100% of the amount at the age of 55, once the policy period is over. This means, irrespective of the market conditions during the capital guaranteed investment policy, he will receive Rs. 12,00,000 he invested as capital guarantee at age 55. As a result, the policy serves as a savings instrument for investors who wish to keep their money secure for a long time.

Market-Linked Returns

If we consider the rate of market returns @8%, Mr. Mehra will receive Market linked returns of Rs. 16,64,258 or Rs. 9,29,860 @4% at age 55. This means the total benefits will be Rs. 28,64,258 @8% and Rs. 21,29,860 @4%. *

Apart from the guaranteed returns and market linked returnsbonuses, he will also enjoy life security for the entirety of the policy period. Notably, even though the capital guaranteed solution investments provides a 100 % capital guarantee, investors should consider the opportunity cost before investing to see if it fits with their financial goals. The market-linked returns on capital guaranteed solution investments scheme will be lower than the returns on a pure ULIP plan for the same amount of money, so investors should keep that in mind.

*Please note that the above assumed market-linked rates of returns, 4% and 8%, 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 number of factors including future investment performance. For more information, please request for your policy specific illustration.

How Are Capital Guaranteed Investments Different?

No one wants to lose their money because of bad financial choices. But, at the same time, it is difficult to pass up an opportunity to grow your corpus. The solution here is to choose an investment tool that addresses such particular financial needs. Unlike regular ULIPs and savings plan, Capital Guarantee Solution (CGS) is a step ahead in terms of innovation in financial products.  

Even though ULIPs are in itself an excellent tool for wealth creation and life security, capital guaranteed investments solutions scheme provides even more tailored benefits.The assurance of receiving the initial capital at the end of the policy term is an enormous advantage for investors who have limited risk-appetites. The market-linked returns and life security serve as additional benefits.

No one wants to lose their money because of bad financial choices. But, at the same time, it is difficult to pass up an opportunity to grow your corpus. The solution here is to choose an investment tool that addresses such particular financial needs. Unlike regular ULIPs and savings plan, Capital Guarantee Solution (CGS) is a step ahead in terms of innovation in financial products.  

Even though ULIPs are in itself an excellent tool for wealth creation and life security, capital guaranteed investments solutions scheme provides even more tailored benefits.The assurance of receiving the initial capital at the end of the policy term is an enormous advantage for investors who have limited risk-appetites. The market-linked returns and life security serve as additional benefits.

What are the Different Benefits of Capital Guaranteed Investments solutions?

Before making your investment decision, it is crucial to understand what you will get in return properly. Here are the benefits associated with Max Life Capital Guranteed Solution (CGS):

Zero Risk to Money Invested

With Capital Guarantee Solution,apital investment guarantee policy, you can rest assured that 100% of your money is safe with us throughout the policy period. Regardless of the market conditions in the duration, you will receive the initial capital invested in the policy. Hence, the capital guaranteed investments scheme protect your hard earned money from market volatilities.

Market-Linked Returns

During the policy period, a portion of the investment will be invested in market-linked instruments. Thus, making the investor eligible to receive any market-linked returns over and above the capital invested, at the end of the policy term.

Life Security

Along with providing market-linked returns and guaranteed capital return, this policy also ensures that the investor’s life is secured throughout the policy period.

Tax Benefit

When you invest in capital guarantee solutioninsurance, you are eligible to receive certain tax deductions on premiums and proceeds under policy benefits. Please keep in mind that all tax deductions are subject to the tax regulations that are prevalent at the time of premium payment or benefit receipt.

Tax benefit as per prevailing tax laws subject to change

Zero Risk to Money Invested

With Capital Guarantee Solution,apital investment guarantee policy, you can rest assured that 100% of your money is safe with us throughout the policy period. Regardless of the market conditions in the duration, you will receive the initial capital invested in the policy. Hence, the capital guaranteed investments scheme protect your hard earned money from market volatilities.

Market-Linked Returns

During the policy period, a portion of the investment will be invested in market-linked instruments. Thus, making the investor eligible to receive any market-linked returns over and above the capital invested, at the end of the policy term.

Life Security

Along with providing market-linked returns and guaranteed capital return, this policy also ensures that the investor’s life is secured throughout the policy period.

Tax Benefit

When you invest in capital guarantee solutioninsurance, you are eligible to receive certain tax deductions on premiums and proceeds under policy benefits. Please keep in mind that all tax deductions are subject to the tax regulations that are prevalent at the time of premium payment or benefit receipt.

Tax benefit as per prevailing tax laws subject to change

Who Should Buy Capital Guarantee Solution Insurance?

Ideally, investors who wish to invest for the long term but do not wish to endure the high-risks of market-linked investments might choose Capital Guarantee Solution.

At any given time, capital guaranteed investments serve as a risk-free investment choice in  contrast to pure market-linked products, which may not provide profitable returns ere there is risk to the invested capital if the market falls. The capital guaranteed investments scheme assures investors' that their money is protectedreturns and assists them in financially securing themselves by protecting their life and their money.

However, there is no rule that suggests only a specific category of investors should go for capital guaranteed investments. It can be a favourable investment choice for you if you fall under the following categories:

  • Salaried individuals
  • Self-employed individuals
  • Individuals looking for long-term investments
  • Individuals with low-risk appetites
  • Individuals who want life security and wealth creation under a single product
  • Individuals who want to secure their money with and need the assurance of guaranteed returns and wealth creation through market linked returns.

You can invest in Capital Guarantee Solution to save up your retirement, provide for your children's education, ensure your spouse's financial independence while you are away, or achieve any other financial objectives.

However, there is no rule that suggests only a specific category of investors should go for capital guaranteed investments. It can be a favourable investment choice for you if you fall under the following categories:

  • Salaried individuals
  • Self-employed individuals
  • Individuals looking for long-term investments
  • Individuals with low-risk appetites
  • Individuals who want life security and wealth creation under a single product
  • Individuals who want to secure their money with and need the assurance of guaranteed returns and wealth creation through market linked returns.

You can invest in Capital Guarantee Solution to save up your retirement, provide for your children's education, ensure your spouse's financial independence while you are away, or achieve any other financial objectives.

Even though the returns may be lower compared to the pure market-linked products, you should consider this plan if you have a low risk appetite and capital protection is important to you.

Even though the returns may be lower compared to the pure market-linked products, you should consider this plan if you have a low risk appetite and capital protection is important to you.

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Frequently Asked Questions

✅ What Is The Entry Age For Capital Guaranteed Solution Investments

The entry age to make capital guaranteed solution investments with this policy is 18 years. Anyone below the age of 60 can invest in the policy.

✅ What Do You Get In Maturity Benefit Of Capital Guaranteed Investments solution?

The Capital Guarantee Solution by Max Life Insurance is a combination of Max Life Smart Wealth Plan and Max Life Online Savings Plan. Hence, at the time of policy maturity, investors receive a lump sum  which is a total of guaranteed sum assured and accrued guaranteed additions (if any) of Max Life Smart Wealth Plan and Fund Value of Max Life Online Savings Plan.

✅ How Often Do You Need To Pay The Premium For Capital Guarantee Solutions?

Investors can choose to pay the premium for capital guaranteed investments solution annually or monthly.

✅ Do I Need To Pay The Premium For The Entire Policy Period?

No, there are different premium payment terms depending on the policy period chosen by the investor:

 

Premium Payment Term (in years)

Policy Term (in years)

5

12, 15, 20

8

12, 16, 20

10

12, 15, 20

12

12, 15, 20

✅ What Is The Minimum Premium Payable For Capital Investment GuaranteeGuarantee Solution?

The minimum annualized premium payable for the capital guaranteed investments depends on various factors such as the investor’s age, gender, premium payment term of the policy and the policy period.

Disclaimer :0 Capital Guarantee solution - This advertisement is designed for combination of benefits of two or more individual and separate products named Max Life Online Savings Plan, A Unit Linked Non Participating Individual Life Insurance Plan (UIN: 104L098V04) and Max Life Smart Wealth Plan, a Non Linked Non Participating Individual Life Insurance Savings plan (UIN: 104N116V04). These products are also available for sale individually without the combination offered/suggested. This benefit illustration is the arithmetic combination and chronological listing of combined benefits of individual products. The customer is advised to refer the detailed sales brochure of respective individual products mentioned herein before concluding the sale.

 #*Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business.

#* The guaranteed benefits are applicable only if all due premiums are paid.

ARN:  CGS/211021

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

99.35%

99.35%

(Source : Max life annual audited financials FY 20-21)

Max Life Presence

277 Offices

277 Offices

(Source : As reported to IRDAI, FY 20-21)

Sum Assured

₹1,087,987 Cr.

₹1,087,987 Cr.

In force (individual) (Source : Max Life Public disclosure, FY 20-21)

Assets Under Management

₹90,407 Cr.

₹90,407 Cr.

(Source : Max Life Public disclosure, FY 20-21)

More reasons why our customers choose us

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