Lakshmi-Vilas-Bank Personal-NRI Premium-Banking

Guaranteed Income Plan

Overview

We like certainty in life. It is a remarkable feeling - we want to be assured that our paycheck will arrive on time. We want to be sure that our family will be financially secured, even in our absence. Life insurance can help you get this reassurance.

Max Life Guaranteed Income Plan is a savings plan which provides you a life cover with guaranteed payouts in the form of monthly income for a ‘Payout Period’ of 10 years. Further, your monthly income will double during the latter half of your Payout Period (last 5 years). In case of any immediate need, you can choose to get a lumpsum in place of monthly income.

 

Benefits

  • Guaranteed Monthly Income
    Get guaranteed monthly income for 10 years immediately after the completion of Premium Payment Term
  • Increasing Income Benefit
    Your monthly income will double in the latter half of your 10-year Payout Period (i.e. after receiving income for 5 years)
  • Guaranteed Death Benefit
    In case of death, your nominee will receive a lumpsum, and the policy will continue as before
  • Lumpsum payout option
    Get flexibility to convert your monthly income into a lumpsum payout anytime post maturity
  • Tax Benefits
    Get tax deductions for your premiums based on the prevailing tax laws

Illustration

Case Study 1: 12 year Policy Term for Mr. Gupta’s child’s education

How does Max Life Guaranteed Income Plan work for Mr. Gupta?

 

Mr. Gupta is a 35 year old salaried employee. He is recently blessed with baby girl Pooja. He wishes to buy an insurance plan to support Pooja’s school and college education.

Mr. Gupta decides to buy Max Life Guaranteed Income Plan with a Policy Term of 12 years and Annualised Premium of Rs. 1,00,000. He also decides to have Mrs. Gupta as his nominee under the plan.

Following are the two illustrative scenarios under the plan:

Scenario 1: Mr. Gupta pays all due policy premiums and survives till end of the Policy Term. He will receive the following benefits:

* “Annualised Premium” means Premium amount payable during a Policy Year chosen by Policyholder, excluding Underwriting Extra Premium, Rider Premiums and applicable taxes, cesses or levies if any.

** The Income Benefit is payable monthly and is 1/12th of the Income Benefit mentioned in the table above and is expressed as a percentage of Annualised premium. The Income Benefit payable monthly in the last 5 years of the payout period is twice the Income Benefit payable monthly in the first 5 years of the payout period. The guaranteed and non-guaranteed benefits are applicable only if due premiums are paid

The income received can be used by Mr. Gupta to ensure Pooja’s school education and also supplement her graduation expenses.

Mr. Gupta’s Age (years)

Pooja’s Age
(years)

Policy Year

Payout Year

Annualised Premium* Paid (Rs.)

Income Benefit (Rs.)**

Terminal Benefit (End of Payout Period) – One time Lumpsum (in Rs.)

35

0

1

 

1,00,000

 

 

36

1

2

 

1,00,000

 

 

37

2

3

 

1,00,000

 

 

38

3

4

 

1,00,000

 

 

39

4

5

 

1,00,000

 

 

40

5

6

 

1,00,000

 

 

41

6

7

 

1,00,000

 

 

42

7

8

 

1,00,000

 

 

43

8

9

 

1,00,000

 

 

44

9

10

 

1,00,000

 

 

45

10

11

 

1,00,000

 

 

46

11

12

 

1,00,000

 

 

47

12

 

1

 

1,31,370 per annum

 

48

13

 

2

 

1,31,370 per annum

 

49

14

 

3

 

1,31,370 per annum

 

50

15

 

4

 

1,31,370 per annum

 

51

16

 

5

 

1,31,370 per annum

 

52

17

 

6

 

2,62,740 per annum

 

53

18

 

7

 

2,62,740 per annum

 

54

19

 

8

 

2,62,740 per annum

 

55

20

 

9

 

2,62,740 per annum

 

56

21

 

10

 

2,62,740 per annum

2,00,000

Scenario 2: Mr. Gupta dies after paying 2 Annualised Premiums. In this case, his nominee will get Rs. 18,50,000 as Death Benefit immediately upon approval of death claim. However, Mrs. Gupta also has the option to avail the Death Benefit in monthly installments for a period of 10 years post the date of death. On exercising the option, the Death Benefit is payable as follows:

Mr. Gupta’s Age

Pooja’s Age

Policy Year

Benefit Payout Year

Annualised Premium* Paid (in Rs.)

Income Benefit payable for 10 years post date of death (in Rs.)**

35

0

1

 

1,00,000

 

36

1

2

 

1,00,000

 

Mr. Gupta dies

2

3

1

 

2,36,000 per annum

 

3

4

2

 

2,36,000 per annum

 

4

5

3

 

2,36,000 per annum

 

5

6

4

 

2,36,000 per annum

 

6

7

5

 

2,36,000 per annum

 

7

8

6

 

2,36,000 per annum

 

8

9

7

 

2,36,000 per annum

 

9

10

8

 

2,36,000 per annum

 

10

11

9

 

2,36,000 per annum

 

11

12

10

 

2,36,000 per annum

 

11

12

10

 

2,36,000 per annum

 

*“Annualised Premium” means Premium amount payable during a Policy Year chosen by Policyholder, excluding Underwriting Extra Premium, Rider Premiums and applicable taxes, cesses or levies if any.

** The Income Benefit is payable monthly and is 1/12th of the Income Benefit mentioned in the table above The guaranteed and non-guaranteed benefits are applicable only if due premiums are paid

Please Note: The risk cover in the policy shall be payable only during the policy term i.e. till the end of 12th policy year. In case of death during the Payout Period, we shall continue to pay the guaranteed monthly income and terminal benefit to the nominee as & when due and no death benefit shall be payable.

Case Study 2: 6 year Policy Term for Mr. Verma's retirement need

How does Max Life Guaranteed Income Plan work for Mr. Verma?

Mr. Verma is a 55-year-old private sector employee who will retire at age 60. He has planned for his retirement but he wants a further guaranteed increase his retirement income.

Mr. Verma decides to buy Max Life Guaranteed Income Plan with a Policy Term of 6 years and Annualised Premium of Rs. 1,00,000. He also decides to make Mrs. Verma his nominee under the plan.

Following are the two illustrative scenarios under the plan:

Scenario 1: Mr. Verma pays all the due policy premiums and survives till end of the Policy Term. He will receive the following benefits:

Mr. Verma’s Age

Mrs. Verma’s Age

Policy Year

Payout Year

Annualised Premium* Paid (in Rs.)

Income Benefit (in Rs.)**

Terminal Benefit (End of the Payout Period) – One time Lumpsum (in Rs.)

55

53

1

 

1,00,000

 

 

56

54

2

 

1,00,000

 

 

57

55

3

 

1,00,000

 

 

58

56

4

 

1,00,000

 

 

59

57

5

 

1,00,000

 

 

60

58

6

 

1,00,000

 

 

61

59

 

1

 

  49,910 per annum

 

62

60

 

2

 

49,910 per annum

 

63

61

 

3

 

49,910 per annum

 

64

62

 

4

 

49,910 per annum

 

65

63

 

5

 

49,910 per annum

 

66

64

 

6

 

 99,820 per annum

 

67

65

 

7

 

99,820 per annum

 

68

66

 

8

 

 99,820 per annum

 

69

67

 

9

 

 99,820 per annum

 

70

68

 

10

 

 99,820 per annum

1,25,000

*“Annualised Premium” means Premium amount payable during a Policy Year chosen by Policyholder, excluding Underwriting Extra Premium, Rider Premiums and applicable taxes, cesses or levies if any.

**The Income Benefit is payable monthly and is 1/12th of the Income Benefit mentioned in the table above and is expressed as a percentage of Annualised premium. The Income Benefit payable monthly in the last 5 years of the payout period is twice the Income Benefit payable monthly in the first 5 years of the payout period.< > The guaranteed and non-guaranteed benefits are applicable only if due premiums are paid

The income received can be used by Mr. Verma, to supplement income during his golden retirement years.

Scenario 2: Mr. Verma dies after paying 2 premiums. In this case his nominee (Mrs. Verma) will get Rs. 12,75,000 as Death Benefit immediately upon approval of death claim. However, Mrs. Verma also has the option to avail the Death Benefit in monthly installments for a period of 10 years post the date of death. On exercising the option, the Death Benefit is payable as follows:

Mr. Verma’s Age

Mrs. Verma’s Age

Policy Year

Benefit Payout Year

Annualised Premium* Paid (in Rs.)

Income Benefit payable for 10 years post date of death (in Rs.)**

55

53

1

 

1,00,000

 

56

54

2

 

1,00,000

 

Mr. Verma dies

55

3

1

 

1,62,000 per annum

 

56

4

2

 

1,62,000 per annum

 

57

5

3

 

1,62,000 per annum

 

58

6

4

 

1,62,000 per annum

 

59

 

5

 

1,62,000 per annum

 

60

 

6

 

1,62,000 per annum

 

61

 

7

 

1,62,000 per annum

 

62

 

8

 

1,62,000 per annum

 

63

 

9

 

1,62,000 per annum

 

64

 

10

 

1,62,000 per annum

*“Annualised Premium” means Premium amount payable during a Policy Year chosen by Policyholder, excluding Underwriting Extra Premium, Rider Premiums and applicable taxes, cesses or levies if any.< > ** The Income Benefit is payable monthly and is 1/12th of the Income Benefit mentioned in the table above< > The guaranteed and non-guaranteed benefits are applicable only if due premiums are paid

Important Notes:

  1. Kindly note that the above case studies are only examples and do not in any way create any rights and/or obligations.
  2. At any point of time during the Payout Period or during the payout of Death Benefits, the Policyholder or Nominee has an option of Commutation that is to receive the present value of the future benefits. This option is available during the Survival or Death Benefit payout.

Check your eligibility:

Premium Payment Term

6 years or 12 years (same as the policy term)

Age at entry
(Age at last birthday)

25-60 years

 25-55 years

Maximum Maturity Age
(Age at last birthday)

66 years

67 years

Premium payment options:

Premium Payment Term

6 years or 12 years (same as the policy term)

Premium Payment Modes

Annual Mode only

Policy Term

6 years

12 years

Minimum Annualized Premium

Rs. 75,000

Rs. 20,000

Maximum Annualized Premium

No limit, subject to underwriting

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