You have the option to choose the Premium Payment Term as per your convenience, i.e., Single Pay or Limited Pay or Regular Pay. The policy will remain in force for 10 years or 20 years depending on the option you choose. Further, within the premium payment term, you can choose to pay on annual, semi-annual, quarterly, and monthly basis.
Premium Allocation Charge: The charges levied by a company while issuing the policy.
This charge is levied as a percentage of each premium paid to the company. The rate of premium allocation charge for different variants is as follows:
Fund Management Charge: The 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 above, 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:
Policy Administration Charge: A charge levied by the company to maintain your policy and is expressed as a percentage of premiums paid for all variants. This is a fixed charge for all the variants, levied at each monthly anniversary by canceling proportionate units starting from the date of commencement of policy.
Mortality Charge: A charge levied for providing risk cover (also called death benefit) to the Life Insured during the Policy Term. This charge can be calculated as follows:
Mortality Charge = Attained age x (sum at risk/1000) x (1/12) where attained age is your age on the date of calculation in years
Sum at risk = Maximum [Maximum (Sum Assured, 105% of Total Premiums Paid) - Fund Value, 0]
These charges are lower if you start early. Every month, the appropriate number of units are canceled from the Unit Account starting from the date of commencement of the policy. Please note that for the purpose of the above definition, Sum Assured reduced by partial withdrawals, if any, shall be considered.
Below are the mortality charges payable at different ages:
Surrender / Discontinuance Charge: A charge levied on the fund value at the time of discontinuance of policy or on effective complete withdrawal (surrender) whichever is earlier.
Below are the surrender charges payable for different premium payment terms (where the annualized premium is the total premium payable in a year excluding taxes and cesses):
Switching Charges: A charge levied to switch between different funds
Max Life Platinum Wealth Plan provides an unlimited number of switches without any extra charges.
Premium Redirection Charge: A charge levied to redirect your future premiums between available funds
You may redirect your future Premiums between available funds at any time by giving us a written notice before the premium due date. A maximum of six premium redirections are allowed in each policy year without any additional charges
Partial Withdrawal Charge: A charge levied to make partial withdrawals even before the end of the policy term
After the first five policy years, a maximum of two partial withdrawals are allowed in a policy year without any additional charges.
Rider Charge: A charge levied in case you have chosen an additional rider
In case you have opted for Max Life Partner Care rider (find more info in Riders section), a rider charge will be levied on the the sum of future premiums payable till the end of the premium payment term or you attaining the age of 60 years, whichever is earlier. This is deducted every month by canceling equivalent units from your unit account.