In Unit Linked policy, the investment risk in Investment portfolio is borne by the policyholder.
Capital Guarantee solution: This advertisement is designed for combination of benefits of two or more individual and separate products named Max Life Smart Wealth Plan (a Non-Linked, Non-Participating, Individual, Life Insurance Savings plan, UIN:104N116V08)and Max Life Flexi Wealth Advantage Plan (Unit Linked Non-Participating Individual Plan, UIN: 104L121V01). 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.

What is Smart Capital Guarantee Solution?

What is Smart Capital Guarantee Solution?

The Smart Capital Guarantee Solution is a combination of ULIP (Unit Linked Insurance Plan) and Non-Participating Traditional Savings plan. The product is designed to ensure that the total premium paid by the customer is guaranteed to be returned along with an opportunity to grow the residual investment. Here we will focus on everything you need to know about the Smart Capital Guarantee Solution, including its working, benefits, and eligibility.

How Does Smart Capital Guarantee Solution Work? 

Smart Capital Guarantee Solution combines a guaranteed saving plan - Max Life Smart Wealth Plan(a Non-Linked, Non-Participating, Individual, Life Insurance Savings plan) and a ULIP, - Max Life Flexi Wealth Advantage Plan (Unit Linked Non-Participating Individual Plan), to provide customers with an investment alternative that caters to safety, returns and liquidity.

Max Life Smart Wealth Plan is a non-linked life insurance savings plan that helps secure the financial future through guaranteed returns. It offers guaranteed*# benefits, flexibility to choose from 4 options as per your needs. It also provides a comprehensive death benefit in case the policyholder passes away during the policy term.

While Max Life Flexi Wealth Advantage Plan allows investors to create wealth by putting their money in a customized plan that lets them stay in control of their funds. The benefits provided under this plan include option to choose from 11 different funds to invest as per your risk appetite, maturity benefit, death benefit, tax benefits, and guaranteed loyalty additions.

It is fairly obvious that while Max Life Smart Wealth Plan provides safety of funds and guaranteed returns. Max Life Flexi Wealth Advantage Plan provides an opportunity to grow your investments offers. We have merged these two plans to build Smart Capital Guarantee Solution, which is designed to deliver on all these parameters—safety, returns, and liquidity.

Under Smart Capital Guarantee Solution, the premium is split between Max Life Smart Wealth Plan and Max Life Flexi Wealth Advantage Plan, depending on the PPT (Premium Payment Term) and PT (Policy Term) combination. With the FWAP part, you can earn returns from market-linked incentives, while SWP will provide you with guaranteed returns which will be equal to your total invested capital in the solution.

It is fairly obvious that while Max Life Smart Wealth Plan provides safety of funds and guaranteed returns. Max Life Flexi Wealth Advantage Plan provides an opportunity to grow your investments offers. We have merged these two plans to build Smart Capital Guarantee Solution, which is designed to deliver on all these parameters—safety, returns, and liquidity.

Under Smart Capital Guarantee Solution, the premium is split between Max Life Smart Wealth Plan and Max Life Flexi Wealth Advantage Plan, depending on the PPT (Premium Payment Term) and PT (Policy Term) combination. With the FWAP part, you can earn returns from market-linked incentives, while SWP will provide you with guaranteed returns which will be equal to your total invested capital in the solution.

Benefits of both worlds – Capital Guarantee and Opportunity to grow your wealth

This combo investment solution combines the benefits of both market-linked plans and guarantee plans. More precisely, this plan offers the benefit of guaranteed*# returns as well as the opportunity to invest in equity. 

Benefits of Smart Capital Guarantee Solution

5 Different Combinations for Every Customer 

The Smart Capital Guarantee solution has five different combinations to offer every customer as per their requirements. Let us take a look at various options available: -

1. Milestone (10 years): Lumpsum 

Under this combination, both Max Life Smart Wealth Plan and Max Life Flexi Wealth Advantage Plan have a Premium Payment Term (PPT) of 5 years and a Policy Term (PT) of 10 years. It is a lumpsum variant of Max Life Smart Wealth Plan and wealth variant in the case of Max Life Flexi Wealth Advantage Plan.

The investor needs to pay the premium for 5 years and will receive a 100% capital return through the maturity benefit of Max Life Smart Wealth Plan.Maturity benefits of Max Life Flexi Wealth Advantage Planwill give market-linked returns at the end of the policy term, which is 10 years.

1. Milestone (10 years): Lumpsum 

Under this combination, both Max Life Smart Wealth Plan and Max Life Flexi Wealth Advantage Plan have a Premium Payment Term (PPT) of 5 years and a Policy Term (PT) of 10 years. It is a lumpsum variant of Max Life Smart Wealth Plan and wealth variant in the case of Max Life Flexi Wealth Advantage Plan.

The investor needs to pay the premium for 5 years and will receive a 100% capital return through the maturity benefit of Max Life Smart Wealth Plan.Maturity benefits of Max Life Flexi Wealth Advantage Planwill give market-linked returns at the end of the policy term, which is 10 years.

2. Milestone (12 years): Lumpsum

In this combination, both Max Life Smart Wealth Plan and Max Life Flexi Wealth Advantage Plan have a premium payment term of 5 years and a policy term of 12 years. It is a lumpsum variant of Max Life Smart Wealth Plan and wealth variant in the case of Max Life Flexi Wealth Advantage Plan.

The investor needs to pay the premium for 5 years and will receive a 100% capital return through the maturity benefit ofMax Life Smart Wealth Plan.Maturity benefits of Max Life Flexi Wealth Advantage Plan will give market-linked returns at the end of the policy term, which is 12 years.

3. Milestone (15 years): Lumpsum

Under this combination, both Max Life Smart Wealth Plan and Max Life Flexi Wealth Advantage Plan have a premium payment term of 5 years and a policy term of 15 years. It is a lumpsum variant of Max Life Smart Wealth Plan and wealth variant in the case of Max Life Flexi Wealth Advantage Plan.

The investor needs to pay the premium for 5 years and will receive a 100% capital return through the maturity benefit ofMax Life Smart Wealth Plan.Maturity benefits of Max Life Flexi Wealth Advantage Plan will give market-linked returns at the end of the policy term, which is 15 years.

4. Whole Life

This combination includes the short-term income variant of the Max Life Smart Wealth Plan and the whole life variant of Max Life Flexi Wealth Advantage Plan. It has a premium payment term of 8 years. The SWP part has a policy term of 9 years, while the FWAP part has a PT of the whole life.

As an investor of this combination, you need to pay the premium for 8 years, and you will receive a 100% capital guarantee through guaranteed income for 8 years. Max Life Flexi Wealth Advantage Plan will continue as it is, with customer having an option to do partial withdrawals from fund value till 100 years of age.

4. Whole Life

This combination includes the short-term income variant of the Max Life Smart Wealth Plan and the whole life variant of Max Life Flexi Wealth Advantage Plan. It has a premium payment term of 8 years. The SWP part has a policy term of 9 years, while the FWAP part has a PT of the whole life.

As an investor of this combination, you need to pay the premium for 8 years, and you will receive a 100% capital guarantee through guaranteed income for 8 years. Max Life Flexi Wealth Advantage Plan will continue as it is, with customer having an option to do partial withdrawals from fund value till 100 years of age.

The living benefit under this combination includes the income value of Max Life Smart Wealth Plan, which guarantees a return of capital, and the maturity value of Max Life Flexi Wealth Advantage Plan, which offers the return from market-linked incentives. Also, the death benefit comprises of death sum assured of Max Life Smart Wealth Plan as well as the death sum assured for Max Life Flexi Wealth Advantage Plan for the entire policy term.

5. Regular Income

The Regular Income combination is made up of the long-term income variant of the Max Life Smart Wealth Plan and the wealth variant of the Max Life Flexi Wealth Advantage Plan. It has a PPT of 6 years. The SWP part has a PT of 7 years, while the FWAP part has a PT of 16 years.

The buyer of this policy needs to pay the premium for 6 years and receive a guaranteed income for 30 years. After income period is over, customer will also get Return of Premium that was allocated to Max Life Smart Wealth Plan, which will ensure 100% capital return that was invested in Smart Capital Guarantee Solution. In addition to this customer will get maturity benefit of Max Life Flexi Wealth Advantage Plan after 16 years, which will give market linked returns. This combination offers a living benefit that contains the income benefits and return of premium at maturity of Max Life Smart Wealth Plan and the maturity value of Max Life Flexi Wealth Advantage Plan. The death benefit for the first 7 years consists of a death sum assured of Max Life Smart Wealth Plan and Max Life Flexi Wealth Advantage Plan. For the 8th and 16th year onwards, the death benefit includes just the death sum assured for Max Life Flexi Wealth Advantage Plan.

Eligibility Criteria for Smart Capital Guarantee Solution

The following table shows the eligibility criteria for all the combinations along with the minimum premium.

Combination

Minimum Entry Age

(yrs)

Maximum Entry Age (yrs)

Milestone Solution

(10 years)

 

 

 

 

18

55

Milestone Solution

(12 years)

60

Milestone Solution

(15 years)

60

Whole Life Solution

50

Regular Income Solution

50

Who Should Buy Smart Capital Guarantee Solution?

There is no rule that suggests a specific category of investors to go for the Smart Capital Guarantee Solution. However, it can be a beneficial investment choice if you fall under the following categories: -

  • Salaried individuals
  • Risk-averse individuals
  • Capable of paying 1.5 lakh per annum.
  • Individuals who are looking to fulfil short-term or long-term financial goals.
  • People who want guarantee and growth under a single product.
  • Individuals who want guaranteed*# returns.

There is no rule that suggests a specific category of investors to go for the Smart Capital Guarantee Solution. However, it can be a beneficial investment choice if you fall under the following categories: -

  • Salaried individuals
  • Risk-averse individuals
  • Capable of paying 1.5 lakh per annum.
  • Individuals who are looking to fulfil short-term or long-term financial goals.
  • People who want guarantee and growth under a single product.
  • · Individuals who want guaranteed*# returns.

Conclusion 

The Smart Capital Guarantee Plan provides a safety net to its investors with the promise of guaranteed return along with the opportunity to participate in market-linked incentives. It is flexible as it can cater to your long-term as well as the short-term financial objectives. You can consider this plan if you have a low-risk appetite and want the safety of funds as well as guaranteed returns.

 FAQs

1. Why should I invest in Smart Capital Guarantee Solution?

You can consider investing in this plan if you have a low-risk appetite and want the safety of funds as well as guaranteed returns. Smart Capital Guarantee Plan is designed to deliver on all these parameters—safety, returns, and liquidity.

2. What is the entry age for Smart Capital Guarantee Solution?

The entry age for Smart Capital Guarantee Plan is 18 years.

3. Do I need to pay the premium for the entire policy term period?

No, there are different premium payment terms for different combinations of this plan.

4. What are the different combinations of Smart Capital Guarantee Solution?

The different combinations of Smart Capital Guarantee Solution include: -

  • Milestone Solution (10 years)
  • Milestone Solution (12 years)
  • Milestone Solution (15 years)
  • Whole Life Solution
  • Regular Income Solution

5. What are the tax benefits under the Smart Capital Guarantee Solution?

The premium paid towards this plan is allowed for tax deduction under section 80C of the IT Act. Moreover, the accrued bonus, including death benefit and maturity benefit, is tax-exempt under section 10(10D).

ARN: PCP/SCGS/060922

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Choose a Max Life Savings & Income 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

99.34%

99.34%

(Source : Max life annual audited financials FY 21-22)

Max Life Presence

269 Offices

269 Offices

(Source : As reported to IRDAI, FY 21-22)

Sum Assured

₹1,174,515 Cr.

₹1,174,515 Cr.

In force (individual) (Source : Max Life Public disclosure, FY 21-22)

Assets Under Management

₹1,07,510 Cr.

₹1,07,510 Cr.

(Source : Max Life Public disclosure, FY 21-22)

More reasons why our customers choose us

Let’s Connect

Let’s Connect

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