4 min read
Updated on Aug 28, 2023
Guaranteed income plans are fast becoming popular in India, thanks to the dual benefits that they offer to the customer – life insurance and (the second one’s right there in its name) guaranteed income upon plan maturity. Max Life Insurance, keeping pace with the trend, offers a guaranteed income plan which is essentially a conventional savings plan that promises monetary benefits every month after it matures. This blog offers insight into the plan and how it can help you create a strong corpus for the future while enjoying the added advantage of life insurance as well.
Max Life brings forth the Guaranteed Income Plan with a view to offering policyholders the benefit of investment and insurance both. Here are the key details of the policy for your reference:
If you have paid the full premium for 2 or 3 years, you are allowed to surrender the policy. The Surrender Value thus claimed is higher than the Guaranteed Surrender Value and is computed as a percentage of the total premiums paid so far.
It is not offered as part of the guaranteed return insurance plan.
The policyholder is required to submit the following documents for policy purchase:
The policyholder is allowed a grace period of 30 days for payment of premium, in case of any default in timely payment. If the payment is not made within 1 month, the policy would lapse.
You are entitled to cancel the policy after purchase in case it was not up to your liking or you do not accept the terms and conditions laid out. In this case, you need to cancel the guaranteed return policy within 15 days of buying it. Make sure that no claim has been made against the plan during the Free Look Period.
Providing dual advantages of investment + insurance, the plan is regarded as the best-guaranteed return plan in the country. Listed below are some of the prime advantages that policyholders are entitled to enjoy upon plan purchase:
1. As the name suggests, the plan promises a guaranteed income every month upon maturity. The payout period starts right after maturity and continues every month.
2. The policyholder is entitled to receive income tax benefits on the paid premium per Section 80C of the Income Tax Act. The claim amount received is also subject to tax exemptions under Section 10(10D) of the ITA.
3. A Death Sum Assured is guaranteed to the nominee of the policyholder in the event of his/her death. This amount is greater than 10 times the annual premium of 105% of all paid premiums.
4. Both the policyholder and the nominee can receive the monthly income received in the form of a lump sum and the total sum of installments is discounted at 5.7% per annum.
5. The nominee is entitled to the death benefit by way of monthly installments for a total of 10 years.
6. Upon completion of the payout period, a Terminal Benefit is paid to the policyholder, which equals 125% for 6 years and 200% for 12 years, respectively.
We took a detailed look at the policy features and benefits. Now let us consider the big question – Is investment in Max Life Guaranteed Income Plan worth it?
The answer is: Absolutely! It is currently the best-guaranteed return investment plan assuring a regular and fixed income throughout your lifetime. Hence, the plan helps you create a sufficient corpus for your family in your absence.
However, there are a few disadvantages to the plan too, which deserve a mention in this blog:
However, despite these setbacks, it would be safe to say that the plan offered by Max Life is indeed the best investment plan with guaranteed returns as a sure-shot promise. It is helpful to those looking forward to a fixed and regular income post retirement or a sufficient wealth corpus to build for meeting the needs of their children and other family members. To know more details about this plan or other guaranteed income plans, do visit PayBima.
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It is computed as a single premium which is multiplied by 75% of the outstanding term to maturity or the total policy term.
It is generally a rider benefit that is added to an annuity contract and assured the annuitant of a specified amount of income for a lifetime.
You may get in touch with the Max Life Insurance team on the toll-free number 1860-120-5577 anytime Monday through Saturday between 9 am and 6 pm IST.
The Special Surrender Value is generally more than the Guaranteed Surrender Value. However, the insurance company gets to decide the values of both.
The SSV is generally calculated if the policyholder stops paying the premium amount for the plan; however, the plan continues until the policyholder wishes to surrender it.
The two types of surrender values are:
~ Special Surrender Value
~ Guaranteed Surrender Value
It is called surrender and the amount received at the time is defined as Surrender Value. The life cover immediately stops and becomes non-renewable too.
The insurer would send you a cheque that contains the cash value of your policy. Cash value refers to the amount paid by you towards the plan and deducts any other charges or fees. This money is generally sent to the policyholder within 30 days of policy cancellation.
Yes, it is possible to withdraw cash before the death of the policyholder, provided he/she has a permanent life insurance policy with an insurer.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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