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

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.

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:

*“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:

*“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:

*“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.

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